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THE ROLE OF ISLAMIC BANKING INSTITUTION IN ASSISTING MUSLIM ENTREPRENEURS IN MALAYSIA

Year 2016, Volume: 2 Issue: 6, 436 - 440, 09.12.2016

Norsazali Abdullah Mohd Daud Awang Amaludin Ab. Rahman Mohamed Hisham Dato Yahya

https://doi.org/10.18768/ijaedu.280575

Abstract

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.

Keywords

Islamic banking institution Muslim entrepreneur Islamic Bank

References

  • Ab. Mumin Ab. Ghani (1999). Sistem Kewangan Islam dan pelaksanaannya di Malaysia. Kuala Lumpur: Jabatan Kemajuan Islam Malaysia.
  • Bazeley, P. (2007), Qualitative Data Analysis With Nvivo. London: Sage Publications Ltd. h.105.
  • Faridah Shahadan & Madeline Berma (2004). Pembiayaan Industri Kecil di Malaysia. Dalam Rahmah Ismail (eds.), Industri Kecil Malaysia Isu Pembiayaan Teknologi dan Pemasaran. cet.2.Bangi: Penerbit Universiti Kebangsaan Malaysia.
  • Habshah Bakar, Rosli Mahmood & Asiah Bidin (2002). Pembiayaan Bank Kepada Usahawan-usahawan Wanita Di Malaysia. Kertas kerja dibentangkan di Persidangan Nasional Isu-isu Kewangan IKS anjuran Universiti Utara MalaysiaKedah, 19-20 Oktober 2002.
  • Hazmi Dahlan, Nurulasyikin Muda, Hanudin Amin & Mohd Zulkifli Muhammad (2008). Persepsi Pengusaha Industri Kecil Dan Sederhana (IKS) Terhadap Pemilihan Pembiayaan Secara Islam: Satu Kajian Kes Di Wilayah Persekutuan Labuan. Proceedings International Conference on Entrepreneurship (ICE 2008) Langkawi Kedah. Anjuran Kolej Universiti Islam Antarabangsa Selangor (KUIS).
  • JBIC Institute (2007). Report on Infrastructure Financing and Bond Issuance in Malaysia.
  • Marziah Muhd Yusoff (2002). Pembiayaan Dagangan Muamalat Dalam Sistem Perbankan Islam: Kajian Di Bank Muamalat Malaysia Berhad. Kajian ilmiah Akademi Pengajian Islam Universiti Malaya, Kuala Lumpur.
  • M.D. Awang, Joni Tamkin Borhan, Norsazali Abdullah, Mohd Kamal Azman Jusoh (2014), The Understanding Of The Islamic Banking Concept Among Muslim Community In Malaysia, Jurnal Muamalat JAKIM, Volume 7. 2014.
  • M.F. Akhtar, K.r Ali, S. Sadaqat (2011), Liquidity Risk Management: A comparative study between Conventional and Islamic Banks of Pakistan, Interdisciplinary Journal of Research in Business .Vol. 1, Issue. 1, January 2011(pp.35-44)
  • Noor Azman Ali & Fauziah Mahat (2009). Keupayaan Institusi Pembiayaan Industri Sederhana, Kecil Dan Mikro Dalam Melahirkan dan Memperkasakan Usahawan Kecil Yang Berdaya Maju: Ke arah Satu Pendekatan Baru Yang Lebih Berkesan. Kongres Ekonomi Islam ke 3, Dewan Merdeka PWTC Kuala Lumpur. 12-15 Jan 2009.
  • Nur Amalina binti Saidan and Abdul Ghafar bin Ismail (2013), Pengurusan Kecairan dalam Perbankan Islam di Malaysia,PROSIDING PERKEM VIII, JILID 1 (2013) 59 – 68.
  • Ozkan, B.C. (2004), Using Nvivo to Analysis Qualitative Classroom Data on Constructivist Learning Enviroments, The Qualitative Report, 9 (4), hh.589-603.
  • Rodziah Abdul Taib (2002). Tabung Industri Kecil dan sederhana (IKS): Pelaksanaannya di BIMB. Kajian ilmiah Akademi Pengajian Islam Universiti Malaya, Kuala Lumpur..
  • Wan Norhafisah Mohd Noor (2002).Peranan dan implikasi Penubuhan Bank Pembangunan dan Infrastruktur Malaysia Berhad (BPIMB) Terhadap Pembangunan Usahawan Bumiputera. Kajian ilmiah Akademi Pengajian Islam Universiti Malaya, Kuala Lumpur.

