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ISU SOSIAL DI KEDAH BERDASARKAN SURAT RAJA-RAJA DAN SURAT-

MENYURAT SULTAN ABDUL HAMID (1882-1919)
Conference Paper · December 2017
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Proceeding:
3-4 December 2017

Adya Hotel Langkawi, Kedah,
Malaysia
ISBN: 978-967-14835-3-4
Published By:
INTERNATIONAL BUSINESS MANAGEMENT CONFERENCE
(IBMC 2017)
Copyright © 2017
Global Business Entrepreneurship
All rights reserved. No part of this proceeding may be reproduced in any form, except for the
inclusion of brief quotations in review, without permission in writing from the author/ publisher.
ISBN: 978-967-14835-3-4
PUBLISHED BY:
GLOBAL BUSINESS ENTREPRENEURSHIP (GBE)
(KT 0400493-W)
KUALA LUMPUR
MALAYSIA
Table of Contents
THE ELEMENTS THAT INFLUENCE CUSTOMER ENGAGEMENT AMONG
CUSTOMERS IN TEGUH SOLUSI SDN BHD ...................................................................... 1
DOES GENDER MATTERS? UNDERSTANDING CORRECTIONAL STAFF
OCCUPATIONAL STRESS ................................................................................................... 11
AN EVALUATION FOR TRADE PREFERENCE SCHEME – ORGANISATION OF
ISLAMIC CONFERENCE TOWARDS EXPORT SHARE TARGET USING GRAVITY
MODEL ................................................................................................................................... 20
ONLINE SHOPPING BEHAVIOUR AND LOGISTICS COMPENTENCIES .................... 34
INTERPROFESSIONAL COLLABORATION AMONG HEALTHCARE
PROFESSIONALS IN THE MATERNITY AND CHILD HEALTH CLINICS ................... 46
THE EFFECT LEVERAGE, LIQUIDITY AND PROFITABILITY ON THE COMPANIES
PERFORMANCE .................................................................................................................... 53
TEACHING GERMAN FOR BUSINESS BEASED ON ENGLISH FOR BUSINESS
PURPOSES (EBP) ................................................................................................................... 66
THE EMPLOYMENT OF FOREIGN WORKERS: ISSUES AND IMPLICATIONS
TOWARDS ORGANIZATION PERFORMANCE ................................................................ 72
CONSUMER’S PERCEPTION TOWARDS MIDDLE EASTERN RESTAURANT IN
PENANG ................................................................................................................................. 80
A THEORETICAL PERSPECTIVE OF UTILITY MAXIMIZATION IN
NEUROECONOMICS WITH LINK TO HOMO-ISLAMICUS ............................................ 87
THE DETERMINANTS OF DIVIDEND POLICY: EVIDENCE FROM TRADING AND
SERVICES COMPANIES IN MALAYSIA ........................................................................... 97
HOW WELL-INFORMED ARE TAXPAYERS ON THEIR INCOME TAX PAYMENT?
................................................................................................................................................ 104
TRANSFORMATION IN UNIVERSITY’S STUDENTS FINANCIAL PLANNING:
ENVIRONMENTAL INFLUENCES ON THEIR PURCHASING BEHAVIOR ................ 110
THE INFLUENCE OF THE BOARD OF DIRECTORS’ CHARACTERISTICS ON
CORPORATE SUSTAINABILITY REPORTING: MALAYSIAN EVIDENCE .............. 118
DEVELOPMENT OF FEMALE ADOLESCENTS CLOTHING SIZING BASED ON
CLUSTER ANALYSIS CLASSIFICATION........................................................................ 130
PROMOTING GOOD CORPORATE GOVERNANCE AND BUSINESS
SUSTAINABILITY THROUGH EFFECTIVE INTERNAL AUDIT FUNCTIONS –A
STUDY ON LISTED COMPANIES IN BANGLADESH ................................................... 142
THE ROLE OF THE SPECIAL EVENT IN DESTINATION MARKETING .................... 153
TAX PAYER’S OBLIGATION TO PAY ZAKAT IN SELANGOR................................... 159
A STUDY ON THE 6 P’s OF MARKETING MIX TOWARDS THE ACCEPTANCE OF
EQUITY FINANCING CONCEPT BY SMEs IN SABAH ................................................. 167
THE DETERMINANTS OF UNEMPLOYMENT IN MALAYSIA .................................... 178
EXAMINING THE CRITICAL SUCCESS FACTORS OF KNOWLEDGE-BASED SOCIAL
ENTERPRISES IN MALAYSIA .......................................................................................... 187
i
ALTERNATIVE DISPUTE RESOLUTION IN THE MALAYSIAN CONSUMER CREDIT
INDUSTRY WITH SPECIAL REFERENCE TO OMBUDSMAN FOR FINANCIAL
SERVICES ............................................................................................................................. 192
THE ROLE OF THE TRIBUNAL FOR CONSUMER CLAIMS AS A REDRESS
MECHANISM IN CONSUMER CREDIT INDUSTRY ...................................................... 203
STRATEGIC ORIENTATION AND MOSQUES ECONOMIC ACTIVITIES .................. 213
FACTORS INFLUENCING THE INTENTION TO MIGRATE AMONG ENGINEERING
STUDENTS IN MALAYSIA: AN EXPLORATORY STUDY ........................................... 220
QUALITY OF LIFE OF PERSON WITH DISABILITIES IN MALAYSIA: AN
EXPLORATORY STUDY .................................................................................................... 229
THE GREY AREA IN ISLAMIC FINANCING BETWEEN SMALL MEDIUM
ENTERPRISES AND ISLAMIC BANKS IN SABAH ........................................................ 237
BUSINESS INCUBATORS IN PAKISTAN – POLICY, PERFORMANCE, AND
PECULIARITIES .................................................................................................................. 249
DIVIDEND PAYOUT DECISION: DOES OWNERSHIP STRUCTURE MATTER? ....... 259
THE INTENTION TO BREASTFEED AMONG MIDDLE AGE MOTHERS: THE
APPLICATION OF THEORY OF PLANNED BEHAVIOR............................................... 267
IMPROVING THE NATURE OF TEACHING IN PROJECT MANAGEMENT: A
PROPOSED MODULE ......................................................................................................... 273
PEMBANGUNAN MODUL DALAM MENINGKATKAN PRESTASI PEMBELAJARAN
PENGURUSAN PROJEK ..................................................................................................... 279
PERANAN BAHAGIAN WAKAF MAJLIS AGAMA ISLAM NEGERI KEDAH DALAM
PELAKSANAAN SKIM WAKAF KAKI: SATU TINJAUAN ........................................... 285
PERBANDINGAN PRESTASI SYARIKAT REITS KONVENSIONAL (AMANAH
PELABURAN HARTANAH KONVENSIONAL) DAN I-REITS (AMANAH PELABURAN
HARTANAH ISLAM) .......................................................................................................... 296
KESEDARAN PELAJAR INSTITUT PENGAJIAN TINGGI ISLAM DI MELAKA
TERHADAP APLIKASI MUDAH ALIH BERUNSURKAN ISLAM ................................ 313
TAHAP PEMIKIRAN INVENTIF PELAJAR PINTAR DAN BERBAKAT DALAM
SUBJEK FIZIK ...................................................................................................................... 320
PENGUASAAN BAHASA MELAYU PELAJAR PINTAR CERDAS DAN BERBAKAT:
ANALISIS UNGKAPAN INDAH DALAM PENULISAN KARANGAN ......................... 327
KEBERKESANAN MODUL ENAM RODA PENGURUSAN TERHADAP BISNES KECIL
2016-2017; KAJIAN TEMATIK HADITH KEUSAHAWANAN TUMPUAN KEPADA
HADITH DALAM AL-SAHIHAYN .................................................................................... 333
IDEOLOGI TERORISME DIKALANGAN PELAJAR UNIVERSITI :ISU DAN CABARAN
................................................................................................................................................ 341
ADAKAH PEMINDAHAN PENGETAHUAN MENJADI MODERATOR TERHADAP
PELAKSANAAN PENGURUSAN LEAN DAN PRESTASI ORGANISASI? .................. 348
UNDERSTANDING A CONTEXTUAL PERSPECTIVES OF MACROPRUDENTIAL
POLICY FRAMEWORK ...................................................................................................... 360
SPREADSHEET AS LEARNING AID IN FINANCIAL ANALYSIS COURSES............. 366
ii
DIVIDEND PAYOUT DECISION: DOES OWNERSHIP STRUCTURE MATTER? ....... 374
ISU SOSIAL DI KEDAH BERDASARKAN SURAT RAJA-RAJA DAN SURAT-
MENYURAT SULTAN ABDUL HAMID (1882-1919) ...................................................... 374
iii
Proceeding: International Business Management Conference (IBMC
2017)3-4 December 2017, Adya Hotel Langkawi, Kedah, Malaysia
ISBN: 978-967-14841-4-2
THE ELEMENTS THAT INFLUENCE CUSTOMER ENGAGEMENT

AMONG CUSTOMERS IN TEGUH SOLUSI SDN BHD
Ima Ilyani Ibrahim 1

Mohd Fazly Mohd Razali 2
Mohamad Niza Md Nor3
Zulkafli Mansor4
Nur Solehah Muslim 5
1
Faculty of Business Management, Universiti Teknologi MARA Perlis, 02600 Arau, Perlis
2
3
4
5
___________________________________________________________________________
Abstract : In Perlis, which focusing Kangar as the capital city, construction sector has
experienced a phenomenal growth in the last decade due to changing tastes and preferences of
consumers. Consequently the company of Teguh Solusi Sdn Bhd has appreciated the importance
of attracting and creating a resilient customer engagement with emphasis on understanding
customers, and continuously resistant relationship driven by strategies. This study attempts to
look at the elements that influence relationship between satisfaction, trust, rapport and
commitment towards customer engagement, and in addition to establish the significance in
predicting customer engagement among the Teguh Solusi Sdn Bhd’s client. Operationalization
of the factors and the customer engagement was done using the Conceptual Model of Customer
Engagement (So et al., 2014) model. The study adopted a descriptive survey design with an aim
of obtaining state of affairs as they existed then and establish relationships among variables
which utilizing primary data from the field as well secondary data from company’s record and
industry publications. Primary data was collected through the questionnaires survey, while
analysis was done using descriptive and inferential statistics. The finding of this study revealed
that trust and commitment are positively significant with customer engagement while satisfaction
and rapport were insignificant with the customer engagement.
Keywords: Customer Engagement, Satisfaction, Trust, Rapport, Commitment.

___________________________________________________________________________
Introduction
Seeing how customer interacts directly to the brand is the key of establishing customer
engagement. Currently, customer engagement has received significant attention by
organizations in regarding to the rise of customer awareness. Considering many customers and
consumers have knowledge about the products and services due to the explosion of information.
Thus, these factors emphasizing companies seek ways to choose the best method and strategy
to communicate with the customers to receive maximum value satisfaction in the business. In
conforming to the previous research, there was propositions defined customer engagement
which is “A psychological state that occurs by virtue of interactive, co-creative consumer
experiences with a focal agent or object (e.g., a brand) in focal service relationships. The
researcher noted the bases definition that is related to this study is vital. Hence, the significant
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of customer engagement gives a strategic imperative for enhanced performance of the company
management including sales growth.
Literature Review
Customer Engagement
In the context of marketing, customer engagement is the journey of loyalty and evangelism.
Many aspects were defined the concept of customer engagement. Forrester, (2008) viewed that
customer engagement was defined as deeps connections created with the customers that drive
purchase decisions, interaction and participation. Customer engagement defined as an effort
from the services to create an interaction or a connection towards customer in order to retain
them. There are five definitions are differently defined the concept of customer engagement.
The four definitions from Hollebeek, (2011); Vivek, Betty and Morgan, (2012); Patterson, Yu
and De Rutyer, (2006); Brodie, (2011) which mention of the active participation of the
customers in their relationship with the products and services, while the Bowden (2009) focused
more about the psychological phenomenon that occurs when as customer has a contact with a
products and services through a first purchase that makes customer repurchase Keller, (2007).
Consequences of Consumer Engagement

Great interest in the subject comes from literature that has found customer engagement to
represent a strategic imperative for generated enhanced corporate performance, including
superior competitive advantage (Sedley, 2008), sales growth (Neff, 2007) and overall
profitability (Voyles, 2007). It has also been found that engaged consumers play a key role in
new product or service development (Hoyer et al., 2010; Kothandaraman & Wilson, 2001;
Nambisan & Nambisan, 2008) and in co-creating experience and value (Brakus et al., 2009;
Prahalad & Ramaswamy, 2004). As Brodie et al.’s pointed out (2013) research on CE within
the virtual brand community context produced similar consequences, identifying, loyalty and
satisfaction, consumer empowerment, connection, emotional bonds, trust and commitment as
the most notable consequences of CE. Meaning to say, customer engagement concept is crucial
to company’s organization to review in variety of the variables that can effect to the customer
engagement.
The Dimensions of Customer Engagement

Identification
Identification is one of the key aspects of customer engagement. The definition of
identification is essentially a perceptual or cognitive construct Mael & Ashforth, (1992).
Additionally, according to the Bhattacharya et al. (1995) identification defined as the degree on
consumer’s perceived oneness with or belongingness to the brand. Identification can also help
explain consumers’ relationship with companies or brands. Consequently, strong consumers
toward company relationships affected by consumer’s identification with the companies or
brands and helped them satisfy one or more self-definitional needs. Bhatacharya & Sen (2003).
Enthusiasm
The enthusiasm dimension can be identified using the definition by Vivek (2009), who
views the enthusiasm dimension as strong excitement or zeal from the consumer. This affective
dimension included the use of words that display excitement or passion, as well as the use of
punctuation to display these emotions, such as exclamation marks. Based on others perspective,
enthusiasm is consistent with the dimensions of vigour (Patterson et al., 2006). Furthermore,
enthusiasm is recognized as a marker of engagement (Harter et al., 2002). The significance of
the feeling of enthusiasm and excitement is also highlighted by (Vivek, 2009), who explicitly
includes enthusiasm as a distinct dimension that captures the customer’s strong excitement and
zeal about the focus of engagement.
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Attention
Researchers have also consistently highlighted attention as a key dimension of engagement.
Attention is the duration of focus on, and mental preoccupation with, work (Rothbard, 2001).
The notion was supported by Lin, Gregor & Ewing (2008) which is engagement related to
focused attention and this concept is consistent with the construct of conscious partition Vivek
(2009) in effort to connect a consumer’s level of attention towards a brand. Thence, in the
dimension of customer engagement is importantly to describe by a customer’s attentiveness and
focused on the services.
Absorption
The previous research revealed that the absorption also as one of the dimension of customer
engagement. In this context Patterson, et al., (2006) emphasizes that absorption as a pleasant
state which is the customer as being fully concentrated, happy and deeply engrossed while
playing as a consumer or customers of the products or services. In addition, absorption is a high
level of concentration and engrossment, extending beyond feeling efficacious and coming close
to what has been called “flow”, a state of optimal experience (Csikszentmihalyi, 1990;
Schaufeli et al., 2001). This is because absorption signifies effortless concentration, loss of self-
consciousness, distortion of time and intrinsic enjoyment (Kevin, 2013).
Interaction
Another dimension customer engagement identified is interaction. Interaction was defined
as a customer’s offline or online participation with the products or services outside of purchase
(Bijmoth et al. 2010). This argument supported by Vivek (2009) which is involves sharing and
exchanging ideas, thoughts and feelings about experiences with the products and services. This
conception is equally connected to customer engagement behaviours. It engaged consumers
actively participate in activities that extend beyond being a passive receiver of communications,
information and products, making them more flexible and proactive two-way integrative
contributors.
Satisfaction
In the words of Revel, Tojib and Tsarenko (2010), satisfaction defined as a driver of
customer intentions. From this we can understand that satisfaction in this study was influenced
by perceived usefulness, perceived ease of use and perceived enjoyment. This argument was
supported by Oliver, (1999), Rust &Varki, (1997) which mentioned as an output resulting from
a customer’s subjective judgement of observed performance. There are two elements described
satisfaction which are affective and cognitive satisfaction (Fisher, 2000; Scheicher et al., 2004).
Firstly, affective satisfaction element indicates to the positive or negative feelings that one has
towards an identified target, while the cognitive satisfaction element defined as a beliefs or
thoughts one has towards the target. Consequently, customer engagement behaviour builds on
a long-term research program examining organizational variables as the relationship of those
experiences to customer satisfaction (Schnedier et.al. 2009). Thereupon, this concept must be
scrutinized and look over closely in this study.
Trust
Trust is another factor to incorporate in this study of customer engagement. As claimed by
Moorman et al. (1993), believes that trust defined as willingness to rely on a person has
confidence. This definition evolve developed based on experience by customer and perception
that company is able to provide the quality through the customer’s needs and wants (Delgado-
Ballester & Munuera- Aleman (2001). Kim, Ferrin & Rao, 2009) point out that trust is defined
as a subjective belief that a business or entity will fulfilled transactional obligations as the
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consumer understanding. Over and above, in this study trust concept can be classified as a
customer’s belief toward company that reliable, sincere and have a good brand image. The
significant of trust element which is trust can be placed in multiple targets such as in a channel
like salesperson in store location, product information, the purchasing process or toward the
company (Pavlou & Fygenson, 2006). This statement was refuted to Lewickiet. al. (1998), trust
is the individual's confidence in another person's intentions and motives, and in the sincerity of
that person's word.
Rapport
The construct of rapport can be described as a perceived level of harmonious, empathetic
or sympathetic connection to another, which is viewed in some way as congruent to the self
(Brooks, 1989). Furthermore, rapport also refer to the sense of genuine interpersonal sensitivity
& concern (Ashforth & Humphrey, 1993). In other word, rapport can be called “friendliness”
even though some sources (Gremler and Gwinner 2000) would make a distinction here and
point to a higher order construct “interpersonal bonds”. There are two dimensions of rapport
described by Tickle-Degnen and Rosenthal (1987) enjoyable interaction and personal
interaction. Firstly, the enjoyable interaction component of rapport is comparable to what term
“positivity,” described as a feeling of Secondly, personal interaction in a service relationship is
based on the customer’s perception of a bond between the two parties.
Commitment
In present study, commitment is also one of the factors that influence the customer engagement.
Marketing scholars have conceptualized commitment as an attachment between two parties that
leads to a desire to maintain a relationship (Moorman, Zaltman, & Deshpande, 1993) or as the
motivation to stay with a supplier (Geyskens & Steenkamp, 1995). In the context of consumer
behaviour literature, there is a tendency for commitment to be considered synonymous with
loyalty to objects (Bloemer & Kasper, 1999; Martin & Goodell, 1991). More attention is being
directed towards researching commitment and the implications that it has for studying
engagement. In the customer context, the definition of commitment is applied to understand the
degree to which customers have a psychological attachment with a business in which they
occur. Even though, the previous research has identified commitment as being a unidimensional
construct (Blau, 1985).
Hypothesis
Four hypotheses were developed for the purpose of this study:
H1: There is significantly relationship between satisfaction and customer engagement.
H2: There is significantly relationship between trust and customer engagement.
H3: There is significantly relationship between rapport and customer engagement.
H4: There is significantly relationship between commitment and customer engagement.
Methodology
In this research, exploratory research is used to obtain information. A survey on a
representative sample of conducted the months of May 2017 and the data gathered through
structure questionnaire. The sample was drawn from the existing customers in Teguh Solusi
Sdn Bhd. A total number of 100 respondents completed the questionnaire. The populations that
chose for this study are customers from Teguh Solusi Sdn Bhd. The total numbers of population
were 100 which are customers from the company established in year February 2014 until now.
This is because the population in TSSB is heterogeneous in nature. The subsets of the
customer’s population that will be selected are the 100 respondents from customer Teguh Solusi
Sdn Bhd. By using the “rule of thumb” by Krejcie & Morgan (1970), out of 100 customers, all
are selected as a sample by using census sampling due to small population size.
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Findings
Table 1: Demographic Analysis
Table 1 shows the demographic analysis among respondents in term of frequency and
Demographic Categories Percentage (%)
Male 44.0
Gender
Female 56.0
Total 100.0
Married 62.0
Status
Single 38.0
Total 100.0
SPM 12.0
STPM 10.0
Education level Diploma 33.0
Bachelor Degree 41.0
Bachelor Master 4.0
Total 100.0
Below 20 years Old 7.0
20-30 31.0
Age 31-40 43.0
41-50 17.0
Above 50 Years Old 2.0
Total 100.0
No Income 1.0
Below than RM1000 11.0
Level of income
RM1001- RM3000 62.0
Above RM 3000 26.0
Total 100.0
Executive 3.0
Owner 14.0
Officer 5.0
Department or Group Manager 5.0
Supervisor 13.0
Occupation Purchasing Agent 9.0
Technician 7.0
Contractor 2.0
Administrative 10.0
Sales Personnel 14.0
Engineer 3.0
percentages. For gender, there are about 44 male respondents and 20 female’s respondents. The
percentages for both male and female respondents are 44% and 20% respectively. Among them,
38% was single (38 respondents) and 62% was married (62 respondents). In term of age, it was
divided into five categories which are below 20 years old, 20 to 30 years old, 31 to 40 years
old, 41 to 50 years old and 50 years old and above. The percentage of respondents for below
age 20 year which is 7% (7 respondents), 20 to 30 years old is 31% (31 respondents), 31 to 40
years old is 43% (43 respondents), 41 to 50 years old is 17% (17 respondents) and 50 years old
and above 2% (2 respondents). There were representation of the percentages from education
level including Sijil Pelajaran Malaysia (SPM) which is 12% (12 respondents), Sijil Tinggi
Pelajaran Malaysia (STPM) is 10% (10 respondents), Diploma is 33% (33 respondents),
Bachelor of Degree which is 41% (41
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ISBN: 978-967-14841-4-2
respondents), and Bachelor of Master which is 4% (4 respondents). The respondents’ income
level also was measured. It shows that 1% (1) had no income, 11% (11) had income below
RM1000, 62% (62) had income RM1001-RM 3000 and 26% (26) had income RM 3000 above.
For occupation, there are about 3% (3 respondents) which is as an executive, 14% (14
respondents) is an owner, 5% (5 respondents) as an officer and department or Group Manager.
Besides that, 13% (13 respondents) is a supervisor, 9% (9 respondents) is purchasing Agent,
7% (7 respondents) as a technician, 2% (2 respondents) as a contractor, 10% (10 respondents)
as an administrative, 14% (14 respondents) as sales personnel, 3% (3 respondents) as an
engineer and other is 15% (15 respondents).
Table 2: Reliability Analysis
The result shows the Cronbach Alphas of satisfaction, trust, rapport and commitment in Table
2. The variables that have exceeded 0.60 Cronbach’s Alpha are reliable and could be used for
further analysis. There are one variable that consider as a good since customer engagement
Variable No of items Cronbach’s Alphas
Satisfaction 5 .648
Trust 5 .721
Rapport 5 .760
Commitment 5 .756
Customer Engagement 5 .803
scored at 0.803. Meanwhile, the other 4 variables consider as acceptable since satisfaction, trust,
rapport and commitment scored at 0.648, 0.721, 0.760, and 0.756 respectively. As a conclusion,
the Cronbach’s Alpha reliability coefficients of independent variables in this study were
approximate to acceptable and were positively correlated to one and another.
Table 3: Pearson’s Correlation Analysis

Variable 1 2 3 4 SIG
1.Customer Engagement
2.Satisfaction .307** 0.002
3.Trust .422** .347** 0.000
4.Rapport .403** .401** .382** 0.000
5.Commitment .489** .043** .254* .300** 0.000
**. Correlation is significant at the 0.01 level (2-tailed)

*. Correlation is significant at the 0.05 level (2-tailed)
Table 3 above shows Pearson correlation between dependent variable which is customer
engagement and variables such as satisfaction, trust, rapport and commitment. Pearson’s
correlation reflects the degree of linear between two variables. The correlation could range from
-1.0 to +1.0. Davis (1997) proposed the rule of thumb stated that the closer correlation 1 means
that there is a perfect positive linear relationship or very strong relationship between variables,
0.50 to 0.69 is strong relationship, 0.30 to 0.49 is moderate relationship and 0.10 to 0.29 is low
relationship and 0.01 is a very slow relationship. As can be seen from the table above and used
the rule of thumb, all the variables were significantly and positively correlated with customer
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engagement and the r-value for each variable involve satisfaction (r=.377, p=0.002), trust
(r=.422, p=0.000), rapport (r=.403, p=0.000), commitment (r=.409, p=0.000) but all of the
variables are moderate relationship to the customer engagement. In conclusion, all of the
variables have moderate relationship with the customer engagement.
Table 4: Multiple Regression Analysis

Variable Unstandardized Coefficient Beta Sig.
Satisfaction .105 .084

Trust .217 .020
Rapport .097 .137
Commitment .256 .000
F change 14.862
R Square 0.385
Adjusted R Square 0.359
Durbin Watson 1.916
**p<.05
In Table 4, the Beta value indicates the strength of relationship between independent variable
and dependent variable. As can be seen, satisfaction (β=.105, p<.084) was not significant.
Besides that, trust (β=.217, p<.020), rapport (β=.097, p<.137) and commitment (β=.185,
p<.000) were significant predictors of customer engagement. The highest Beta indicate that one
unit positive change in commitment which expected result 0.255 or 26% coefficient change is
customer engagement. In can be concluded that hypothesis 1 and 3 was rejected while
hypothesis 2 and 4 was accepted. Then, it also shows the value of F change is strong which is
14.8. This is because the value of F change must be above 3 to make it acceptable and strong.
The adjusted R Square value was taken into account with 0.39. It was indicated that the
customer loyalty was explained by the independent variable 39% while the rest of 61% was
explained by the other variables or other predictors that were examined. As can be seen from
the table, the result of Durbin Watson is 1.916 which indicates the result is free errors because
the measures of Durbin Watson is good at least 1.5 above.
Discussion and Conclusion

Regarding to the results, it has been examined that there is two independent variables that
give influence relationship to the customer engagement in Teguh Solusi Sdn Bhd which are
trust and commitment. These variables have significant and positive relationship with customer
engagement and it can be conclude that trust and commitment are factors that can influence
relationship with the customer engagement in Teguh Solusi Sdn Bhd respects to their existing
customers.
Lastly, the organization should intercession the appropriate methods to raise engagement
with their customers and hope this study will help and assist Teguh Solusi Sdn Bhd to enhance
more effective and efficient strategies in future.
H1: There is no significant relationship between satisfaction and customer engagement.
Regarding to multiple regression analysis, H1 explain that there is no significant relationship
between satisfaction and customer engagement because p value is more than 0.05 which is
0.084 but there is positive relationship between satisfaction and customer engagement because
the Beta value is 0.105. Hence H1 is rejected.
H2: There is significance influence relationship between trust and customer engagement.
Regarding to multiple regression analysis, H2 explain that there is significant relationship
between trust and customer engagement because p value is less than 0.05 which is 0.020.
Therefore, H2 is accepted.
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H3: There is significance influence relationship between rapport and customer
engagement. Regarding to multiple regression analysis, H3 explain that there is no significant
relationship between rapport and customer engagement because p value is more than 0.05 which
is 0.127 however there is positive relationship between satisfaction and customer engagement
because the Beta value is 0.097. Hence, H3 is rejected.
H4: There is significance influence relationship between commitment and customer
engagement. Regarding to multiple regression analysis, H4 explain that there is significant
relationship between satisfaction and customer engagement because p value is less than 0.01
which is 0.000. Here, the researcher wants to state that when trust towards their rights was
higher, then the customer engagement toward their rights also higher. Therefore, H4 is
accepted.
Acknowledgement
The appreciation goes to Nur Solehah Muslim for completing the thesis and her pursuit as a
degree holder.
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DOES GENDER MATTERS? UNDERSTANDING CORRECTIONAL STAFF

OCCUPATIONAL STRESS
Awanis Ku Ishak 1
Hanissah A Razak2
Armanurah Mohamad3
1,2,3
School of Business Management, College of Business, Universiti Utara Malaysia
___________________________________________________________________________
Abstract: Excessive occupational stress is an imperative issue in any organizations because it

prohibits wellness that deters employees’ optimal performance. Correctional staff are among
occupation most affected by occupational stress despite gender differences. In high risk and
harsh workplace environment, correctional staff’ wellness and occupational stress are two
interrelated issues. Nevertheless, gender differences are always appealing issues due to
developmental difference between male correctional staff and female correctional staff. The
difference is causing protruding quandary to female correctional staff in order to survive in the
men’s world at some extent especially in the traditionally male dominated workplaces such as
prison organization. The gender difference has certainly caused both genders to experience
and perceive their occupational stress differently. Hence, this study seeks to examine significant
differences of occupational stress level between male and female correctional staff. The study
used survey method on 417 correctional staff as respondents. Research findings revealed
significant difference between male and female correctional staff. The differences of roles,
personality, attitude and behavior between male and female are due to biological and social
influences.
Keywords: Correctional Staff, Occupational Stress, Gender.

___________________________________________________________________________
Introduction
Recently, there is an upsurge attention on the influence of employee wellness at the
workplace (Ku Ishak, 2010, 2011, 2012; Botha, 2007; Els & De La Rey, 2006; Myers and
Sweeney, 2005; Cameron, Dutton & Quinn, 2003; Keyes & Haidt, 2003). Most organizations
in trade, industry as well as government have realized the importance of employee health and
wellbeing in attaining acceptable performance and productivity. The increasing attention is
caused by gradual increase of stress at the workplace due to the evolution towards globalization
era comprising of the change phenomenon in society, technology advances, the availability of
resources, and the social structure in order to achieve optimum profitability and resilient
competitive advantage as affirmed by Zafir & Fazilah (2006).
Organizations specifically in health and social service have recognized substantial impact of
employees’ optimal health and wellbeing or simply known as “wellness” has on overall
organization’s profitability and performance. This issue is important especially to the prison
professionals who are dealing with substantial risk at work. Globally, several researchers
specifically in human service fields have found the consequences of human services employees
such as prison employees having a direct long term contact with their clients (in this case prison
inmates) that may impact their wellness level and indirectly impact their productivity and
performance (Maslach, Jackson & Leiter, 1996, Senol-Durak, Durak & Gencoz, 2006;
Armstrong & Griffin, 2006; Cooper, Dewe & O’Driscoll, 2001; Zapf, 2002; Holman & Fernie,
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2000). Particularly correctional staff, among other human service occupations such as
ambulance workers, customer service employees in call centres and police is identified as being
most stressful resulting depleting physical and psychological well-being and having the lowest
level of job satisfaction (Johnson, Cooper, Cartwright, Donald, Taylor & Millet, 2005; Borritz,
Rugulies, Bjorner; Villadsen; Mikkelsen & Kristensen, 2006; Armstrong & Griffin, 2004).
Correctional staff’ work implicated prolonged stress conditions, emotional labour, incessant
threats of violence and excessive workload that can have negative impact on employees’ mental
and physical health at long term (Senol-Durak, Durak & Gencoz, 2006; Armstrong & Griffin,
2006; Cooper, Dewe & O’Driscoll, 2001; Zapf, 2002; Holman & Fernie, 2000). The importance
of maintaining wellness among prison professionals is necessary in order to guarantee
performance at work and effective prison service that entails long-term benefit to the society.
In high risk and harsh workplace environment, frontline correctional staff’ wellness and
occupational stress are two interrelated concern.
Problem Statement
At present the world of work has tremendously evolved based on three pertinent factors
which are the shifting of demographics patterns, the pace of technological change and the path
of economic globalisation (Karoly & Panis, 2004; Zafir & Fazilah, 2006). The change is
anticipated to gradually proliferate in the near future (Karoly & Panis, 2004; Zafir & Fazilah,
2006). This is particularly true looking at the mixture of workforce’s demographic
characteristics in any civilization has been increasingly becoming more disparate than before.
The shifting demographic patterns of the world workforce have definitely changed the role of
women in the economy and society (Bell & Graubard, 1997). The prison industry is no
exception and has benefitted from this trend. Today, more and more women have entered male-
dominated work organisation specifically the prison organisation (Cheeseman & Goodlin-
Fahncke, 2011). The notion of prison as male-dominated work organisation is clearly narrated
and documented by various scholars (Scott & Davis, 2007). Previous scholars such as Cullen,
Link, Wolfe, & Frank (1985) have stated prison organisation is characterized by male-
dominated working environment. The environment serves as the breeding grounds for the
manifestation and promulgation of gender and sexual harassment (Dantzker & Kubin, 1998;
Stohr, Lovrich, & Mays, 1997) and can negatively affect employee stress (Morash & Haarr,
1995). However, the scenario is progressively shifting. Thanks to the shifting state of affairs,
hence, gender differences in terms of stress levels have been identified among employees in the
criminal justice research literature (Scott & Davis, 2007). Today, female correctional staff are
growing in numbers and their visibility in prison organisation industries that have previously
been dominated by men are tremendously felt (Scott & Davis, 2007; Cheeseman & Goodlin-
Fahncke, 2011). The increasing numbers of women being attracted to work as a prison officer
could be expected, when the work organisation is recognised as human services work
organisation (Scott & Davis, 2007; Cheeseman & Goodlin-Fahncke, 2011).
Currently, as the scenario of prison organisation has gradually changed, the society’s
insight of prison as male-dominated work organisation has steadily faltered. Prison is
considered as human services work organisation and this has been universally understood
(Cheeseman & Goodlin-Fahncke, 2011). As the human services workers are predominantly
female therefore it is reasonably realistic considering women are the predominant applicants
for university courses in the human services. This gender divide remains true especially
education qualification is definite requirement for human services work. Women are the
predominant applicants for university courses in the human services. Women entering the job
of prison officer, perhaps attracted by its human services focus are confronted with some
aspects of the job that have not developed significantly from the paramilitary model Scott &
Davis, 2007; Cheeseman & Goodlin-Fahncke, 2011). This poses a significant challenge to the
women themselves as prison officials. Since women have contributed substantially to the
growth and development of prison, their characters in maintaining their health and wellbeing
as well as their level of stress at work should deem be taken into consideration (Cheeseman &
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Goodlin-Fahncke, 2011). In this article, the author intends to examine the relevant literature
and apply it to the findings to enhance interpretation and understanding of significant
differences of occupational stress between male and female correctional staff.
Thus, the objective of the research is to examine the difference of occupational stress
between male and female correctional officers.
A Review Of Relevant Literature: Correctional Staff’ Occupational Stress

Employees’ occupational stress is a timely and important topic where it is the condition in
which some factors or combination of factors interferes with the worker to disrupt their
physical, psychological, or social homeostasis (Lou, 1997) that prohibits the person to perform
optimally. Correctional staff are among occupation most affected by this problem (Senol-
Durak, Durak & Gencoz, 2006). Uncontrollable stress will deplete mental wellbeing of
correctional staff (Ku Ishak, 2014). The necessity of maintaining wellness among prison
professionals is imperative to guarantee performance at work and effective prison service that
entails long-term benefit to the society (Senol-Durak, Durak & Gencoz, 2006; Ku Ishak, 2014).
In high risk and harsh workplace environment, correctional staff’ wellness and occupational
stress are two interrelated issues. According to research and subjective evidences, occupational
stress among correctional staff is massive and it seriously retards and causes correctional staff’
wellness to deplete unswervingly at long-term run (Ku Ishak, 2014; Senol-Durak, Durak &
Gencoz, 2006; Pfeffer, 2010; Purcell, Kinnie, Hutchinson, Rayton & Swart, 2003; Karasek &
Theorell, 1990). These researchers’ discovery on correctional staff’ stress is verified during
informal interviews with several correctional staff in various prison locations in Malaysia.
These correctional staff regarded their daily work conditions extend from tedium to imminently
dangerous. They are also required to supervise imprisoned individuals awaiting trial or
convicted of a crime, maintain security, account for inmates, and enforce rules and regulations,
preventing disturbances, assaults, or escapes. Usually unarmed in a team of 3 to 5 officers, they
often worked in cellblocks of 500 to 1000 inmates. Apart from guarding the prison inmates,
their task included rehabilitating the detainees; starts from discipline training through physical
activity to spirituality development. Thus, this has signified correctional staff’ duty to be an
“all-rounder” – an adviser, counsellor, teacher, supervisor, trainer, instructor as well as
safeguarding fellow convicts. This discovery has supported Senol-Durak, Durak and Gencoz’s
(2006) revelation on the correctional staff’ constant stress through direct and unremitting
contact with prison inmates when they were on duty.
In essence, correctional staff’ daily work that revolves around the general routine of
prisoners’ life (the prison inmates themselves repelling from being held in prison and being
closely supervised), characterized by strict and regimented hierarchies, depersonalized
relationships between staff members and pervasive bureaucracy could initiate intense stress
(Cheeseman & Dial, 2008) that slowly depletes their wellness in long term run. These
occupational stress trigger correctional staff’ harmful physical and emotional responses when
the requirements of correctional staff’ job do not match their capabilities, resources or needs
(Hall, 2004; Rosnah & Azmi, 2008). Due to these account, on daily basis, preserving
correctional staff’ wellness while working in prison environment will not be easy. For this
reason, prison work has often been characterized as one of the toughest position in law
enforcement. In order to maintain the role of prison services and safe custody, it is pertinent
that prison officials be optimally functioning and well balanced. The unique working
environment of correctional staff, however, increasingly jeopardizes the fulfilment of such
expectations.
Women Working In Prison

