This paper aims to discuss the role of Islamic banking institutions among Muslim entrepreneurs in Klang Valley, Malaysia. The problem to be solved in this paper is how the Islamic banking institutions to play their role in helping Muslim entrepreneurs in Malaysia. Usually, the problems faced by Muslim entrepreneurs which are difficult to obtain financing from banking institutions to start a business or expand an existing business. This study was conducted to four (4) Islamic banking institutions; Bank Islam Malaysia Berhad (BIMB), Bank Muamalat Malaysia Berhad (BMMB), Small Medium Enterprise Bank (SME Bank) and Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat) to see the true role of Islamic banking institutions that assist Muslim entrepreneurs through financing products that have been offered by four (4) Islamic banking institutions as mentioned. As we know, in Malaysia, all of the banks have been offered various Islamic financing products including personal financing and business financing such as Letter of Credit-i, Trade Working Capital Financing-i, No Front-i, Bills of Exchange Purchased-i, Refinancing of Credit Export-i, Promotion, Shipping Guarantee-i, Bank Guarantee-i, Standby Letter of Credit-i, No. -bil Collection-i, Letter of Credit-i and transfer Letter of Credit-i, Rural Economy Funding Scheme, Micro Financing-i scheme, Micro Business Financing, Graduate Entrepreneur Fund.
Thus, based on this statement, the entrepreneurs have no problem in obtaining the Islamic financial products, theoretically, but not practically. Therefore, this study aims to identify the actual problems that is faced by entrepreneurs and the Islamic banking institutions in Malaysia. This study used in-depth interview method from six bank officers as informant and eight Muslim entrepreneurs as respondent for the data collection process. The finding of this study showed that Islamic banking institutions played an important role in helping the Muslim entrepreneurs. In addition, it was also found that the Muslim entrepreneurs were lack of financial management knowledge. Thus, this study has outlined some recommendations to improve the knowledge in financial management among the Muslim entrepreneurs as a strategy to uphold their involvement in Malaysia.
|Publication Date||December 9, 2016|
|Application Date||December 23, 2016|
|Published in Issue||Year 2016, Volume 2, Issue 6|
|EndNote||%0 IJAEDU- International E-Journal of Advances in Education THE ROLE OF ISLAMIC BANKING INSTITUTION IN ASSISTING MUSLIM ENTREPRENEURS IN MALAYSIA %A Norsazali Abdullah , Mohd Daud Awang , Amaludin Ab. Rahman , Mohamed Hisham Dato Yahya %T THE ROLE OF ISLAMIC BANKING INSTITUTION IN ASSISTING MUSLIM ENTREPRENEURS IN MALAYSIA %D 2016 %J IJAEDU- International E-Journal of Advances in Education %P 2411-1821-2411-1821 %V 2 %N 6 %R doi: 10.18768/ijaedu.280575 %U 10.18768/ijaedu.280575|
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