Journal of Management and Muamalah

The Role of Government Development Expenditure on Economic Growth: Lessons from Selected ASEAN Countries for Malaysia

Thu, 26 Jun 2025 00:00:00 +0800

This study employs a quantitative approach to investigate the relationship between government expenditure and economic growth in selected ASEAN countries. Using time series analysis, the research examines annual secondary data from three ASEAN countries spanning the years 2000 to 2022. The study applies the autoregressive distributed lag (ARDL) method to identify long-term cointegrating relationships among the variables. The findings indicate the short-term and long-term impacts of government spending on economic growth. The results report that Malaysia's government development expenditure (LGDE) negatively affects economic growth, while general government expenditure (LGE) shows minimal impact in the short term. However, both LGDE and LGE significantly contribute to long-term growth, with increases leading to substantial rises in GDP. In Singapore, both short-term and long-term government spending positively correlate with economic growth. Thailand's analysis reveals consistent positive effects of government spending on growth, particularly through targeted development expenditures. Based on the best practices from Thailand and Singapore, this study suggests that Malaysia could benefit from strategic investments in infrastructure, technology, and human capital to enhance its long-term economic performance. The research also underscores the importance of robust governance frameworks to ensure the effective implementation of government spending policies.

Peranan Zakat dalam Membantu Asnaf Menjalankan Perniagaan di Malaysia: Satu Tinjauan Literatur Kritikal

Mohammad Noorizzuddin Nooh — Thu, 26 Jun 2025 00:00:00 +0800

Pembangunan usahawan dalam kalangan golongan asnaf di Malaysia merupakan strategi utama institusi zakat untuk meningkatkan taraf ekonomi mereka. Artikel ini bertujuan untuk mengkaji secara kritikal keberkesanan program pembangunan usahawan asnaf melalui tinjauan literatur yang sedia ada. Pendekatan PRISMA telah digunakan di dalam kajian ini untuk menyintesis penyelidikan sedia ada yang berkaitan dengan peranan zakat dalam menyokong usahawan asnaf di Malaysia. Pendekatan PRISMA dijalankan mengikut garis panduan yang ditetapkan untuk memastikan pendekatan yang ketat dan tidak berat sebelah dalam mengenal pasti, memilih, menilai, dan menyintesis literatur yang relevan. Perbincangan merangkumi aspek bantuan modal, faktor kerohanian, pendekatan maqasid al-shariah, serta penerimaan institusi zakat terhadap pembiayaan Qard Hasan. Hasil kajian menunjukkan bahawa walaupun terdapat peningkatan dalam kejayaan program ini, cabaran dalam pelaksanaannya masih perlu diatasi melalui intervensi yang lebih sistematik dan menyeluruh. Selain itu, artikel ini juga meneliti mekanisme agihan zakat, cabaran yang dihadapi, dan impak jangka panjang terhadap pembangunan sosioekonomi asnaf. Penemuan menunjukkan bahawa zakat berperanan penting dalam memperkasakan asnaf melalui peluang perniagaan, tetapi terdapat ruang untuk penambahbaikan dalam pelaksanaan dan pemantauan program. Artikel ini mencadangkan strategi inovatif untuk meningkatkan keberkesanan program keusahawanan zakat dan membincangkan implikasinya terhadap dasar pembangunan sosioekonomi negara.

The development of entrepreneurship among the asnaf group in Malaysia is a key strategy of zakat institutions to improve their economic status. This article aims to critically examine the effectiveness of asnaf entrepreneurship development programs through a review of existing literature. The PRISMA approach was used in this study to synthesize current research related to the role of zakat in supporting asnaf entrepreneurs in Malaysia. The PRISMA approach was conducted according to established guidelines to ensure a rigorous and unbiased process in identifying, selecting, evaluating, and synthesizing relevant literature. The discussion covers aspects such as capital assistance, spiritual factors, the maqasid al-shariah approach, and the acceptance of Qard Hasan financing by zakat institutions. The findings indicate that although there has been progress in the success of these programs, challenges in implementation still need to be addressed through more systematic and comprehensive interventions. In addition, this article also examines the mechanisms of zakat distribution, the challenges faced, and the long-term impact on the socio-economic development of asnaf. The findings show that zakat plays a significant role in empowering asnaf through business opportunities, but there is room for improvement in the implementation and monitoring of these programs. This article proposes innovative strategies to enhance the effectiveness of zakat entrepreneurship programs and discusses their implications for national socio-economic development policies.