Gender differences are always appealing issues among I/O psychology researchers,
psychologists, behaviourists and neurologists (Cheeseman & Goodlin-Fahncke, 2011). The
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fascination on gender differences is mainly stemmed on the developmental differences between
male and female being during childhood and continuously to be different during adolescence,
adult and elderly. The difference is causing protruding quandary to the women in order to
survive in the men’s world at some extent especially in the traditionally male dominated
workplaces such a construction, engineering and prison. The gender difference has certainly
caused both genders to experience and perceive their occupational stress differently. These
women entering the male dominated workforce bringing their strengths and attributes and the
occurrence has gradually changed the traditional masculine way of the male-dominated
workforce to less masculine. The fact that women are present in the prison workplace helps to
enhance the normalization of prison facilities in relation to society in general. Female prison
professionals tend to be more able to multi-task and are more observant in comparison to male
prison professionals who are more comfortable with single task completion and excel in
synthesizing information. Regardless of the obstacles or challenges women have faced, they
have found success working in prison.
Hypothesis From Differential Aspect

Marini (1990) revealed there were differences of roles, personality, attitude and behaviour
between male and female due to biological and social influences. Subsequently, researchers
found female prison warders reported more work related stress than their male counterparts thus
might deteriorate their wellness (Cullen, et al., 1985; Zupan, 1986). However, other study
revealed mix results when they demonstrated no significant gender differences for prison
warder stress (Triplett, Mullings and Scarborough, 1996; Walters, 1992). It was noteworthy
that earlier studies conducted in the 1980’s demonstrated gender differences, but more recent
studies found no gender differences. But then, Morgan et al. (2002) asserted that female warders
had learned how to cope better with working in a prison environment in recent years that would
help to boost their level of wellness.
In addition, another study by Norvel, Hills and Murrin (1993) also found that female law
enforcement officers did not report higher levels of stress than did the male law enforcement
officers. In another recent studies by Bradway (2009) and Clark, Martin and Martin (2009), the
results supported previous studies when these researchers concluded on the negligible
importance of stress adaptation between genders. Furthermore, in another study, female
correctional staff in Nigeria were reported to have higher stress their male counterparts (Okuza,
Imhonde and Aluede, 2010). This was because women had a lot to contend with roles as a
worker, housewife and mother. Therefore, it was considered normal for women to be more
stressful compared to male correctional staff. On the contrary, Savicki, Cooley and Gjesvold
(2003) concluded that female correctional staff developed a variety of effective coping skills to
enable them to manage their working environment compared to their male counterparts.
Nevertheless, although some previous researches suggested that gender might be an important
demographic characteristic to consider in the experience of stress; then again some research
revealed no differences between women and men in relation to occupational stress (Martocchio
and O’Leary, 1989). Other research had noted on differences on stressors and severity of stress
between the sexes (Decker and Borgen, 1993). It had also been reported that although women
and men were exposed to the same stressors, women also faced unique stressors (Cooper, Dewe
and O’Driscoll, 2001; Palmer, Cooper and Thomas, 2003). Meanwhile, in another study, by
Deaux (1984) and Martocchio and O’Leary (1989) revealed the existence of occupational stress
among correctional staff without gender difference. In particular, psychological research on sex
and gender, Deaux (1984) concluded that in most research little variance was accounted for by
sex. Meanwhile Martocchio and 0’Leary (1989) conducted a meta-analysis of fifteen studies
that had examined gender differences in occupational stress, and they concluded that there were
no gender differences in occupational stress. Based from the literature, it is evidenced of
inconsistent results. Due to the inconsistencies, this study aims to examine the possible
difference of occupational stress between male and female correctional staff. Thus, it is
hypothesized that there is difference of occupational stress between male and female
correctional staff.
H1 There is significant difference of occupational stress between male and female
correctional staff.
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Methodology
Participants
Since the grand total of correctional staff at 8 locations are 4,783, then the required
respondents sample for the populations is between 354 and 356 (Krejcie and Morgan, 1970;
Dean, Sullivan and Soe, 2009). In tandem, Nunnally and Bernstein (1994) has advised
appropriate sampling calculation should be subjected to the measured construct variable (in this
research, parcelled items) of 10:1. Meanwhile McMillan (2004) has suggested the rate of return
should be at least at 60%. Considering all suggestions, the author settled for the usable returned
questionnaires amount because it is between the recommended sample size and also suitable
for item parcelling purposes. The returned questionnaires are totalled at 570 whilst usable
returned questionnaires are at 417. The sample size has satisfied the proposed minimum by
Krejcie and Morgan (1970), Tanaka (1993) and Nunnally and Bernstein (1994). This has
indicated acceptable returned questionnaires are at 62.68% and has met the suggested rate
(McMillan, 2004). The questionnaire is completed by front line Correctional staff as selected
respondents (n=417; mean age 33 years).
Instruments Occupational Stress Scale for Correctional staff

Occupational stress has put a major impact in one’s life. Individuals who are exposed to
work-related stress will put a tremendous influence on individual’s mental and physical health.
Thus through comprehensive understanding on the sources and causes of occupational stress
are crucial to increase job satisfaction, job performance and wellness of the individual. Specific
characteristics of the particular job also influence the level of occupational stress of an
employee such as police officers (Patterson, 2003) and correctional officers (Armstrong and
Griffin, 2004; Pollack and Sigler, 1998). The operational definition of occupational stress
among correctional staff in this study is the occupational hazard in prison environment. In
addition, correctional staff have reported to endure prolong and greater stress due to cultural
diversity, increased negative perception towards the occupation and shift of expectations from
the mere punitive institution to treatment facility (Senol-Durak, Durak and Gencoz, 2006).
Hence considering the respondents of the research are correctional staff, thus the usage of
Occupational Stress Scale for Correctional Officers as developed by Senol-Durak, Durak and
Gencoz (2003) is deemed appropriate. This is because the correctional staff are exposed to
constant and different high level of stressful conditions at work especially for front-liner
correctional staff that are distinct compared to other job. WSSCO is developed in particular for
correctional staff. It is a self-report instrument with 35 items on the effects of given conditions
upon the prison employees (Senol-Durak, Durak and Gencoz, 2006). Responds are obtained
from 4-point Likert type scale ranging from 1 = it has no effect at all to 4 = it has a very strong
effect. Item dimensions are: i) work overload, ii) role conflict and role ambiguity, iii)
inadequacies in physical conditions of prison, iv) threat perception and v) general problems.
The overall internal consistency of the instrument is at .94 and inter-item correlations ranged
from .31 to .75 (work overload internal, role conflict and role ambiguity, inadequacies in
physical conditions in prison, threat perception & general dimension subscale). Since the
instrument is being tested the first time on a Malaysian population, therefore the instrument is
slightly adapted to fit the Malaysia application.
Procedure
Initially, an extensive accessible literature on occupational stress in prison environment was
conducted. Next, the instruments used to measure occupational stress constructs in this study
were translated into Malay version questionnaire to suit cross-sectional survey design (Brislin,
1970). The instruments were then tested for validity and reliability through face validity,
content validity, construct validity and internal consistency analysis. Thus in considering the
thoroughness of this study, it contributes to an extension of the knowledge the theory and
functional behavioural science specifically in prison environment. Cross-sectional survey
method was adopted where the questionnaires were distributed to eight selected prison
facilities. Multistage sampling technique was used to address prison officer samples in the most
effectual approach possible. Through the stratified random sampling, the correctional staff were
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divided into homogenous subgroups; then taking a simple random sampling in each subgroup
(Cavana, Delahaye and Sekaran, 2001). Data then are analysed using SPSS version 16.
Statistical analysis used is t-test analysis.
Empirical Results
Respondents Profile
Respondents are consisted of 417 correctional staff (of 233 male and 184 female; 56% and
44% respectively). This sample reflects real situation of correctional staff population where
majority are male dominated. Larger numbers of female front line correctional staff are
concentrated at Penjara Wanita Kajang (female prison). This sample also reflects true populace
of the profession where it is dominated by Malay ethnic (94.24%) whilst other ethnic group
(Chinese, Indian and others) is at 5.76%. Age mean and age mode of respondents are at 32.8
years and 25 years respectively where 47.2% of respondents are between 20-29 years, while
28.1% are between 30-39 years. 24.7% of respondents are at age between 40 to 59 years. Most
respondents worked between 4-10 years with 39.3% (n=164) while 28.8% (120) respondents
have worked 3 years and below. 31.8% respondents have served the department between 11 to
20 years and between 21-30 years.
Reliability Analysis
According to Cavana et al (2001), the reliability of a measure indicates the extent to which
the measure is without bias and hence offers consistent measurement across time and across the
various items in the instrument. Cavana et al (2001) also have mentioned that the reliabilities
less than 0.60 are considered poor whilst the reliability value range between 0.6 and 08 are
acceptable. Reliability value at 0.8 and above is considered good. In this study, the Cronbach’s
alpha values of WSSCO instrument is .89, indicating acceptable internal consistency of
instruments. However, two dimensions of Occupational Stress Scale for Correctional Officers
scale namely Work Overload and Inadequacies in Physical Conditions of Prison reveal the least
Cronbach’s alpha value of .614 and .602 respectively (Cavana et al, 2001).
Differential Analysis: Occupational Stress according to Male and Female Correctional

Staff
Based on the result, significant difference of occupational stress between gender is apparent
where occupational stress (p = .022, t value = 1.875). The mean and standard deviation scores
for occupational stress of female respondents are at 2.84 and .388 respectively compared to
male respondents’ scores at 2.94 and .426 respectively. This signified that female respondents
have slightly lower occupational stress compared to male respondents. Hypothesis H1 is
substantiated as the significance value was at .022 (p<.05); indicating that there is significant
difference of occupational stress level between male and female respondents.
Table 1 t-Test on Occupational Stress according to Gender

Gender N Mean Std. Dev T Sig.
Occupational Male 233 2.94 .426
stress 1.875 .022
Female 184 2.84 .388
Discussion & Conclusion

This finding supports previous research on stress by Okoza, Imhonde and Aluede (2010) and
Lam Zhang and Lam (2001), when they revealed that gender had significant interaction effect
on stress as experience by prison workers that indirectly influence their health and wellbeing.
As occupational stress in prison environment was a major problem, no one could escape from
experiencing stress during work that would continually depletes health and wellbeing of
correctional staff especially at early work year (Okuza, Imhonde and Aluede, 2010); however,
the stress level is different between male and female correctional staff. According to the results
of the present study in general, correctional staff were experiencing moderate occupational
stress level at work. However, male correctional staff experience higher occupational stress
compared to female counterparts. This finding may indicate male officers are more prone to
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stress compared to female officers. This is confirmed during interview with few local
correctional staff on the possible reason for higher stress was due to the extensive work burden
and expectation from their immediate superior to perform well. This was especially relevant to
male correctional staff; since it was considered as a norm. The pressure weight to perform well
was highly placed on the male correctional staff’ shoulder compared to women otherwise their
performance would be underrated by their tough male supervisors. Besides, the daily work in
safeguarding and rehabilitating prison inmates also put constant pressure on the correctional
staff. Male correctional staff constantly faced and threatened by incarcerated male criminals
(with variety of sentenced degree) who were more aggressive and violence leading to massive
stress. What’s more, adding on to their stress is the facing financial burden due to low salary to
support and sustain their family as the breadwinner despite of excessive stress at work.
The pressure weight to perform well was also highly placed on female correctional staff
though not as much as their male counterparts. This finding was supported by Farnworth (1991)
when he pointed pertinent findings pertaining to this issue. Farnworth (1991) reported that due
to the nature of work as a prison officer was highly male-stereotyped, it created several
integration problems for female correctional staff. In that situation, female correctional staff
performed differently compared to male officers. Nevertheless, the female correctional staff
were not disadvantaged promotionally because the prison management recognized them as
competent correctional staff. The finding of female correctional staff experienced lower stress
level supports Savicki, Cooley and Gjesvold (2003) when they affirm on the ability of female
correctional staff to develop effective coping skills to enable them to manage their working
environment compared to their male counterparts. Therefore, based on the research findings,
although female correctional staff also played similar role as an employee, wife and mother, it
was interesting to note that their stress level did not succumb to natural “highly stressful”
circumstances of working women. The reason is yet to be determined and is suggested for future
research. However, the recent finding had some similarity with previous finding (Okuza,
Imhonde & Aluende, 2010) when it proved that gender gave significant interaction effect on
stress.
Future Research Direction

One more suggestion for future research direction is the need to scrutinize on occupational
stress among correctional staff in Malaysia. Feedback from face-to face interviews during
preliminary investigation have revealed that from Malaysia viewpoint there have only been a
scant knowledge of the issues pertaining to wellness, occupational stress and coping among
correctional staff with in the literature. Therefore, another potential issue is to look at in future
research is correctional staff’ coping ability and its measurement according to Malaysia
respondents, culture and its norms. In addition, future research also needs to probe into other
possible stressors in prison setting (Triplett, Mullings & Scarborough, 1999). The comments
given by the correctional staff at the end of the survey and the amount of variation explained
by the models, both, suggest that all the relevant sources of stress are not covered. Future
research need also assess variation in the effectiveness of different coping mechanisms across
different sources of stress. Finally, variation across race and gender in the use of effective
coping strategies should be examined. (Triplett, Mullings & Scarborough, 1996)
Acknowledgement
The authors would like to render appreciation to Jabatan Penjara Malaysia for their support
and cooperation and to Drs Senol-Durak, Durak and Gencoz for their willingness to share the
instrument for academic usage.
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AN EVALUATION FOR TRADE PREFERENCE SCHEME – ORGANISATION

OF ISLAMIC CONFERENCE TOWARDS EXPORT SHARE TARGET USING
GRAVITY MODEL
(Case : Indonesia Export)
Ziad S.E1
Prof. Dr. Muhammad Firdaus. S.P, M.Si2
1
Departemen Ilmu Ekonomi, Fakultas Ekonomi dan Manajemen, Institut Pertanian Bogor
2
Jl. Kamper, Wing 4 Level 5, Kampus IPB Darmaga, Bogor 16680
______________________________________________________________________________
Abstract: The transference of goods and services growing every year. The presence of bilateral
and multilateral agreement especially in economic’s sector impact on trade with plenty of benefits.
One of the agreements which Indonesia involved is Trade Preference Scheme OIC. This study is
done to see the development of Indonesia exports to 22 major trading partner countries for sample
commodities on the period 2000-2016. Descriptive analysis conducted to identify influence of this
agreement to indonesia exports empirically, while for estimation using gravity model. The results
show that the presence of the agreement have no influence fully to Indonesia exports and had a lot
of weakness compared to another trade agreement bilateral and multilateral. On the outcome of
gravity model, shows that Indonesia GDP, and dummy polls, having influence positive and
significantly to Indonesia exports. But the price unit, and economic distance have negative
influence and significant against Indonesian export.
Keyword: Trade, OIC, Islamic, Macro Economic

______________________________________________________________________________
Introduction
Research Background
The trasnference of goods and services growing every year through international trade
which are export and import. Export and import activities are conducted by every country
bilaterally or multilaterally (plurilaterally). Some international organizations were established to
legislate the trade, starting from organization consisted of universal member (WTO and
UNCTAD), organization for specific regional member (ASEAN, MENA, EU, Maghreb,
CARICOM, etc), until organization for particular criteria (OIC, LDC, OPEC, etc). The presence
of the organizations bring a lot of benefits out towards their member countries, which are
preferential trade, tariff reduction, or other trade partnership advantage.
Indonesia joined several multirateral organizations, one of them is Organization of Islamic
Conference (OIC). At first, OIC was an organization consisted of countries which their population
dominated by moslem. The organization was established as a reaction of arson of Mosque Al-Aqsa
by Israel at August 21st 1969, where Al-Aqsa is a holy place for moslem, beside Makka and
Madina. The Organization function now is conquering several problem of moslem countries such
as, agriculture, energy, trade, social, education and many more. On trade sectors, OIC has an
objective to increase their member welfare throughout export in import.
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2,500 12.65% 14.00%
11.89% 11.78%
10.82% 10.64% 12.00%
2,000 9.70%
10.05%
9.33%
8.78% 8.78% 8.52% 8.70% 10.00%
billion USD OIC export
1,500 6.78% 6.84%
7.18% 7.26%
8.00%
1,000 6.00% share (%)

4.00%
500
2.00%
0 0.00%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
year
Source: International Trade Center, 2017
Figure 1 OIC export growth
OIC export have a fluctuating trend however still tend to have positive growth. OIC has a
membership of 57 countries have export value reached USD 1,379,779,159,000 in 2016, still its
value equals to 8.7% on world share. OIC working to improve its export share, one of the efforts
is to establish COMCEC (The Standing Committee for Economic and Commercial Cooperation of
the Organisation of Islamic Cooperation). The COMCEC created Trade Preferential Scheme OIC
(TPS-OIC) as the statute agreement intra-OIC to increase their export capacity.
The Scope of Research

This research will analyze how massive impact of TPS-OIC which is result of 21st
COMCEC meeting as an effort to increase intra-OIC trade, compared with other agreements where
Indonesia involved. Other than that, sharia rules will not be missed from this discussion considering
that this binding agreement involving moslem countries.
Implementation of agreement to sample commodities focused on palm oil and its fraction
which has code HS1511, paper and paperboard with code HS4802. Indonesian market share that
became sample on this research are 22 main export target countries of the commodities.
Countries sample based on quota sampling, which is sampling by means of classifying
population based on some criterias, then specifying proportion or sampling quota considered
represent the population. This sampling is selected to ensure that some characteristics of population
are represented by sample. Eleven OIC member countries has represented OIC based on their
import value from Indonesian, not based on OIC total membership. The selection of partner
countries also determined by its main market share.
Sample commodities are determined based on main export product towards OIC countries
because this research requires considerable market share to represent OIC itself. Sample sorted
based on the completeness of data needed as well, both to endogenous or exogenous variables so
the data are adequate to be used on model. The period used is between 200-2016. The research
aimed at identifying impact of the treaty confirmed at 2005, so that data needed is data before treaty
enters into force, and after the agreement was put in place to this day.
Method
The Types and Sources of Data
Data used on this research are secondary data from 2000-2016, as follows:
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Table 1 Data Sources

Data Sources
Quantity trade, Unit Price Trade Map ITC, UNCOMTRADE
Distance Centre d’Etudes Prospectives et d’Informations (CEPII)
Tariff Trade Analysis Information System (TRAINS)
Gross Domestic Product World Development Indicator (WDI)
TPS-OIC The Standing Committee for Economic and Commercial Cooperation
of the Organisation of Islamic Cooperation COMCEC
Researcher utilize another sources to support research as well, such as OIC, SESRIC, BPS,
WTO, OIC annual report, journals, books, and other related research.
Data Analysis Methods

Descriptive Analysis
Descriptive analysis is a method of data presentation by describing situation or issues based on
data in detail. Sugiyono (2005) said descriptive method is a method used to describe or analyze
result of study but not used to make broader summary. The objective of this method is to make
description, image systematically, factual and accurate information of facts, characters, and relation
between the phenomenon investigated
Panel Data Analysis

One of the structure data often used in econometric study is panel data. Panel data is data which
structured time series and cross section. Panel data has several advantages that are more informatics
data, reducing collinierity between variables, increasing degrees of freedom which means
increasing efficiency, and reducing identification problem, and controlling individual heterogenity
(Hsiao on Firdaus, 2011)
Gravity Model
Gravity model had been known since 1962 by Jan Tinberger who stated that size of bilateral
trade could be measured based on “gravity equation” law with analogy from Newton law about
gravitation. Two countries have characteristic like plane which has an interest based on their size
and proximity (WTO, 2015). On international trade, size measured by each GDP proportion and
proximity measured by distance. Generally, gravity model equation can used on many function by
this equation
𝑋𝑖𝑗 = 𝐺𝑆𝑖 𝑀𝑗 ∅𝑖𝑗
Xij define export value from country i to country j. Mj symbolize importer specific factor
determine amount of import demand (example GDP partner country). Si consists of exporter
specific factor determine export supply (ex. GDP exporter). G is a variable that doesn’t rely on
the country i and j (ex. level of world liberalization). Variable Φij represents ease of access from
country i to country j (defined as the opposite of trade cost), (UNCTAD 2012). Regarding
estimation, the equation can be transformed into the linear form using natural logarithm (Ln),
So the model turned into;
𝐿𝑛𝑄𝐸𝑖𝑗 = 𝑎 + 𝑎1 𝐿𝑛𝐺𝐷𝑃𝑖 + 𝑎2 𝐿𝑛𝐺𝐷𝑃𝑗 − 𝑎3 𝐿𝑛𝐷𝑖𝑠𝑡𝑒𝑐𝑜𝑖𝑗
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Model Estimation
Model estimation transformed into natural logarithm in order the model meets the classic
assumption test and avoid model from bias. Besides, according to Juanda (2009), transformation
of model into natural logarithm able to overcome heteroscedastisity problem, avoid normality
problem, so that model estimation is transformed as follow;
𝐿𝑛𝑉𝐸𝑖𝑡 = 𝑎0 + 𝑎1 𝐿𝑛𝐺𝐷𝑃𝑅𝐼𝑡 + 𝑎2 𝐿𝑛𝐺𝐷𝑃𝑅𝑇𝑖𝑡 + 𝑎2 𝐿𝑛𝐷𝐼𝑆𝑇𝐸𝐶𝑂𝑖𝑡 + 𝑎1 𝐿𝑛𝑃𝑟𝑖𝑐𝑒𝑡 + 𝑎3 𝑇𝐴𝑅𝐼𝐹𝑖𝑡
+ 𝑎4 𝐷𝑡𝑝𝑠𝑖𝑡 + ∈𝑖𝑡
Notes:
𝑉𝐸 = Indonesia export volume to partner country on the year t (Kg)
𝐺𝐷𝑃𝑅𝐼 = Indonesia real GDP (exporter) (USD)
𝐺𝐷𝑃𝑅𝑇 = Partner country real GDP (importer) (USD)
𝐷𝐼𝑆𝑇𝐸𝐶𝑂 = Economic distance between Indonesia and partner country
𝑃𝑟𝑖𝑐𝑒 = Price per unit commodity export (USD/ton)
𝑇𝐴𝑅𝐼𝐹𝐹 = import tax partener country (%)
𝐷𝑡𝑝𝑠 = Dummy TPS-OIC
∈it = Error
𝑎 = Coefficient
Goodness of Fit test

Data model tested is panel data. Panel data is combination of cross section and time
series. Utilization of this data is considered more appropriate because the model test using panel
static. The test also using weight which is Generalized Least Square (GLS). Weighting is
conducted to overcome auto-correlation and multi collinearity problem
Operational Definition
Indonesia real GDP variable denoted with GDPRI used on this research is basic variable
from usage of gravity model initiated by Tinbergen (1962). This variable is measured by current
USD value transformed into natural logarithm. Partner country real GDP variable denoted with
GDPRT used on this research is basic variable from usage of gravity model initiated by Tinbergen
(1962). This variable is measured by current USD value transformed into natural logarithm.
Economic Distance variable is basic variable on gravity as well, denoted with DISTECO.
This variable measured based on formula that calculates geographic distance between exporter and
importer divided with result of share GDP partner towards GDP total which afterwards converted
into logarithm form.
Price per unit denoted Price, which is measured by FOB (Free on Board) on current USD.
While TARIFF describe import tax. Import tax used is Most Favoured Nation (MFN) applied tariff
with percentage scale. Dtps is a dummy variable for the agreement TPS-OIC with 1 for OIC
membership countries after the treaty agreed which is from 2006-2016, and 0 for other than that.
Discussion
General Description of Organization of Islamic Conference (OIC)
OIC (Organization of Islamic Conference) is an international organization established in
Rabat, Morocco Kingdom, on Rajab 12th 1389H (Sept 25th, 1969) as a moslem reaction of
incendiarism of Mosque Al-Aqsa by Israel. The organization has purpose in creation which are to
ensure safety, protecting moslem interest in order to promote international peace and harmony of
diverse human in the world. As time passes, the organization keep growing and expanding its
focus on several sectors such as economic, education, agriculture, tourism, etc. Currently, member
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of OIC has reached 57 countries spread over four continents, namely Asia (25 countries), Europe
(3 countries), South America (2 countries), and Africa (27 countries)
OIC membership who more than a third of WTO member makes OIC is a massive
organization seen from number of members and their distribution. Nevertheless, its coverage does
not make OIC as an powerfulll organization on economic term. GDP of OIC membership tend to
be low as described on this figure
100,000
80,000
million USD
60,000
40,000
20,000
0
OIC European OECD World
2010 2011 2012 2013 2014 2015 2016
Source: World Development Indicator (2017)
Figure 2 Comparison of GDP OIC with other regional
This curve explains that GDP total of OIC countries (without Palestine because there is no
data for Palestine) is 5,806,326,934,474 USD. This amount is very small for associations that
numbered more than 25% countries of the world. If we calculated, OIC contributed only for 8% of
world GDP (75,543,542,614,449 USD), even OIC total GDP not greater than GDP of USA or
China. This indicates poor of economies based on macro variables.
70000
60000
50000
current USD
40000
30000
20000
10000
0
Iran,…
Guinea-…
Burkina…
Sierra…
Bangla…
Kyrgyz…
Afghani…
Uzbekis…
Egypt,…
Saudi…
Azerbai…
Gambia…
Cote…
Brunei…
United…
Maurita…
Turkme…
Syrian…
Mozam…
Kazakh…
Yemen,…
Tajikistan
Uganda
Guyana
Oman
Kuwait
Niger
Malaysia
Cameroon
Morocco
Iraq
Suriname
Turkey
Bahrain
Nigeria
Somalia
Lebanon
Comoros
Sudan
Tunisia
Algeria
Qatar
Guinea
Libya
Togo
Chad
Pakistan
Indonesia
Jordan
Albania
Gabon
Mali
Benin
Senegal
Maldives
Djibouti
Source: World Development Indicator (2017)

Figure 3 OIC countries GDP per capita on year 2016
Per-capita income of OIC members are diverse as well. Figure above explain per-capita
income of OIC countries and the world. There are 7 countries (Qatar, UAE, Brunei Darussalam,
Saudi Arabia, Bahrain, Oman, and Turkey) have per-capita income above the average of world
which is 10,150.79 USD. The rest are below the world average, 8 countries are classified as low-
income economies ( <615 USD), (Worldbank 2015). This illustrate many members (33%) have not
reached the level of welfare because their per-capita income still low. Majority of the countries are
placed on Africa which have high poverty level due to the low income.
Encountering economic problem experienced by members, OIC took a step to form a
committee responsible for problem and development of member’s economic which is COMCEC
(The Standing Committee for Economic and Commercial Cooperation of the Organization of
Islamic Cooperation). This committee is expected to build an integrated economy among members
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through various related sector, one of them is trade. COMCEC got a special mandate from the 21st
meeting of OIC on 2005 to achieve greater integrated economic with target share of inter-OIC trade
reaching 20% of the world trade. One of the COMCEC efforts creating Trade Preferential Scheme
OIC (TPS-OIC) as a statute of the agreement between OIC countries to increase inter-OIC trade
capacity.
General Description of Indonesia Export to OIC Countries

Indonesia has growing export value every year and spread to the countries throughout the
world including OIC member. Indonesia exports to OIC had a positive trend seen by export value
relatively increasing, but the share are still fluctuating
250,000,000.00 15%
200,000,000.00 Indonesia
million USD
10% export to the

150,000,000.00 OIC
Indonesia
100,000,000.00 export to the
5% world
Share (%)
50,000,000.00
0.00 0%

Figure 4. Indonesia export growth
Indonesia export to OIC reached 18,251,658,000 USD, the value is equivalent with 12.63%
export share to the world (amounting 144,489,796,000 USD). This export value has been
positioning Indonesia as one of major exporter among OIC countries, and Indonesia always on the
top 5 exporter among OIC since 2000. However, the value does not enough to encourage trade
attaining target specified in the OIC work program which is 20%.
This is happen due to several factors, one of which Indonesia has other bilateral and
multilateral agreements to several countries that contain free trade area and preferential trade
agreement already approved and run in recent years such as ASEAN Free Trade Area (AFTA),
ASEAN-China Free Trade Area (ACFTA), Indonesia-Japan Economic Partnership Agreement
(IJEPA), Global System of Trade Preferences among Developing Countries (GSTP), EFTA -
Indonesia Trade Agreement, and other trade agreements (WTO 2013).
Agreements that have been ratified by government has different rules and procedures in
tariff reduction, for example AFTA. Here is scheme of AFTA tariff reduction:
a) At 2003 : 60% of products with 0% tariff
b) At 2007 : 80% of products with 0% tariff
c) At 2010 : 100% of products with 0% tariff
In AFTA, all countries string along to reduce import tariff to the minimum that is 0-5%
gradually on years 2003, 2007, and 2010 unless for ASEAN-4 (Vietnam, Laos, Myanmar,
Cambodia) for a particular subject. This tariff rate is called CEPT (Common Effective Preferential
Tariff). Other example is Indonesia-Japan Economic Partnership Agreement signed on August
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20th, 2007, and ratified by Presidential Decree no, 26 of 2008 about ratification of Agreement
between the Republic of Indonesia and Japan for an Economic Partnership. Tariff reduction on
the Indonesia-Japan treaty is very significantly to reach 0% gradually accordance with categories
of product regulated on PMK no.94/PMK.011/2008.
Both of these agreements give more advantage than the OIC Trade Preference Scheme,
because on OIC treaty, tariff reduction still stalled on 10% for the lowest one, and legalized 25%
of tariff. This tariff will impact to Indonesia total export to partner countries.
50,000
40,000
million USD
30,000 JEPANG
ASEAN
20,000
OIC
10,000
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
year
Figure 5 Comparison of Indonesia export value
As described on figure that Indonesia export to OIC which has 57 membership only
18,251,658,000 USD, this value still smaller than export to ASEAN region (10 countries)
amounting 33,202,854,000 USD. Indonesia-OIC trade even smaller than Indonesia-Japan export
until 2014 This shows the effect of AFTA and IJEPA is preponderant than TPS-OIC, due to more
favorable tariff reduction so that export flow distorted into more profitable region.
In addition, there are a lot of country have not signed and ratified the PRETAS (Preference
Tariff for TPS-OIC). Currently, 33 countries have signed PRETAS, but only 18 of them have
ratified the treaty, (COMCEC 2014). Indonesia is including countries that has signed but has not
ratified. There are many of Indonesia trade partner countries that have not ratified the agreement.
The impact is their import tariff prohibitive for Indonesia export.
40
30
percent
Tunisia
20
Turkey
10 Togo
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
year
Source: Trade Analysis Information System, 2014
Figure 6. OIC countries tariff of sample commodities (palm oil)
Figure 6 shows tariff of sample OIC countries changed significantly exceed the regulation
stipulated by PRETAS. Tunisia still increasing tariff until it reaches 36%. Turkey and Togo often
raised tariff should have been reduced since enactment of PRETAS. This obviously does not
represent well implemented of PRETAS. Whereas, tariff reduction initiated by COMCEC is not
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too significant compared with AFTA and IJEPA. Volatility of import tariff will affect Indonesia
export value of the commodity.
Spotting some flaws, this agreement deservedly considered not optimal. Many economist
questioning the effectiveness of this regional agreement in enhancing inter-OIC trade (Ahamat,
2009). The organization considered too large to set up free trade area as well. A total 57 members
dominated by developing countries spread over four continents make OIC as a very wide and
intricate international organization. Wide geographic distance does become problem because of
their negative impact on trade as asserted by Ariff (1988), Ghani (2007), as well as Ismail and
Mawar (2012). Coverage caused the high cost of trade among members. Tariff reduction should be
contributed to the increased trade flows, however, the high of transport cost would be a
consideration of country to pay more for export and import. Moreover, there are 13 landlocked
countries, that’s mean the country do not have port as transportation of trade.
Increased inter-OIC trade is delicate to achieve target considering there are still some issues
related trade cost and agreements. However, there are some efforts to be made at this time. Ismail
and Mawar (2012) asserted that in order to increase inter-OIC trade, moslem countries should
actively promote and integrate markets, reduce tariff and non-tariff barriers and promoting free
trade area. They also should align sellers and buyers, in cooperation with relevant trade institution,
government, NGO, and financial institutions.
TPS OIC Agreements On Islamic Perspective

In international trade, parties included not only sellers and buyers, government is involved
as well. Although not defined as aqad, but government has crucial position as regulator because
trade is not just about selling, buying, and gaining profit, international trade also a matter of
mashlahah of states and its people. Policies are made as an instrument in regulating the trade flows
such as imposition of tariff, import quota restrictions, and other policies.
Nevertheless, as the development of globalization, tariff barriers began to diminish caused
by free trade area, the abolition of import tax, and so forth, to encourage export and import
performance. Moslem countries in the OIC meeting succeed in forming trade preference scheme.
The presence of this agreement is expected to stimulate the economy of Moslem countries. In
Islam, the rules regarding partnership contract (aqad) has been much stipulated. The main law of
agreement is permissible (mubah). Rasulullah PBUH said;
َّ‫طا َح َّر َم َحالَالً أ َ ْو أ َ َحل‬

ً ‫وط ِه ْم إِالَّ ش َْر‬ ُ ‫ص ْل ًحا َح َّر َم َحالَالً أ َ ْو أ َ َح َّل َح َرا ًما َو ْال ُم ْس ِل ُمونَ َعلَى‬
ِ ‫ش ُر‬ ُ َّ‫ص ْل ُح َجائِ ٌز بَيْنَ ْال ُم ْس ِل ِمينَ إِال‬
ُّ ‫ال‬
‫َح َرا ًما‬
“The agreement may be made between moslems unless the treaty forbids the halal or permit
unlawful; and the moslems are bond by their terms except terms that forbids the halal or permit
unlawful” (Narrated by Tirmidzi from 'Amr bin 'Auf al-Muzani)
There are many benefits to be gained by moslem as well from the treaty such as mutual
help. Since the main purpose of the treaty is to encourage the economy of moslem countries through
increased export/import. Allah SWT says;
                   ...
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“And cooperate in righteousness and piety, but do not cooperate in sin and aggression. And
fear Allah; indeed, Allah is severe in penalty.” (Al-Maidah : 2)
In addition, there are another advantages by trade agreement such as justice principle that
seen by neutral tariff, not favoring particular party. Allah SWT said in al-Maidah: 42 “…And if you
judge, judge between them with justice. Indeed, Allah loves those who act justly. Still, command
for being fair is decreed on An-Nahl: 90.
The next point contained in the agreement is benefit of lighten each other burden, in form
tariff reduction. Prophet SAW said, “…Whoever helps ease someone in difficulty, Allah will make
it easy for him in this world and in the Hereafter…” (Narated by Muslim
The Trade Preference Scheme Impacts Toward Export of Sample Commodities