Year 2016, Volume: 2 Issue: 6, 436 - 440, 09.12.2016

Norsazali Abdullah Mohd Daud Awang Amaludin Ab. Rahman Mohamed Hisham Dato Yahya

https://doi.org/10.18768/ijaedu.280575

Abstract

References

  • Ab. Mumin Ab. Ghani (1999). Sistem Kewangan Islam dan pelaksanaannya di Malaysia. Kuala Lumpur: Jabatan Kemajuan Islam Malaysia.
  • Bazeley, P. (2007), Qualitative Data Analysis With Nvivo. London: Sage Publications Ltd. h.105.
  • Faridah Shahadan & Madeline Berma (2004). Pembiayaan Industri Kecil di Malaysia. Dalam Rahmah Ismail (eds.), Industri Kecil Malaysia Isu Pembiayaan Teknologi dan Pemasaran. cet.2.Bangi: Penerbit Universiti Kebangsaan Malaysia.
  • Habshah Bakar, Rosli Mahmood & Asiah Bidin (2002). Pembiayaan Bank Kepada Usahawan-usahawan Wanita Di Malaysia. Kertas kerja dibentangkan di Persidangan Nasional Isu-isu Kewangan IKS anjuran Universiti Utara MalaysiaKedah, 19-20 Oktober 2002.
  • Hazmi Dahlan, Nurulasyikin Muda, Hanudin Amin & Mohd Zulkifli Muhammad (2008). Persepsi Pengusaha Industri Kecil Dan Sederhana (IKS) Terhadap Pemilihan Pembiayaan Secara Islam: Satu Kajian Kes Di Wilayah Persekutuan Labuan. Proceedings International Conference on Entrepreneurship (ICE 2008) Langkawi Kedah. Anjuran Kolej Universiti Islam Antarabangsa Selangor (KUIS).
  • JBIC Institute (2007). Report on Infrastructure Financing and Bond Issuance in Malaysia.
  • Marziah Muhd Yusoff (2002). Pembiayaan Dagangan Muamalat Dalam Sistem Perbankan Islam: Kajian Di Bank Muamalat Malaysia Berhad. Kajian ilmiah Akademi Pengajian Islam Universiti Malaya, Kuala Lumpur.
  • M.D. Awang, Joni Tamkin Borhan, Norsazali Abdullah, Mohd Kamal Azman Jusoh (2014), The Understanding Of The Islamic Banking Concept Among Muslim Community In Malaysia, Jurnal Muamalat JAKIM, Volume 7. 2014.
  • M.F. Akhtar, K.r Ali, S. Sadaqat (2011), Liquidity Risk Management: A comparative study between Conventional and Islamic Banks of Pakistan, Interdisciplinary Journal of Research in Business .Vol. 1, Issue. 1, January 2011(pp.35-44)
  • Noor Azman Ali & Fauziah Mahat (2009). Keupayaan Institusi Pembiayaan Industri Sederhana, Kecil Dan Mikro Dalam Melahirkan dan Memperkasakan Usahawan Kecil Yang Berdaya Maju: Ke arah Satu Pendekatan Baru Yang Lebih Berkesan. Kongres Ekonomi Islam ke 3, Dewan Merdeka PWTC Kuala Lumpur. 12-15 Jan 2009.
  • Nur Amalina binti Saidan and Abdul Ghafar bin Ismail (2013), Pengurusan Kecairan dalam Perbankan Islam di Malaysia,PROSIDING PERKEM VIII, JILID 1 (2013) 59 – 68.
  • Ozkan, B.C. (2004), Using Nvivo to Analysis Qualitative Classroom Data on Constructivist Learning Enviroments, The Qualitative Report, 9 (4), hh.589-603.
  • Rodziah Abdul Taib (2002). Tabung Industri Kecil dan sederhana (IKS): Pelaksanaannya di BIMB. Kajian ilmiah Akademi Pengajian Islam Universiti Malaya, Kuala Lumpur..
  • Wan Norhafisah Mohd Noor (2002).Peranan dan implikasi Penubuhan Bank Pembangunan dan Infrastruktur Malaysia Berhad (BPIMB) Terhadap Pembangunan Usahawan Bumiputera. Kajian ilmiah Akademi Pengajian Islam Universiti Malaya, Kuala Lumpur.
There are 14 citations in total.

Details

Journal Section Articles
Authors

Norsazali Abdullah

Mohd Daud Awang

Amaludin Ab. Rahman

Mohamed Hisham Dato Yahya

Publication Date December 9, 2016
Submission Date December 23, 2016
Published in Issue Year 2016Volume: 2 Issue: 6

Cite

EndNote Abdullah N, Awang MD, Rahman AA, Dato Yahya MH (December 1, 2016) THE ROLE OF ISLAMIC BANKING INSTITUTION IN ASSISTING MUSLIM ENTREPRENEURS IN MALAYSIA. IJAEDU- International E-Journal of Advances in Education 2 6 436–440.
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