"Knowledge is a trust" by Hanudin Amin





Sunday, August 7, 2011

MODELLING AR-RAHNU USE IN EASTERN MALAYSIA: PERSPECTIVES OF MUSLIMAH

Published by the
Journal of Islamic Economics, Banking and Finance (JIEBF)
Volume - 7, Number - 3, July - September 2011 (pp.63-76)
http://www.ibtra.com/pdf/journal/v7_n3_article4.pdf


The author

Hanudin Amin
Labuan School of International Business and Finance
Universiti Malaysia Sabah

Abstract
Islamic women or Muslimah play pivotal role in promoting the development of ar-Rahnu transactions in Malaysia. As such, this current study is aimed at explaining the factors affecting Muslimah decision to utilise Islamic-based pawnshop in Eastern Malaysia. Employing structural equation modelling, this research examines the interaction between the factors and the Muslimah usage intentions for ar-Rahnu in Eastern Malaysia. To achieve this goal, the study used primary data collected by a survey with the help of a questionnaire administered through personal interviews. The study found out that religious obligation, transaction cost and information on ar-Rahnu were instrumental in determining the use of Islamic-based pawnshop in Eastern Malaysia. This result is of utmost importance for calling a better planning for Islamic-based pawnshop in the future in terms of Shariah adherence, reasonable cost charged and the awareness program. Yet, it is an inventive attempt by the author to highlight the interaction between the three factors and the Muslimah usage intentions for ar-Rahnu.