Distribution of Indonesia Export Commodities to OIC
Indonesia exported more than 18,251,658,000 USD on 2016 to OIC country member.
Diversification of market share which are Gulf area, sub-saharan Africa, and part of Asia, drive
Indonesia possess comparative advantage so Indonesia is able to export commodities. Indonesia
main export products are animal or vegetable fats and oils and their cleavage products, which has
code HS15. Indonesia exported 4,588,776,000 USD to OIC countries on 2016. That’s value equals
to 25,1% of total export to the world. The next product is mineral fuels (HS27) reaches
2,114,323,000 USD. Generally Indonesia main export commodities to OIC are as follows.
Animal,vegetable fats and oils

Mineral Fuels
25% Vehicle Other than railway
34%
paper and paperboard
Manmade Staple Fibres
Electrical Machinery
Mandmade Filament
12% Chemical Product
Machinery
Wood
2% 2% 7% Other 87 category
3% 4% 5%
3%
3%
Source :
International Trade Center, 2017
Figure 7 Indonesia Export distributin to OIC on 2016
As explained on the figure 7, that diversified of product category are exported by Indonesia
to OIC. The presence of the agreement expected to impact export commodities, whether from cost,
barrier, bureaucracy, or other related. Transformation of agreement into dummy model will
perceive real impact of agreement toward export of commodities. Commodities sample used for
this research are palm and paper.
Palm
Palm is one of Indonesia main export commodity in international trade. Indonesia is the
biggest country that export this commodity, this is shown by export Indonesia with amount
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14,365,422,000 USD that had share 51.6% of world palm trade in 2016. The export spread across
the world, including OIC member countries. As many as 45 members of OIC are become Indonesia
target export that amount 3,981,836,000 USD. Indonesia export OIC through years have linear
trend as Indonesia export to the world. The presence of an agreements are expected to give impact
to boost Indonesia-OIC trade. If we transform this agreement (TPS-OIC) and consider other
dependent variables into model, will result as follow;
Table 2. Estimation of palm export using fixed effect model
Variable coefficient Prob.
GDPI 1.454701 0.0000*

GDPTit 0.054382 0.8155
PRICEt -0.935898 0.0000*
DISTECOit -0.016645 0.9685
TARIFFit -0.000266 0.9274
DTPSit 0.099347 0.4758
C -22.64481 0.0000
Note: *significant on α=10%

Factors that impacted Indonesia Export to 22 countries are GDP exporter (GDPIt), and Unit
value (PRICEt). From the estimation, model could be formed as;
𝐿𝑛𝑉𝐸𝑖𝑡 = −22.64481 + 1.454701𝐿𝑛𝐺𝐷𝑃𝐼𝑖𝑡 − 0.935898PRICE
Notes:
𝑉𝐸𝑖𝑡 = Indonesia export volume (quantity) to importer on year t (kg)
𝐺𝐷𝑃𝐼𝑡 = GDP Indonesia / Exporter (USD)
𝑃𝑅𝐼𝐶𝐸𝑖𝑡 = Economic distance Indonesia-importer
On model selection, based on regression of panel data, obtained Chi squared probability
value on Hausmann test shows smaller than significance level 10% (0.0206 < 0.1), It can be
concluded that Fixed Effect Model (FEM) approach is better for this estimation.
Estimation model shows that model have probability value of F-statistic smaller than
significance level 10% (0.0000<0.1) interpret that independent variables able to explain their
impact to Indonesia export value of palm. R-squared value is 0.8875 shows that model that
explained by independent variables in the model is 88.75%, while other 11.25% is explained by
variables other than in the model.
Factors Predispose Indonesia Palm Export

Importer real income (GDP), represent by GDPIj, has probability value 0.0000 which
interpret this variable have significant impact toward Indonesia export value of palm.
Coefficient 1.454701 shows the increase of 1% income, will increase palm export volume
1.45%.
PRICE variable has significant impact toward palm export with coefficient -0.935898
which means the 1% increase of palm price will reduce export volume 0.93%. This
phenomenon is caused by limited countries that able to produce and export palm and its
fraction. Indonesia and Malaysia are two countries with high export of palm. Indonesia export
share on 2016 is 51.6%, while Malaysia 32.6%, followed with Netherland 3.9%. Whereas,
importers of this commodity are spread across the world. Limitedness of supplier generates
into high transportation cost, so higher cost will not impact significantly to import value, due
to limited option to choose exporter.
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1400
1200
Unit value (USD/ton)
1000
800 Indonesia
600 Malaysia
400
Belanda
200
0
Year
Figure 8. Palm Export Price
Gambar
Furthermore, price 9 Harga
of palm ekspor minyak
exported sawit
by Indonesia always has lower value than Malaysia
and Netherland, as explained in figure 8. The cheapest price is become an advantage for
Indonesia to attract importer, so they ship palm from Indonesia rather than other exporters.
Paper
Paper is an export commodity with code HS4802 (uncoated paper for printing and writing).
This commodity is fraction of category HS48 (paper and paperboard, articles of pulp, paper and
paperboard). There are 19 kinds of paper exported by Indonesia. Some papers with high export
value are Paper,no fibres, for other purpose 40< weight <150 g/m,sheet (HS4802569000) and Other
paper & paperboard, weight>40g/m2 (HS4802579000), Paper,no fibres, for other purpose 40<
weight <150 g/m,roll (HS4802559000). Indonesia exported paper worth 3,413,554,000 USD.
Generally, exporter of paper are from Europe, but Indonesia has comparative advantage for
HS4802 furthermore those 3 commodities that makes Indonesia as the top exporter for those
commodities (uncoated paper and paperboard).
This export volume generates into estimation model with other variables, to see impact of
TPS agreement to export trend
Table 3 Estimation of paper export using fixed effect model

Variabel Koefisien Prob.
GDPI 1.060011 0.0000

GDPTit -0.332758 0.1113
PRICEt 0.361201 0.6850
DISTECOit -1.897968 0.0000
TARIFFIr 0.002560 0.4069
DTPSIr 0.293189 0.0068
C 6.861257 0.0501
Note: *significant on α=10%
Factors that impacted Indonesia Export to 22 countries are GDP exporter (GDPRIit),
economic distance of Indonesia and importer (DISTECOit), and tariff (TARIFit). From the
estimation, model could be formed as;
𝐿𝑛𝑉𝐸𝑖𝑡 = 6.861257 + 1.060011𝐿𝑛𝐺𝐷𝑃𝑅𝐼𝑡 − 1.897968𝐿𝑛𝐷𝐼𝑆𝑇𝐸𝐶𝑂𝑖𝑡 + 0.293189𝐷𝑇𝑃𝑆𝑖𝑡
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Notes:
𝑉𝐸𝑖𝑡 = Indonesia export volume (quantity) to importer on year t (kg)
𝐺𝐷𝑃𝐼𝑡 = GDP of exporter (Indonesia) (USD)
𝐷𝐼𝑆𝑇𝐸𝐶𝑂𝑖𝑡 = Economic distance Indonesia-importer
𝐷𝑇𝑃𝑆𝑖𝑡 = Trade Preference Scheme’s Dummy (%)
On model selection, based on regression of panel data, obtained Chi squared probability
value on Hausmann test shows smaller than significance level 10% (0.0196 < 0.1), It can be
concluded that Fixed Effect Model (FEM) approach is better for this estimation.
Estimation model shows that model have probability value of F-statistic smaller than
significance level 10% (0.0000<0.1) interpret that independent variables able to explain their
impact to Indonesia export value of paper. R-squared value is 0.770096 shows that model that
explained by independent variables in the model is 77%, while other 23% is explained by variables
other than in the model.
Factors Predispose Indonesia Paper Export

Model result shows Indonesia GDP has significant impact toward export of paper
commodities. Coefficient 1.060011 indicate positive relation between domestic income and
export. Coefficient interpret the increase of 1% GDP Indonesia will increase volume export of
paper.
Other variable that has significant impact is DISTECO which represent transportation
cost of paper exports, has probability 0.0000 and coefficient -1.897968. Coefficient indicates
that increase of economic distance 1% will decrease of export value 1.90%. This is accordance
to Pradipta research that in trade contains export and import, economic distance represents
transportation cost, so that the farther the distance will impact to transportation cost (shipping
cost, loading unloading cost, insurance, etc) increased as well. The increase of transportation
cost will increase production cost of exported product, so that product price will be more
expensive, at the end volume export demanded by importer will be decline.
By the same formulation as prior sample, Dummy for TPS have significant impact
here. This probability below 𝛼 explain that there is significant impact before the agreement
inaugurated and thereafter.
Summary
Indonesia Export to OIC membership has fluctuating trends. The presence of Trade
Preference Scheme – Organization of Islamic Conference (TPS-OIC) is expected to push intra
member export, including Indonesia, reaching certain target. Nevertheless, Indonesia export share
not much increased by the presence of this agreement. This is due to the agreement has some
shortcoming when implemented. In Other side, Indonesia is involved with more profitable bilateral
and multilateral agreement as well, such as IJEPA, and AFTA.
Commodities sample are observed to analyze impact of this agreement to export volume.
Gravity model is considered more appropriate to analyze this estimation. The results show that
exporter GDP has positive impact to palm and paper export with coefficient 1.45 and 1.06 each.
Economic distance movement which represents transportation cost has a major influence
toward paper export, but not on the palm ones. It’s happen due to many alternate for paper exporter
while for palm, only some countries able to produce and export this commodity.
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Main topic of this research which is Trade Preference Scheme impact only emerge in paper
export only. While this treaty should be impactful to all OIC trade in order to comply the target of
trade share.
Bibliography
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[DEPKEU RI] Departemen Keuangan Republik Indonesia. 2015. ASEAN Free Trade Area.
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[DEPKEU RI] Departemen Keuangan Republik Indonesia. 2015. Indonesia Japan Economic
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http://www.tarif.depkeu.go.id/Others/?hi=IJEPA
[DIRJEN PAJAK] Direktorat Jendral Pajak. 2006. Dengan Pajak kita wujudkan kemandirian
bangsa. Jakarta (ID): DIRJEN PAJAK Pr.
Firdaus, M. (2011). Aplikasi Ekonometrika Untuk Data Panel Dan Time Series. Bogor: IPB press
Gujarati, D N. (2006). Essential of Econometrics. Singapore : The McGraw-Hill Companies Inc.
Gundoglu, A S. (2009). Determinant of intra-OIC Trade: Policy or Exchange Rate [catatan
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Ismail MA, Mawar MY. 2012. Malaysia-OIC Trade: Static and Dynamic Gravity Model Approach.
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[ITC] International Trade Center. 2017. Share Export, Unit Value, and Value Export [Internet].
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Sumiharti Yati, editor. Jakarta (ID): Erlangga. Terjemahan dari: International Economics Fifth
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Sugiyono. (2005). Metode Penelitian Kualitatif. Bandung: Alfabeta.
Suprayitno, E. (2005). Ekonomi Islam. Yogyakarta: Graha Ilmu
Tang, T C. (2006). Are Imports And Exports In The OIC Member Countries Cointegrated? A
Reexamination. IIUM Journal of Economics and Management 14(1).
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[WDI]. World Development Indicator. 2017. GDP (Constant 2005 US$), GDP (current USD)
[Internet]. [diunduh pada 2017 Sept 10] tersedia pada: http://data.worldbank.org/
[WITS] World Integrated Trade Solution. 2017. Value Export [Internet]. [diunduh 2017 Sept 10]
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[WTO] World Trade Organization. 2010. Transparency Mechanism For Preferential Trade
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ONLINE SHOPPING BEHAVIOUR AND LOGISTICS COMPENTENCIES
Emy Ezura A. Jalil 1

Kok Chai Ceok 2
Siew Suk Ling 3
Hoe Cheon Yew 4
ezura@uum.edu.my
1234
School of Technology Management and Logistics
___________________________________________________________________________
Abstract: Online shopping is growing more rapidly and globally. With the development of
Internet, the competition between online retailers has evolved to competition between logistics
service providers (LSPs). This paper presents the relationship between consumers’ online
shopping behaviour and logistics competencies of LSPs to covering the shortcomings of
previous studies that did not examine specific factors, especially logistics factors that influence
online shopping behaviour. In this study, there are five dimensions of logistics competencies
which consist of order accuracy, order condition, timeliness; visibilities as well as reverse
logistics have been adopted. And the studies focused on millennial consumers (university
students) were used as respondents. As a result, the findings indicated that order accuracy is
the most important variable in influencing online shopping behaviour. Likewise, other logistics
variables such as order condition, timeliness, visibility and reverse logistics are considered
relevant to online shopping behaviour.
Keywords: Online Shopping, Logistics Service Providers, Online Shopping Behaviour,

Logistics Competencies.
___________________________________________________________________________
Introduction
Online shopping is the process a customer takes to purchase a service or product over the
Internet (Goh & Zuroni, 2012). In other words, a consumer may purchase at his or her leisure
visit web stores from the comfort of their homes and shop from an online store. Lee & Zhang
(2002) have examined that online shopping has become the third most popular Internet activity,
immediately the following e-mail using, instant messaging and web browsing. Accordingly, it
is imperative for the practitioners to understand online shopping behaviour (OSB) in this
competitive and rapidly growing virtual marketplace. The OSB is also known as online buying
behaviour and internet shopping behaviour, in which these terms refer to the consumption
process of buying products or services over the web (Liang & Lai, 2000).
When studying OSB, there is one undoubted fact that everyone should bear in mind that
logistics services are one of the fundamental goals for online shoppers. Usually, online shoppers
make their purchasing orders at their home or office assuming quicker delivery than offline
purchasing and on time delivery at his or her convenience (Soopramanien & Robertson, 2007).
In contrary, the late delivery of products is one factor that makes online shoppers dislike online
shopping. As such matter, an effective logistics competency makes online shoppers satisfied,
and it makes them continue to shop online. In corresponding with the increasing trend of online
shopping and globalisation, it has stimulated the demand for courier services (Wang, 2011).
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Thus, the logistics service providers (LSPs) play a significant role in providing logistics
excellence in the carrier industry.
According to Traffic Index by TomTom in 2016, the traffic congestion increase to 13
percent globally since 2008. For the major cities like Mexico City, Bangkok, Istanbul, Rio de
Janeiro and Moscow were the most congested cities in 2015. The onset of traffic jamming leads
the people to feel extreme stress as they have to waste more precious time and money to carry
out their daily activities such as working and shopping during peak hours. Sometimes, those
who stay in the major cities also face such higher parking fees when going out to have a meal,
entertainment and even buying daily items. It is time-consuming, waste of money and fuel when
being trapped in the traffic congestion. At the same time, the people do not like to move to
somewhere; they just want to get the things on fingertips. In dealing with this matter, the people
opt to do online shopping to avoid themselves from the congested traffic when going out from
home. Moreover, online shopping is available and accessible to whomever by providing various
selections of goods, price comparison, after sales service and fast delivery services.
Correspondingly, online shoppers hesitate to shop online due to they worry about the
product inaccuracy, poor product condition, late delivery as well as the damaged products trying
to return. So, products delivery performance is critical in affecting online shoppers’ behaviour
towards online shopping. Needless to say, there is a need for LSPs to provide the best logistics
practices in fulfilling online shoppers’ requirement towards courier industry. In brief, it is
essential to determine the influence of logistics competencies towards OSB among online
shoppers.he Journal of Global Business & Social Entrepreneurship (GBSE) is an academic,
refereed journal published quarterly. GBSE publishes blind-reviewed original articles and
theoretical reviews. GBSE aims to address conceptual paper, book & article review, theoretical
and empirical research issues that impact the development of business, entrepreneurship,
economics and educations as an educational and scientific discipline, and promote its efficiency
in the economic, social and cultural contexts, both domestically and globally.
Literature Review
Online Shopping Behaviour (OSB)
Shahzad (2015) defines the OSB as a kind of individual’s overall evaluation and perception
for product or service during online shopping which can result in a bad or good way. Besides,
Yang, Li, Liang & Li (2011) have mentioned that the OSB is a consumers’ emotional and actual
behaviour based on the evaluation of purchase decisions on the internet. Also, the OSB is
defined by Lee & Zhang (2002) as “consumers’ psychological state regarding making purchases
on the web.” Therefore, understanding OSB becomes the key element of E-retailers which focus
on seeking to promote business relationships and increase long-term profitability. Through
identifying the factors that influence OSB, the online retailers able to monitor and improve
company’s performance and encourage more customers to shop online (Cao & Mokhtarian,
2005). Previous studies on consumers’ OSB have identified some factors that consumers
consider important in their adoption of online shopping.
According to Chang & Samuel (2004), they identified that demographic characteristics of
online shoppers have a significant influence on online purchase frequency. Demographic
characteristics factors can be categorised as gender, age, education level, occupation, income,
race, religion, nationality, family size and family life cycle (Kotler, 1982). Besides, Robinson,
Riley, Rettie and Wilsonz (2007) also stated that convenience is the major motivation for online
buying due to the consumer can shop anytime and having bundles of items delivered at the door
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step. Similarly, a study conducted by Yasmin and Nik (2010) also shows that website features
have a significant influence on online shopping activities. The good quality of website design
can guide the customers for successful transactions and attract the customers to revisit the site
again. Furthermore, Yang, Li, Liang, and Li (2011) highlighted that logistics services factor has
a significant effect on consumers’ behaviour towards online shopping. They actively to support
that online shopping cannot be completed without efficient and effective logistics service. The
delivery service is the primary element that online retailers need to achieve the delivery of
goods bought by consumers. Moreover, online shoppers also concern with logistics information
such as the location of goods, quality of goods and order status. Also, communication between
logistics service provider and online shoppers also directly influence consumers’ OSB. The
standardized operation and procedures of LSPs may reflect the professionalism and reputation
of online retailers. It is another dimension of logistics service has effects on the customers’
psychology. Therefore, efficient and effective logistics service will contribute to consumers’
satisfaction of online shopping (Li, Shu, and Xiong, 2011).
Logistics Competencies
According to Morash, Droge & Vickery (1996), logistics competence is a vital strategic
asset for manufacturing firms to compete in the current global environment. Logistics
capability, such as customer responsiveness and competing on time, can be valuable resources
for corporate strategy. Logistics competence can be divided into two types which are logistics
factor competence and logistics operation competence. For this study, the specific logistics
competencies are more belonging to logistics factor competence. Logistics factor competence
refers to the capability coming into being during the process of logistics activities because of
the enterprise owning and controlling the resources, including all types of logistics mechanical
equipment, logistics facilities, labour forces, capitals, information and others (Wei & Yihua,
2010). Same goes to the LSPs; they possess logistics factor competencies for instance
transportation vehicles, warehouses, handling equipment, drivers, deliveryman, capitals, order
and delivery information to managing various retailers’ online shopping activities. In this study,
there are five specific logistics competencies aspects which including order accuracy, order
condition, timeliness, visibility and reverse logistics.
Order Accuracy
According to Mentzer et al., (2001), order accuracy refers to how closely products match
customers’ orders upon arrival. It involves the right products in the order, the correct quantity
of goods and no substitutions for products ordered. Hence, the items received rarely contain the
wrong items and rarely contain substituted items. Besides that, Rahmat & Faisol (2015)
describe order accuracy is the goods received from LSPs or online retailers to consumer usually
accurate. The goods should be accurate since it is picked up from the point of origin for delivery
to the final destination with the same condition, same quantity and arrangement based on the
request of sender. Therefore, manufacturers always conduct internal inspection towards orders
to prevent mistake arise and delivering the right products to the consumer (Rahmat & Faisol,
2015).
In accordance to the Rapee, Peng & Lee (2014), order accuracy is essential and influence
to consumers’ behaviour toward online shopping. They strongly endorsed the order accuracy
can be used to identify the level of logistics competencies to achieve customers’ satisfaction in
the online market situation. Indeed, wrong item delivery also can make customers dissatisfied
and further prompt a switch to the other competitors in the online industry. Therefore, it is found
that order accuracy has a positive influence on consumers’ behaviour toward online shopping.
Also, a study conducted by Lee (2014) in Taiwan found that order accuracy has a significant
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impact on consumers’ OSB. The author shows that the Taiwanese are always less satisfied with
the products they purchase online due to they did not receive the right product from the LSPs.
Thus, order accuracy has been shown to influence whether or not a consumer will continue to
shop online.
Order Condition
According to Mentzer et al. (2001), Bienstock et al. (1997) and Rinehart et al. (1989), order
condition addresses the damage levels of the products due to handling throughout the
transportation or delivery process. The damaged products are unusable to the customers. And
the customers have to go through certain procedures to obtain the replacement of the damaged
products from the suppliers or LSPs depending on the source and level of damage. Thus, it
explicitly defined in term of logistics context as the lack of damage of the orders due to the
quality of handling. In other words, a damaged product will lose its intrinsic value since
customers will not be able to use it and it may need to undergo some correction procedures
which included reverse logistics (Mentzer et al., 2001).
Besides, order condition also refers to some inappropriate actions for example barbarized
loading and unloading that did not exist, and the order must be scientifically sorted as well as
the damage rarely occur (Feng, Zheng, & Tan, 2007). According to Yuan (2006), the customer
survey report proved that a high consumer satisfaction on online shopping is based on good
order condition, order accuracy and order completeness. LSPs and online retailers should use
safe packaging materials, strengthen packaging requirement and improve the packaging and
pick quality standard, adopt specialized packing for fragile items, and provide some training to
drivers regarding the methods to loading and unload the products in correct and appropriate
way so that the goods can be delivered in good condition, and correspondingly mitigate the
probability to carry out reverse logistics of the products because of the delivery problem
(Bienstock et al. (1997). Hence, in the operational area, particularly in logistics operation, the
desired objective will never achieve if the products do not arrive in the right condition that it
should be (Rahmat & Faisol, 2015).
Timeliness
In accordance to Lee (2016), timeliness is being at the right time. It can be defined as the
quality or habit of arriving or being ready on time (Merriam-Webster Dictionary, 2016).
Timeliness, in the context of logistics, bring that meaning of having the right quantity of right
product at the right place at the right time with the right condition (Logistics World, 2016).
Thus, the timeliness highlighted is expressly about delivery timeliness. Concurrently, it can be
understood as one of the means of reception for the order placed by the customer at the agreed
moment (Mentzer et al., 2001). Based on the client value theory, timeliness is one of the vital
elements in the relationship between logistics service providers (LSPs) and customers (Tian,
Ellinger & Chen, 2010). Timeliness refers to whether orders that have been placed are delivered
on time as promised (Saura et al. 2008). This dimension is vital as it helps in reducing the
overall operation process regarding hours between service stops (Choudhry & Khan, 2001). It
has been found that customer satisfaction can be further improved through the given availability
of flexible timeliness based on demand (Mattila & Mount, 2006).
Apart from that, according to the report that published by World Bank in 2016, Malaysia
rank 32nd together with 3.43 scores the for the Logistics Performance Index (LPI) amongst 160
countries in the whole world. As such, the main component that helps to accelerate this world
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ranking is the timeliness factor in which it is the highest LPI score of 3.65 (World Bank, 2016).
No doubt, it cannot be denied that timeliness is one of the significant elements that contribute
to the logistics competencies in Malaysia. Simultaneously, timeliness is an important factor for
online shopping (Rony et al. 2015). Based on previous empirical study revealed that there is a
strong relationship between attitude towards online shopping behaviour and timeliness,
responsiveness as well as internet cost (Rony et al., 2015).
Visibility
For logistics and supply chain context, the concept of “visibility” should be pretty clear cut.
Ideally, it is about when shippers, business partners, and customers know where their products
are at any point along the supply chain from the supplier of raw material to the final destination
correctly (McCrea, 2011). From the perspective of e-commerce, UPS also defined visibility as
availability to know when customer shipments will be delivered and where they are in transit
(UPS, 2016). Between the e-retailer and customer, chain visibility nowadays is about the
logistic information technology which enables the traceability and serialisation of a product.
The visibility of the product is important because online tracking or real-time technology is the
tool to achieve chain visibility (Lavin, 2013).
Implementing track and trace infrastructure may improve the company competitive
advantage. With track and trace, a retailer is positioned to establish direct dialogue with
consumers and can integrate the system into customer loyalty (Hockenberger, 2014).
Proactively offering tracking option has become an e-commerce’s best practice since it will
encourage the customers to return to the same website, or stay longer, to increase chances of
additional purchases or cross-opportunities, makes the business appear trustworthy and reliable,
and set customer expectations and provide peace of mind (CPC, 2014). In the research that
conducted by ComScore, 38% of the respondent or UPS respondents give online tracking ability
as their answer for the aspects they would like the retailers to improve in online shopping
(ComScore, 2012). In another research which is also conducted by ComScore, around 50% of
the respondents think that tracking service is essential and almost half of the respondents think
that it is nice to have tracking service during online shopping. This result shows the importance
of monitoring service in the e-retailing business. As a result, the ability to track and trace is
highlighted to have an influence towards OSB among online shoppers.
Reverse Logistics
Reverse Logistic also called aftermarket logistic, reverse supply chain or aftermarket supply
chain (Fen, 2010). According to Hawks (2006), reverse logistic refer to the process of planning,
implementing, and controlling the efficient, cost-effective flow of raw materials, in-process
inventory, finished goods and related information from the consumption point back to the point
of origin for the purpose of recapturing value or proper disposal. More precisely, reverse
logistics is the process of transferring goods from their typical final destination for the purpose
of proper disposal or, capturing value. Remanufacturing and refurbishing activities also can be
included as a part of reverse logistics (Hawks, 2006). It shows that reverse logistic is a wide
area of study. However, in online shopping or e-retailing, reverse logistic is about the return
policy which enables the customer to return the good which is not in good condition according
to the rule and procedure that listed in the system (Watson, 2015). The return policy is the rules
establish to manage the process by which customers return or exchange unwanted or defective
merchandise that they have purchased previously (USLegal, 2016).
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Return policy will become significant when the delivered goods were defected, damaged,
shipped wrongly or dissatisfied the customer due to other reasons (Mironov, 2011). According
to Robinson (2014), an effective reverse logistic in e-retailing may result in some benefit
especially improved the overall customer satisfaction. During online shopping, the consumer
takes the return policy into considering before they are buying something from the internet.
Finally, the Managing Director of Commonwealth Supply Chain Advisors, Ian Hobkirk (2015)
claimed that reverse logistics is going to shape up to be a major differentiator for e-retailers
(Hobkirk, 2015). It means that reverse logistics may become a core of success for any of the e-
retailer to compete with other forms of retailing business.
Methodology
The quantitative approach is used to collect numerical data. A non-contrived setting is
utilized in the research where minimal researchers interferences. Besides, the unit of analysis
for this investigation is considered as the individual group. A sample of 400 respondents within
the population in higher education institution (HEI) had been selected. The sample in this
research is the millennials who have the experience of online shopping. The type of sampling
method that applied in this research is non- probability sampling. The theoretical framework
has been developed to guide the research (Fig.1) and using hypothesis testing to investigate the
relationship between the logistics competencies and online shopping behaviour.
Research Hypotheses
H1: There is a significant relationship between order accuracy and students’ behaviour towards
online shopping.
H2: There is a significant relationship between order condition and students’ behaviour towards
online shopping.
H3: There is a significant relationship between timeliness and students’ behaviour towards
online shopping.
H4: There is a significant relationship between visibility and students’ behaviour towards online
shopping.
H5: There is a significant relationship between reverse logistics and students’ behaviour
towards online shopping.
order
accuracy
reverse
timeliness
logistics
online
shopping
behaviour
order
visibility
condition
Figure 1: Theoretical Framework of Millennials’ Online Shopping Behaviour
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Result
The results of the present study are analysed. Before that, the Chi-Square test is primarily
carried out to examine whether there is difference between demographics variables. Based on
the result, there is almost no difference between demographics variables in the study. Hence, it
is possible for the research to extend correlation and multiple regression analysis. Based on the
result in Table 1, all the items used in this study give coefficients of 0.953 in the Cronbach’s
Alpha test. According to Sekaran & Bougie (2013), reliability factor that less than 0.5 are
considered to be low reliability, those in 0.5-0.7 is quite high reliability, which in 0.7-0.9 is high
reliability and those over 0.9 are very high reliability. Besides, based on Nunnally’s Rule of
Thumb (1978), the level of reliability is considered to be acceptable with the value of 0.70 or
better in basic research, whereas, for applied settings, the reliability of 0.80 or even 0.90 should
be better. Hence, the item within unidimensionality scales with higher reliability value requires
no further test i.e. factor analysis (Sekaran & Bougie, 2013).
Table 1: Coefficient of Cronbach’s Alpha
Cronbach’s Alpha N of Items
0.953 36
Table 2: Correlation between independent variables and dependent variable

Factors Pearson Correlation Sig. (2-tailed)
OSB OA OC T V RL
OSB
1.000 0.550 0.540 0.522 0.475 0.528 0.00
Correlation is significant at the 0.01 level (2-tailed).
Based on Table 2, the p-value for all the five variables is equal to 0.000 at which it is less
than α value of 0.01. Thus, it indicates a statistically significant correlation between
independent variables (order accuracy, order condition, timeliness, visibility and reverse
logistics) and dependent variable (online shopping behaviour). There are a positive influence
and relationship between all the independent variables to students’ online shopping behaviour.
Table 3: Results of Regression Analysis (Model Summary and ANOVA)

Model Summarya
Model R R Square Adjusted R Std. Error of the
Square Estimate
1 0.654b 0.428 0.421 0.788
ANOVAa
1 Sum of Squares Df Mean Square F(Sig.c)
Regression 183.102 5 36.620 59.005(0.00b)
Residual 244.528 394 0.621
Total 427.631 399
a. Dependent Variable: OSB b. Predictors: (Constant), OA, OC, T, V, RL
c. Significance = 0.05
From the above table (Table. 3), the coefficient of multiple determinations (R2) value is
0.428 which means order accuracy, order condition, timeliness, visibility and reverse logistics
explain 42.8% of online shopping behaviour. Besides that, the table shows that the set of
predictors of online shopping behaviour is statistically significant at the 0.01 level (F (5,394) =
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ISBN: 978-967-14841-4-2
59.005, p<0.05) and therefore, it confirms the fitness of the model. Based on the findings
(Table. 4), H1 (order accuracy), H2 (order condition), H3 (timeliness), H4 (visibility) and H5
(reverse logistics) are supported with the respected p-value of 0.000<0.05 (H1, H2, H3, H4 &
H5). Thus, it can conclude that the independent variables: order accuracy, order condition,
timeliness, visibility and reverse logistics have a positive relationship with the dependent
variable: student’ online shopping behaviour (H1, H2, H3, H4 & H5 are accepted). Also, it can
be seen that order accuracy has the highest beta at 0.240, which indicated that this variable is
the strongest factor in influencing student’ online shopping behaviour.
Table 4: Significant Predictors of Structural Model (N=400)

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta T Sig.b
1 (Constant) 1.212 0.251 4.819 0.000
Order Accuracy 0.226 0.050 0.240 4.537 0.000
Order Condition 0.128 0.060 0.128 2.140 0.033
Timeliness 0.118 0.060 0.116 1.983 0.048
Visibility 0.105 0.052 0.104 2.014 0.045
Reverse Logistics 0.209 0.046 0.223 4.512 0.000
Discussion
The research framework theorized that order accuracy, order condition, timeliness, visibility
as well as reverse logistics would influence students’ behaviour towards online shopping. All
logistics competencies components were significant predictors as expected. Importantly, the
present study revealed that order accuracy is the strongest predictor of students’ behaviour
toward online shopping in UUM. Order accuracy exerted the strongest influence on students’
behaviour towards online shopping (r =0.550, p<0.01), followed by order condition (r =0.540,
p<0.01), reverse logistics (r =0.528, p<0.01), timeliness (r =0.522, p<0.01) and visibility
(r=0.475, p<0.01). It is consistent with the literature on order accuracy is the strongest predictor
towards students’ behaviour in online shopping. From the findings of the study, order accuracy
has a significant and positive effect on students’ behaviour. This is because those with high
positive order accuracy appeared to have greater intentions to do online shopping which is
supported by previous studies (Lee, 2014). It refers to the consumers will firstly take the
perceptions of whether the products they received are accurate into account before they decide
to purchase online. The results make sense as order accuracy tends to satisfy the online shoppers
and lead them to continue shop online. Therefore, the researchers can conclude that students
will opt to do online shopping when the order accuracy that offered by LSPs is favourable.
Moreover, from the finding of the result, there is a significant and positive relationship
between order condition and OSB. A supported study by Harlina (2006) identified that order
condition appears to be crucial in making decision to do online shopping due to it is the primary
responsibility of LSPs to ensure the good status of the products along the delivery process. It,
at the same time, meant that those with high positive order condition tends to have greater
intentions to shop online which is supported by previous statistics of post-purchase evaluation
by Taobao. It clearly is shown that 70% complaints are correlated with logistics services, such
as damaged package and poor condition of the parcel which severely affects the intention of
consumers to continue to shop online. Thus, the researchers can conclude that online shopping
behaviour has a significant relationship with the order condition, in which it is under one of the
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ISBN: 978-967-14841-4-2
logistics competencies. Furthermore, the results of this study show that reverse logistics has a
significant and positive effect on students’ OSB. This finding is consistent with the literature
of Robinson (2014) which stated that the online shoppers would consider the return policy
before they buy something from the Internet. It meant that one tends to have stronger intentions
to purchase online if the retailers offer valid return policy such as money back guarantee, free
product return or free return shipping. In fact, the consumers will take some reverse logistics
issue into considering before decide to purchase online. Thus, it makes sense not to buy online
if the return process is not transparent enough to safeguard the rights of the customers towards
the purchased products. In brief, the students will shift to shop online when the reverse logistics
provided by LSPs is practical, straightforward and convenient.
Also, the result of this study shows that timeliness has the significant and positive influence
on students’ OSB. This finding is consistent with the literature of Rahman (2006) which
highlighted that “on time delivery” is the most crucial component in achieving the logistics
service quality. Besides that, the previous study shows that the independent variable of
timeliness has positive relationships with the dependent variable of customer satisfaction
(Jessica et al. 2012). Timeliness able to measures the average effectiveness and success of a
courier provider once they have received a customer’s order (Xu & Cao, 2008). In accordance
to Parasuraman (2004), it also involves the accuracy of billing and record keeping as well as
the completion of the service at the designated time. Once LSPs do not deliver the parcel on-
time, online shoppers perhaps feel dissatisfied with the courier services and tend to affect their
intentions to do online shopping. Hence, it shows that timeliness has an influence on students’
OSB. On the other hand, the results of this study indicate that visibility has a significant and
positive relationship on students’ OSB. It is compatible with the literature of Hockenberger
(2014) which mentioned that it had become a best practice for e-commerce to offer tracking
option proactively since it will encourage the customers to surf the same retailers’ website to
increase chances of additional purchases or cross opportunities. As a matter of fact, the majority
of the respondents think that tracking services are essential and helpful to have it during online
shopping. Needless to say, with the active monitoring systems, the customers tends to increase
their intention towards online shopping and become loyalty on purchasing over the Internet.
Therefore, visibility has a significant influence on students’ OSB.
Conclusion
As the conclusion, this study investigates the relationship between the independent variables
and dependent variable successfully. The study has supported that the order accuracy, order
condition, timeliness, visibility as well as reverse logistics have a significant influence on the
students’ online shopping behaviour. From another point of view, this research verified the
LSPs as an indispensable role in the online shopping business. It means that the online shopping
business will not able to sustain without the support from LSPs. Lastly, it can be sum up that
logistics competency is an essential requirement for millennials that go for online shopping
spree.
Acknowledgements
Please acknowledge collaborators or anyone who has helped with the paper at the end of
the text.
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INTERPROFESSIONAL COLLABORATION AMONG HEALTHCARE