Research and Publication Trends on Shariah Non-Compliance (SNC) Risks and Events from 2010-2022

Muhammad Ridhwan, Noor Naemah Abdul Rahman — Thu, 26 Jun 2025 00:00:00 +0800

Managing Shariah non-compliance (SNC) events is important for Muslims who manage businesses, especially for Islamic Financial Institutions (IFIs), to maintain justice and fairness in particular transactions as well as to avoid operational losses. The objective of this study is to explore the research and publication trends on SNC risks and events from 2010 to 2022. Descriptive research based on document analysis of prior studies and literature on SNC events obtained from online journals has been used as the approach for data collection in this study. Journals and publications are obtained via a wide variety of channels, including Google Scholar, Science Direct, and ResearchGate.com. There are a total of 80 articles relevant to this topic that were gathered and reviewed for the period from 2010 to 2022. This study looked at a variety of different characteristics, some of which are authorship patterns, the number of articles that have been published, research design, geographical affiliation, the subject of the article, and the gender of the author. The overarching conclusion drawn from this research is that the vast majority of previous research on SNC focused primarily on investigating issues pertaining to firm performance, investment and risk management, nonetheless very limited study has focused on the rectification process and procedures to solve the SNC events.

The Impact of Socioeconomic and Macroeconomic Factors on Road Accident Rates in Malaysia

Amri Sulong — Thu, 26 Jun 2025 00:00:00 +0800

Road accident rates in Malaysia are alarming and should be analyzed further to minimize the cases and its impact. Hence, this study investigates the impact of socioeconomic and macroeconomic factors on road accident rates in Malaysia over the period 1992-2024 using the Fully Modified Ordinary Least Squares (FMOLS) method. The dependent variable is road accident rates, while the independent variables include socioeconomic factors (population and urbanization) and macroeconomic factors (inflation and economic growth). The results show that urbanization has a significant positive effect on road accident rates, indicating that urban growth contributes to increased road accidents, likely due to higher traffic density and congestion. Conversely, population and inflation have significant negative effects on road accident rates, suggesting that larger populations spread across more areas and higher inflation may reduce vehicle usage, leading to fewer accidents. Economic growth is found to have a marginally significant positive impact on road accident rates, likely driven by increased vehicle ownership and transportation activity. The study highlights the importance of addressing urban planning, road safety measures, and infrastructure development to mitigate the adverse effects of urbanization and economic growth on road safety.

Digital Assets from an Islamic Jurisprudential Perspective

Siti Nurhidayah Md Tahir, Mohd Fuad Md Sawari, Mohamad Sabri Zakaria — Thu, 26 Jun 2025 00:00:00 +0800

The study aims to define digital assets from an Islamic jurisprudential perspective by establishing a comprehensive conceptual framework rooted in classical Islamic legal principles. Against the background of rapid technological advancement and the emergence of various digital value representations (from cryptocurrencies to non-fungible tokens), this research addresses the knowledge gap in understanding these novel assets through Islamic jurisprudential perspective. Employing qualitative content analysis, the study examines diverse source materials including classical Islamic jurisprudential texts, contemporary scholarly literature, and regulatory frameworks, while conducting etymological analysis of relevant Arabic terminology. Findings reveal that digital assets can be defined as intangible, electronically stored resources that hold economic value and are accessible through digital platforms, with their Islamic jurisprudential valuation determined by four primary factors: their classification as wealth (māl), societal acceptance (ʿurf), compliance with Islamic principles, and ownership status. The research concludes that while digital assets represent modern financial and technological innovations, they retain essential attributes that align with traditional Islamic asset classifications, allowing them to be effectively evaluated through established Islamic jurisprudential frameworks when adapted to contemporary contexts.

The Application of Wakalah Contract in Takaful: Perceptions of Practitioners

Noor Aimi Mohamad Puad, Anis Nadhirah Nor Mukshar, Holilur Rahman, Syaifuddin — Thu, 26 Jun 2025 00:00:00 +0800

Since its establishment in the 1980s, takaful has grown significantly in Malaysia, making the nation a global leader in Islamic banking. In 1984, the industry saw the founding of Syarikat Takaful Malaysia Berhad, first propelled by regulatory support and increasing awareness of Shariah-compliant products. Wakalah is the most widely used model in Malaysian takaful industry. However, there were some issues highlighted in the wakalah contract, such as the fees being charged multiple times, which gives more return to the takaful operators. This will defeat the basic purpose of mutual cooperation in Takaful. The main purpose of this study is to explore the perceptions of the practitioners on the application of wakalah contract in the takaful operation. This study employed qualitative methodology. Ten semi-structured interviews were conducted involving selected product development officers and strategy communications officers which directly involved in the development of a takaful product. Thematic analyses were adopted to analyse the data. It can be deduced that there is a gap between the expectations of the shariah committee and the actual practice of shariah audit which provides the area of improvement in the future. These findings provide useful insights for takaful operators to enhance alignment with shariah governance, particularly through improving communication and standardising audit practices.

