Millennials’ acceptability of <i>tawarruq</i>-based <i>ar-rahnu</i> in Malaysia

Amin, Hanudin; Hassan, M. Kabir

doi:10.1108/ijoes-09-2021-0170

Cited by 10 publications

(11 citation statements)

References 26 publications

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“…Knowledge which is properly disseminated will improve millennials’ perception pertinent to the product under contemplation (Adrutdin et al , 2015), implying when knowledge is established properly, the ability of millennials to make sound banking decisions is concretely advanced. Generally, millennials always consider knowledge seeking prior to adoption in avoiding mistakes that can lead to losses in time and money, as pointed out by Amin and Hassan (2022).…”

Section: Discussionmentioning

confidence: 99%

“…Firstly, millennials are considered as the large stakeholders for the current offered Islamic banking products including tawarruq home financing. According to Amin and Hassan (2022), the millennial generation represents a significant prospective customer base for the Islamic banking industry including the facility concerned. Secondly, the millennials are socially conscious individuals who are concerned about society, including the importance to learn and adopt tawarruq home financing.…”

Section: Introductionmentioning

confidence: 99%

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Determinants of millennials’ acceptance towards tawarruq home financing in Sandakan, Sabah, Malaysia

Panggi

Amin²,

Shaikh³

2022

IJHMA

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Purpose The purpose of this study was to investigate the factors that influence the millennials’ intention to choose tawarruq home financing in Sandakan, Sabah, Malaysia. Design/methodology/approach The primary data were gathered via the questionnaire survey administered among Islamic banking customers in Sandakan, Sabah. Data obtained were analysed via multiple regression analysis using the software, Statistical Package for Social Sciences. Findings This study found that attitude, subjective norm, perceived behavioural control, religiosity and knowledge in muamalat had a positive significant relationship towards millennials’ intention to choose tawarruq home financing in Sandakan, Sabah. Research limitations/implications This study used the sample size by inviting over 150 participants who filled the questionnaires and the area of coverage for the current study was limited to Sandakan, Sabah, Malaysia. Besides, the contributions of this study were confined to those factors examined in the research’s conceptual framework. Practical implications The results obtained through this study can help muamalat practitioners in providing the best practice of tawarruq home financing in the locality at best. In addition, this study also helps to guide managers of Islamic banks to plan better offers of the facility among local folks. Originality/value This study integrated religiosity and knowledge in muamalat in explaining millennials’ acceptance of tawarruq home financing in Sandakan, Sabah, Malaysia.

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Determinants of millennials’ acceptance towards tawarruq home financing in Sandakan, Sabah, Malaysia

Panggi

Amin²,

Shaikh³

2022

IJHMA

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“…His study reveals that halal-haram consideration is the most dominant factor determining Rahn's adoption. Second, in a study of 267 Malaysian respondents, Amin and Hassan (2022) examined the effect of Islamic religiosity, Islamic altruism, and Islamic debt collection policy on Rahn adoption among millennial customers, documenting that those three factors significantly affect this adoption. Thus, based on the explanation of prior studies, religiosity is an essential element affecting the usage of Rahn products among customers, primarily in Muslim-majority countries.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…To our observation, Rahn's studies using Indonesia's context are also limited. Most of the scholarly literature about Rahn employs Malaysia's context (Abdul Razak & Asutay, 2022;Amin & Hassan, 2022;Bahari et al, 2021;Hussen & Ibrahim, 2018;Mohd Thas Thaker et al, 2020;Muhamat et al, 2011;Nik Azman et al, 2018). Thus, to fill the gap in the literature, this study attempts to investigate Rahn, primarily the factors that determine its usage.…”

Section: Introductionmentioning

confidence: 99%

What Drives Rahn Adoption?

Firmansyah,

Pratama,

Abror

et al. 2023

J. Theor. Appl. Manage.

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Objective: Sharia pawning, or Rahn, is one of the Islamic financial products adopted by society to solve cash needs and have assets as collateral. Adoption of this product is limited in scholarly work. This study examines the effects of religiosity, service quality, and location on adopting Islamic (Sharia) pawning services. Design/Methods/Approach: A self-administered questionnaire was distributed to 200 Islamic bank customers. Both offline and online questionnaires were employed for data collection. SPSS 22 and SmartPLS 4.0 software were used to perform comprehensive data synthesis, confirmatory factor analysis, and rigorous hypothesis testing, fostering a data-driven approach to ensure the integrity and validity of this research. Findings: The results show that only religiosity has a significant relationship with Rahn adoption. Location and service quality do not drive customers to use Rahn products. These results indicate the significant role of religious values in Rahn adoption. Originality/value: This study contributes to the limited Islamic marketing literature on Rahn or Sharia pawnshops, primarily on the determinant of this financing adoption using the Indonesian context. Practical/policy implications: Islamic pawnshops must emphasize Sharia compliance in the Rahn product provision because customers, primarily those in relatively religious regions, highly consider this aspect when using the pawnshop service.

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“…Even Ahmad et al (2017) state that all transactions related to Tawarruq contract commodity must be done through BSAS. Even though numerous research studies have been conducted on the application of Tawarruq in Islamic banking in Malaysia (Amin and Hassan, 2022;Mahyudin and Seman, 2018;Asni, 2022), no research so far has been conducted to understand the potential of Tawarruq between individuals. As such, this research intends to fill this research gap.…”

Section: Prrmentioning

confidence: 99%

Can micro-enterprises use Tawarruq Fardi Financing (TFF) for fund raising?

Siddiky

Swandaru

Muneeza

2022

PRR

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PurposeMicro-enterprises, like any other business entity, face financing challenges. However, micro-enterprises often cannot access financial institutions as they cannot fulfill the conditions to obtain financing facilities from a formal financial institution. As such, they have to rely on family or friends for financing needs. The most critical challenge faced in this regard to Muslim micro-enterprises is finding out a way in which family and friends could give a financial helping hand without the involvement of riba (interest). At the same time, the person giving the financing can enjoy a profit. This paper aims to propose the Tawarruq Fardi Financing (TFF) model that Islamic micro-enterprises could use to fulfill their financial needs. It becomes a solution when obtaining financing from friends and family or any other third party who could be a private investor who does not want to engage in an equity relationship.Design/methodology/approachThis study adopts a qualitative research methodology, combining descriptive and content analysis using the inductive reasoning approach.FindingsThe paper's outcome shows that the proposed TFF could assist Islamic micro-enterprises in obtaining Shariah-compliant financing without engaging in an equity partnership. It allows them to fulfill their financing needs bearing in mind the interest of both parties involved in the transaction.Originality/valueThis research will assist Islamic micro-enterprises to find out a Shariah-compliant financing facility from family, friends and any other private investors without entering into an equity relationship. The proposed model would be a Shariah-compliant alternative to interest-free loans and engaging in an equity relationship for the sake of getting benefits for both parties involved in the transaction.

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Millennials’ acceptability of tawarruq-based ar-rahnu in Malaysia

Cited by 10 publications

References 26 publications

Determinants of millennials’ acceptance towards tawarruq home financing in Sandakan, Sabah, Malaysia

Determinants of millennials’ acceptance towards tawarruq home financing in Sandakan, Sabah, Malaysia

What Drives Rahn Adoption?

Can micro-enterprises use Tawarruq Fardi Financing (TFF) for fund raising?

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