PROFESSIONALS IN THE MATERNITY AND CHILD HEALTH CLINICS
Nur Zainie Abd Hamid 1

Assc. Prof. Siti Zaleha Abdul Rasid (PhD)2
Azman Hashim2
1
Universiti Teknologi MARA, Kedah Branch, 08400 Merbok, Kedah, Malaysia
2
International Business School, Universiti Teknologi Malaysia, 54100 Kuala Lumpur, Malaysia
______________________________________________________________________________
Abstract: Collaboration is the cornerstone of success in any health care team. It is a symbol of
highly successful health care efforts especially when looking for innovative strategies to meet the
needs of patients. At the time when the system is becoming complex, collaboration offers the mean
to provide optimal care through integration of health care professionals from more than one
discipline to work together in a collaborative team. Such practice is needed in critical areas such
as in the care of pregnant women and child birth as statistics show a decline in the number of live
birth from year to year. The discussion on this has been done a lot, however, recent works
highlighted the need to explore the area in a more meticulous aspect. Considering this gap, this
study aims to evaluate the collaboration between health care professionals pertaining to core
collaborative competencies and information exchange process in the Maternity and Child Health
Clinics of selected public facilities in Malaysia. Pure quantitative approach will be employed with
the aid of self-administered questionnaire. All participants, healthcare professionals, who are
involve in the care of patients in the clinics will be recruited to assess their perception of
interprofessional collaboration with other professionals. The finding of the study is expected to
contribute significant value to the existing body of knowledge, health care industry, educational
institutions, professionals and the community as a whole.
Keywords: Health care Professionals, Information Exchange, Interprofessional Collaboration,

Interprofessional Competencies.
______________________________________________________________________________
Introduction
Interprofessional collaboration (IPC) remains an area of focus since health care professionals
are challenged to provide a quality health care delivery with the complexity of health care system.
This team-based strategy has been cited as a key strategy to improve health care outcomes by many
works. Attention’s gap exists to how practiced professionals should initiate and maintain the
interprofessional relationship in the industry (Wener & Woodgate, 2016). This is because,
traditional health care models and professionals are educated, trained and practiced in silos in
which can affect the quality of care. This lacking is a challenge to the implementation of
collaboration among professionals. Felix, Bode, Giesler, Heinzmann, Kruger and Straub (2016)
argued that, the absence of training in the education level could be substituted with acquiring
necessary skills during the real work. Thus, to response to this challenge, WHO has introduced
interprofessional education (IPE) as a significant tool for preparing the future collaborative
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workforce through acquiring necessary competencies and skills for interprofessional collaboration
during the undergraduate program.
However, IPC continues to be a threat in health care especially in the maternity health. A
continual increase in the maternity health problem and decrease in the child birth rate received the
attention from all. Argote (2006) argued that, resources available within a team will not utilize if
information exchange does not occur. It is a crucial process in teams where it encompasses
individuals interacting to share ideas and information related to circumstances. This statement
supports Himmelman (2005) where he defined collaborating as a process of exchanging
information sharing information that develops mutual benefits for achieving a common purpose.
Many past works are done on defining and determining the antecedents of IPC. Only a few
focused-on efforts to explain the process of IPC. Considering information exchange as the medium
between core collaborative competencies and IPC, therefore, the main purpose of this study is to
address the IPC issue by linking interprofessional collaborative competencies, information
exchange and IPC with other professionals. The following are the main objectives of the study:
a) To determine the relationship between interprofessional collaborative competencies with

the interprofessional collaboration with other professionals.
b) To determine the mediating role of information exchange in the relation between
interprofessional collaborative competencies and interprofessional collaborative with other
professionals.
Literature Review
The Relationship between Interprofessional Collaborative Competencies and
Interprofessional Collaboration (IPC)
IPC has been discussed in education, business organizations, manufacturing,
biotechnology, and pharmaceutical. However, it has been a major discussion in health care
industry in recent years. Researchers in health field often uses the term IPC to address the issue of
collaboration between two or more different professionals. The review indicates that, it is
commonly used interchangeably with few other terms including interdisciplinary collaboration,
interdisciplinary team, multidisciplinary collaboration, interdisciplinary teamwork,
interdisciplinary practice and teamwork.
Barr, Koppel, Reeves, Hammick and Freeth (2005) defined IPC as a situation where
professionals from different background, skills and knowledge communicate and decide on a
common goal that is based on patient health. This is matched with the definition by WHO (2010)
and has been referred by many researchers over time. Talking about benefits, IPC offers a tool to
improve health outcome by improving professionals’ job satisfaction and enhancing the
effectiveness and efficiency of health care delivery to patients.
Evidence shows that trained health professionals are performing better than those who are
not (Jacobsen & Lindqvist, 2009; D’Amour & Oandasan, 2005). Strong relational skills enable
professionals to work with others from different disciplines and fields. There is sufficient evidence
to conclude that effective skills enable effective collaboration among professionals. This
highlighted that IPE and IPC are closely interrelated where the competencies are required by all
professionals to guide and assist them in the educational institution in order to function and
collaborate well in an interprofessional team (The Expert Panel, 2011).
It is believed that, the competencies are the key antecedent in predicting IPC and it may
shape the IPC capabilities for not only the health care graduates, but also professionals in the
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industry (Souza, Peduzzi, Silva & Carvalho, 2016). Until now, there is much research conducted
to evaluate graduates’ capabilities on this, however, little research is done among professionals
who already practice in the industry.
The Process of Information Exchange
Despite a growing number of research, IPC continues to be a threat to the health care
industry. Review of past works identify that the study of IPC is mainly centered on the role of
determinants (Carvalho, Peduzzi, Mandu & Ayres, 2012) and not the concept of measuring the
IPC. Therefore, in order to understand the interaction of professionals, it is utmost important to
address the work processes in the creation of IPC.
Gucciardi, Espin, Morganti and Dorato (2016) argued that, collaboration involves an
exchange of views and ideas. At time, information exchange is regarded as a medium to foster
collaboration. Professionals with skills to interact with others will be able to exchange information
effectively. It helps professionals to interpret information to share information with others. As
result, the effective information exchange will lead to a respectable collaboration of professionals
(O’Daniel & Rosenstain, 2008). Research findings that linked information exchange to
interprofessional collaborative core competencies and IPC have been contradictory. For this
reason, the present study will identify the role of information exchange as the mediating variable
of the relationship between interprofessional collaborative core competencies and IPC.
Theoretical Basis
Prior studies have examined IPC through the application of the systems theory, Input-
Process-Output (IPO) model, the collaboration framework and organizational theory, structuration
model of interprofessional collaboration, model of team effectiveness, the Framework for Action
on Interprofessional Educationand Collaborative Practice and a few more. However, only a few
are focusing on explaining the process in collaboration. To explain the research framework, the
systems theory will be applied. Developed by von Bertalanffy, a biologist in 1950, the theory is an
interdisciplinary theory about the nature of complex system. İt describe how a group of objects
work together to produce some result. It is a valuable concept for evaluating the human interaction.
In fact, the theory provides the foundation to interpret human experiences, perceptions and the
actual phenomenon.
The theory is proposed driven by the needs to understand the system’s complex nature.
Across years, the theory has continued to become an approach of explaining the organizational
perspectives especially related to team effectiveness. The systems theory agreed upon an aspect
that “input” will lead to the formation of “output” through “processes”. The components of
systems theory include inputs (raw materials, labor, finance and commitment), system/processes
(operations, methods, employee activities, management activities), outputs (goods and services,
information), feedback and environment (consumers, competitors, government, suppliers).
However, this study will focus on the three main components; inputs, processes and outputs.
Based on the theory, inputs are representing by the resources hold in either at the individual
level, group level or environment level. Individual’ skills, personalities and attitudes are the
example of factors to represent the individual level, work structure and group characteristics
capture group level factors and organizational structures such as culture, task and reward system
explain factors at environment level. These factors can be manipulated throughout the process and
output stage. The second component is processes. Von Bertalanffy designed processes as the
mediating mechanism that will convert inputs to outputs. It explains a range of group interaction
process such as communication, motivation and information exchange that is influenced by inputs
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in hand and will affect the outputs later. On the other hand, outputs refer to the group’s outcome.
It can be measured in either group performance or member reactions. Group performance
measured the degree of achievement set by the group while member reactions capture the
perception of satisfaction with the group processes.
Research Variables
The research framework is based on the systems theory developed by von Bertalanffy, a
biologist in 1950. It suggests that level of interprofessional collaborative competencies (inputs)
would convert to the IPC (outputs) with other professionals through an information exchange
process (processes). Based on the theory, the collaborative competencies formed the inputs
component that will ultimately influence IPC among group of health care professionals. These
competencies are then linked to the information exchange behavior that represents the processes
component. This is the process where professionals apply individual competencies to achieve the
group outcomes which will be measured through member reaction of the individual perception
towards group climate, influence of others and personal motivation in the group.
Methodology
Study Design
This study will utilize quantitative methodology. The researcher will employ the use of a
questionnaire as the research instrument. The data collection procedure will be based on face-to-
face or by-hand questionnaire distribution to the participants. The questionnaire will be adapted
from preceding literature and will be thoroughly selected to accumulate enough information
pertaining to the objectives of the study.
Sample
The researcher will seek voluntary participants of health care professionals in the Maternal
and Child Health Units of Kedah State Health Clinics, Malaysia. The participants will be recruited
by the researcher in-person to complete a set of close-ended questionnaire that should take
approximately 30 minutes. The participants for this study will be selected in accordance with the
multi-stage cluster sampling procedure. They will be recruited in cluster and randomly selected
Maternal and Child Health Units in 12 districts of Kedah state, Malaysia. The participants of this
study will include males and females, all health care and health allied professionals in the units.
All the participants who are attending to the study are working in the units at the time of the study
and at least three months with the clinics.
Research Instrument
The survey method will be followed accordingly to collect data from the participants. The
instrument is a set of questionnaires adopted and adapted from Dow, DiazGranados, Mazmanian
and Retchin (2015), Strype, Gundhus, Egge and Odegard (2014) and Tschaut and Rack (2012).
To ease and assist the participants’ understanding, the questionnaire will be prepared in bi-
language; English and Malay. The questionnaire will be divided into four parts. Part A will ask
about the participants’ profile such as gender, marital status, hospital’s region, experiences in
profession and experience in current hospital work area. Part B will be designed to learn about
participants’ perception on their level of interprofessional collaborative competencies and contains
39 statements. Part C includes participants’ perception on the interprofessional collaboration with
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other professionals and contains 12 statements. Part D includes 5 statements on the professionals’
perception of the process of information exchange that took place. Participants’ response in part
B, C and D will be represented by a five-point Likert scale ranging from strongly agree = 1 to
strongly disagree = 5.
Data Collection Procedure

The researcher will seek voluntary participation of health care professionals in the setting.
All participant will be recruited by the researcher in-person to complete a set of close-ended
questionnaire that should take approximately 30 minutes.
Plan for Data Analysis

In accordance with the proposed objectives and based on the types of variables, the study’s
data will be analyzed by using Partial Least Squares-Structural Equation Modeling (PLS-SEM),
version 3. Since the study’s instrument is still in the development process, therefore PLS-SEM is
a useful tool to conduct validity and reliability of the study’s measurements. Besides, it is a
commonly used tool in behavioral sciences study and enables the researcher to be able to achieve
a high level of statistical power with a small number of sample size.
Ethical Consideration
Three approval stages will be guaranteed; the National Medical Research Register
(NMMR), the public hospitals’ management and participants. The NMMR is a unique tool,
designed to support the National Institutes of Health (NIH) of the Ministry of Health (MOH),
Malaysia on research-related activities conducted in the MOH. It is compulsory to get the approval
from NMMR because the study’s population involves clinics under the MOH obligation. As for
now, this study has received the approval with the reference number of NMMR-17-44835099
(IIR). Next, an application letter together with the approval letter from NMMR will be sent to
selected clinics to convey the purpose of the study. This is a must because, the researcher should
consider the viewpoint of every selected public hospital since they represent a unique entity
compared to others. Last, but not least, to ensure voluntary involvement and indicate agreement
by the participants, an inform consent will be given to each target participant to get their approval,
so that, the study will only involve those who are willing to participate.
Expected Results
Proper selection of research objectives and research methodology is important to guarantee
the finding of new results. The anticipated results of this project include a benchmark for where
the health care system, specifically in Malaysia may re-structure it team-based health care
activities to improve the current health status. This result also will be used to create a roadmap for
improving the professionals’ satisfaction by reducing their work hour and unnecessary work. The
private sector may also aspire to reuse this methodology for assessing their capabilities for the
same objectives. From the methodology aspect, this study will improve the instrument validation
and contribute to the number of instrument availability that can be used in the field of IPC.
Conclusion
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This study will investigate the role of information exchange as the mediating variable in
the relation between collaborative core competencies and IPC. The systems theory will be used
to examine the process that shapes collaborative practice in Malaysian health care system. It is
anticipated that, the study enables to raise some key points that will be of interest to health care
professionals, providers as well as the researchers in the field. Researchers should realize that, the
collaboration of professional must be considered from many aspects, not only on the individual
effort but also on the human process. This study speaks to a push to achieve a superior
comprehension of IPC and create future lines of research efforts.
References
Barr, H., Koppel, I., Reeves, S., Hammick, M., & Freeth, D. (2005). Effective interprofessional
education: Assumption, argument and evidence. London: Blackwell.
Carvalho, B. G., Peduzzi, M., Mandu, E., & Ayres, J. (2012). Work and inter-subjectivity: a
theoretical reflection on its dialectics in the field of health and nursing. Rev Lat Am
Enfermagem, 20(1), 19-26.
D'Amour, D., & Oandasan, I. (2005). Interprofessionality as the field of interprofessional practice
and interprofessional education: an emerging concept. Journal of Interprofessional Care,
19(1), 8-20.
Dow, A. W., DiazGranados, D., Mazmanian, P. E., & Retchin, S. M. (2015). An exploratory study
of an assessment tool derived from the competencies of the interprofessional education
collaborative. Journal of Interprofessional Care, 28(4), 299-304.
Felix, N. B. S., Giesler, M., Heinzmann, A., Kruger, M. & Straub, C. (2016). Self-perceived
attitudes toward interprofessional collaboration and interprofessional education among
different health care professionals in pediatrics, GMS Journal for Medical Education,
Retrieved March 12, 2017, from
https://www.scienceopen.com/document?vid=e2dbae8e4163-44f3-945f-bb7e6011ce83
Gucciardi, E., Espin, S., Morganti, A., & Dorado, L. (2016). Exploring interprofessional
collaboration during the integration of diabetes teams into primary care. BMC Fam Pract,
17, 12.
Himmelman, A. T. (2016). Collaboration defined: A developmental continuum of change
strategies. Retrieved March 5, 2017, from
https://depts.washington.edu/ccph/pdf_files/4achange.pdf
Jacobsen, F. & Lindqvist, S. (2009). A two-week stay in an interprofessional training unit changes
students’ attitudes to health professionals, Journal of Interprofessional Care, 23 (3), 242-
250.
O'Daniel, M., & Rosenstein, A. H. (2008). Professional Communication and Team Collaboration.
In R. G. Hughes, Patient Safety and Quality: An Evidence-Based Handbook for Nurses
(pp. 271-284). Rockville: Agency for Healthcare Research and Quality (US).
Strype, J., Gundhus, H. O., Egge, M., & Odegard, A. (2014). Perceptions of interprofessional
collaboration. Professions and Professionalism, 4(3).
The Expert Panel (2011). Core Competencies Domains for Inter Professional Collaborative
Practice: Report of an Expert Panel. Washington: D. C.
Tschaut, A., & Rack, O. (2012, July). Measurement of information exchange in virtual teams - test
of a scale in english and germ
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Wener, P., & Woodgate, R. L. (2016). Collaborating in the context of co-location: a grounded
theory study. BMC Family Practice, 17, 30-45.
World Health Organization (WHO). (2010). Framework for action on interprofessional education
& collaborative practice. Geneva: World Health Organization.
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THE EFFECT LEVERAGE, LIQUIDITY AND PROFITABILITY ON THE

COMPANIES PERFORMANCE
Hamidah Ramlan 1
Muhammad Khairul Hidayat Bin Nodin1
1
Universiti Tenaga Nasional, Muadzam Shah, Malaysia,
__________________________________________________________________________________
Abstract: This study investigates the dynamic relationships amongst the liquidity, leverage and
profitability with company performance in Malaysia. A sample of this study from the 21
companies covered the period from 2010 to 2014 (5 years) from Bursa Malaysia. This paper
analysed by using correlation and regression in SPSS. There are two (2) methods of analysis
are picked to evaluate the results, consists of correlation model and regression model. The
empirical results show that profitability have the strongest impact on company’s performance
and liquidity and leverage has significant impact on the company performance. The correlation
results show the liquidity, leverage and profitability are having a strong relationship with
company performance. Recommendation to use more samples of companies and use quarterly
data to get accurate result regarding the effect of Initial Public Offering (IPO) on company
performance in Malaysia.
Keywords: Liquidity, Leverage, Profitability, Companies Performance.

___________________________________________________________________________________________
Introduction
This paper will analyse the relationship between Initial Public Offering (IPO) and the
company performance in Malaysia. IPO is the first sales of company’s share or stock to the
public, The company can decide to issue stock for number of reason including to allow
employee and owner to liquidate some of the share and to increase the capital needs to operate
the company. This paper will analyse the relationship between Initial Public Offering (IPO) and
the company performance in Malaysia. IPO is the first sales of company’s share or stock to the
public, this process has been conducted by listing the shares on a stock exchange. Besides that
IPO also known as public offering, this is because rather than sale the share to the large investor
the share will be sold to the general public. The company can decide to issue stock for number
of reason including to allow employee and owner to liquidate some of the share. The other
reason that the company issue the IPO is because if a firm or company become larger and more
successful, the capital needs to operate the company will increase.
For many company or firm, IPO has been used widely in Malaysia because there are many
advantages. The first advantage is the IPO will help the company to raise their capital by selling
the shares to the public. Besides, during the public offering process the company can generate
or increase their publicity in the country and abroad. The other advantage is the owner of the
firm has the ability to cash in the money according on their success by attaching a market value
to their holdings. Qasim (2011) found that a significant impact of liquidity with company
performance. John (2013) revealed that liquidity positively affect the financial performance of
non-financial companies listed at the Nairobi Stock Exchange (NSE). According Maria, (2014)
showed that leverage has a positive relationship with Return on Assets (ROA) in Nigeria
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pharmaceutical industry. Kuria, (2014), Akinmulegun (2012) found that leverage significantly affect
corporate performance in Nigeria. The profitability variables like ROA, ROE, and return on
sales (ROS) has the positive impact on company performance Vinayagamoorthi, (2015)
Problem Statement
Based from the discussion, there is a problem to understanding how and why initial public
offering (IPO) have impact on the company performance through leverage, liquidity, and
profitability.
Research Questions
Are there significant relationship and impact between Initial Public Offering (liquidity,
leverage and profitability and the performance of the company?
Purpose of the Study

The study might improve a knowledge help to provide better comprehension on the
impact of the IPO toward the company performance..
Research Methods
A sample of this study from 21 companies, which covered the period from 2010 to 2014 and
sources of data from Bursa Malaysia.
Data Sources Yearly Basis SPSS

 Bursa (5 years)  Regression
Malaysia 21 companies  Correlation
Regression analysis is given of the following examples

Y = α0 + β1Li + β2L + β3P + ε
Where:-
Y = Dependent Variable
α = Constant Value
β = Regression coefficient
Li = liquidity
L = Leverage
P = Profitability
ε = the regression residual
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Findings
Table 01. Correlation
The result indicates that ROE have the strongest impact on company’s performance with
magnitude 0.0872, Current ratio and Debt Ratio have the significant impact with company
performance with magnitude 0.282 and -0.282.
Table 02. Regression analysis
Model Unstandardized Standardized T Sig.
B Std. Error Beta
(Constant) 3.067 1.113 2.755 .007
1 CurrentRatio .041 .019 .102 2.096 .039
ROE .599 .036 .825 16.668 .000
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DebtRatio -5.618 2.516 -.108 -2.233 .028
a. Dependent Variable: ROA
Table 02 shows Current ratio (Profitability) have the t-value 2.096, which is positive
relationship. Return on equity (ROE) as a liquidity showed the t-value 16.668 is positive
relationship. Support by (2012). Debt (leverage) showed t-value of the debt ratio -2.233 have a
negative relationship with companies performance
Regression Table
Table. 03 Regression analysis (model summary) for macroeconomic variables and housing loan
Model Summary
Mode R R Square Adjusted R Std. Error of
l Square the Estimate
1 .883a .779 .772 5.2485196
a. Predictors: (Constant), Debt Ratio, Current Ratio, ROE
Table 03 shows that the variable is 77.2% depend of each other. It is implying collectively
that the determining variables have a significant effect on companies performance.
ANOVA
ANOVAa
Model Sum of df Mean F Sig.
Squares Square
Regression 9808.451 3 3269.484 118.688 .000b
1 Residual 2782.243 101 27.547
Total 12590.694 104
a. Dependent Variable: ROA
b. Predictors: (Constant), DebtRatio, CurrentRatio, ROE
Table 04 shows that the significance value is 0.000 which is less that 0.05 thus the model is
statistically significance in predicting how liquidity, leverage and Profitability are effects n
performance of companies.
Conclusion
Table 05: Summary of Results of relationship between liquidity, leverage and
peofitability with company performance
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Variables Result Supported Journal
Liquidity Significant Qasim (2011)

relationship with
company performance
Leverage Significant Akinmulegun (2012)

relationship with
company performance
Profitability Significant Vinayagamoorthi, (2015)
relationship with
company performance
References
Akinmulegun W.L . (2014). The Effect of Initial Public Offering on Company
PerformanceA Case Study on Asia Cell in Kurdistan Region.Vol.5, No.18, 2014.
Chowdhury, B., Dungey, M., & Pham, T. P. (2014). The impact of post-IPO changes in
corporate governance mechanisms on firm performance: evidence from young
Australian firms.
Kuria, E. G. (2014). The effects of initial public offering on the financial performance of
companies listed at the Nairobi securities exchange (Doctoral dissertation,
University of Nairobi).
John K, Philip M, Robert N. (2013). Effects of Initial Public Offer on Performance of
Companies Quoted at the Nairobi Stock Exchange IJMBS Vol. 3, Issue 1.
Johnson, M. C., House, E., & London, S. (2015). The Effect of Initial Public Offerings on
Firm Innovation. Innovation, 2013, 14.
Maria L (2014). Effect of Leverage on Performance of Non-financial Firms Listed at the
Nairobi Securities Exchange. Journal of Finance and Accounting. Vol. 3, No. 5, 2015,
pp. 132-139. doi: 10.11648/j.jfa.20150305.14.
Moses Ochieng GY, John K, (2014) Effect of Financial Leverage on Financial Performance
of Deposit Taking Savings and Credit Co-operative in Kenya. International Journal
of Academic Research in Accounting, Finance and Management ScienceVol. 4,
No.22, pp. 176-184.
Nejat Younesi, Aref Mahdavi Ardekani, Mohammad Hashemijoo. (2012) Performance of
Malaysian IPOs and Impact of Return Determinants. Journal of Business Studies
Quarterly 2012, Vol. 4, No. 2, pp. 140-158.
Qasim, Y. S. (2011). The impact of IPOs on the values of directly competing
incumbents. Strategic Entrepreneurship Journal,5(2), 158-177.
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Ross Kirkham, (2012), Liquidity Analysis Using Cash Flow Ratios and Traditional Ratios:
The Telecommunications Sector in Australia, Journal of New Business Ideas &
Trends Volume 10(1), pp. 1-13.
Schmidt, Tobias; Dowling, Michael J.; and Lechner, Christian (2006) "The Impact of Initial
Public Offerings on the External Growth Strategies of Entrepreneurial Firms,"
Journal of Entrepreneurial Finance and Business Ventures: Vol. 11: Iss. 2, pp. 95-
110.
Vinayagamoorthi, V., Selvam, M., & Lingaraja, K. (2015). Impact of firms’ profitability
on environmental performance: evidence from companies in India. Mediterranean
Journal of Social Sciences, 6(1), 109-119.
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CONSUMER’S PERCEPTION TOWARDS MIDDLE EASTERN
RESTAURANT IN PENANG
Shahril Hussin 1
Nor Azureen Rozekhi 1
Sperico Michael Alden Kirap 1
Muhammad ‘Arif Aizat Bashir 1
Hairul Nizwan Abd Majid 1
1
Faculty of Hotel and Tourism Management, UiTM Pulau Pinang, Malaysia
___________________________________________________________________________
Abstract: The trends for Middle Eastern flavors and cooking methods are already started over
the past few years and this trend blooming away of another cuisine and be embraced by the
Malaysian consumer which starts looking more towards the Middle East cuisine. With that, this
study is conducted to identify the customer perception and the level of acceptance towards a
Middle Eastern restaurant in Penang area where there is influenced by food quality, restaurant
ambience and intention customers to dine in the restaurant. Data were gathered using
convenience sampling throughout the survey questionnaires to customers who dine in at several
of Middle Eastern restaurants in Penang. Based on statistical analysis using SPSS, a standard
multiple regression analysis showed that among three variables, food quality is the strongest
substantial that affect significantly customer’s perception and their level acceptance. This
indication has implications to restaurateurs for improving their service to fulfill customer needs
and wants also repeat patronization to the restaurant.
Keywords: Level Acceptance, Perception, Middle Eastern Restaurant, Penang.

___________________________________________________________________________________________
Introduction
Throughout the hospitality industry, there are many parts of it. Businesses are the one of the
hospitality industry and it is a success because dealing with customers and hospitality is an
entrepreneurship. In this new globalization, food service industry in Malaysia is extremely
competitive and rapidly growing tremendously. Other than lodgings and other tourism
activities, food and beverage hunting and food cultures are one of the most significant elements
in the tourism industry (Mohd Hairi et.al, 2009).
Due to that, this study was carried out to investigate and focus on the customer’s perception
and level of acceptance related to a Middle Eastern restaurant. In addition, this study also
assessed the extent of authenticity customers perceived by that type of restaurant. Perception is
a practice by individuals in organizing and interprets or expresses their sensory impressions to
provide connotation to their surroundings. It is because people’s actions are based on their
perception of what the actuality is, not on the actuality itself. Wherever they want to eat, the
perception of the consumer is one of the keys for the restaurant to be successful. Most of the
time, the consumer that gets the food experience from the restaurant will lead to positive
perception and acceptance.
Truly to date, the opening of ethnic cuisine might be seen in the Malaysia scenario such as
Japanese, Korean and Middle Eastern restaurant which are blooming moderates in the region
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of this country with some of them having more than 5 restaurant chains. Thus, Younes (2013)
claims Middle Eastern culture is one of the oldest in the universe. Nonetheless, it seems that
Middle Eastern food has not enjoyed the same involvement as other culture food for instant
French, Italian or any other western food. Zainuddin (2012) state that, from looking at the
emerging opportunities of a Middle Eastern restaurant in line with the demand by the food
appreciator, it is important to better understand and observe the underlying elements that
influencing the perception and the level acceptance towards a Middle Eastern restaurant in the
focus area, Penang’s prospect. In the same manner, the lack of study about exploring and
observing into the restaurant choice influence consumer perception and their acceptance of food
quality, restaurant ambience and consumer’s intention in Malaysia, particularly at a Middle
Eastern restaurant should lead the reason to study about this to get more remarkable result about
the perception and insight towards restaurant.
Methodology
This study was conducted using a descriptive research method as it is relevant to explain the
consumer perception and the level of acceptance towards the Middle Eastern restaurant. To
illustrate the characteristics of a population or phenomenon, the descriptive research is used
(Zikmund et.al, 2010). This study utilized a survey method of quantitative research which the
questionnaires are distributed to respondents for collecting and gathering the data information.
Furthermore, convenience sampling was carried out for data collection process with 80
respondents who are recently visited and dine in the Middle Eastern restaurant around the
Penang area such as Seberang Jaya, Perda city and Permatang Pauh.
The research instrumentation used in this study is personally - administered questionnaire.
The survey is organized through the adjustment of the questionnaire from journals written by
another researcher. This survey was divided into three parts which included Section A is about
the demographic profile of respondents consists of gender, age, income and race. Meanwhile,
Section B is the construct measurement of the three independent variables of influencing the
restaurant which is food quality, ambience and purchase intention to dine. In Section C, the
questions are about respondent’s perception and acceptance about the Middle Eastern
restaurant. All the sections are set in the form of rating scale that is a five-point Likert scale on
the level agreement from 1= Strongly disagree, 2= Disagree, 3= Neutral, 4= Agree and 5=
Strongly Agree. For assembling the data, this study survey took only 14 days.
A pilot test was distributed in a sample of 15 respondents to the lecturers in UiTM Pulau
Pinang with different faculty to test the reliability and validity as well as identify and examine
errors of the survey. During the distributions of the survey, only 52 respondents were
participating in this study. The reliability test was taken and analyzed separately. As a result,
the variables are considerable since the Cronbach’s alpha value is more than 0.6 for each
section.
Analysis and Results

Based on the frequencies statistics, it was found that, both genders are equal to 50% of male
and female. Majority of the respondent’s age range is 26 years old to 35 years’ old (40.4%).
Regarding income frequencies, it showed that level income between RM1000 to RM2000 was
the majority (36.5%). And then, 92.3% majority of the race was Malay.
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Perception and Level Acceptance towards Middle Eastern Restaurant Attributes
Looking at the perception and level acceptance towards Middle Eastern restaurant attributes
descriptive statistic at TABLE 1, it is revealed that for food quality, majority respondents agreed
the foods are served with the suitable temperature for the right meal, for the right time
(M=4.0962). Besides, they agreed food presentation is visually attractive and organized which
will attract their attention (M=4.0577), varieties of food and its color components within an
each of meal stimulate their appetite (M=4.0769) and the food portion of the items gives them
a satisfaction (4.0769). They also agreed the restaurant not only used fresh ingredients in
preparing the food but also the food is served in a fresh and timely manner (M=4.0385).
Moreover, the food is authentic that make them feel the different taste (M=3.9808).
On the restaurant ambience, respondents agreed that pleasant type of music and sound create
a comfortable environment of the restaurant (M=4.1346), believed pleasant and good scent or
odor in the restaurant (M=4.1346). Furthermore, they agreed the lighting, color and design in
the restaurant make them feel like they are in the Middle East country (M=4.1154) and the
restaurant looks exclusive that attract them to deliver a good memory in there (M=4.0577).
Furthermore, respondents also agreed they would recommend the restaurant to their friends
(M=4.0577), will have the intention to purchase and dine in the restaurant again (M=3.9615)
and say positive things about the restaurant to others (M=3.9615). In addition to the result at
TABLE 2, it showed that in the customer perception and acceptance level majority of
respondents accept this type of restaurant in their daily life (M=4.000) and invariably deliver a
good perception of the restaurant (M=3.9808). Nevertheless, together this point indicates that
respondents slightly agreed they have a good feeling after their leave (M=3.9615) and always
constantly count the restaurant will be the one of the aces of their list eating place (M=3.8077).
Reliability Test
The total number of 52 surveys has been collected and then the reliability test was taken by
using SPSS version 21.0. The result indicates that Cronbach’s Alpha value for food quality is
0.876 which, measured by 6 items, restaurant ambience was measured by 4 items with value
0.868, customer intention to dine was measured by 3 items and produced Cronbach’s Alpha
0.853 and finally customer perception and level of acceptance that measured by 4 items is 0.869.
With that, all the variables are accepted for the result. Altogether, it shows the goodness of the
data collected.
Table 1: Descriptive Analysis for Perception and Level Acceptance towards Middle
Eastern Restaurant Attributes
Food quality
(M) (SD)
1. Varieties of food and its color components within an each of meal 4.0769 .70977
stimulate my appetite.
2. The food is authentic that make me feel the different taste. 3.9808 .77940
3. The food portion of the item gives me satisfaction. 4.0769 .70977
4. The restaurant used fresh ingredient in preparing the foods and the 4.0385 .76598
food is served in a fresh and timely manner.
5. The food presentation visually attractive and organized that attract my 4.0577 .72527
attention.
6. The foods are served with the suitable temperature for the right meal, 4.0962 .69338
for the right time.
Ambience
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(M) (SD)
1. The restaurant looks very exclusive that attract and make me have a 4.0577 .84976
good memory.
2. The lighting, color and design in the restaurant make me feel like I am 4.1154 .89997
in the Middle – East country.
3. Pleasant types of music, sound create a comfortable environment of 4.1346 .68682
the restaurant.
4. Pleasant and good scent or odor in the restaurant. 4.1346 .76770
Intention to Dine
(M) (SD)
1. I would recommend the restaurant to my friends or others. 4.0577 .80229
2. I have the intention to purchase and dine in the restaurant again. 3.9615 .83927
3. I would say positive things about the restaurant to others. 3.9615 .68489
Table 2: Descriptive Analysis of Consumer’s Perception and Level of Acceptance

Perception and Level of Acceptance
(M) (SD)
1. I always consider the restaurant to be one of the choices in 3.8077 .74198

my list.
2. I experience the good feeling when I leave the restaurant. 3.9615 .68489
3. I have always had a good perception of the restaurant. 3.9808 .69987
4. I have always accepted this kind of restaurant performance. 4.0000 .68599
Measuring the Relationship of Consumer’s Perception and Acceptance Level towards

Middle Eastern Restaurant
For the hypothesis, a standard multiple regression was conducted with the predictors
comprising Middle Eastern restaurant attributes (food quality, ambience and intention to dine),
while the criterion referred to the consumer’s perception and level of acceptance towards the
Middle Eastern restaurant. In other words, this analysis is to assess how well the attributes
influence the perception and acceptance of customer. The outcome from the TABLE 3
demonstrated that Middle Eastern restaurant attributes (R=0.726) significantly contributed to
the perception and acceptance level (p<.001). The study demonstrates that the value which is R
Square for Middle Eastern restaurant attributes towards perception and acceptance level 52.6%.
Thus, all the hypothesis is strongly supported. Regarding the table of result coefficient at
TABLE 4, food quality is the strongest result and most influential on the consumer’s perception
and acceptance level towards the Middle Eastern restaurant (β=.510, sig .000). In other words,
food quality is an important predictor of customer perception and their level acceptance. It is
indicating that majority of the respondents agreed the quality of food in the restaurant has more
impact than the intention and ambience.
Table 3: Multiple Regression Analysis of Middle Eastern Restaurant Attributes towards Perception
and Acceptance Level
Model R R Square Adjusted R Square Std. Error of the
Estimate
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1 .726a .526 .497 1.69076
a. b. Predictors: (Constant), Intention, Food quality, Ambience
Table 4: Analysis of Food Quality, Ambience and Intention towards Perception and Acceptance Level
of Middle Eastern Restaurant
Model Unstandardized Coefficients Standardized t Sig.