Empowering Young Minds: The Influence of Halal Knowledge on the Need for the 'Cilik Halal' Module in Sekolah Rendah Agama Integrasi (SRAI)

Thu, 26 Jun 2025 00:00:00 +0800

Halal knowledge is more than just knowing what food is permissible; it extends to non-food, finance and lifestyle preferences. Ensuring students to be exposed to halal education from an early age helps them to equip with strong foundation in making informed and faith-based choices. This study aims to analyze the influence of the halal knowledge level based on awareness, understanding and application, on the need for the Cilik Halal module among students in Sekolah Rendah Agama Integrasi (SRAI) in Selangor. The study also seeks to identify the level of knowledge that most affects the need of the Cilik Halal’s module. Questionnaires were used as the primary instrument for data collection. The data for this study were collected at six schools of SRAI. After a data screening process, only 208 responses out of 240 Year Four students were deemed valid and suitable for analysis. The analysis involved correlation and regression techniques. Data was analyzed using the Statistical Package for the Social Sciences (SPSS) Version 26.0. The finding indicates that the level of knowledge among SRAI students regarding halal concepts and practices is high. The correlation analysis result shows a significant positive relationship between all halal knowledge level variables and the need for the halal module among the students. The halal application is the most affects the need for the Cilik Halal’s module as compared to other levels of knowledge. Thus, halal knowledge should not be limited to theoretical explanations but should be complemented with practical applications in daily life. This study emphasizes the need for practical halal education to produce knowledgeable and halal-compliant young Muslim students.

Integrating Sertu in Halal Supply Chains: Compliance, Contamination Prevention and Transparency

Fatimah Zakiah Shaharuddin — Thu, 26 Jun 2025 00:00:00 +0800

The integration of sertu, an Islamic ceremonial cleansing technique, into contemporary halal supply chains is critically examined in this article, with a focus on the method's crucial role in supply chain transparency, regulatory compliance, and contamination control. The importance of halal integrity in the global economy is established at the outset of the study, particularly in the food, logistics, and non-food industries, where cross-contamination threats persist. The intricacy of industrial procedures is the issue that prevents sertu from being applied consistently, particularly when handling halal and non-halal products at the same time. The method for this study is a qualitative review technique to examine how sertu is operationalized, the difficulties in standardization, and the consequences for certification and customer trust by synthesizing academic literature, industry reports, and regulatory standards (MS2400). Important conclusions reveal that, although halal procedures are theoretically required to restore halal status and are mandated by religion, their application frequently conflicts with automation protocols, industrial efficiency, and food safety standards. The paper also suggests sertu can be institutionalised into halal assurance processes with the aid of technological solutions like digital documentation and blockchain traceability, according to the study. It comes to the conclusion that uniform policies, employee education, cooperation with halal authorities, and investments in transparent, traceable systems are necessary for a successful sertu integration. Without these, halal-certified businesses run the danger of breaking the law, losing customers' trust, and harming their brand in the very competitive worldwide halal market.

Temperament and Job Stress Among Malaysian Telecommunication Employees in Petaling Jaya: The Moderating Role of Personality Traits

Lazuani Shamsuddin, Marhaini Abdul Ghani , Hazelena Dewi Fatahul Ariffin — Mon, 30 Jun 2025 00:00:00 +0800

This study examines the relationship between temperament and job stress among employees in the Malaysian telecommunications sector, with a focus on the moderating role of personality traits. It aims to assess the level of job stress and address a gap in understanding the specific psychological factors influencing stress within this industry. Adopting a quantitative research design, data were collected from 101 employees of a leading telecommunications company based in Petaling Jaya, Malaysia. An online survey platform was used to ensure participant anonymity and data reliability. The results shows that temperament significantly affects the level of job stress experienced by employees and personality traits moderate the relationship between temperament and job stress. These findings highlight the critical role of both temperament and personality traits in understanding workplace stress, offering valuable implications for organizational psychology, stress management strategies, and human resource practices. The study contributes to the development of more personalized stress management interventions tailored to employees’ psychological profiles, providing a foundation for future research within the telecommunications industry.