ACCEPTANCE AND APPLICATION OF ISLAMIC FINANCIAL PLANNING AMONG SMALL AND MEDIUM ENTERPRISES HALAL OPERATOR IN PENINSULAR OF MALAYSIA

Mohd Daud Awang; Muhamad Nur Aiman Mohd Noor; Junaina Muhammad; Amalina Abdullah; Suhaimi Ab. Rahman; Mohamed Hisham Dato Yahya

doi:10.18769/ijasos.99526

EN

ACCEPTANCE AND APPLICATION OF ISLAMIC FINANCIAL PLANNING AMONG SMALL AND MEDIUM ENTERPRISES HALAL OPERATOR IN PENINSULAR OF MALAYSIA

Abstract

Halal Industry in Malaysia has created employment opportunities especially among Small, medium-sized enterprises (SMEs). High demand for Halal products especially from Islamic countries has put Halal industry as one of the national agenda priorities. In the Eleventh Malaysia Plan (11MP), the halal industry had been given special emphasis by the Prime Minister to ensuring the halal industry is highly and persistently competitive. In Asia, Malaysia has been considered as a leader in the development of the Halal hub center. However, halal industry is not only about halal food production, but also it covers Islamic finance services which prohibit interest (riba), uncertainties (gharar) and gambling (maysir). Islamic financial planning is one of the important parts of Islamic finance because it plays a big role in providing Shariah compliant funds and investment opportunities especially for SMEs halal operators. The holistic approach to halal industry should also cover not only halal food production, but also Islamic financial planning which includes activities such as how to create, increase, purify and to protect wealth from Islamic perspective. Therefore, this study examines the relationship between acceptance of Islamic finance and the application of Islamic financial planning among SMEs halal operators in Peninsular Malaysia. The findings of this study reveal that the acceptance of Islamic finance was significantly correlated with the application of Islamic financial planning among SMEs halal operator. These finding indicated the important of integration between acceptance on the Halal industry with Islamic financial planning activities. SMEs Halal operators should be able to accept the Islamic finance principles. This relationship recognises the importance of acceptance and practice of Islamic financial planning among halal SMEs operators in promoting halal products and services and boost demand for Malaysian halal products at the international level.

Keywords

Halal Industry,SMEs Halal operator,Islamic Financial Planning

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Details

Primary Language

English

Subjects

-

Journal Section

Research Article

Authors

Mohd Daud Awang
Malaysia

Muhamad Nur Aiman Mohd Noor
Malaysia

Junaina Muhammad
Malaysia

Amalina Abdullah
Malaysia

Suhaimi Ab. Rahman
Malaysia

Mohamed Hisham Dato Yahya
Malaysia

Publication Date

December 18, 2016

Submission Date

January 7, 2017

Acceptance Date

January 8, 2017

Published in Issue

Year 2016 Volume: 2 Number: 6

DOI

https://doi.org/10.18769/ijasos.99526

IZ

https://izlik.org/JA77WE72HJ

Cite

RIS / Bibtex

EndNote

Awang MD, Mohd Noor MNA, Muhammad J, Abdullah A, Ab. Rahman S, Yahya MHD (December 1, 2016) ACCEPTANCE AND APPLICATION OF ISLAMIC FINANCIAL PLANNING AMONG SMALL AND MEDIUM ENTERPRISES HALAL OPERATOR IN PENINSULAR OF MALAYSIA. IJASOS- International E-journal of Advances in Social Sciences 2 6 747–752.

ACCEPTANCE AND APPLICATION OF ISLAMIC FINANCIAL PLANNING AMONG SMALL AND MEDIUM ENTERPRISES HALAL OPERATOR IN PENINSULAR OF MALAYSIA

Abstract

Keywords

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References

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Subjects

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Published in Issue

DOI

IZ

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