Coefficients
B Std. Error Beta
(Constant) 3.094 1.798 1.721 .092
Food quality .353 .089 .510 3.964 .000

1
Ambience -.069 .128 -.079 -.541 .591
Intention .435 .161 .375 2.699 .010

a. Dependent Variable: Perception and acceptance level
Discussion
This study was carried out to identify the consumer’s perception and level of acceptance
towards Middle Eastern restaurant influence of the food quality, ambience and intention to dine
in the restaurant. This study finding clearly revealed food quality undertaken significantly
highly influenced the consumer’s perception and acceptance level among Malaysian consumer
slightly influencing is ambience and intention. Obviously, food quality was the first thing will
come out of their mind when dining at the restaurant and consumer preference for a food
combines with the perceived appropriateness of the food to determine overall acceptance. If the
quality of food in the restaurant is low, then the level of perception and acceptance by the
customers will be depressed as well. That’s why in any of the dishes or cuisine, in any
restaurant, the quality of the food is the major thing that will influence people to taste and it is
connected to the perception and acceptance towards the food by the people who enjoy that.
Owing to that, restaurant managers should constantly provide higher quality foods to their
customers in terms of offering meals with fresh ingredients and the reasonably high-quality
meats (Pettijohn, Pettijohn, & Luke, 1997). As a result, consistent with this finding which is
offering fresh, tasty, correct portion, food temperature and a miscellany of food and beverages
remains a central criterion for satisfying customers (Ahmad Shariff et.al, 2015). Thus, the
finding of this study provides support for Middle Eastern restaurant managers to develop better
strategies for distinguish their services on food quality so that it will be a benchmark of the
restaurant itself.
Apart from that, intention to dine also significantly influenced the consumer’s perception and
level of acceptance toward the Middle Eastern restaurant. It is because the intention to dine in
the restaurant also an important aspect to be taken even though they choose the restaurant
regarding of the money, the distance from home to the restaurant or for any event. Naturally,
the intention is the element preference by a customer to accept the restaurant performance either
is service, food quality or ambience. On the other hand, the less significance influenced
ambience towards consumer’s perception and acceptance level due to not as much of preference
of the customer was displayed. In that case, managers should pay attention that the environment
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of the restaurant will make customers feel comfortable and relax so that they can enjoy their
food when they are dining in the restaurant. Restaurant managers should create a special
atmosphere for customers to enhance their positive dining experience thus can increase their
frequency of visiting a middle eastern restaurant (Chen et al., 2011).
Conclusion
The customer perception and level of acceptance of the place they are dining should remain
a top precedence in the food industry because it helps to drive reiterate business. The restaurant
managers need to bear in mind that the first impression of the customers is important to lead
they gave a positive perception and high-level acceptance towards the restaurant. The tangible
elements of the restaurant such as the food quality and ambience of the restaurant may create a
center of attention for more customers.
Pertaining to this study, there are several limitations need to be addressed. The sampling for
this study is simply a small area and restricted in Penang only. Moreover, there are a small
number of Middle Eastern restaurants in Penang. In other words, the place or restaurant for
collecting data is limited. Therefore, it would be better to collect data in other situations to
achieve greater responses on top of wider perspectives. Further study should be investigating
other variables to have a more honest understanding of the consumer’s perception and
acceptance level towards the Middle Eastern restaurant. Several ordinary variables such as
price, promotion, and service quality should also be included as the mediator in the theoretical
framework to explore whether the mediator will manipulate the customer’s perception and their
level acceptance.
To sum up, hopefully, this study will give acquaintance or information about the food
industry, mostly in enhancing and achieving highest customer’s perception and acceptance to
reform the restaurant image that will attract more customers in the future. In short, the
conclusion of this study indicates that the food quality is an important factor influencing the
dining experience of the customer’s perception and acceptance level towards a Middle Eastern
restaurant in Penang.
References
Ahmad Shariff; S.N.F., Omar M., Sulong S.N., Mohd Abd Majid H.A., Mohamad Ibrahim H.,
Jaafar Z., Ideris M.S.K. (2015), The Influence of Service Quality and Food Quality
towards Customer Fulfillment and Revisit Intention, Canadian Social Science, Vol.11,
No.8, pp.110-116
Al Nahdi T.S.M., Islam Md. A., (2011), Factors influencing Malaysian Muslims to patronage
halal restaurants – ambience as a mediator, Business Review, Vol. 6. No. 2, pp.121-133.
Bradley K. (2009), Planning for eco-friendly living in diverse societies, The International
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Chen, H.-S., Hsieh, T. (2011). The effect of atmosphere on customer perceptions and customer
behavior responses in chain store supermarkets. African Journal of Business
Management, No.5, Vol.24, pp.10054-10066.
Chow Keng Y., Chee Siang D.O., Wai Lok T., Yin Kuan W., (2013), Factors influencing dining
experience on customer satisfaction and revisit intention among undergraduates towards
fast food restaurants, Hons Project, Universiti Tunku Abdul Rahman (UTAR), pp.1-
135.
Delwiche, J. (2004). The impact of perceptual interactions on perceived flavor. Food Quality
and Preference, Vol.15, No.2, pp. 137-146.
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Lampila P., Lahteenmaki L., (2007), Consumer’s attitude towards high pressure freezing of
food, British Food Journal, Vol. 109, No. 10, pp.838-851.
Mohd Hairi J., Mohd Salehuddin M.Z., Muhamad Izzat Z., and Zulhan O. (2009). Malaysian
gastronomic tourism products: Assessing the level of their acceptance among the
western tourists. South Asian Journal of Tourism and Heritage, Vol. 28, No.3, pp.423-
431.
Namkung, Y., Jang, S., (2007), Does food quality really matter in restaurant: its impact of
customer satisfaction and behavioral intentions? Journal of Hospitality and Tourism
Research, Vol.31, No.3, pp. 387–410.
Omar S.R., Ab. Karim S., Abu Bakar A.Z., Omar S.N., (2015), Safeguarding Malaysian
heritage food (MHF): The impact of Malaysian food culture and tourists’ food culture
involvement on international loyalty, Procedia Social and Behavioural Sciences, Vol.
172, pp. 611-618.
Péneau, S., Hoehn, E., Roth, H.-R., Escher, F., and Nuessli, J. (2006). Importance and consumer
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Pettijohn, L. S., Pettijohn, C. E., Luke, R. H. (1997). An evaluation of fast food restaurant
satisfaction: Determinants, competitive comparisons and impact on future patronage.
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Samara J.N., Barry M.H., (2003), Patterns and trends in food sizes, 1977-1998, Journal of the
American Medical Association, Vol. 289, No. 4, pp. 450-453.
Strobele N., De Castro J.M., (2004), Effect of ambience on food intake and food choice,
Nutrition, Vol. 20, No. 9, pp. 821-838.
Teguh Widodo, (2013), The influence of Muslim consumer’s perception towards halal food
product on attitude and purchase intention at retail stores, Innovation Business, Vol. 1,
No. 1, pp.3-20.
Vloreen Nity Mathew, Amir Abdullah A. M. R., Mohamad Ismail S. N., (2014), Acceptance
on halal food among non-Muslim consumers, Procedia Social and Behavioral Sciences
Vol. 121, pp. 262-271.
Wansink B., Painter J.E., North J., (2005), Bottomless bowls: Why visual cues of portion size
may influence intake, Obesity Research, Vol. 13, No. 1, pp. 93-100.
Wilkie, Maxine (1995), Scent of a market, American Demographics, Vol. 17, No. 8, August,
pp. 40-48.
Younes N., (2013), How Perceptions of Middle Eastern culture are related to consumers’
willingness to try Middle Eastern food, A Capstone Project, pp.1-45.
Zainuddin A., (2012), Middle-Eastern restaurant attributal towards Malaysian patronization
intention, Master Thesis, UiTM Shah Alam Malaysia.
Zampollo, F., Kniffin, K. M., Wansink, B., & Shimizu, M. (2011). Food plating preferences of
children: The importance of presentation on desire for diversity. Acta Paediatrica, Vol.
101, No.1, pp. 61-66.
Zikmund et.al, 2010). Zikmund, W. G., Babin, B., & Carr, J. C. (2010). Business research
methods (8th ed.). Canada: South-Western, Ohio: Cengage Learning.
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TEACHING GERMAN FOR BUSINESS BEASED ON ENGLISH FOR

BUSINESS PURPOSES (EBP)
Wassamill Watcharakaweesilp1
1
Khon Kaen University
___________________________________________________________________________
Abstract: The main purpose of this study is to cast light on the concept of how to teach German
for Business based on English for Business Purposes (EBP). In this regard, purposive tasks
were created in terms of comparative study between L2 and L3 in the context of non-native
speakers and the following aspect is considered: What kind of effective Teaching Materials
and Tasks can be employed based on the efficient language teaching performance?
Additionally, it is also discussed and illustrated that some practical recommendations can be
provided to FL teachers concerning effective language pedagogy in the context of L2 and L3.
Keywords: German for Business, EBP

___________________________________________________________________________
Introduction
The era of globalization entails cross-cultural and transnational communication. Global
communication does not merely require global language but also the cultural sensitivity which
includes cultural awareness (recognizing differences) and cultural flexibility (overcoming
ethnocentricity). All techniques and methods are a response to a particular situation.
Prior to German, it is obvious that Thai learners learn English as a first foreign language
(L2). It is suggested in this study that comparing their knowledge with what they have learned
previously, namely the knowledge of English, can enhance the competence of learners to their
fullest potential when learning German. Thus, comparing the L3 knowledge (German) with the
L2 knowledge (English) can be an efficient learning strategy as these two languages have some
language features in common which will cause learners to find some similarities for their
language studies.
When considering the situation of teaching of foreign languages in Thailand, it cannot
be denied that EBP plays a vital role for FL classrooms. As non-native speakers (NNSs), Thais
may wish to effectively communicate with people from other cultures, but not necessarily like
native speakers (NSs). They need to learn to use international English and possess cultural
competence. Apart from English as L2, learners may transfer the previously gained knowledge
and relate their learning styles, experience, obstacles or problems to their L3 learning to acquire
the third language effectively and efficiently. In this regard, relating the knowledge of learners
to their previously gained knowledge may enable them to learn successfully.
Studies on English for Business Purposes (EBP) and English for Academic Purposes
(EAP)
Dudley-Evans and St John (1998) discuss English for Business Purposes as follows:
Characteristics of Business English
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Most English-medium communications in business are non-native speaker to non-
native speaker (NNS-NNS), and the English they use is international English, not that of native
speakers (NS) of English-medium countries such as the UK and Australia. The term ‘offshore
English’ is used for the English spoken between Europeans who do not share first language
and have learned English for practical rather than academic purposes (cited in Dudley-Evans
& St John, 1998, pp. 53-54).
Grammar in Business English

Business grammar reference books place emphasis on the verb form, especially tense
and voice; then on modals and verbs of saying, reporting and the difference between make and
do, have, have got and got. Additionally, business verbs are accept, advise, agree, confirm,
consider, explain, invite, object, offer, order, point out, propose, query, recommend, refuse,
reject, remind, reply, respond, say, speak, talk, tell and wonder.
In addition, the list of some key functions of Business English which are expected to see such
as ability and inability, agreeing and disagreeing is presented. These are relevant to a general
English course as well as a Business English course. These are also interesting additions to the
standard list of functions that are clearly very relevant to a BE course, assertion and downtoning
and checking and confirming (cited in Dudley-Evans & St John, 1998, p. 79).
In conclusion, Dudley-Evans and St John (1998) discuss the theories and practices as
follows:
An EBP teacher is not a business person and does not need to be one. What EBP
teachers need, just like any ESP teacher, is to understand the interface between business
principles and language. What do learners do in their jobs? What are the fundamental concepts
and attitudes? What do people communicate about and how do they go about it? ‘Shadowing’
business people (that is, following them around, listening and observing) can be a fascinating
learning experience (Dudley-Evans & St John, 1998, p. 70).
Previous Comparative Studies on L2 and L3 in Germany and in Thailand

Hufeisen (2010) mentions the role of L2 for L3 learning as follows:
Beim Lernen einer zweiten Fremdsprache tritt nicht nur eine weitere Fremdsprache
hinzu, sondern das Lernen einer Fremdsprache wiederholt sich und bedeutet den
erwähnten qualitativen Unterschied zum Lernen einer L2.
[...] Erfahrungen mit dem Lernen der ersten Fremdsprache können auf das
Lernen der zweiten übertragen werden (wenn sie sich z. B. als gut funktionierend
und erfolgreich erwiesen haben) oder völlig vermieden werden (wenn sie
beispielsweise als ungeeignet empfunden wurden); Vergleiche zwischen den
Lernprozessen und/oder den Sprachen können helfen. Der gezielte Einsatz
bestimmter Lernstrategien bei typischen Fremdsprachenaufgaben [...]
(Hufeisen, 2010, pp. 203)
From the citation, English as L2 can affect L3 learning. Learners may transfer the
previously gained knowledge and relate their learning styles, experience, obstacles or problems
to their L3 Learning to acquire the third language effectively and efficiently.
Research Methodology
Research Questions
Specifically, this study mainly focuses on the following research questions:
a) What kind of effective Teaching Materials and Tasks can be employed based on the
efficient language teaching performance?
b) What practical recommendations can be provided to FL teachers concerning effective
language pedagogy in the context of L2 and L3?
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Participants
Twenty German majors in the last academic year (2016) who have enrolled in the
course Communicative German for the Workplace, were purposively selected in this study.
Instruments
Two tasks are based on the concept of a comparative study between English and
German in the context of L2 and L3 were employed:
a) Task 1: Warm up activity for business vocabulary
b) Task 2: Matching activity for business language expressions between L2 and L3
Data Collection
The data collected were divided into four main groups:
a) Data from warm-up activity for business vocabulary
b) Data from matching activity for business language expressions between L2 and L3
c) Observation: The researcher observed the learning behavior of learners and their
d) co-operative learning while working individually, in pairs, and in groups.
e) Think-aloud Protocols: The researcher asked students some questions concerning the
results received from questionnaire. The researcher noted down and analyzed the data
qualitatively.
Data Analysis
Based on Think-aloud Protocols, the researcher asked students some questions and
noted down as well as analyzed the data qualitatively.
Teaching Tasks based on a comparative study between English and German (L2 and L3)
Task 1: Vocabulary for Comparative Study
Preposition Collocation / Chunk Expression / Chunk
German English German English German English
..... for ....... leave a .................... What can I do for you?

..... with ....... message .................... I’d like to talk to Mr. Kümel.
.................... What is your name, please?
.................... Mein name is …
.................... Hold on! / Just a minute!
..................... I’m connecting you.
..................... Would you connect me to Mrs…
.................... I’m sorry.
.................... Mrs. Schön is not in the office.
.................... I’ll call you again.
Preposition Collocation / Chunk Expression / Chunk
German English German English German English
für ..... eine Nachricht ................ -Was kann ich für Sie tun? .......................
mit ..... hinterlassen? ………… -Ich möchte bitte mit Herrn .......................
Kümmel sprechen.
-Wie ist Ihr Name, bitte? .......................
-Mein Name ist….. .......................
-Einen Moment bitte. ........................
-Ich verbinde Sie. .......................
-Würden Sie mich bitte
Frau Schön verbinden. ........................
-Tut mir Leid. ......................
-Frau Schön ist nicht im Haus. ..............
-Ich rufe sie nochmal an. .......................
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(Watcharakaweesilp, 2015)
Task 2: Matching Activity For Business Language Expressions Between L2 And L3
Please match the phrases in English with their comparable ones in German and
underline the Key Word(s) that help you find the answers.
a) Sie wissen, es geht um die Zahlungsbedingungen.

b) Zwecks Unterschriftsleistung unseres Vertrags möchte ich mit Ihnen diesen
Termin vereinbaren.
c) Ich würde Ihnen den Termin unserer Vereinbarung bestätigen.
_ 1) It’s about terms of payment.

_ 2) I’d like to arrange this meeting to discuss our contract to be signed.
_ 3) I’d like to confirm the meeting for our negotiation.
Answers: 1 = a / 2 = b / 3= c
Results
This part mainly focuses on the results from task 2 (Matching activity).
S1 1a2b3c S2 1a2b3c S3 1a2b3c

S10 1a2b3c S11 1a2b3c S12 1a2b3c
*S13 1a2c3b *S14 1a2c3b S15 1a2b3c
S16 1a2b3c S17 1a2b3c S18 1a2b3c
S19 1a2b3c S20 1a2b3c
*Note: S = Student
Based on the Think-aloud method, most students could analyze the key words while
they were matching the German sentences with English sentences as the following:
1) They compared the word Zahlung in German with the word payment in English
German: Sie wissen, es geht um die Zahlungsbedingungen.
English: It’s about terms of payment.
They compared the word Unterschrift in German with the word signed in English.
German: Zwecks Unterschriftsleistung unseres Vertrags möchte ich mit Ihnen diesen
Termin vereinbaren.
English: I’d like to arrange this meeting to discuss our contract to be signed.
They compared the word bestätigen in German with confirm in English.
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German: Ich würde Ihnen den Termin unserer Vereinbarung bestätigen.
English: I’d like to confirm the meeting for our negotiation.
Discussion:
What practical recommendations can be provided to FL teachers concerning effective language
pedagogy?
In relation to comparative studies between English and German, vocabulary for learners
at the fundamental level should be taken into account. Words in English and German
(according to parts of speech) should generally be illustrated to Thai learners to create general
pictures in their mind and to enable them to compare their L2 with their L3. Additionally, new
commercial books based on comparative studies between English and German for business
purposes have been currently launched, for instance, Dralle & Livesey, (2014) focus on modern
useful business vocabulary:
1) e-mail
English: send sb an email
German: jdm eine E-Mail schreiben
2) attachment
English: I’m sending you the report as an attachment.
German: Ich schicke Ihnenden Bericht als Anhang.
(Dralle & Livesey, 2014, pp. 226-227)
Apart from the course books, on the English website www.learn-english-

today.com/business-english/graphs-charts.html and on the German website
www.wirtschaftdeutsch.de, some useful phrases and vocabulary for graphs and visuals are
presented for learners to further enhance their language skills in terms of business
communication.
Conclusion
In terms of English for Specific Purposes (ESP) based on the notion of Dudley-Evans
and ST John (1998), it is important that instructors should consider social, economic, cultural
and linguistic consequences of the global spread of English. English language educators also
need to be aware of this inequality and to consider how they can challenge it by promoting
curricula concerning Business English that allows all learners the opportunity to critically think
about their environment, express their own views and identity in addition to the specific
language patterns necessary for business communication.
Class instructor, as researcher or evaluator, may use the suggested test mentioned in
this paper in class if he or she wishes to test the skills of learners. In relation to ESP practitioner,
it may be used it as teaching material.
Instructors may recommend some new commercial books or some relevant and useful
websites based on comparative studies between English and German for business purposes.
Additionally, after reading the language situations in class, instructors may create the table for
language summary so students can study and compare vocabulary of the two languages. Lastly,
to develop the competence of students to their fullest potential to enable them to compete with
graduates from other institutions and countries in the ASEAN and ASEAN Economics
Community, the communication competence should be enhanced parallel with the language
skills by creating some learning activities related to the communication skills in class.
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References
Dralle, A., & Livesey, R. (2014). Grund- und Aufbauwortschatz Englisch. Stuttgart: PONS
GmbH.
Dudley-Evans, T. & ST John, M.J. (1998). Development in English for specific purposes.
Cambridge: Cambridge University Press.
English today. Retrieved November 10, 1016 from http://www.learn-english-
today.com/business-english/graphs-charts.html
Hufeisen, B. (2010). Mehrsprachigkeitsdidaktik. Jahrbuch Deutsch als Fremsprache, 36,
75-82.
Langenscheidt Taschenwörterbuch Englisch. (2013). Berlin und München: Langenscheidt
KG.
Reimann, M. (2012). Essential Grammar of German. Ismaning: Hueber Verlag GmbH & Co.
KG.
Watcharakaweesilp, W. (2015). Didaktisierung des berufsbezogenen Deutschen mittels des
Englischen als Lehrsprache: Lernmotivation beim Deutschlernen im Thai-Kontext. In
L. Glötze, P. Akkramas, G. Pommerin, & S. Traoré (Eds.), Motivieren und Motivation
im Deutschen als Fremdparche. Frankfurt am Mainz: Peter Lang.
Wirtschaftsdeutsch. Retreived November 10, 1016 from http://www.wirtschaftsdeutsch.de.
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THE EMPLOYMENT OF FOREIGN WORKERS: ISSUES AND

IMPLICATIONS TOWARDS ORGANIZATION PERFORMANCE
Nuràin Achim 1
Syezreen Dalina Rusdi2
Siti Noratikah Mohamad Amin3
1,2,3
Centre For Management and Administration, Faculty of Business and Management, University of Technology
MARA, Selangor, Malaysia
___________________________________________________________________________
Abstract: The recruitment of a huge influx of foreign workers does not act as a new phenomenon
as Malaysia has been experiencing this labor shortage issue since 1980’s to the certain
industries such as plantation, construction and also manufacturing. The employment of foreign
worker may lead to several impacts either positively or negatively. Most of them will bring
positive impacts to their organization. The availability of the foreign workers in Malaysia is
one other valid reason for the local employers to hire them. This study was conducted in
Cadbury Confectionery Malaysia in order to determine the factors influencing hiring foreign
workers and its impact towards the organization performance, which is in term of productivity.
As being studied, it was found that there were several factors of foreign worker's employment
such as the availability, education level and working conditions. However, the findings also
show that the availability and education level have a positive relationship to the organization
performance. While for the acceptance of working condition, the findings found that there was
a negative relationship towards organization performance. Thus, it is recommended that for
future research to examine other factors of foreign worker employment towards organization
performance, such as working experience and wages in other industries in Malaysia.
Keywords: Foreign Workers, Employment, Issues, Organization Performance, Productivity

___________________________________________________________________________
Introduction
Foreign workers which also known as immigrants is those people who are employed in host
country which the reason of hiring can be comes from many factors. As we know, the reason
of hiring those foreign workers is particularly due to several issues such as labor shortages and
the intention of reducing the labor cost. Malaysia is one of the developing countries that facing
a huge inflow of foreign workers especially in manufacturing industry. Generally, they come
from Indonesia, Bangladesh, Nepal, Myanmar and Vietnam. The status of developing country
triggered strong recruitment of foreign workers, since the supply of labors from local has failed
to fill the gap of the shortages. According to Abdul-Rahman, Wang, Wood and Low (2012),
the recruitment of huge influx of foreign workers is not act as a new phenomenon as Malaysia
has been experiencing this labor shortage issue since 1980’s to the certain industries such as
plantation, construction and also manufacturing.
The employment of foreign worker might lead to several impacts either positively or
negatively. Most of them will bring positive impacts to their organization. According to the
study conducted by Mohd Arif, Hamimah, Einur, Mohd Reza, Ahmad Arzlee (2012) about The
Dependency of Foreign Workers in Malaysian Construction, the availability of the foreign
workers in Malaysia is also one of other valid reason for the local employers to hire them. This
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is supported by the previous study in which Malaysia will flooded with huge numbers of foreign
workers as long as their recruitment policy sustain to very loose and not tighten up (Abdul
Rahim, Bachan Singh and Ammar, 2013). This means, the availability of foreign workers will
help an organization from facing the issue such as labor shortage. In fact, their presence
facilitates the organization to have a better productivity especially in manufacturing sector.
Thus, this study was conducted in Cadbury Confectionery Malaysia in order to determine the
factors of foreign workers employment towards the organization performance in which the
impacts that should be focus in this research would be in their productivity.
Most of the past research discussed about how the employment affected local wage structure
and labor productivity. This study takes a different technique by examining the impacts of
foreign workers to the organization performance. It means, this paper will analyze on how
performance of the Cadbury Malaysia in term of their financial will respond from the presence
of immigrants as the substitute of the locals workers. Specifically, the factors of foreign workers
employment divided into their availability, working condition and education level.
The Factors of Foreign Workers Employment

The recruitment of foreign workers has been a phenomenon since two decades ago,
particularly faced by developing countries such as Malaysia. As we know, the employment of
foreign workers in Malaysia helps to reduce the shortage of labor in certain industry, especially
in unskilled job field. Abdul Rahman et al. (2012) stated that immigrants also facilitate the
economic growth of Malaysia as their presence helps several industries such as construction,
agricultural and manufacturing from experience scarceness. For example in construction
industry, local employers prefer to employ immigrants because of their willingness to work in
4D (dirty, difficult, dangerous and demeaning) image (Abdul Rahim et al., 2013). Recent
research stated that, the factors of foreign workers employment can be classified in term
availability, wages, working hours, working environment and education level (Mohd Arif et al.
(2012). On the other hand, the criteria that been discussed in immigrants recruitment and
selection among employer is education level, working experience, nationality, salary demand
and work capability (Abdul Rahim et al., 2013). However, the factors of foreign worker
employment that will be discuss in this study only focusing on the availability, education level
and also working condition.
The availability
Firstly, availability is one of factors that encourage local employers to employ immigrants. This
means, large numbers of immigrants that comes to Malaysia will help employer to overcome
labor shortage and to have sufficient workforce. There are estimated 2.1 million of registered
foreign workers in Malaysia which enable an employer to get their services easily (New Straits
Times, 2016). In addition, lenient recruitment policy has triggered huge arrival of immigrants
up to 1600 people a day in this country (Abdul Rahim et al., 2013). This means, it will increase
the number of available of unskilled workforce that can work at any time that simply employ
by local employers. Moreover, the existence of widespread of well-resourced agencies is one
core element of successful immigrant retention as they always have available foreign workforce
to the local employers (Derwing, Krahn, Foot, & Diepenbroek, (2005). Zaleha, Noraini,
Rusmawati, & Suhaila, (2011) stated that, foreign workers can work for a long period even
though they are offered with low salary compare to local which always searching for new job
opportunities that that will give them better offered.
On top of that, the availability of foreign workers not only refers to their readiness but
also describe their willingness to work during peak time. They were less concern about
working overtime during public holidays and also did not take any additional leave during
any festive seasons (Suresh and Lai, 2014). The recent researcher found that the foreign
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workers employment were not even cost advantage but their flexibility and availability of
time in working has influenced local employer to employ them as their workforce.
` The Education Level

Besides that, education level is also one of the factors in employing foreign workers in
this manufacturing sector. Generally, manufacturing sector is demanding for unskilled
workforce as their operators because that position requires less education. However, most of
citizens of Malaysia are too selective in making job decision in which they are looking for a job
that suitable to their academic qualification (Mohd Arif et al., 2012). Thus, that attitude has
formed more job openings to the foreign worker to accept in any unskilled job position such as
in manufacturing and construction industries.
With the status of developing country that rapidly growth in industries such as
manufacturing and construction has created job opportunities that require workforce with less
education level (Suresh and Lai, 2014). It will increase the demand of low skilled foreign
workers since Malaysia now have a lot of highly educated citizen that choose to work at a
position that is suitable to their academic qualifications. Thus, the decision of employing
foreign workers is preferable since most of them that come to Malaysia were unskilled workers.
The working conditions

Lastly, the factor that encourage local employer to hire foreign workers is because of their
attitudes in accepting the working condition. As we know, the advantage of foreign worker
employment is their willingness to work in any condition such as work in 3D (dirty, dangerous,
difficult) image (Abdul Rahman et al., 2012). It means, immigrants do not bothered with the
poor working condition as long as they can earn money. Besides that, recent research about the
impacts of immigrants in manufacturing sector found that immigrants also can work in high
risk and uncomfortable working condition (Zaleha et al., 2011). As in manufacturing sector,
some certain companies also require their workforce to work in poor condition such as in hot
area which not all local workers willing to do. The hot working condition exposed workforce
to dangerous condition which supposed to be covered by health insurance.
Furthermore, some companies does not concern with employee’s welfare as they not
provide them with appropriate benefits such as health insurance. Study conducted in Chicago
found that only 25% of immigrants in their country are covered with health insurance as it is
not provided by their employer (Mehta, Theodore, Mora and Wade, 2002). It shows that,
although most of local employer did not offer them with health insurance, immigrants still
willing to work as it is not their main reason to work in foreign country. The unsafe working
conditions not stopping them from continuing their services to Malaysia companies. Thus, the
attitudes of accepting poor working conditions have derived most local employer to employ
foreign worker more than local workers.
Organizational Performance
Organizational performance is usually focuses on specific areas such as financial
performance, market performance and shareholder returns (Richard et al. (2014). As for the
financial performance, it is referring to the profits that companies gain, return on assets, and
return on investment and so on. While for the market performance refers to the sales, market
shares and shareholder returns refer to total shareholder returns and economic value added.
According to Dyer and Reeves (1995), they explain that organizational outcomes can be
measured by several criteria which are labor productivity, the satisfaction from customers and
also the quality of products and services. Similarly, Musmuliana and Mustaffa (2012) stated
that there are four types of organizational performance measures which are human resource
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outcomes, organizational outcomes, financial outcomes and capital market outcomes.
Moreover, she also added that the reduction of labor cost can give significant link to the
company’s performance in terms of their financial performance. This means that, the
productivity of foreign workers may increase organization financial performance in term of
profitability and return on assets.
Nevertheless, in this study, organizational performance only referring to the productivity
gain from the employment of foreign workers which explain the market performance as high
productivity will increase the company’s sales and market shares. This is to determine whether
or not their presence help organization to have a better performance in term of their
productivity. Successively, previous studies found that there is a relationship between high
labor productivity to the organization performance (Musmuliana and Mustaffa, 2012).
Conceptual framework
Figure 1.0: The Conceptual Framework of the Foreign Worker Employment towards Organizational
Performance
Figure 1.0 shows the variables that are involved in this study. The independent variable
consists of three factors of foreign worker's employment, while the dependent variable is
represented by organizational performances. In independent variable, it is explained the factors
of foreign worker employment that were adapted from Abdul Rahim et. al (2013) which are the
availability, working conditions and educational level. While for the dependent variable, it was
also adapted from the Sangmook Kim (2005) as his research is about measuring organizational
performance in government sector in Korea. Thus, this conceptual framework designed to
determine the relationship between these two variables.
Methodology
Correlational study was used as the research design to describe the relationship between
the variables. The population of this study is the staffs of Cadbury Confectionery Malaysia.
Total of population in this company for the year 2016 is 76 staff which is all from managerial
department. Managerial department were chosen as this study was conducted in order to find
out the performance of an organization which the information can only obtain from those
managerial staff as their responses and opinion were more reliable. In order to determine the
sample from the total population, it should be based on the guideline from the Krjcie and
Morgan (1970) table. From the table, the sample recommended is 63. A set of questionnaire
was used to gain the primary data. The questionnaire consists of 5 section which are section A,
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Section B, Section C, Section D and Section E. Section A includes demographic background
such as gender, age, status, department, salary, position and length of services. Meanwhile, in
Section B, C and D consists of questions that related to the factors of foreign workers
employment which are the availability, education level and the acceptance of working
condition. These three sections were developed by previous researcher which is from Abdul
Rahim et al., 2013. The last section will be Section E where the questions consist of the
respondents’ response on organizational performance when hiring foreign workers. These
questions were developed by Sangmook Kim, 2005.
Findings
Table 1: Descriptive Analysis
Std.
The Availability N Mean Deviation
Availability is the factor of foreign workers employment 65 3.97 .883

Labor shortages occurred because of local workers 65 3.71 1.042
foreign workers help to overcome labor shortages 65 3.95 .959
FW recruitment is easier and quicker 65 3.22 1.097
Total 3.78 .5354
Std.
Education Level N Mean Deviation
Employer prefer less education operators 65 3.52 .920
Most FW comes from less education background 65 3.35 .926
FW not particular in choosing job 65 3.89 .753
Most local workers choosy in making job decision 65 3.42 .864
Total 3.55 .4767
Std.
Working Condition N Mean Deviation
The acceptance of poor working condition is the factors 65 3.89 .710
FW not choosy in making job decision 65 4.09 .678
FW willing to work in any condition of work 65 3.68 .954
Locals not interested to work in poor working condition 65 4.03 .728
Total 3.87 .3991
A total of 76 sets of questionnaires were distributed to the managerial staffs of Cadbury

Confectionery Malaysia. Out of 76 questionnaires distributed, only 65 were found to be usable
for the study, yielding a response rate of 90 percent. Majority respondents were female of which
represent 52.3 percent. Most of respondents were executives of Cadbury Confectionery
Malaysia.
To determine the factors of foreign workers’ employment as the objective of this study,
descriptive statistics were conducted. Descriptive analysis was divided into three sections
representing three variables namely the availability, education level and working condition. As
stipulated in Table 1, it indicates that among all three independent variables, the factor with the
highest total mean score was the acceptance of working condition with the value 3.87. It is
followed by the availability of foreign workers (3.78) and the education levels of immigrants
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which is 3.55. Thus, this specifies that majority of respondents agreed that the acceptance of
working condition is the strongest factor of foreign workers’ employment in Cadbury
Confectionery Malaysia.
Table 2: Correlation Analysis
Variables 1 2 3 4 5
Factors of Foreign Worker Pearson Correlation (0.568)

Employment
The availability Pearson Correlation (0.645) .412**
Education Level Pearson Correlation (0.618) .416**
Working Condition Pearson Correlation (0.635) -.099

Organizational Performance Pearson Correlation (0.627)
**. Correlation is significant at the 0.01 level (2-tailed)
`Correlation analysis was conducted to investigate the inter-correlations among variables.
Table 2 above shows that both availability and education level of foreign workers and
organizational performance were positively correlated with moderate strength of 0.412 and
0.416 respectively. Therefore, it can be concluded that these two variables (availability and
education level) have a significant relationship with organizational performance. However, the
acceptance of working condition and organizational performance was found to have a weak
downhill (negative) linear relationship (r= -0.99). The results also explained that there was no
significant relationship between these two variables as the value is more than .01.
Discussion
This study aims to determine the factors of foreign worker’s employment as well as the
relationship of this factors pertaining to the organizational performance. Based on the findings,
it is found that respondents agreed that the availability of foreign workers in the labor market
is one of the factors of foreign worker employment in the organization. This is in accordance
with Suresh and Lai (2014), that the availability of foreign workers enforced local employers
to employ them as their workers. This is due to the fact that the availability of foreign workers
is seen as a way to overcome the issue of labor shortage. Another contributing factor to the
employment of foreign worker is the education level. Since most of foreign workers are lacking
in terms of academic, they are massively employed in the manufacturing sector which in high
demand for less skilled workforce. On the same notion, Suresh and Lai (2014) highlighted that
rapid growth in manufacturing and construction industries in developing country has created
job opportunities that require workforce with less education level. In this study, most of
respondents agreed that foreign workers are not so particular in choosing a job due to low
education level.
In addition, this study also suggested that acceptance of working condition leads to the
employment of foreign worker. This result is in line with Zaleha et al. (2011) that the
immigrants are willing to work in high risk and uncomfortable working condition. Poor working
conditions in which often rejected by local workers such as in working hot area were filled by
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foreign workers. The poor working condition most of the time may lead to a dangerous work
environment which supposed to be covered by health insurance whereby some of the employers
likely ignored the responsibility because of the status of foreign workers. This is supported by
Tetyana (2012) that foreign workers will keep silent and accept the poor working condition
because they try to avoid from having asymmetrical relationship with their employers.
Subsequently, from the study the availability of foreign workers has a positive relationship
to the performance of organization. This availability does not only refer to readiness but also
the willingness to work during peak season. They were less concern about working overtime
during public holidays and also did not take any additional leave during any festive seasons
hence maintaining the operation of organization to run smooth (Suresh and Lai, 2014). To
conclude, all research objectives of this study are met.
Acknowledgement
The authors would like to gratefully acknowledge research support under the Faculty of
Business and Management administered by University of Technology MARA. Our heartiest
most gratitude also extended to the respective company and respondents involved in this study.
References
Abdul-Rahman, H., Wang, C., Wood, L. C., & Low, S. F. (2012). Negative Impact Induced By
Foreign Workers: Evidence in Malaysian Construction Sector. Habitat International,
36(4), 433-443.
Abdul Rahim Abdul Hamid, Bachan Singh and Muhammad Ammar Jamadi (2013). Foreign
Labour Employment in Construction Project. International Journal of Scientific and
Research Publications, Volume 3, Issue 11, November 2013 1 ISSN 2250-3153
Derwing, T., Krahn, H., Foot, J., & Diepenbroek, L. (2005). The Attraction and Retention of
Immigrants to Edmonton . The Attraction and Retention of Immigrants to Edmonton
, 1-90. Retrieved September 15, 2016, from
https://sites.ualberta.ca/~pcerii/Virtual%20Library/FinalReports/attractionretentionde
rwing.pdf
Dyer, L., & Reeves, T. (1995). Human Resource Strategies And Firm Performance: What Do
We Know And Where Do We Need To Go? International Journal of Human Resource
Management, 6(3), 656-670.
Krjcie And Morgan (1970). Determining Sample Size for Research Activities. Educational And
Psychological Measurement Vol 30, Page 607-610.
Mohd Arif M., Hamimah A., Har Einur B., Mohd Reza E., Ahmad Arzlee H., (2012).
Dependency of foreign Workers In Malaysian Construction Industry. Built
Environment Journal (Volume 9, No. 1, 2012, Pages 39 to 50
Mehta, C., Theodore, N., Mora, I., & Wade, J. (2002). Chicago’s Undocumented Immigrants:
An Analysis of Wages, Working Conditions, And Economic Contributions. Chicago,
University of Illinois, Center for Urban Economic Development.
Musmuliana, Y., & Mustaffa, Y. (2012). Factors Influencing Organizational Performance in
Metro Specialist Hospital, Sungai Petani, Kedah Darul Aman (Doctoral dissertation,
Universiti Utara Malaysia).
Pook, L. A. (Ed.). (2016, September 17). The Dilemma of Having Foreign Workers In
Malaysia. The Dilemma Of Having Foreign Workers In Malaysia. Retrieved
November 30, 2016, from http://www.straitstimes.com/opinion/the-dilemma-of-
having-foreign-workers-in-malaysia
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Richard, P. J., Devinney, T. M., Yip, G. S., & Johnson, G. (2009). Measuring organizational
performance: Towards methodological best practice. Journal of Management.
Richards, P. J., Devinney, T. M., Yip, G. S., & Johnson, G. (2008). Measuring organizational
performance as a dependent variable: Towards methodological best practice. Strategic
Management Journal. Retrieved from http://www. Research gate.
Sangmook Kim (2005). Individual-Level Factors and Organizational Performance in
Government Organizations. Journal of Public Administration Research and Theory,
Volume 15, Issue 2, 1 April 2005, Pages 245–261,
https://doi.org/10.1093/jopart/mui013
Suresh, Narayanan and Lai, Yew wah (2014) Migration and development in Malaysia: The
impact of immigrant labour in the manufacting sector, 1986-2010/Suresh Narayanan
and Lai Yew-Wah. In: National Population Conference on the Inter-Relationship
Between Population Dynamics and Development, 26 June 2014, Palm Garden Hotel,
IOI Resort, Putrajaya. (Unpublished)
Zaleha, M., Noraini, I., Rusmawati, S., & Suhaila, A. (2011). The Impact of Foreign Workers
on Labour Productivity in Malaysian Manufacturing Sector, 5(1), 169-178. doi: ISSN
1823 - 836X
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CONSUMER’S PERCEPTION TOWARDS MIDDLE EASTERN

RESTAURANT IN PENANG
Shahril Hussin 1
Nor Azureen Rozekhi 1
Sperico Michael Alden Kirap 1
Muhammad ‘Arif Aizat Bashir 1
Hairul Nizwan Abd Majid 1
1
Faculty of Hotel and Tourism Management, UiTM Pulau Pinang, Malaysia
___________________________________________________________________________
Abstract: The trends for Middle Eastern flavors and cooking methods are already started over
the past few years and this trend blooming away of another cuisine and be embraced by the
Malaysian consumer which starts looking more towards the Middle East cuisine. With that, this
study is conducted to identify the customer perception and the level of acceptance towards a
Middle Eastern restaurant in Penang area where there is influenced by food quality, restaurant
ambience and intention customers to dine in the restaurant. Data were gathered using
convenience sampling throughout the survey questionnaires to customers who dine in at several
of Middle Eastern restaurants in Penang. Based on statistical analysis using SPSS, a standard
multiple regression analysis showed that among three variables, food quality is the strongest
substantial that affect significantly customer’s perception and their level acceptance. This
indication has implications to restaurateurs for improving their service to fulfill customer needs
and wants also repeat patronization to the restaurant.
Keywords: Level Acceptance, Perception, Middle Eastern Restaurant, Penang.

____________________________________________________________________________
Introduction
Throughout the hospitality industry, there are many parts of it. Businesses are the one of the
hospitality industry and it is a success because dealing with customers and hospitality is an
entrepreneurship. In this new globalization, food service industry in Malaysia is extremely
competitive and rapidly growing tremendously. Other than lodgings and other tourism
activities, food and beverage hunting and food cultures are one of the most significant elements
in the tourism industry (Mohd Hairi et.al, 2009).
Due to that, this study was carried out to investigate and focus on the customer’s perception
and level of acceptance related to a Middle Eastern restaurant. In addition, this study also
assessed the extent of authenticity customers perceived by that type of restaurant. Perception is
a practice by individuals in organizing and interprets or expresses their sensory impressions to
provide connotation to their surroundings. It is because people’s actions are based on their
perception of what the actuality is, not on the actuality itself. Wherever they want to eat, the
perception of the consumer is one of the keys for the restaurant to be successful. Most of the
time, the consumer that gets the food experience from the restaurant will lead to positive
perception and acceptance.
Truly to date, the opening of ethnic cuisine might be seen in the Malaysia scenario such as
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Japanese, Korean and Middle Eastern restaurant which are blooming moderates in the region
of this country with some of them having more than 5 restaurant chains. Thus, Younes (2013)
claims Middle Eastern culture is one of the oldest in the universe. Nonetheless, it seems that
Middle Eastern food has not enjoyed the same involvement as other culture food for instant
French, Italian or any other western food. Zainuddin (2012) state that, from looking at the
emerging opportunities of a Middle Eastern restaurant in line with the demand by the food
appreciator, it is important to better understand and observe the underlying elements that
influencing the perception and the level acceptance towards a Middle Eastern restaurant in the
focus area, Penang’s prospect. In the same manner, the lack of study about exploring and
observing into the restaurant choice influence consumer perception and their acceptance of food
quality, restaurant ambience and consumer’s intention in Malaysia, particularly at a Middle
Eastern restaurant should lead the reason to study about this to get more remarkable result about
the perception and insight towards restaurant.
Methodology
This study was conducted using a descriptive research method as it is relevant to explain the
consumer perception and the level of acceptance towards the Middle Eastern restaurant. To
illustrate the characteristics of a population or phenomenon, the descriptive research is used
(Zikmund et.al, 2010). This study utilized a survey method of quantitative research which the
questionnaires are distributed to respondents for collecting and gathering the data information.
Furthermore, convenience sampling was carried out for data collection process with 80
respondents who are recently visited and dine in the Middle Eastern restaurant around the
Penang area such as Seberang Jaya, Perda city and Permatang Pauh.
The research instrumentation used in this study is personally - administered questionnaire.
The survey is organized through the adjustment of the questionnaire from journals written by
another researcher. This survey was divided into three parts which included Section A is about
the demographic profile of respondents consists of gender, age, income and race. Meanwhile,
Section B is the construct measurement of the three independent variables of influencing the
restaurant which is food quality, ambience and purchase intention to dine. In Section C, the
questions are about respondent’s perception and acceptance about the Middle Eastern
restaurant. All the sections are set in the form of rating scale that is a five-point Likert scale on
the level agreement from 1= Strongly disagree, 2= Disagree, 3= Neutral, 4= Agree and 5=
Strongly Agree. For assembling the data, this study survey took only 14 days.
A pilot test was distributed in a sample of 15 respondents to the lecturers in UiTM Pulau
Pinang with different faculty to test the reliability and validity as well as identify and examine
errors of the survey. During the distributions of the survey, only 52 respondents were
participating in this study. The reliability test was taken and analyzed separately. As a result,
the variables are considerable since the Cronbach’s alpha value is more than 0.6 for each
section.
Analysis and Results

Based on the frequencies statistics, it was found that, both genders are equal to 50% of male
and female. Majority of the respondent’s age range is 26 years old to 35 years’ old (40.4%).
Regarding income frequencies, it showed that level income between RM1000 to RM2000 was
the majority (36.5%). And then, 92.3% majority of the race was Malay.
Perception and Level Acceptance towards Middle Eastern Restaurant Attributes

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Looking at the perception and level acceptance towards Middle Eastern restaurant attributes
descriptive statistic at TABLE 1, it is revealed that for food quality, majority respondents agreed
the foods are served with the suitable temperature for the right meal, for the right time
(M=4.0962). Besides, they agreed food presentation is visually attractive and organized which
will attract their attention (M=4.0577), varieties of food and its color components within an
each of meal stimulate their appetite (M=4.0769) and the food portion of the items gives them
a satisfaction (4.0769). They also agreed the restaurant not only used fresh ingredients in
preparing the food but also the food is served in a fresh and timely manner (M=4.0385).
Moreover, the food is authentic that make them feel the different taste (M=3.9808).
On the restaurant ambience, respondents agreed that pleasant type of music and sound create
a comfortable environment of the restaurant (M=4.1346), believed pleasant and good scent or
odor in the restaurant (M=4.1346). Furthermore, they agreed the lighting, color and design in
the restaurant make them feel like they are in the Middle East country (M=4.1154) and the
restaurant looks exclusive that attract them to deliver a good memory in there (M=4.0577).
Furthermore, respondents also agreed they would recommend the restaurant to their friends
(M=4.0577), will have the intention to purchase and dine in the restaurant again (M=3.9615)
and say positive things about the restaurant to others (M=3.9615). In addition to the result at
TABLE 2, it showed that in the customer perception and acceptance level majority of
respondents accept this type of restaurant in their daily life (M=4.000) and invariably deliver a
good perception of the restaurant (M=3.9808). Nevertheless, together this point indicates that
respondents slightly agreed they have a good feeling after their leave (M=3.9615) and always
constantly count the restaurant will be the one of the aces of their list eating place (M=3.8077).
Reliability Test
The total number of 52 surveys has been collected and then the reliability test was taken by
using SPSS version 21.0. The result indicates that Cronbach’s Alpha value for food quality is
0.876 which, measured by 6 items, restaurant ambience was measured by 4 items with value
0.868, customer intention to dine was measured by 3 items and produced Cronbach’s Alpha
0.853 and finally customer perception and level of acceptance that measured by 4 items is 0.869.
With that, all the variables are accepted for the result. Altogether, it shows the goodness of the
data collected.
Table 1: Descriptive Analysis for Perception and Level Acceptance towards Middle Eastern Restaurant
Attributes
Food quality
(M) (SD)
7. Varieties of food and its color components within an each of meal 4.0769 .70977
stimulate my appetite.
8. The food is authentic that make me feel the different taste. 3.9808 .77940
9. The food portion of the item gives me satisfaction. 4.0769 .70977
10. The restaurant used fresh ingredient in preparing the foods and the 4.0385 .76598
food is served in a fresh and timely manner.
11. The food presentation visually attractive and organized that attract my 4.0577 .72527
attention.
12. The foods are served with the suitable temperature for the right meal, 4.0962 .69338
for the right time.
Ambience
(M) (SD)
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5. The restaurant looks very exclusive that attract and make me have a 4.0577 .84976
good memory.
6. The lighting, color and design in the restaurant make me feel like I am 4.1154 .89997
in the Middle – East country.
7. Pleasant types of music, sound create a comfortable environment of 4.1346 .68682
the restaurant.
8. Pleasant and good scent or odor in the restaurant. 4.1346 .76770
Intention to Dine
(M) (SD)
4. I would recommend the restaurant to my friends or others. 4.0577 .80229
5. I have the intention to purchase and dine in the restaurant again. 3.9615 .83927
6. I would say positive things about the restaurant to others. 3.9615 .68489
Table 2: Descriptive Analysis of Consumer’s Perception and Level of Acceptance

Perception and Level of Acceptance
(M) (SD)
1. I always consider the restaurant to be one of the choices 3.8077 .74198
in my list.
2. I experience the good feeling when I leave the restaurant. 3.9615 .68489
3. I have always had a good perception of the restaurant. 3.9808 .69987
4. I have always accepted this kind of restaurant 4.0000 .68599
performance.
Measuring the Relationship of Consumer’s Perception and Acceptance Level towards

Middle Eastern Restaurant
For the hypothesis, a standard multiple regression was conducted with the predictors
comprising Middle Eastern restaurant attributes (food quality, ambience and intention to dine),
while the criterion referred to the consumer’s perception and level of acceptance towards the
Middle Eastern restaurant. In other words, this analysis is to assess how well the attributes
influence the perception and acceptance of customer. The outcome from the TABLE 3
demonstrated that Middle Eastern restaurant attributes (R=0.726) significantly contributed to
the perception and acceptance level (p<.001). The study demonstrates that the value which is R
Square for Middle Eastern restaurant attributes towards perception and acceptance level 52.6%.
Thus, all the hypothesis is strongly supported. Regarding the table of result coefficient at
TABLE 4, food quality is the strongest result and most influential on the consumer’s perception
and acceptance level towards the Middle Eastern restaurant (β=.510, sig .000). In other words,
food quality is an important predictor of customer perception and their level acceptance. It is
indicating that majority of the respondents agreed the quality of food in the restaurant has more
impact than the intention and ambience.
Table 3: Multiple Regression Analysis of Middle Eastern Restaurant Attributes towards Perception
and Acceptance Level
Model R R Square Adjusted R Square Std. Error of the
Estimate
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1 .726a .526 .497 1.69076
c. Predictors: (Constant), Intention, Food quality, Ambience
Table 4: Analysis of Food Quality, Ambience and Intention towards Perception and Acceptance Level
of Middle Eastern Restaurant
Model Unstandardized Coefficients Standardized t Sig.

Coefficients
B Std. Error Beta

(Constant) 3.094 1.798 1.721 .092
Food quality .353 .089 .510 3.964 .000

1
Ambience -.069 .128 -.079 -.541 .591
Intention .435 .161 .375 2.699 .010

a. Dependent Variable: Perception and acceptance level
Discussion
This study was carried out to identify the consumer’s perception and level of acceptance
towards Middle Eastern restaurant influence of the food quality, ambience and intention to dine
in the restaurant. This study finding clearly revealed food quality undertaken significantly
highly influenced the consumer’s perception and acceptance level among Malaysian consumer
slightly influencing is ambience and intention. Obviously, food quality was the first thing will
come out of their mind when dining at the restaurant and consumer preference for a food
combines with the perceived appropriateness of the food to determine overall acceptance. If the
quality of food in the restaurant is low, then the level of perception and acceptance by the
customers will be depressed as well. That’s why in any of the dishes or cuisine, in any
restaurant, the quality of the food is the major thing that will influence people to taste and it is
connected to the perception and acceptance towards the food by the people who enjoy that.
Owing to that, restaurant managers should constantly provide higher quality foods to their
customers in terms of offering meals with fresh ingredients and the reasonably high-quality
meats (Pettijohn, Pettijohn, & Luke, 1997). As a result, consistent with this finding which is
offering fresh, tasty, correct portion, food temperature and a miscellany of food and beverages
remains a central criterion for satisfying customers (Ahmad Shariff et.al, 2015). Thus, the
finding of this study provides support for Middle Eastern restaurant managers to develop better
strategies for distinguish their services on food quality so that it will be a benchmark of the restaurant
itself.
Apart from that, intention to dine also significantly influenced the consumer’s perception and level of
acceptance toward the Middle Eastern restaurant. It is because the intention to dine in the restaurant also
an important aspect to be taken even though they choose the restaurant regarding of the money, the
distance from home to the restaurant or for any event. Naturally, the intention is the element preference
by a customer to accept the restaurant performance either is service, food quality or ambience. On the
other hand, the less significance influenced ambience towards consumer’s perception and acceptance
level due to not as much of preference of the customer was displayed. In that case, managers should pay
attention that the environment of the restaurant will make customers feel comfortable and relax so that
they can enjoy their food when they are dining in the restaurant. Restaurant managers should create a
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special atmosphere for customers to enhance their positive dining experience thus can increase their
frequency of visiting a middle eastern restaurant (Chen et al., 2011).
Conclusion
The customer perception and level of acceptance of the place they are dining should remain a top
precedence in the food industry because it helps to drive reiterate business. The restaurant managers
need to bear in mind that the first impression of the customers is important to lead they gave a positive
perception and high-level acceptance towards the restaurant. The tangible elements of the restaurant
such as the food quality and ambience of the restaurant may create a center of attention for more
customers.
Pertaining to this study, there are several limitations need to be addressed. The sampling for this
study is simply a small area and restricted in Penang only. Moreover, there are a small number of Middle
Eastern restaurants in Penang. In other words, the place or restaurant for collecting data is limited.
Therefore, it would be better to collect data in other situations to achieve greater responses on top of
wider perspectives. Further study should be investigating other variables to have a more honest
understanding of the consumer’s perception and acceptance level towards the Middle Eastern restaurant.
Several ordinary variables such as price, promotion, and service quality should also be included as the
mediator in the theoretical framework to explore whether the mediator will manipulate the customer’s
perception and their level acceptance.
To sum up, hopefully, this study will give acquaintance or information about the food industry,
mostly in enhancing and achieving highest customer’s perception and acceptance to reform the
restaurant image that will attract more customers in the future. In short, the conclusion of this study
indicates that the food quality is an important factor influencing the dining experience of the customer’s
perception and acceptance level towards a Middle Eastern restaurant in Penang.
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A THEORETICAL PERSPECTIVE OF UTILITY MAXIMIZATION IN

NEUROECONOMICS WITH LINK TO HOMO-ISLAMICUS
Ma Qinfen1
MohdShandar Siddiqui2
______________________________________________________________________________
Abstract: In this fast world of changes and decisions, where preferences are subject to rational
choices and decision making is getting advanced in its science with respect to economics, we see
that Neuroeconomics has been bringing the gap between economics and psychology closer than
ever perceived. It poses a big challenge to the economists to have a coherency with this nascent
field of economics which is gaining some heat globally. Neuroeconomics pre-dominantly has put
pressure on the standard economic assumption that utility maximization and decision making is
one process. Neuroeconomics has fundamental interest in studying human behavior. In this paper
we will try to base our discussion on judgment and decision-making with links with choice theory
of economics and the homo-Islamicus in the Islamic economics. This paper tries to review some
of the research that has influenced economics with respect to human behavior and also how
emotions play a role in preferences.
Keywords: utility maximization, decision making, emotions, homo-Islamicus
______________________________________________________________________________
Introduction
People make decisions based on the concept of utility function, consumer will choose the
best of the choices to enhance their utility. The foundations of economics were laid with the
publishing of Adam Smiths “the wealth of nations in 1776”. It was argued how a consumer is
indifferent towards various goods and what are the factors that actually give him satisfaction. This
might make us to think that how people choose and how markets work. It is important to perceive
here that behavioral economics and experimental economics have an intersection point with
psychological experiments on the basics of economics and these highly controlled experiments
will improve the testing of economic theory (Glimcher, Camerer, Fehr, & Poldrack, 2009).
Neuroeconomics has transpired from the both of the branches of this discipline. Data gathering
can be in the form of neural activity then neural measures can be used to gather information on
how it works in the brain and what are the resulting choices, as this is a very new area of economics,
it is be important to know how this nascent field grew. Some cognitive psychologists and
behavioral economists chose the functional brain imaging as the tool to test and grow new
alternatives to the current existing preference theories. There are too many theories running after
a very limited data with choices as the primary axiom of data. With this link between economic
theory and neural methods to test and develop models, the branch of Neuroeconomics emerged
and was the result of what we see in Neuroeconomics today (Glimcher, Camerer, Fehr, & Poldrack,
2009). Now with all this in background we can see the differences between how homo-Economicus
and how homo-Islamicus can be discussed with respect to sensory-motor choices and ethics of
1Ma Qinfen ,G1423560, International Islamic university Malaysia, MEC student , email – maqinfen@gmail.com
2Mohdshandarsiddiqui, G1520343 , International Islamic university Malaysia , MEC student , email – shandars30@gmail.com
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preferences in both the disciplines. The mathematical model in this paper portrays the link between
how expected utility theory is influenced by the limitations of the mind, we can say that their
rationality is limited by the decision problem.
Rationality
Rationality can be defined as choosing the best method of accomplishing a specified goal.
Human behavior which is always a result of pain and pleasure can motivate human behavior in
various aspects, but when we look at the research done in cognitive neuroscience, we see that these
are not the only factors which influence human behavior and hence some behaviors appear
irrational and hence affect decision (Hoebel et al., 1999). One of the assumptions is that a wide
variety of behavior can be explained by these models of rationality assumptions. Any decision
process that is rule- based is said to be rational. Rationality can be applied to many things, if
rationality is applied in an individual’s beliefs then individual must have some suitable evidences
in forming those beliefs and it will be wise to say that the decision makers action is rational, but if
those evidences are ignored then it will be clearly irrational and hence it might affect choice
behaviors (Chorvat & McCabe, 2005). There are many rational models developed by various
economists and academicians.
Expected Utility Theory (EUT)

Expected utility theory states that the decision maker will compare their expected utility values
between risks or uncertainties, which is firstly provided by Von Neumann and Oskar Morgenstern
(2007). The theory shows that there are two variables needed considering in making decision: the
weighted sums obtained by the utility values of outcomes multiplied by their respective
probabilities. Using mathematic formula is:
𝑛
EU = ∑ pi ui
𝑖=1
In this formula, pi is probability of the case i and ∑ pi =1, and ui represents the order of value or
utility, so this theory is Ordinal Utility Theory. As the probability (pi ) is the objective probability
in the Von Neumann and Morgenstern’s expected utility theory, so their theory is also called
objective expected utility theory. Savage (1954) consolidated and enlarged this theory, proposing
the subjective expected utility theory, which includes subjective probability that to satisfy certain
behavioral requirements according to the expectation of individual’s utility values in the expected
utility theory. Using mathematic formula is:
𝑛
E[u(x)] = ∑ πi u(αi )
𝑖=1
In this formula, πi represents the subjective probability of case i and ∑ πi =1, and u represents the
weight of value or utility, so this theory is the Cardinal Utility Theory. The difference between two
theories is that Savage considered some subjective factors and individual reasons.
Based on the view of (Rabin, 2002), considering the uncertainty or risk as probabilistic states of
the world, the new classical economic model can be written as
Maxx∈X ∑ π(s)u(x‫׀‬s)
s∈S
In this model, where X is choice set, S is state space, π(s) are the person’s subjective beliefs which
is updated using Bayes’ Rule, and U are stable, well-defined preferences. In this model, the
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uncertainty of the world is described by the probability of state space, and at the same time, the
utility function maybe based on the state.
Then, Rabin (2009) explained that preference of individual is uncertainty and not all of individuals
pursuit the maximum benefits.
In order to fix the ideas, Stefano (2009) considered the following stylized version of the standard
model, modified from Rabin (2002b)
∑∞ t t
max
t t=0 δ ∑st ∈St p(st )U(xi ‫׀‬st)
xi ∈Xi
Individual I at time t = 0 maximizes expected utility subject to a probability distribution p(s) of the
states of the world. The utility function U (x|s) is defined over the payoff xit of player I and future
utility is discounted with a (time-consistent) discount factor δ. This model is quite complicate, but
it still cannot fit the real world.
Bounded Rationality Theory

Bounded rationality was proposed by Herbert A. Simon, which states that when individuals make
decisions, their rationality is limited by the decision problem, including limitations of the minds,
and the time limit available to make the decision. In the view of the theory, decision-makers act as
strategic individuals who search through the available alternatives until an acceptability threshold
is reached, and they reach a satisfactory solution rather than an optimal one. When individuals
make choices, decision or judgment, they did not consider all choices or calculate all possible
results, but just consider some limited choices. After they feel satisfied, they will stop to search
and make decision. It showed that bounded rationality theory does not strictly follow the principle
of expected utility maximization, but the principle of satisfaction.
a) Prospect Theory
Based on the bound rationality theory, Kahneman and Tversky (1979) proposed the prospect
theory (PT). In prospect theory, the probability and value are not directly related to utility. The
value V of a simple prospect that pays $x with probability p, using the mathematic model is given
by:
V(x,p)= 𝜔(p)𝜗(x)
Where 𝜗 is a function of the subjective value of the consequence x, and 𝜔measures the impact of
probability p on the subjective probability on value. PT used value function v to replace the utility
function u of EU theory.
b) Cumulative prospect theory(CPT)

As the prospect theory did not consider a chance prospect with two non-zero outcomes. Kahneman
and Tversky proposed the prospect theory for considering a chance prospect with two non-zero
outcomes (x, p; y, q) that offers $x with probability p and $y with probability q (otherwise nothing).
Let ω+ and ω− be the weighting function for gains and losses, respectively. The CPT valuation of
the prospect is given by:
ω−(p) ϑ(X) + ω+(q) ϑ(y), for mixed prospects, x < 0 <y
The above equation illustrates sign dependence for mixed prospects: a different weighting function
is applied separately to the loss and gain portions.
It is also important to note that many economists view the rational model as an approximation,
rather than a precise description of human behavior. Roth (1996) argued that since most of
approximations are false at some point and most of the experiments that show people deviate from
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the model does not impact at the bottom of the rational model hence he suggests some evidences,
and alternatives to be more significant than other ones, he states that applying of rational models
depends on the level of analysis required for the problem.
Ecological Rationality Theory

Based on the view of Simonas’ heuristics hypothesis, the ecological rationality hypothesis
was proposed by several scholars, in which the famous representation is the Centre for Adaptive
Behaviour and Cognition (ABC) led by Hutchinson. In the center of ABC, they based on the bound
rationality of “heuristic strategies” and put the idea of Evolutionism into the making-decision
study, emphasizing the limitation of cognition is adaptability for the environment. It showed that
it is unnecessary for human and animals to make optimal choices and decisions in the real world.
With the proposing of the ecological rationality theory, the emotion is the product of human
adaptation to the environment, so the ecological rationality emphasizes the importance of emotion
in the making-decision.
Hutchinson and Gigerenzer (2005) estimated that a large portion of the human basic
leadership can be portrayed by the straightforward algorithmic process models (heuristics), which
includes a technique of take the Best for instance of a basic heuristic. Basic heuristics can settle on
quick choices with less data. In the biological levelheadedness, the development of the human
cerebrum is to manage adaption in this present reality, as opposed to manage advanced
amusements, so there is no relationship between basic leadership and likelihood. The significance
is to comprehend the human mind's capacity in a specific farthest point conditions. The center
thought of environmental reasonability is "looking", which underscores the relationship amongst
feeling and utility.
There was an introduction of new types of analysis into the standard economic models which were
further divided in to the individual who were risk neutral economic men, expected utility
maximizing men, the almost rational economic man, the psychological and the neurobiological
man.
Risk Neutral Economic Man：This man will choose risk oriented bundles strictly to its expected
value, he’s different from real individuals in many ways, but it’s not a sharp description because
some individuals are different in risky situations, though it’s a useful model no doubt.
Expected Utility Maximizing Man：This model is more of a conventional view of the rational
model, this man will be ignoring risks and is more of measuring probabilities individual loved by
economists
Almost Rational Economic Man：This man has preferences but eventually moves away from
expected utility maximization, he tends to overestimate and underestimate small probabilities
(Roth 1996), but will abstain from bundles that are valued separately and the decision made on the
bundle is different than when they are valued jointly. This is due to the relativity of choices.
Psychological Man：This man doesn’t have a view over preferences (Roth 1996) and he has
mental processes and different types of options and different choice procedures evoke different
processes for him.
Neurobiological Man：This man doesn’t have a fixed collection of mental processes as argued
by Roth (1996), but Kahneman and Tversky (1979) comments on rational theory and constructive
choice. According to (Roth, 1996), utility maximization may be a weak way to choose among
alternatives with same expected values or also to choices having probabilities near zero or one and
this can help the actual fruitfulness of the approximation.
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Research Areas Of Neuroeconomics

Neuroeconomics studies try to determine the brain areas of the individuals mind and seek to
understand its nature depending upon the activities in brain areas with respect to human decision
making. The job of the neuroeconomists is to understand the nature of the sub-optimal and illogical
decisions (Stanton, Day, & Welpe, 2010).
Decision Making Under Risk And Un-Certainty

Daniel Bernoulli in 1738 first proposed utility maximization to explain decision making under
risk. He argued that humans are rational to make options based on the expected utility
(Loewenstein, Rick, & Cohen, 2008). As most of our decisions are based on risk, economics and
psychology define risk as the uncertainty about outcomes when the probability is known.
Inter-Temporal Choice
In economics we notice that there are choices which have costs and benefits that are distributed
over time which are called inter-temporal choices and this research tries to study the concept of
expected utility that humans set to situations at various different times (Loewenstein et al., 2008).
Social Decision Making

It is evident that most of the research on decision has been focused on the individuals making
choices outside the social aspect therefore it is important to see through a social interaction
perspective, for example the decision theorists study , cooperation , punishment , altruism and
retribution, also the most famous prisoners dilemma which means an individual can either choose
to cooperate with his partner or defect against his partner , this hypothesis is supported by the
neural images of the brain.
Emotion In Neuroeconomics
Although the bounded rationality theory and ecological rationality theory have proposed
that human emotion and value affected the decision-making, the theories do not put forward how
the psychological factors such as emotion, affect the decision-making behavior.
The dopamine framework and enthusiastic reactions are vital for comprehension about
what is significant or hazardous as a result of the universe of creature route which lets us know the
way of basic leadership in creatures individually (Zak, 2004). These and different frameworks
utilize the present involvement to redesign the memory of past encounters, so the creature has the
reason for settling on an educated future choice. Neuroscience examines have demonstrated that
feeling is an essential element in the ordinary and sound working for the direction framework in
decision. For instance, Damasio (1994) reported that patients with particular harm to the OFC can't
play out the determination. Passionate initiation might be more inclined to fragmented data,
hazard, or decision in a social setting in the basic leadership prepare.
Likewise, Bechara et al. (2000) concentrated the impacts of four feelings (outrage, misery,
satisfaction, and dread) on different mind areas. Despite the fact that they accentuated the
somatosensory cortex and upper brainstem core as a general support to give the somato-marker
speculation of feelings, there were noteworthy contrasts in mind actuation in various emotions.
(Zizzo, 2003)
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Value And Belief In Neuroeconomics
From a neural point of view, the weighted fictitious play (WFP) is a general model in which
strategy values times the reinforcement weight of one, perhaps because those value signals are
computed differently in the brain and therefore weighted on received reward differently in guiding
behavior.
The movement of the striatum seems to encode the estimations of the ware or choice in the
determination set under the present thought or being effectively expended (Gilman et al. 2011).
Early Functional Magnetic Resonance Imaging (fMRI) thinks about indicated similar neural action
in a few esteem related mind areas amid the assessment of betting. This action is more grounded
with expanding returns and with less misfortune.
It has been appeared to be essential for defeating egotistical predisposition, demonstrating
that VMPFC and pSTC movement are key parts of the neural circuits that are socially favored.
The part of ventromedial prefrontal cortex (VMPFC) in basic leadership including expensive
selflessness is critical because of the related enactment in this locale. For instance, the VMPFC is
included enthusiastic handling and good judgment (Koenigs et al., 2007), coordinating the
estimation of customer merchandise and the costs (Knutson et al., 2007), and altruistic gifts. There
demonstrated that exercises in VMPFC are decidedly associated with humanitarian commitments,
to be specific the mind's coding choice utility, which is reliable with different reviews. What's
more, different flags in the back prevalent fleeting cortex (pSTC) adjusted the esteem motion in
VMPFC.
A straightforward supposition steady with intellectual chain of command (CH) displaying
is that many subjects will utilize distinctive thinking forms in light of the diverse selecting and
framing convictions. At the point when the determination and convictions are out of harmony, the
choice undertaking causes fundamentally more action in the average prefrontal cortex (mPFC) and
the dorsolateral prefrontal cortex (DLPFC), which includes working memory and restraint.
Notwithstanding, when the subjects' decisions and convictions were in adjust, the actuation designs
did not contrast altogether in the determination and speculating trials aside from the little territories
of the ventral striatum, which might be identified with contrasts in the two sorts of trials. There
were no such striatal contrasts in the irregularity test.
Ethic In Neuroeconomics
Morals has a critical impact on the basic leadership handle. Late research on the human
mind settle on choices and contemplates how individuals in settling on moral choices.
Furthermore, it introduces the proof that moral choices are not solely objective and not basically
cognizant choices. They are passionate and might be made under some weight.
Besides, in Glimcher's book, Knutson and Cooper (2005) demonstrated that adjustments
in action at the striatum scale was relative to the level of financial reward or discipline. All the
more essentially for morals, the human striatum encodes the estimation of a social accomplice's
choice about whether to respond or not respond participation, paying little heed to the level of the
financial reward. Responded participation builds the action in the striatum, in the end prompting
to the foundation of trust. Then again, non-responded participation prompts to a diminishment in
action at the striatum (Rilling et al., 2002).
From the view of (Sanfey, 2007), morals can be viewed as including sympathy,
participation, correspondence, unselfishness – benevolence here is surrendering some of individual
yearning to pick up the advantages of living in a gathering, and discipline of liars, regardless of
the possibility that punisher is exorbitant to the punisher.
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These morals requires individual control of their egotistical driving forces and the capacity
to postpone satisfaction. Drive control is the provenance of the prefrontal cortex's communication
with and control of the amygdala (particularly the prefrontal cortex of ventromedial and
orbitofrontal locales). The zones connected with empathic reactions, one of the signs of morals,
are principally the average prefrontal cortex and the foremost paracingulate cortex (Gallagher and
Frith, 2003).
The Value And Well-Being In Islam

Farooq (2011) illustrated the essential values that Muslim must integrate into their thought
process, culture and life. He explains and elaborates from the several texts of al-Quran and al-
Sunnah pertaining to value orientation and summarizes: Fundamental Human Dignity; Justice;
Equality; Freedom; Universal Moral Values; Humanity-Orientation and Global Belonging;
Representation and Participation; Rule of law; Seeking Common Ground for Mutual Good;
Rejection of Violence As Normal; Non-judgmental; Emphasis On Substance Over Form;
Embracing Life-Experience as Part of the Collective Learning Curve.
Well-being from an Islamic perspective occurs on two levels: Worldly happiness and
Eternal happiness.
Worldly happiness: Islam lays down a number of rules and regulations to guarantee man’s
happiness during his worldly life, which is his first life. At the same time, Islam emphasizes that
the life of this world is nothing more than a means of attaining the Hereafter, which is the true life
we all must strive to attain. Allah says, “Little are the enjoyments of this life of this world as
compared to the Hereafter.”
Eternal happiness: This true and long-lasting happiness depends on the righteousness of the
individual in his worldly life. Allah (SWT) says, “For those who do good in this world, there is
good, and the abode of the Hereafter will be better; and excellent indeed will be the abode of the
pious.”
As the value and well-being in Islam are different with the capitalism, based on this point,
it is possible to divide neuroeconomics into two part, as following figure 1:
Figure 1: the divisions of Neuroeconomics
Neuroeconomics
Belief, emotion and
value
Islam neuroeconomics Capitalism

neuroeconomics
Paradigm: Shariah Paradigm: Market

Economy
Islamic economics Conventional
economics
Basis of the Micro
Basis of the Micro
Foundations: ‘‘Economic
Foundations: ‘‘Muslim
Man’’
Man’’ 93
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The Consumer Behavior on Islamic Economics

The worldview of Islamic system centered on Tawhidic Paradigm, which is believe in the
oneness of Allah (the Most Magnificent and Powerful) and human beings are subjected to His
judgment in the life hereafter. The Muslims believe that they are always monitored by Allah and
have to take full responsibility for their actions in this world. Such faith has led the Muslims to
behave in accordance to the Islamic Jurisprudence for fear of they would be punished in the
Judgment Day.
The Maqasid al-Shariah is the rules that a purchaser ought to use in settling on choice of
what to purchase in the market. Maqasid al-Shariah implies the targets of Shariah. Chapra (1992)
furnishes significant clarification as to propriety of Maqasid al-Shariah into an Islamic business
action. Any Islamic business action is required to accomplish the Maqasid al-Shariah, that is to
meet the falah (extreme achievement) and individual prosperity or it is the fulfillment of good life.
As opposed to western culture who hone ordinary financial framework, Islam put balance and
selflessness for the ummah benefits instead of amplifying utility of people in light of absolutely
material and epicurean sense. These convey to the arrangements of Maqasid al-Shariah, which are
Dharuriyyat (necessities), Hajiyyat (prerequisites), and Tahsiniyyat (beautification). Dharuriyyat
is the targets that are must and fundamental so that the welfare of this world and the world from
now on can be secured. Dharuriyyat comprises of five targets, which are: Protection of Religion
(Islam); Protection of Life; Protection of Offspring; Protection of Intellect; Protection of Wealth
or Property.
Therefore, everything that a Muslim chooses to do must be for looking for Allah's favour.
Hajiyyat alludes to those products and enterprises go for encouraging life or expelling hardships
and perfect with the Shariah. Tahsiniyyat alludes to the beautification of the Dharuriyyat and
Hajiyyat which makes life turns out to be more agreeable. These orders of Maqasid al-Shariah
influence the Muslim purchaser's basic leadership for which blend of products and enterprises that
they would purchase given the spending requirement. The Maqasid al-Shariah can be seen as extra
element that routine hypothesis of shopper conduct does not have in examination with Islamic
purchaser conduct.
Given the three targets of Shariah, a Muslim buyer must put the Dharuriyyat at the most
extreme vital before the Hajiyyat and Tahsiniyyat. This is on the grounds that, with spending
constraint a Muslim shopper must choose to purchase products and enterprises that will satisfy his
or her essential needs first holding to the five targets shrouded in Dharuriyyat.
6 Conclusion
This theoretical perspective has been moderately critical for the application of neuro-
economics in utility maximization as the gaps in rationality has been discussed. It has been
revealed that there has been a growing divergence between the theories of economics with respect
to the neuro-sciences, though there has been convergence of the various branches of economics,
like experimental economics, behavioural and etc. we can see that the individual has compromised
on the advancement in technology and various environmental factors that are the reasons of his
influence to make decisions. The rationality theory has suffered by not implementing proper way
of methods of perfect fit. As this nascent science which deviated from its mother science
economics in the early times of development is struggling also to have a precise assumption of
utility maximization influencing processes. Neuroeconomics aims to fill the gap between the real
factors that influence an individual and not just choices, it answers the question that how the
individual makes choices under various emotions. This has led us to study the brains of homo-
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economicus under stress, pleasure, pain and how these factors influence choices and finally his or
her behaviour. Now coming to homo- Islamicus, it will be wise to conclude that, a Muslim
consumer’ choices is based on the concept of dharuriyyat, tahsiniyyat and tazkiyyatand hence it
can have a very spiritual effect on the Islamic economy, so the point here is that we take a step
ahead in terms of research regarding homo-Islamicus, with respect to these factors, further
extensions of these studies might reveal the importance of choice being a vicegerent of Allah s.w.t.
To conclude, it has been revealed that we must study the brain and neuro-patterns of the Muslim
consumers that can make way to fill the gaps of conventional economics with respect to decisions
that has very bad effect on the economy in the long run. Islamic allocation of resources is based
on the concept of Quran and hence Muslim will abide by them. The brain images of a Muslim
consumer and the image of the conventional consumer will reveal a lot that how different patterns
affect each other inside the brain and none other than scientific experiments will make us reach
precision for future studies.
Reference
Bechara, A., Damasio, H., &Damasio, A. R. (2000). Emotion, decision making and the
orbitofrontal cortex. Cerebral cortex, 10(3), 295-307.
Chapra, M. Umer. (1992). Islam and economic Challege
Chorvat, T.; McCabe, K. (2005). Neuroeconomics and rationality. Chicago-Kent Law
Review 80(3), 1235-1256.
Damasio, A. R. (1994). Descartes’ error: Emotion, rationality and the human brain.
Farooq, Mohammad Omar. (2011) “Self-Interest, Homo Islamicus and Some Behavioral
Assumptions in Islamic Economics and Finance.” International Journal of Excellence in Islamic
Banking and Finance 1, no. 1, 52-79.
Gallagher, H. L., &Frith, C. D. (2003). Functional imaging of ‘theory of mind’. Trends in cognitive
sciences, 7(2), 77-83.
Gilman, S. R., Iossifov, I., Levy, D., Ronemus, M., Wigler, M., &Vitkup, D. (2011). Rare de novo
variants associated with autism implicate a large functional network of genes involved in formation
and function of synapses. Neuron, 70(5), 898-907.
Hoebel, B. G., Rada, P. V., Mark, G. P., & Pothos, E. N. (1999). Neural systems for reinforcement
and inhibition of behavior: Relevance to eating, addiction, and depression. In D. Kahneman, E.
Diener, & N. Schwarz (Eds.), Well-being: The foundations of hedonic psychology (pp. 558-572).
New York: Russell Sage Foundation.
http://al-shatibi.blogspot.my/2011/12/maqasid-al-shariah.html
Hutchinson, J. M., &Gigerenzer, G. (2005). Simple heuristics and rules of thumb: Where
psychologists and behavioral biologists might meet. Behavioural processes, 69(2), 97-124.
Kahneman, D. and Tversky, A. (1979). Prospect theory: an analysis of decision under risk.
Econometrics 47, 263 – 292.
Knutson, B., & Cooper, J. C. (2005). Functional magnetic resonance imaging of reward
Knutson, B., Rick, S., Wimmer, G. E., Prelec, D., &Loewenstein, G. (2007). Neural predictors of
purchases. Neuron, 53(1), 147-156.
Koenigs, M., Young, L., Adolphs, R., Tranel, D., Cushman, F., Hauser, M., &Damasio, A. (2007).
Damage to the prefrontal cortex increases utilitarian moral judgements. Nature, 446(7138), 908-
911.
Loewenstein, G., Rick, S., & Cohen, J. D. (2008). Neuroeconomics. Annual Review of Psychology,
59(1), 647–672.
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Paul W. Glimcher, Ernst Fehr, Colin Camerer & Russell Alan Poldrack (2009). Neuroeconomics:
Decision Making and the Brain.
Rabin Matthew (2002). “Inference by believers in the law of small numbers”, Quarterly Journal of
Economics 117:775−816.
Rabin, Matthew. (2002b). “A Perspective on Psychology and Economics.” European Economic
Review, 46(4–5): 657–85.
Rilling, J. K., Gutman, D. A., Zeh, T. R., Pagnoni, G., Berns, G. S., & Kilts, C. D. (2002). A neural
basis for social cooperation. Neuron, 35(2), 395-405.
Roth, A.E. (1996) "Comments on Tversky's 'Rational Theory and Constructive Choice'," The
Rational Foundations of Economic Behavior, K. Arrow, E. Colombatto, M Perlman, and C.
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Savage, L.J. (1954). The Foundations of Statistics. New York: John Wiley
Stanton, A. A., Day, M., &Welpe, I. M. (2010). Neuroeconomics and the firm. Edward Elgar
Publishing Limited.
Stefano DellaVigna. (2009). Psychology and economics: Evidence from the field. Journal of
Economic literature, 47(2), 315-372.
Von Neumann & Oskar Morgenstern (2007). Theory of Games and Economic Behavior.
Zak, P. J. (2004). Neuroeconomics. Philosophical Transactions of the Royal Society B: Biological
Sciences, 359(1451), 1737–1748.
Zizzo, D. (2003). Anger, Rationality and Neuroeconomics, (182).
Sanfey A. G. (2007). Social decision-making: insights from game theory and
neuroscience, Science 318, 598–602.
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THE DETERMINANTS OF DIVIDEND POLICY: EVIDENCE FROM

TRADING AND SERVICES COMPANIES IN MALAYSIA
Khoirunnisa Mohd Nazari 1

Salwani Affandi 1
Nur Azwani Mohd Azmin1
Nabilah Abdul Shukur2
1
Universiti Teknologi MARA Terengganu
2
Universiti Teknologi MARA Negeri Sembilan
___________________________________________________________________________
Abstract: The dividend policy is a great important issue in all companies. Therefore, many
previous studies have been conducted to determine the determinants of dividend policy.
However, the research about this study are still unclear and still cannot solve the problems
exist. Thus, the aim of the study is to reveal the determinants of dividend policy on listed trading
and services companies in Malaysia. Using panel data analysis, the study considered 107
companies listed firms on trading and services sector at the Bursa Malaysia for the period 2007
until 2016. Data is retrieved from Datastream Professional and being analyzed using Stata10
package. As a final result, fixed effect model (FEM) is chosen as a best model. Dividend payout
ratio is considered as dependent variable while liquidity, leverage, profitability and firm size
as independent variables. The findings revealed that the dividend payout policy is positively
affected by liquidity whereas profitability and leverage has negative relationship with dividend
payout ratio and firm’s size shows insignificant impact. The study suggested that profitability
as the most significant determinant in influencing dividend payout ratio.
Keywords: Dividend Policy, Profitability, Liquidity, Leverage, Firm Size, Fixed Effect Model,
Trading and Services Sector, Malaysia
___________________________________________________________________________
Introduction
Dividend policy in a firm is an important consideration for some investors because
dividends represents as a vital source of income for investors and also give information and
perceptions in the market. In addition, the dividend decision is important role as a signal to
attract investors and help businesses to access medium and long-term capital at the lower costs.
Since company leaders are often the largest shareholders and have the most to gain from a
generous dividend policy, the dividend policy also considered. Dividend policy is a financing
decision made by the board of directors on how they pay out the profits to shareholders or the
owners of the firms in form of dividend payment. Management of the company needs to decide
on the total of dividend, timing to pay the dividends and considers various other factors that
influence dividend payments over time to ensure the firm can maintains the profits.
In addition, if a firm decides not to pay or pays fewer dividends, the firm will have more internal
earnings, thus reducing its reliance on external earnings (Yusniliyana & Suhaiza, 2014). On the
other hand, if a firm pays high dividends, it will result in less internal earnings, thus increasing
firm’s dependence on debt or other external financing (Yusniliyana & Suhaiza, 2014). The
firms can plan whether to have more internal earning or to increase the external financing in
the company. This implies that the decision to raise funds is directly related with dividend
policy of the firm.
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Literature Review
Dependent Variable
Dividend Payout Ratio
Dividend payout ratio is referred to the profits of the company that are paid out to the
shareholders as a dividend payment. It is important for the investors to review a dividend payout
ratio and make it as a guideline because it is an indicator of how safe a dividend payment of the
firms. The payout ratio measures the magnitude of dividends relative to earnings (Narman,
2015). Thus, dividend payout ratio is the most appropriate measurement for dividend policy in
the firm. The positive relationship with the dividend payout ratio can be interpreted as an
evidence for the relevance of dividends to firm value to some extent. The research is consistent
with Ibrahim (2015) which the dividend payout ratio is analyzed in relation to liquidity and
profitability ratios. He revealed that the dividend payout ratio is positively affected by the
liquidity variables which they are significantly related but earning per share has insignificant
positive relationship with dividend payout ratio.
Bahaa (2015) examined that dependent variable as the amount of earnings paid out as
dividends and measured by dividend payout ratio. The selection of variables is based on the
previous empirical studies where dividend policy is proxied by dividend payout ratio. He seeks
to find the factors of dividend policy of the firms in Kuwait Stock Exchange (KSE) that can
influenced the dividend decision. The study used a firm-level panel data set of publicly traded
firms on the Kuwait stock exchange (KSE) from 2011 to 2014.The results shows that the
dividend policy in Kuwait Stock Exchange (KSE) market has positive relationship with
leverage and risk and also positively affected by profitability and firm’s size.
Independent variables
Profitability
Profitability can be defined as the primary indicator and the important factors of a firm
to know the capacity to pay dividends to the shareholders. Calistus, Fredrick & Ambrose (2014)
who investigated dividend payout of agricultural firms in Kenya revealed that profitability is
positively affected on the dividend payment of the firms. The firms will pay higher dividends
to shareholders when they have higher profitability. Firms with more stable earnings will payout
a higher proportion of its profits as a dividend payment than a firm with variable earnings.
Return on equity of shareholders was used to proxy the profitability of the companies.
Bogna (2015) on the other hand reported significant negative relationship between profitability
and dividend payout ratio of Polish listed companies on Warsaw Stock Exchange (WSE) that
are profitable companies tend to use their retain earnings as capital sources and are less likely
to pay dividends to the shareholders.
Liquidity
Liquidity can be describes as the degree to which the firms can be quickly bought or
sold an asset in the market in cash. In the view of a firm, they consider the dividend payments
as a cash outflow in their firm. Hashim, Shahid, Sajid & Umair (2013) suggested that liquidity
has significant negative relationship with the dividend payout of Pakistani banks. It is because
their total operations are based on liquid cash. Thus, to smooth out the operations they prefer to
maintain a substantial amount of liquid cash even in case of high liquidity.
Ibrahim (2015) who analyses dividend payment of the 24 UAE national banks however
reported significant positive correlation between dividend and liquidity. The result is consistent
with Wasike & Jagongo (2015) that suggested that a good liquidity position in the firm will
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increases the ability to pay more dividends to shareholder. A poor liquidity position means less
generous dividend due to shortage of cash in the companies (Wasike & Jagongo, 2015).
Leverage
Highly leveraged firms may get ability to have more debt and interest obligations and it
will affect the dividend payment and they have high interest expense which will lead to low
dividends for shareholders. Matthias, Nyema & Bariyima (2013) who analyse the determinants
of dividend policy of 29 listed African firms revealed that a financial leverage of a firm is
significantly negative affected the dividend decision. The findings also in line with Bali (2003)
who also reported negative correlation between debt and dividend payment suggested that debt-
equity level of firm plays an important role in its dividend policy.
Narman (2015) also found that leverage has negative association with the dividend
decision. Firms with higher leverage are more likely to retain their earnings due to negative
sign of leverage. In other words, highly-leveraged firms are lead to lower dividend payout
ratios. Bogna (2015) who employed panel data analysis to study the determinants of dividend
policy on Polish listed companies also revealed the evidence of negative relationship between
leverage and dividend payout ratios. This indicates Polish companies with high leverage ratio
are expected to pay low dividends to shareholder and it is also in line with the agency cost
theory of dividend policy.
Firm
size
Anupam (2012) investigated the determinants of dividend payout for all firms listed on
the Abu Dhabi Stock Exchange from 2005 until 2009 find out the firm size as the most
significant variables that influencing dividend payout ratio in the United Arab Emirates (UAE)
firms in making dividend decisions. The result of the study also seems to be similar with the
other studies done using dataset from the developing countries. Furthermore, Christopher &
Rim (2014) investigating the factors determining the dividend payout policy in the Lebanese
banks listed on the Beirut Stock Exchange using an unbalanced panel dataset from 2005 and
2011 revealed the firm size is significant positive relationship which means larger firms have
easier access to fund and are able to distribute dividends to shareholders better than smaller
firms. The results also suggest that large banks choose to pay more dividends to reduce agency
conflicts and maintain bank’s reputation.
Similar to previous studies, Yusniliyana & Suhaiza (2014) also found that firm size and large
shareholders have a positive significant influence on dividend policy. This is because larger
firms have the potential to generate the profits and enable to pay more dividends. Having a
greater proportion of shares owned by large shareholders implies greater control over the
management, which in a way pressures the management to ensure the shareholders’ wealth is
maximized by way of distributing higher dividends (Yusniliyana & Suhaiza, 2014).
Data and Methodology

The sources of secondary data were collected from Datastream Professional. The datasets
comprises of 107 out of 215 trading and services companies listed in Bursa Malaysia. It includes
the financial statement and other information which is relevant for trading and services sector
of listed companies for period of ten years which is 2007 until 2016. Altogether, there are 1070
firm-year observations.
Descriptive statistics
Table 3.1: Descriptive statistics of variables
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Stats DPR ROE CR DR FS
Max 2.752035 2.005629 5.386786 2.721295 11.79713
Min -3.86461 -7.820552 -1.203973 -2.302585 1.331046
Mean -1.034704 -2.439528 .7574155 -1.137831 6.516319
CV -.860097 -.4290232 .9494 -.6558367 .2738818
Notes: The summary statistics are based on the 1070 firm-year observations. The dependent
variable is dividend payout ratio (DPR). The explanatory variables are defined as follows:
profitability (ROE), liquidity (CR), leverage (DR) and size of firm (FS). (Ln) Log
transformation has been specified for these variables.
Correlation analysis
Table 3.2: Correlation between independent variables
DPR ROE CR DR FS
DPR 1.0000
ROE -0.4462 1.0000
CR -0.0295 0.0117 1.0000
DR -0.1380 -0.2572 -0.3408 1.0000
FS 0.0531 0.0628 -0.2816 0.1747 1.0000
Notes: The correlation analysis is based on the 1070 firm-year observations. The dependent
variable is dividend payout ratio (DPR). The explanatory variables are defined as follows:
profitability (ROE), liquidity (CR), leverage (DR) and size of firm (FS). (Ln) Log
transformation has been specified for these variables.
Estimation Equation
The general form of the model can be specified as follows:
DPR i,t = β0 + β1 ROE i,t + β2 CR i,t + β3 DR i,t + β

FS i,t + Ɛ i,t
Where,
DPR i,t =Dividend Payout Ratio firm i at time t
β0 = Coefficient beta value
β1 ROE i,t = Profitability firm i at time t
β2 CR i,t = Liquidity firm i at time t
β3 DR i,t = Leverage firm i at time t
β FS i,t = Firm’s Size firm i at time t
Ɛ i,t = Error term firm i at time t
Empirical Results
The table 4.1 shows the regression results from static panel data: fixed effect model. In the table
below, overall R-squared is 0.5389 which revealed that 53.89% of the variation in dependent
variable (dividend payout ratio) can be explained by all independent variables (profitability,
liquidity, leverage and firm size) and another 46.11% cannot be explained by independent
variables.
Table 4.1: Determinants of dividend policy for trading and services companies in Malaysia
Explanatory variables Expected sign Dividend payout ratio
ROE +/- -0.7563***
(-19.54)
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CR +/- 0.3283***
(3.37)
DR +/- -0.1920***
(-2.73)
FS + 0.0246
(0.33)
R2 0.5389
Prob > F 0.0000
Notes: Estimations results from panel data Fixed Effec Model (FEM) on 1070 firm-year
observations. The dependent variable is dividend payout ratio (DPR). The independent
variables include: profitability (ROE), liquidity (CR), leverage (DR) and size of firm (FS).The
abslte value of the t-statistics are given in the parenthesis below the coefficient estimates.**
and *** indicate significance at 0.05 and 0.01 respectively.
The results revealed that profitability, liquidity and leverage are statistically significant in
affecting the dividend decision among trading and services companies in Malaysia. Return on
equity (ROE) has appeared to be the most significant factor that affecting dividend policy by
giving negative 75.63 percent changes in dividend payout ratio (DPR) when 1 percent increases
in ROE. This finding is similar with Christopher & Rim (2014) who found negative relationship
between ROE and DPR by saying that the surplus earnings of the firm are being allocated
mostly to the growth opportunities of the firms. Besides, they also added that the companies
need to use the surplus earnings because of political instability and other than that it is being
allocated into retention for the plugging back for economic recession periods. In addition, the
result also seems to be parallel with Ibrahim (2015) who explained the reliance of the United
Arab Emirates (UAE) banks which they finance the continuous expansion using the profits
gained. At the same time, Bogna (2015) expressed negative relationship between profitability
and dividend policy when the profitable Polish companies listed on Warsaw Stock Exchange
(WSE) use their retain earnings as capital sources and are less likely to pay dividends to the
shareholders. The other studies by Narman (2015) also reported negative relationships between
profitability and dividend payment because firms are more likely to retain their earnings when
they have higher earnings levels.
The second determinant which gives high impact on DPR is liquidity that is measured by
current ratio (CR). Liquidity is found to be significant at 1 percent with positive impact on
dividend payout ratio (DPR). Any 1 percent changes in current ratio will definitely drag about
32.83 percent changes in dividend payout ratio. These two variables are seems to move in the
same direction. This finding is consistent with Theophano, Sunil & Kean (2012), Calistus
(2014), Ibrahim (2015), Wasike & Jagongo (2015), Nishant & Jitendra (2016), Imad (2016)
and Rashid et.al (2014). They are all agreed that the ability of the firm to pay dividend is
increases when there has a good liquidity position in the firm due to the excess amount of cash.
The leverage that is measured by debt ratio (DR) is also significant at 1 percent level. It shows
negative association between leverage and dividend payment. The negative relationship result
between DR and DPR is similar with Bogna (2015) who indicates that Polish companies are
tend to pay less dividends to the shareholders because of higher leverage ratio. Recently,
Nishant & Jitendra (2016) highlighted that the firms will reduce the dividend payment to
common equity shareholders when the firm having higher proportion of debt and have higher
level of commitment to pay the fixed interest charges. Matthias, Nyema & Bariyima (2013),
Narman (2015) and Soondur, Maunick & Sewak (2016) also reported the same results
suggested that the level of financial leverage is negatively affecting the dividend payment of
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the firms. They added that firms with high portion of debt are more likely to retain their earnings
when they have higher leverage in the firm.
Size of firm (FS) which is measured by total assets of the firm however does not show any
statistically significant impact on dividend payout ratio. Even though the variable is
insignificantly affecting the dividend decision of trading and services companies in Malaysia,
the relationship of size and DPR is still hold. The association of firm size FS and DPR is
consistent with Hashim et al.(2013) who also reported positive relationship between size of firm
and dividend payment.
Conclusion
As a conclusion, profitability is the most significant determinant in influencing the dividend
payout ratio in trading and services listed companies in Malaysia. This is also consistent with
pecking order theory by Modigliani and Miller (MM Theory) suggesting that companies
prioritize their financing sources using internal funds, because issuing new equities would
incurred high expenses. Therefore more profitable companies are more likely to retain their
earnings rather than paying dividends to the common shareholders. Leverage also seems to be
a significant factor too in affecting Malaysian’s trading and services companies in paying
dividends. The higher the debts acquired by the companies, the lower intention of these
companies to pay dividends to their shareholders. Empirical research by Kester (1986), Titman
and Wessels (1988) and Rajan and Zingales (1995) also reported negative relationship between
leverage and profitability. Liquidity condition of a firm is affected but also affects dividend
decisions. Firms with higher cash availability are more likely to pay dividends than firms with
insufficient level of cash. Therefore, the likelihood a firm will pay cash dividend is positively
related to liquidity. This positive relationship is supported by the signaling theory of dividend
policy (Ho, 2003).
References
Anupam, M. (2012). An Empirical Analysis of Determinants of Dividend Policy - Evidence
from the UAE Companies. Global Review of Accounting and Finance, 3(1), 18-31
Bahaa, A. (2015). Determinants of dividend policy in Kuwait stock exchange. International
journal of business and management review, 3(7), 72-78.
Bali, R. (2003). An Empirical Analysis of Stock Returns around Dividend Changes. Applied
Economics, 35(1), 51-61
Bogna, k,J. (2015). Determinants of Dividend Policy: Evidence from Polish Listed Companies.
Procedia Economics and Finance, 23, 473-477
Calistus W. W.,Fredrick W.S. N. & Ambrose O. J.(2014). Dividend Payout by Agricultural
Firms in Kenya [An Empirical Analysis of Firms Listed on the Nairobi Security Exchange].
International Journal of Business and Social Science, 5(11), 1, 63-74
Christoper & Rim (2014). Determinants of the Dividend Policy: An Empirical Study on the
Lebanese Listed Banks. International Journal of Economics and Finance. 6(4), 240-256
Hashim, Z., Shahid, R., Sajid, I. & Umair, A. (2013). Determinants of Dividend Policy: A Case
of Banking Sector in Pakistan. Middle-East Journal of Scientific Research, 18(3), 410-424. doi:
10.5829/idosi.mejsr.2013.18.3.12200
Ho, H., (2003). Dividend Policies in Australia and Japan. International Advances in Economic
Research, 9 (2), 91-100.
Ibrahim, E. A . (2015). Liquidity, Profitability and the Dividends Payout Policy. World Review
of Business Research, 5(2), 73-85.
Imad, J. (2016). Determinants of corporate dividend policy in emerging markets: Evidence from
MENA stock markets. Research in International Business and Finance, 37, 283-298. Doi:
http://dx.doi.org/10.1016/j.ribaf.2016.01.018
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Kester, V., (1986). Capital and Ownership Structure: A comparison of United States and
Japanese Manufacturing Corporations. Financial Management, (Spring), 5-16
Matthias, N., Nyema, W., Bariyima, K. (2013). Determinants of Dividend Policy: Evidence
from Listed Firms in the African Stock Exchange. Original scientific paper, 76(6), 725-741.
doi:10.2298/PAN1306725N
Miller, M., Modigliani, F., (1961). Dividend Policy, Growth and the Valuation of Shares.
Journal of Business, 34, 411-433.
Narman, K (2015), Determinants of Dividend Policy: A Panel Data Analysis for Turkish Listed
Firms. International Journal of Business and Management. 10(11), 149-160
Nishant B. L. & Jitendra, M. (2016). Determinants of Dividend Policy of Indian Companies: A
Panel Data Analysis. Paradigm, 20(1), 36-55. doi: 10.1177/0971890716637698
Rajan, R.G., Zingales, L., (1995). What do we know about capital structure? Some evidence
from international data. Journal of Finance, 50,
1421-1460.
Soondur. S.A.K, Maunick. D & Sewak. S.(2016). Determinants of the Dividend Policy of
Companies Listed on the Stock Exchange of Mauritius. Proceedings of the Fifth Asia-Pacific
Conference on Global Business, Economics, Finance and Social Sciences (AP16Mauritius
Conference), 1-18
Theophano, P., Sunil, P & Kean O, Y. (2012). Determinants of corporate dividend policy in
Greece. Applied Financial Economics, 22, 1079–1087
Titman, S., Wessels, R., (1988). The Determinants of Capital Structure Choice. The Journal of
Finance, 43 (1), 1-19.
Wasike, T, W. & Jagongo A. (2015). Determinants of Dividend Policy in Kenya. International
Journal of Arts and Entrepreneurship, 4(11), 71-80
Yusniliyana, Y, Suhaiza, I. (2016). Determinants of dividend policy of public listed companies
in Malaysia. Review of International Business and Strategy, 26 (1), 88-99, doi: 10.1108/RIBS-
02-2014-0030
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HOW WELL-INFORMED ARE TAXPAYERS ON THEIR INCOME TAX

PAYMENT?
Siti Norfazlina Yusoff 1

Saidatulakmal Mohd (Ph.D) 2
1
Universiti Teknologi Mara Cawangan Kedah
2
Universiti Sains Malaysia
___________________________________________________________________________
Abstract: This paper aims to assess the taxpayers’ understanding of income tax payment; types
of income, tax reliefs and tax rebates that should be declared in the tax returns. The basic
knowledge of income tax payment significantly influences individuals’ compliance decision.
The level of knowledge seems to be important in the way that individual taxpayers comprehend
the reality underlying taxation. Inadequate taxation knowledge will affect the amount of tax
declaration, subsequently, may lead to unintentional non-compliance. A survey was conducted
among 30 respondents from UiTM Kedah, both administrations and academic staff. The
dichotomous questions YES and NO were established and were divided into THREE (3) sub
sections, namely taxable income, tax relief and tax rebates. The respondents were asked to tick
YES or No to assess either they are well-informed or not of income tax payment. The results
pointed out that the respondents have poor knowledge on the types of income for tax
declaration: extra and other income, and did not really informed about it. The higher
educational background did not promise a taxpayer's level of understanding.
Keywords: Income Tax Payment, Understanding Level, Unintentional Non-Compliance.

___________________________________________________________________________
Introduction
The influence of a specific knowledge on the tax compliance decision is assumed to be
important for the tax compliance behaviour. Inadequate level of tax knowledge could result in
inaccurate tax returns, and other negative consequences, including unintentional non-
compliance, and unfortunately, this may lead to false tax computation among individual
taxpayers. Therefore, research on the taxpayer’s knowledge and understanding level may
significantly help individual taxpayers to really understand on what should be declared in their
tax payment.
Due to an increasing of registered individual taxpayers in the country (Figure 1), this
shall contribute to non-compliance behaviour, as well as for unintentional non-compliance. As
to overcome non-compliance behaviour, the Inland Revenue Board of Malaysia (IRBM)
extensively worked to combat non-compliance behaviour. By implementing various plans,
including the Monitoring Deliberate Tax Defaulters (MDTD) or Pemantauan Pembayar Cukai
Gagal Patuh, it helps to reduce the number of non-compliance behaviour (IRBM, 2016).
Unfortunately, this action doesn't count unintentional non-compliance among individual
taxpayers. This will be a terrifying for those who are having low tax knowledge, especially
during income tax computation.
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8,195,158
7,143,191 7,544,502
6,140,729 6,160,454
5,911,383
2013 2014 2015

Compliant Taxpayer non-Compliant Taxpayer
Source: Analytical Data and Statistics Department, IRBM (2016)
Figure 1: Registered Individual Taxpayers (Compliant and Non-Compliant) in 2013,

2014, and 2015
Based on the Figure 1, the registered taxpayers for the year 2013 to 2015 were gradually
increased, and the non-compliant taxpayers also increased (included unintentional non-
compliant taxpayers). Unfairness could happened if unintentional non-compliant taxpayers
unintentionally did it and have to pay for the penalty. A particular taxpayer may unintentionally
underreporting their tax obligations, which is due to memory lapses, miscalculations and,
inadequate knowledge and understanding of tax laws. This indicates that unintended non-
compliance is a significant problem. As surveyed by Kasipillai (1999), unintentional non-
compliance among individual taxpayers is likely to be concentrated on new taxpayers, whose
income does not exceed RM36, 000 per year. These people are basically married female
taxpayers.
This hurdle can be overcome by engaging them with the taxation knowledge and
awareness. With the application of self-assess in the tax payment, it pushed individual’s
taxpayers to compute their own tax personally. This would require a knowledge on taxation.
Inadequate knowledge during the filing process would lead to miss declaration of income tax.
There are a number of individual taxpayers, who is hiring a tax agent, to compute their tax. By
hiring a tax agent will help them to reduce tax complexity and overcome their tax knowledge
inadequacy.
Therefore, an individual taxpayer should be acquainted with the knowledge on the types
of income, reliefs and rebates that have to be declared during the filing process. In general, a
taxpayer is required to pay tax on all of earnings, comprises income from employment,
dividends, interest, discounts, rent, royalties, premiums, pensions, annuities and others. For the
tax reliefs, an individual taxpayer can reduce the tax liability, an example of the tax reliefs are
medical expenses and insurance. If the tax liability is less than the taxes paid, an individual
taxpayer can claim for the tax refund. All of these are linked with the tax knowledge, and
understanding of the filing process is deemed important.
Tax Assessment Barriers

The movement from the official assessment system (OAS) to the Self-Assessment
System (SAS) have challenged the existing knowledge of the taxpayers. The official
assessment system is the assessment that made by the IRBM, where the notice of assessment
(or known as Form J) will be sent to taxpayers and they have to pay based on the amount of
tax due for a particular year of assessment. Taxpayers are not required to have necessary
knowledge on how to compute their own tax payable. This is because taxpayers receive their
annual tax returns from Inland Revenues Board (IRB) and they have to declare all the necessary
particulars and information pertaining to their income and expenses for that particular year of
assessment. The onus was on the tax assessors in comprehending, interpreting, and
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appropriately applying relevant provisions of the tax law. For the year of assessment 2004, the
OAS was no longer applicable for assessing individual taxes, and it was replaced by the new
system known as the Self-Assessment System (SAS).
Since the SAS required tax knowledge during computing tax payment, it turns up to be
difficult for those who are familiar with the tax payment. The concept of tax administration
under SAS is based on three thrusts which are (1) pay, (2) self-assess, and (3) file. The pay is
defined as monthly salary deductions made for individuals having no business income.
Meanwhile, self-assess is the situation where taxpayers compute their own taxes and file
referred to the Income Tax Return Form (ITRF), that is submitted to the IRBM together with
the payment for the balance of the income tax payable in order to tackle any shortfall in the
monthly payment, or a claim for repayment if there is an overpayment to IRBM.
Knowledge Attainment
Knowledge of tax is crucial for all citizens, especially for eligible taxpayers and
assumed to be important for preferences and attitudes towards taxation (Bǎtrâncea et al., 2012;
Normala, 2007; Kassipillai, 2003). In order to have proper tax knowledge, it can be done
through tax education. Tax education enables taxpayers to understand more on the existing tax
system such as the tax laws, tax planning, and the Tax Act. Marziana et al. (2010) and Eriksan
and Fallan (1996) pointed that a proper tax education would encourage people to be more
compliant and willing to respect the tax system, consequently it would resist engaging in tax
non-compliance such as tax evasion. Furthermore, tax knowledge improves an individual's
awareness and ethics, thus reducing the tendencies of tax non-compliance and producing more
competent taxpayers in the future. However, it is not to be expected that knowledgeable
taxpayers do not necessary to comply (Collins, Milliron and Toy, 1992).
Loo and Ho (2005) found that salaried individuals in Malacca did not possess sufficient
knowledge on personal taxation and surprisingly, they had tertiary education. Shockingly, they
were not aware of their personal tax reliefs, rebates, entitlement, and exemptions. These
findings were well-supported by Amrizah and Nero (2005), in which working salaried adults
in East Malaysia possessed average tax knowledge on personal taxation. Thus, these taxpayers
would probably file incorrect tax returns and indirectly affects tax revenues. This alarming
situation might impact the readiness of taxpayers to exercise the existing tax system (SAS).
Individual taxpayers in Kota Kinabalu, Malaysia, were found unwilling to participate in SAS
because of the complexity of the system such as difficulties in filling up tax returns and
calculating the tax payable (Junainah, 2002).
The contradictory, the study by Chan et al, 2000; Singh, 2003; Robert et al, 1994, were
agreed that people with higher education level are more likely to have the higher level of
attitude that make them comply more. In general, tax knowledge has a very close association
with the taxpayers’ ability to understand the tax laws and regulations. White et al (1990), had
done an experimental study on tax students, and found their tax knowledge about the law and
appreciation of fiscal policy goal were enhanced through tax education. Even though educated
taxpayers are aware of non-compliance opportunities, their potentially better understanding of
the tax system and sufficient on tax knowledge will promote a more favourable taxpayer
attitude thus encouraging greater compliance. Education plays a vital part in moral
development and ethics, thus will produce more competent taxpayers.
Methodology
30 respondents were selected from Universiti Teknologi MARA (UiTM) Kedah, from
different educational backgrounds and types of services, purposely to assess their level of tax
understanding. A stratified random sampling was employed by dividing respondents into
administration ( Rector Office, Quality Unit, Corporate Communication Unit, Information
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Technology Unit, Academic Affairs Department, Islamic Affair Unit, Administration
Department, Bursary Department, and Students Affair Department), and academic staff (
Accountancy, Art and Design, Banking, Business Management, ACIS, Computer Science,
Economics, Information Management, Language Studies, Law, Mathematical Science,
Administrative Science and Policy Studies).
To assess the taxpayers’ understanding of income tax payment, the dichotomous questions YES
and NO were established. The questions were divided into THREE (3) sub sections, namely
taxable income, tax relief and tax rebates. The respondents were asked to tick YES or No to test
either they are well-informed or not on their income tax payment. The level of understanding
is important to assist people in comprehending the reality underlying taxation and it also
associated with compliance behaviour (Eriksen & Fallan, 1996).
From YES and NO answers (Table 1), it will be calculated based on respondents’ correct
answers. In order to identify either respondents really understand or not, about the types of
taxable income, tax relief and tax rebates, therefore it has been categorized into four-point
scales and two types of level, namely (1) well-informed and (2) not-informed as follows:
Table 1: Level of Understanding on Income Tax Payment

Scores (Correct Percentage (%) Understanding of Level of
Answer) Income Tax payment Understanding*
0-10 1-50% Very Poor Not-informed
11-20 Poor
21-30 Good
31-40 51% -100% Very Good Well-informed
* A previous study by Eriksen and Fallan (1996) used yes, no and do not know questions and
was divided into well-informed, un-informed and mis-informed.
4.1. Yes and No Questions

A Types of Income (a) Interest Received
1 Fixed Employment Income
 Basic Monthly Salary  Up to RM100,000
2 Extra Income from Additional  More than RM100,000
Employment (b) Dividend Received
(a) Rental Income  Amanah Saham Nasional
 Rent from personal property Berhad (ASNB)
(e.g. vehicles or equipment)  Amanah Saham Berhad
(b) Self-Employment Income (ASB)
 Online Business Income (c) Allowances
 Babysitting  Cost of Living Allowances
 Catering Jobs (COLA)
 Car Service (e.g. Uber)  Mileage claims/travelling
(c) Wages from Odd Jobs allowances
 Overtime Payment  Housing and civil servants
 Security Guard allowance
 Fast Food Restaurant (d) Royalty
(d) Income from Registered  Publications (e.g. Books,
Business Copyrights, Patents)
 Consultancy (e) Donations
3 Other Income
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(f) Honorarium
B Types of Relief
 Honorarium links with a
1 Insurance
business which normally
 Life insurance for self expect to be paid
 Life insurance for family  Honorarium that does not
 Insurance for education expect any reward for the
 Insurance for medical activities
benefits
2 Medical Expenses C Types of Rebates
 Self 1 Separate Assessment
 Parents  Wife
 Children  Husband
3 Other Expenses 2 Combined Assessment (Wife
 Purchase of books, and Husband)
journals, magazines and 3 Zakat/Fitrah (applicable for
publications Muslim only)
 Purchase of personal
computer (once in every 3
years)
 Purchase of sport
equipment for sport
activities
 Alimony payment
 Disable wife/husband
 Contribution to the Social
Security Organization
(SOCSO)/
Result and Discussion

The results pointed out that the respondents have poor knowledge on the types of
income for tax declaration, especially extra and other income, and did not really informed about
it. For the administration staff, a quite number of them were confusing on the extra income
from additional employment, such as wages from odds job. It might be happening due to the
nature of the respondents’ working sector. The public sector does not allow its employee to
have other income during the office hour. This could be an obstacle for them to involve in any
odds job and make them unfamiliar with this kind of taxable income. Meanwhile, a little bit
numbers of the academic staff, they were mistakenly ticked No for both honorarium (this might
be happening to those who are not involved in any professional services).
In order to reduce the number of non-compliant taxpayers, especially unintentional
noncompliance, it is suggested to both employers and employees to list down the types of
income (more precise) so that they are aware of taxable income that should be declared.
Besides, this can also be done through UiTM websites, by exposing and educating the members
on tax knowledge, because tax knowledge cannot be gauged by education level, but more on
information awareness. And, this helps to accommodate potential and novice taxpayers, from
involved in unintentional non-compliance.
Conclusion
The tax laws and policies in Malaysia have gone through several changes, including income
classification, deductions, tax relief and tax rates. For that reason, the past years of the tax
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knowledge can be considered as obsolete. This disadvantage will affect to those with less tax
knowledge. Therefore, tax knowledge and awareness is an important tool to guarantee tax
compliance behaviour and encourage more correct tax filing among individual taxpayers.
References
Amrizah, K. & Nero, M. (2005). Tax literacy and tax awareness of salaried individuals in Sabah
and Sarawak. National Accounting Research Journal, 5 No. 1/2005: 71-89.
Bătrâncea, L. M., Nichita, R. A., Bătrâncea, I., & Moldovan, B. A. (2012). Tax Compliance
Models: from economic to behavioral approaches. Transylvanian Review of Administrative
Sciences, 36, 13-25.
Chan, C.W., Troutman, C.T., & O’Bryan, D. (2000). An expanded model of taxpayer
compliance: empirical evidence from United States and Hong Kong. Journal of International
Accounting, Auditing and Taxation, 9(2), 83 –103.
Eriksen, K., & Fallan, L. (1996). Tax knowledge and attitudes towards taxation: a report on a
quasi-experiment. Journal of Economics Psychology, 17(3), 387-408.
Inland Revenue Board of Malaysia (IRBM). (2016). Retrieved from
http://www.hasil.gov.my/bt_goindex.php?bt_kump=6&bt_skum=2&bt_posi=1&bt_unit=2&b
t_sequ=1&bt_lgv=2
Junainah Jaidi. (2002). Sistem taksiran sendiri: satu kajian kes tanggapan pembayar cukai
individu di Kota Kinabalu. Tesis Sarjana. UKM.
Kasipillai, J., Aripin, N., & Amran, N. A. (2003). The influence of education on tax avoidance
and tax evasion. eJournal of Tax Research, 1(2), 134–146.
Kasipillai,J. (1999). The Star. Retrieved from:
http://www.finmart.com.my/P/Tax%20Adv/Tnews-a/tnews03.htm
Loo, E.C., & Ho, J.K., (2005). Competency of Malaysian salaried individuals in relation to tax
compliance under self-assessment.
Marziana Hj. Mohamad, Norkhazimah Ahmad, & Mohmad Sakarnor Deris. (2010).
Perceptions of taxpayers with level of compliance: a comparison in the East Coast Region,
Malaysia: Journal of Global Business and Economics, 1 (1), 241-257.
Mohd Azizul, Mohd Yasin, Musa & Mohd Hamzan. (2016). Analytical Data and Statistics
Department. Inland Revenue Board of Malaysia, Cyberjaya, Malaysia.
Richardson, G. (2006). Determinants of tax evasion: a cross-country investigation. Journal of
International Accounting, Auditing and Taxation, 15(2), 150-169.
Roberts, L.H., P.A. Hite & C.F. Bradley. (1994).Understanding attitudes toward progressive
taxation. Public Opinion Quarterly 58, 165-190.
Singh, P. (2003). Behavioral intention of tax non -compliance among sole proprietors.School
of Business, Monash University Malaysia. Journal of Asian academy of management, Vol.2,
No. 6, 47–56.
Siti Normala Sheik Obid. (2007).Voluntary compliance; Tax education preventive. A research
paper presented at the international conference on Business and Economy,6-8 Nov 2008,
consolatha, Romania Source; htpp://www.icbe-ct.co./down loads/siti.pdf.
White, R. A., Curatola, A. P., & Samson, W. D. (1990). A behavioral study investigating the
effect of knowledge of income tax laws and tax policy on individual perceptions of federal
income tax fairness.
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TRANSFORMATION IN UNIVERSITY’S STUDENTS FINANCIAL

PLANNING: ENVIRONMENTAL INFLUENCES ON THEIR PURCHASING
BEHAVIOR
Nawal, Kasim1
Nur Sakinah, Abdul Nasir2
Ahmad Zainal Abidin3
12
Accounting Research Institute, UiTM, Shah Alam, Selangor, Malaysia
3
School of Accounting, Faculty of Economics and Management, Universiti Kebangsaan Malaysia,
Malaysia
___________________________________________________________________________
Abstract: The recently launched University Community Transformation Centre (UCTC) by the
Malaysian Ministry of Higher Education is intended to improve the entrepreneurial awareness
and to produce well-balanced students who are able to adapt to the environmental factors that
influence their purchasing behaviour. This indirectly has been one of the many evidences to
show the importance of financial planning among students in university and college. As such,
this research intends to study on the environmental factors that influence the behavior, as a
consumer, of the university and college students in Malaysia. Three hypotheses were developed
to test the relationships between the dependent variable, students’ purchasing behavior, and
the three independent variables; which are the brand image, family influence and cultural
influence. Using questionnaire survey of 94 respondents among the university students, the
findings show that the brand image and the family influence are significantly related to the
buying behaviour of the students. This indicates that the two factors are significantly influence
the buying behaviour of the university and college students. Whilst, the cultural influence is not
significant to be associated with the students’ buying behaviour. Therefore it is recommended
that the producers of products should put more attention to those two influencing factors in
order to attract buyers in this segment.
Keywords: Financial Planning, Students Purchasing Behaviour, Environmental Influences.

___________________________________________________________________________
Introduction
The education scene in Malaysia went through some interesting twists and turns in
recent years, with new development like the spending behaviour of the students in the higher
education institutions. Among the highly debated issues was the call to limit the amount of
money given by parents to their adult children. In this regard, wealthy parents may have no
concern in tackling this issue. It is however good to teach their children to manage their
spending behaviour in a more proper manner. With persistent claims that the education system
lacks entrepreneurial subjects, the government has taken some serious measures to address this
issue. Among the initiatives is the University Community Transformation Centre (UCTC). The
blueprint was intended to improve the entrepreneurial awareness and to produce well-balanced
students who are able to tackle the environmental factors that influence their purchasing
behaviour.
Many previous researches focussed on the factors that influence the general public on their
purchasing power. For instance, Blackwell, Miniard and Engel (2006) discussed three
environmental factors of cultural, family and household that influence consumer behaviour of
the public. Hussain Shah et al (2013) found that the launching of Malaysian Higher Education’s
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UCTC Blueprint, is indeed an interesting study to examine how the environmental factors may
influence the buying behaviour of the students especially in Malaysia.
Concern with the mentioned issue, it is the general objective of this research to study on the
consumer behaviour among the university and college students. Following to the recent launch
of the Malaysian Higher Education’s UCTC Blueprint, this study intends to examine the
influence of the environmental factors towards the buying behaviour of the students especially
in Malaysia .Particularly, this study aims at determining the various factors that could affect the
students’ decision when they do their shopping. In addition, this study also intends to investigate
whether brand image had influence the purchasing decision of the university and college
students in Malaysia
Literature Review
Brand image could influence consumer purchasing behaviour. There are few studies
done on consumer behaviour of the Malaysian public (Mohamad Idris, 2013), (Nayeem, 2012).
However, none of the previous researchers focus specifically on the concusmer behaviour of
university and college students. Hence, this research attempts to investigate the environmental
factors that could possibly affect the buying behavior of university or college students in
Malaysia. There are several environmental factors that could influence consumer buying
behaviour, such as cultural influence, brand image influence, or family and household
influence.
The phenomena of turning the students into good financial planners need to be discuss
in a more serious tone in the university or college education system. It is proven to be a big
disadvantage for students who fail to have a proper financial planning during their life in
campus. Some of them are so poor that they have to skip their meal regularly in order to save
their money for more important purchases and often have zero savings at the end of the
semester. In other situation, there are students who get financial scholarship from certain
organizations, but the amounts offered are not enough to cover the expenditure during the
semester. This is because some of them are taking expensive courses that require them to
frequently invest on costly stationeries and instruments. Not only that, certain university and
college students have to postpone their study for a while and work part time in order to earn
money to pay for their study fees (Mohamad Idris, 2013).
Previous study done by Hussain Shah et. al (2012) found that core brand image could
influence the consumer purchasing decision. In their research, results showed that respondents
were having positive brand attitude and they were in fact not care of possible consequences for
them whenever they consumed the products. In this study, researchers were taking example of
cigarette as a product. Respondents recognized the product not because of its features that could
bring bad impact on humans’ health, but instead, they were looking at it as brand attitude.
Sometimes, consumer could also easily get attracted towards a product because they believe
that better brand products provides better quality and so it does not matter for them to invest
with such an expensive price as long as it could give them satisfaction. Hence, from this
previous research, it also showed that brand image could provide satisfaction to the customers
and so it would create their intention to buy the product for next time (Hussain Shah, et al.,
2012). On top of that, Mahdia Farrukh Sial and others stated that a good brand image of a
product could influence consumer purchasing decision (Farrukh Sial, Riaz, Nawaz, & Gulzar,
2011). A good brand image however, can be created with good labelling and packging of a
product. Meanwhile, consumers can easily get attracted to a unique things. Instead of that,
certain believes that brand image has moderately impact on consumer purchasing intention,
however, it it important for a company to improve their brand image as to incresase brand
loyalty among cutomers toward their product. Thus, this research had successfully evidenced
that brand image could positively influence buying intention of customers.
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Methodology
Basically, the scope of this study focuses on the environmental factors that influence
consumer behaviour of university or college students in Malaysia. In this study, several
questions in questionnaires are used as an indicator to measure the student buying behaviour.
Therefore, there are three independent variables in this study, which are brand image influence,
families or household influence and cultural influence. On the other hand, the dependent
variable is the student’s buying behaviour. This study uses university and college students in
the Klang Valley area as population selected for this study. Students that are involved mostly
are from Universti Putra Malaysia (UPM), Islamic International University Malaysia (IIUM)
and University Technology MARA (UiTM) Shah Alam.
Variables Measurement
Dependent Variable
Based on the study done by Katarina Bostrom (Bostrom, 2011), she used the number of
customers that purchase medicines over-the-counter, on daily basis in order to measure the
dependent variable, which is consumer behavior. However, in this study, the researcher
measures the dependent variable, which is consumer behavior through the total number of
students that consider before purchasing a product. For instance, they might be collecting some
information first or doing research on the product before making any purchase.
Independent Variable
The measurement of those independent variables of this study is measured as follows (Bostrom,
2011).
a) Brand Image: Students’ perception towards well-branded and less-branded products,
their way of making decision when buying.
b) Family Influence: Level of their agreement to seek reference from their family members
before purchase.
c) Cultural Influence: Students level of agree with elements of culture in Hofstede
While, for the dimension model, the model specification for multiple regressions is stated as
follows.
CB = a0 +ßBI+ ßFI+ ßCI
Whereby,
CB = Consumer Behavior
a = Constant
ßBI = Brand Image
ßFI = Family Influence
ßCI = Cultural Influence
There are only 94 questionnaires collected from respondents despite the large number of the
total population of the university and college students in Malaysia. However, Sekaran and
Bougie (2010) stated that the rule of thumb of 30 in quantity of questionnaires can still be
accepted, and therefore, this study can be considered as fulfilling the requirement of the sample
in concluding to an end result.
Discussion And Results

In term of demographic, there are 70% and 30% of female and male students,
respectively, responded to the questionnaire. Since this research is using random sampling
method in selecting the respondent, therefore, it is difficult to get the average number in term
of the composition of students from the target population. Besides, the researcher managed to
collect 96% of responses from students aged between 19 to 25 years old, while another 3%
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from students aged between 26 to 35 years old and finally, there are only 1% of students aged
between 36 and 45 years old. On the other hand, students from Universiti Technology Malaysia
(UTM) contributed the least number of respondents which is only 5% of the total respondents,
while the most contributed respondents were from International Islamic University Malaysia
(IIUM) and Universiti Putra Malaysia (UPM) which accounted for 32%, respectively, from
every university. Meanwhile, UiTM students and others contributed 15% of respondents.
Others in this research include respondents from private universities and other public
universities in Klang Valley area, such as Universiti Malaya, Universiti Pertahanan Nasional
Malaysia and others.
Table 1 Descriptive Statistics

N Min Max Mean Std.
Variables
Statistics Statistic Statistic Statistic Std. Error Deviation
Consumer 94 4.00 16.00 12.4787 .24703 2.39502
Behavior
Brand 94 6.00 60.00 18.7447 .55902 5.41987
image
influence
Family 94 6.00 24.00 15.6064 .38835 3.76520
influence
Cultural 94 6.00 24.00 16.0213 .31942 3.09692
influence
Valid N 94
(listwise)
Therefore, Table 1 shows the descriptive statistics for the said variables. The results
show that students who make considerations before they purchase a product are between four
to sixteen peoples and with an average of twelve students. Most students perceived brand image
as their most influential factors of their purchasing behaviour compared to their family and
cultural influences. Brand image could easily influence students through their media, such
advertisements. Nowadays, students could easily be attracted to purchase a product due to the
brand recognition of the products. When they are using branded items, it increases their
confidence to appear in public. Furthermore, discounts offered by those brand companies
enabled them to buy and consume those branded products.
Recently, family cannot influence most students buying decision anymore because
according to previous research, this could be due to the time they spent with friends were more
than the time they spend with their family. Previous study also showed that family did not
influence student’s buying behaviour as at their age; they tend to make decisions based on their
observation. Besides, sometimes, students are more preferred to go shopping with their friends
rather than their family members. Thus, they are easier to be influenced with the brand of the
products that their friends bought.
Table 2 Results of Multiple Regressions

Model Coefficients T P-Value
Brand Image .337 4.243 .000
Family Influence .564 7.114 .000
Cultural Influence -.006
F 28.737 -.073 .942

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R² .489
Adjusted R² .472
Dependent Variable: Consumer Behavior
From the multiple regression results in Table 2, it turns out to be that students’ consumer
behaviour are significantly associated to family influence (p = .000/ p<0.05) and brand image
influence (p = .000/ p<0.05). Therefore, hypothesis 1 (H1) and hypothesis 2 (H2) are accepted,
while hypothesis 3 (H3) is rejected.
H1 predicts that there is positive relationship between brand image and consumer buying
behaviour. The popular the brand names and the product’s image among their customers, the
higher the probability that the student attracted to purchase that product. This result is parallel
with what Farrukh Sial, et al had been evidenced (Farrukh Sial, Riaz, Nawaz, & Gulzar, 2011)
whereby they stated that good packaging and labeling of a product will enhance into good brand
image of the product. Thus, good brand image of a product will increase young consumer’s
interest and liking towards the product. Therefore, good brand image in the eyes of customers
could easily attract university and college students’ purchasing behavior. Hence, producer or
seller can increase their power in business.
Consequently, H2 in this research predicts that there is a positive relationship between
family influence and students buying behavior. Previous studies had successfully found that a
consumer is directly influenced by their familial members when screening and consuming
products (e.g. E. Johnson, 2012). Meanwhile, the research had also found evidence that young
consumers were influenced by their family members in creating their behaviors when make
purchases from their family members. Meanwhile, everything starts from an education, and for
every education normally starts from home with family members. Therefore, a lot of previous
researches have strong enough to support this result that among of the influential factors that
contribute to university and college students’ buying behavior is family members.
However, the students’ purchasing behavior seems not to be significant with H3, which
means that there is no significant relationship between consumer behavior and cultural
influences. This result is contradicting with previous research on cultural influences consumer
behavior. Thus, this result (p = .942) can be defined as contradicting with one of those
researchers that concluded his research as cultural factors had brought huge influence towards
people’s consumer behavior including college students (Yakup, Mucahit, & Reyhan, 2011).
However, even though the result is not in line with previous researches, this might be due to
that both studies were done in different regions because different countries and regions may
practice different cultural values. Therefore, in Malaysia, most of the youths in the modern era
have been living in urban area and the society lifestyle that changed into modern lifestyle had
caused them to be less likely to concern on cultural values while purchasing a product. In
addition, cultural values had also seemed to be forgotten by them as time goes by.
Thus, in this research, the result from the survey does not support H3, as shown by the
low adjusted R² = .472 and the F-value of 28.74% only. Hence, it can be described as there is
only 48.9% (represent the two variables) of those environmental factors that influence
university students’ consumer behaviour. This percentage is not even equivalent to half of it as
there is other environmental factors that can influence the purchasing behaviour existed.
Table 3 Summary of Results

Hypothesis Predicted Actual Significance Result
H1: There is a + + Significant (.000)
positive relationship
between brand image
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and consumer
behaviour
H2: There is a + + Significant (.000)
positive relationship
between families
influence on
consumer behaviour
H3: There is positive + - Not Significant
association between (.942)
cultural influence and
consumer behaviour
There are only two variables that influence the buying behaviour of university and college
students in Malaysia. The two variables are the brand image and the family influence. However,
the other variable is insignificant to be associated with university and college students’ buying
behaviour in Malaysia.
Conclusion
There are two research objectives in this research, where the first one is to study on the
various environmental factors that could affect the university and college students’ buying
behaviour in Malaysia. The findings indicate that there are two most influential factors that
affect their purchasing decision, which are brand image and family influential. This might be
due to the fact that students are exposed to advertisements from social media, television, and
newspaper. Meanwhile, the various promotions made during special occasions or public
holidays can be convincible enough to persuade the students to buy the products. On top of that,
since the students is staying with their families and their education starts from their family
surroundings, this could be among the reasons why family group could also influence their
purchasing decision. In addition, the culture of their family would also influence the way they
spend their money, and hence influencing the students’ behaviour while shopping.
Furthermore, this study is intended to investigate whether brand image had influence the
purchasing decision of the university and college students in Malaysia. This issue is worth to
be studied since the researcher is curious whether those type of students are also attracted to
branded items. The findings revealed that brand image is one of the influential factors that affect
the students’ purchasing decision. This might be due to their family background that enables
them to purchase and consume branded products. Besides, students are also easily attracted to
those products whenever good labelling and packaging are associated with the product despite
the advertisements and promotions made by sellers. This result seems to be in line with the
research done by Farrukh Sial, Riaz, Nawaz, & Gulzar, (2011).
In addition, this research also shows evidence that the culture is not the environmental factor
that could influence students’ consumer behavior in Malaysia. Even though the result
contradicts with previous research of Yakup, Mucahit, & Reyhan (2011), some other
researchers have presented the same results as in this research whereby culture is not an
important factor to influence consumer behavior (J. Kacen & Anna Lee, 2002). As such, future
research could use other variables like the amount of spending by students per month as the
control variable to determine their purchasing behaviour.
Future research might also compare students’ financial background and relate it with their
amount of spending per month. In order to ensure that more accurate results would come out,
the number of populations and sample should be increased so that more comparisons and
analysis could be done. Besides, students’ involvement in their shopping activities and
behaviour should also be included in the survey to compare it with their family financial
background. For instance, whether they frequently purchase a product or not within a month.
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This is to grasp their involvement in purchasing and vice versa. A study that shows students’
buying behavior impacts on the Malaysian gross domestic product (GDP) should also be done.
In this aspect, the research results might provide information that contributed a lot for
International Business students’ course. Apart from that, it would also give new exposure
towards the consumer behavior study. Not only that, the research could also beneficial to next
generations as it can increase references for them as a new added knowledge.
References
Ali Belshek, J. (n.d.). The influence of culture on the negotiation styles of British Students.
Retrieved 2013, from http://research.ncl.ac.uk/ARECLS/volume_3/jalalali.pdf
Blackwel, R. D., Miniard, P. W., & Engel, J. F. (2006). Consumer behavior. Canada: Thomson
South-Western.
Bostrom, K. (2011). Consumer behavior of pharmacy customers - choice of pharmacy and over-
the-counter medicines.
Childers, T. L., & Rao, A. R. (1992). The influence of familial and peer-based reference groups
on consumer decisions . Journal of Consumer Research 198 - 211.
Coakes, S. J. (2005). SPSS: Analysis without anguish. Melbourne: Wiley & Sons.
Dudovskiy, J. (2012, August 28). Research methodology. Retrieved 2013, from http://research-
methodology.net/consumer-behaviour-and-its-importance-in-themodern-marketplace/
E. Johnson, J. (2012, May). Use of product reviews as influenced by family, peers, and online
social networking usage: A look into modern consumer socialization. 173.
Lincoln, Nebraska. Farrukh Sial, M., Riaz, N.-u.-A., Nawaz, B., & Gulzar, A. (2011). Impact
of Labelling and packaging on Buying Behavior of Young Consumers with Mediating
Role of Brand Image. Interdisciplinary Journal of Contemporary Research in Business ,
1022-1029.
Field, A. (2009). Discovering Statistics Using SPSS. London : Sage Publications Ltd.
Hussain Shah, S. S., Aziz, J., Jaffari, A. R., Waris, S., Ejaz, W., Fatima, M., et al. (2012). The
impacts of brands on consumer purchase intentions. Asian Journal of Business
Management 105-110.
J. Kacen, J., & Anna Lee, J. (2002). The influence of culture on consumer impulsive buying
behavior. Journal of Consumer Psychology 163-176.
Lacobucci, D. (2001). Measurement. Journal of Consumer Psychology's Special Issue on
Methodological and Statistical Concerns of the Experimental Behavioral Researcher 55-
69.
Mohamad Idris, M. N. (2013, March 22). Retrieved 2013, from My Metro:
http://www.hmetro.com.my/articles/2013032204312120130322043121/Article/
Moschis, G. P. (1987). Consumer socialization: A life-cycle perspective. Lexington, Mass:
Lexington Books.
Nayeem, T. (2012). Cultural influences on consumer behaviour. International Journal of
Business and Management 78-91.
Pillai, K. R., Rajan, J. S., Variyamveetil, S., Mathew, D. E., & Nath, S. S. (2011). Group norms
and consumer behavior. Munich Personal RePEc Archive 1-17.
Roberts, J. A., & Bacon, D. R. (1997). Exploring the subtle relationships between
environmental concern and ecologically conscious consumer behaviour. Journals of
Business Research 40, 79-89.
Sekaran, U., & Bougie, R. (2010). Research Methodology for Business. United Kingdom:
Wiley & Sons.
Solomon, M. R. (2013). Consumer Behavior -Buying, Having and Being. United Kingdom:
Pearson Education Limited.
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Yakup, D., Mucahit, C., & Reyhan, O. (2011). The impact of cultural factors on the consumer
buying behaviors examined through an empirical study. International Journal of Business
and Social Science, 109-114.
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THE INFLUENCE OF THE BOARD OF DIRECTORS’

CHARACTERISTICS ON CORPORATE SUSTAINABILITY
REPORTING: MALAYSIAN EVIDENCE
Zainab Aman 1
Nor Suhaily Bakar 2
zainab@kuis.edu.my1
norsuhaily@kuis.edu2
1
Kolej Universiti Islam Antarabangsa Selangor (KUIS), 43000 Kajang Selangor, Malaysia
2
Kolej Universiti Islam Antarabangsa Selangor (KUIS), 43000 Kajang Selangor, Malaysia
____________________________________________________________________
Abstract: The objective of this study is to examine the influence of board

characteristics on sustainability reporting of public listed companies in Malaysia.
Sample consists of 260 companies listed on the Main Board of Bursa Malaysia. This
study analyses board characteristics and corporate sustainability of public listed
companies in Malaysia usiing linear Regression analysis. Results show a positive
significant association between board size, women on board and CSR disclosure.
Company size also has a significant positive association with CSR. However, the
results indicate that there is no significant influence between Duality CEO, board
independence and family on board and CSR disclosure among public listed firms in
Malaysia. Findings should provide input to the regulatory bodies in Malaysia in
evaluating how board characteristics can further contribute toward CSR initiatives,
especially when there is a family members on board of directors as these board
members have inherent authorities and decision-making power.
Keywords: Corporate governance, Board of directors’ characteristics, family

ownership, Corporate sustainability reporting,
____________________________________________________________________
Introduction
Corporate sustainability reporting (CSR) is attracting the attention of
governments, business communities, academia, stakeholders and society as a whole.
Corporate sustainability reporting (CSR) policies need to be considered as a crucial
part of the corporate strategy.The growing complexity of the corporate operations
policy, the social and environmental concern becomes a critical issue for the
stakeholders and large society. Large companies usually disclose their corporate
sustainability reporting as a corporate strategy (Lopez & Romero, 2012), so that the
board of directors plays an important role to decide CSR’s strategy of the companies
(Fernandez-Feijoo et al. 2012).
In one- tier board system, board of directors are the highest governing bodies
that sets company’s policies and makes important strategic decisions. The board
represent the stakeholder to influence and monitor decisions made by top management
which have to be in line with shareholders’ expectations (Dunn & Sainty 2009).
Corporate governance (CG) in particular board of directors can play a significant role
in enhancing corporate sustainability reporting (CSR) performance (Zahra 1989). CSR
reporting, is the external aspect of corporate governance which may come from the
decision made by the board of directors that demonstrates companies’responsibility to
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the stakeholders. The stakeholders are unable to engage in management when there is
a separation of ownership between the owners-shareholders (principals) and the
managers (agents). Thus, it is the task of the board to represent the shareholder’s
interest, monitor the effectiveness of management and to ensure that managers of
corporations use the assets to maximize shareholders’value. Good corporate
governance is required to safeguard the interest of various stakeholders (N.Al-
Malkawi et al. 2014) as it can improve public faith and confidence in the business
environment (Güler & Crowther 2008). Good governance usually requires improving
board characteristics to ensure corporate effectiveness for a better performance over
time, which then contributes to corporate reputation (Radbourne 2003). The
companies need to contribute to the well-being of the communities by considering the
financial and non financial needs on setting the company’s objective. Thus, this study
aims to examine the influence of good corporate governance (CG) specifically board
characteristics on sustainability reporting. This study extend prior studies by
investigating the influence of board’s characteristics on the level of CSR in public
listed firms in Malaysia. To compliment these prior researches, the current study
provides relevant input in these two contributions: (1) using a more recent data, which
is the CSR in the 2016 annual reports; (2) examine the influence of board’s
characteristics on the level of CSR by using more comprehensive CSR dimensions
(economic, environment and social).
This paper proceeds with literature on corporate sustainability reporting in the
next section. Section two will discuss literature review and Section three will discuss
hypotheses development. The methodology will be presented in section four. Section
five will present results and discuss research findings and finally section six will
conclude overall paper.
Literature Review
Many of the corporate sustainability (CSR) studies have been carried out in
other countries such as (Clarkson et al 2008, Isaksson 2009; Sutantoputra 2009; Zeng
et a.l 2010; Suttipun & Stanton 2012, Hahn & Kuhnan 2013). These studies provide
insight on the types of sustainability information reported and understanding the
development of CSR in those countries. Similar study need to be carried out in
Malaysia, since the social, economic, and political environment in Malaysia are
different from other countries. In recent years the interests in CSR have been partly
contributed by the increased awareness on corporate accountability. Corporations have
become more sensitive to social issues and stakeholder concerns.and are striving to
become better corporate citizens. Whether the motivation is concern for society and
the environment, government regulation, stakeholder pressures, or economic profit,
the result is that managers must make significant changes to more effectively manage
their social, economic, and environmental impacts.
Sustainability reporting is also used synonymously with other terms such as,
citizenship reporting, social reporting, and triple bottom line (TBL) reporting that
encompass the economic, environmental, and social aspects of an organization’s
performance (Corina Joseph 2014). It is commonly recognised that there is no single
universally accepted definition of sustainability. The most widely used definition
around the world is that developed by the Brundtland Report of the World Commission
on Environment and Development3
"Development that meets the needs of the present without compromising the ability of
future generations to meet their own needs (Brundtland report 1987)
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The term of CSR can be explained as follows:
1. Economy
The impact on the economic conditions of stakeholders (e.g. procurement practices,
community investment) and the interaction or relationship with the economic systems
at local, national and global levels. It does not merely focus on the financial condition
of the organisation.
2. Environment
The interaction with living and non-living natural systems, including land, air, water
and ecosystems.
3. Social
The interaction or relationship with social systems within which you operate. These
may include your relationships with communities, employees, consumers, etc.
(GRI G4 Guidelines)
The interest of CSR have been partly contributed by the increased awareness
on corporate transparency and disclosure particularly after the Asian economic tumult
in 1997. Good corporate governance such as disclosure and transparency is needed by
the stakeholders which are affected by companies operations (Esa & Zahari 2014).
The Malaysian Institute of Corporate Governance was established in 1998 and
subsequently the Malaysian Code on Corporate Governance was released in 2000. One
of the best practices in corporate governance included in the Code is that the board
should receive information that is not only financial-oriented but other performance
indicators such as customer satisfaction, product and service quality and
environmental performance (Esa & Ghazali 2012). Finance Committee on Corporate
Governance in Malaysia has defined corporate governance as ‘the process and
structure used to direct and manage the business and affairs of the company towards
enhancing business prosperity and corporate accountability.
A few studies have investigated several corporate governance and
sustainability reporting issues in Malaysia. Rahman et al. (2011) assessed the impact
of size, age, profitability and leverage on the level of CSR disclosure. The sample
consists of 44 government-linked companies listed on Bursa Malaysia for 2005 and
2006. Their studies used a multiple regression model and found that only corporate
size was significant to the extent of CSR disclosure for both years.
Esa & Ghazali (2012) investigate whether there has been a change in the level of
corporate social responsibility (CSR) disclosure and to determine whether corporate
governance attributes influence CSR disclosure in corporate annual reports of
Malaysian government-linked companies (GLCs). They used content analysis to
analyse the annual reports of 27 GLCs for two years (2005 and 2007). Multiple
regression analysis was performed to identify factors influencing CSR disclosure in
annual reports.Their findings showed that the extent of CSR disclosure was increase
and the multiple regression analysis revealed that board size was positively associated
and statistically significant with the extent of CSR disclosure.
Theoretical Framework And Hypothesis Development

According to resource dependence theory, the companies will choose the
resources needed to keep survive because the selection of resources has important
implications in the role and structure of the board because boards can be used as a
mechanism to establish the corporate relationship with external environment (Duztas
2008), strengthening company relationship with its stakeholders in order to maintain
corporate sustainability. The larger the number of independence non-executive
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directors on the board is better so that they can fulfill their role in monitoring and
controlling the opportunistic behavior of the executive directors (Fama & Jensen
1983). . Therefore, the corporate governance structure of board of directors (board
independence, board size, CEO duality, women director and family on board) is
expected to play an important function to provide more resources information and
legitimacy for companies
Hypotheses Development
This section discusses the development of hypotheses in this study. This study
postulates that board of director’s characteristics influence the level of sustainability
reporting (SR) among firms in Malaysia. The overall theoretical framework of this
study is based on the resource dependency theory (Freeman 1984). Eight hypotheses
are developed in this study.to determine the influence of board of director’s
characteristics on corporate sustainability reporting in Malaysia.. Therefore, the
corporate governance structure of board of directors (board size, board independence,
CEO duality, women director and family on board) is expected to play an important
function in influencing the disclosures of CSR. The control variables are profitability,
company size and leverage.
Board size
Larger board size may result in disagreements while proponents of board size
suggest that more board members would lead to wider exchange of ideas and
experiences.(Jensen 1999), offer more expertise and increased monitoring capacity,
different backgrounds, knowledge and may bring different ideas into the table for
discussion (Bekhir 2009). Thus, it can motivate companies to undertake CSR
activities, especially in times of crisis and regulatory changes. Several studies have
examined the relationship between board size and CSR disclosures (Said et al., 2009;
Esa and Mohd Ghazali, 2012; Rao et al., 2012). While Said et al. (2009) did not
observe any correlation between CSR disclosures and board size, Rao et al. (2012) and
Esa and Mohd Ghazali (2012) both documented a significant positive relationship
between the extent of CSR disclosures and board size in Australia and Malaysia. In
the Malaysian context, the Code (revised 2007) does not specify the number of board
members rather let the board decides taking into consideration the impact of size on
board effectiveness. Therefore, the hypothesis is as follows:
Hypothesis 1: There is a significant positive relationship between board size influence
on CSR disclosure
Board Independence
The presence of independent directors on board is considered to be a major
corporate governance mechanism. It is generally believed that independent outside
directors will strengthen the board by monitoring the activities of the management,
and ensure that interests of the investors are protected (Petra 2005).In a corporate
governance context, independent directors are expected to perform a monitoring role
to ensure that shareholders’ interests are taken into consideration when arriving at
board decisions. However, the relationship between independent directors and the
extent of CSR disclosure is unclear. While prior studies have documented significant
positive association between independent directors and voluntary disclosure in general
(Cheng & Courtenay 2006; Huafang & Jianguo 2007; and Donnelly &d Mulcany,
2008), others (Eng and Mak, 2003; and Barako et al., 2006) found the opposite. The
argument for a negative association between independent directors and the extent of
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disclosure is that independent directors are a cost-efficient substitute for information
disclosure. In Malaysia, the Code requires that independent directors to be at least one-
third of the board membership. This requirement can be interpreted as expecting more
independent boards to be more effective in its monitoring role. Therefore, the
hypothesis is as follows:
H2. There is a significant positive association between independent directors and the
extent of CSR disclosure in Malaysia.
CEO Duality
The role-duality refers to the same person undertakes both the roles of chief
executive officer and chairman. Segregation of the two roles gives the necessary
checks and balances of power and authority on management behavior. (Bukhair &
Abdul Rahman 2015). Empirical evidence on the relationship between role duality and
corporate performance is mixed. Chau and Gray (2010) reported a positive association
between dual leadership and voluntary disclosure, where as Forker (1992) and Gul and
Leung (2004) had reported a negative association between CEO duality and voluntary
disclosures previously. Haniffa and Cooke (2002) and Barako et al. (2006) found no
evidence of an association between dual leadership and voluntary disclosures. Studies
examining the link between dual leadership and CSR disclosures have either reported
a negative association or no association (Said et al., 2009; Ntim and Soobaroyen,
2013). Based on the above arguments and empirical evidence, the following
hypothesis is proposed:
Hypothesis 3: The separation roles of the CEO and chairman has no significant
influence on CSR
Women Directors
The board diversity is associated with high intensity of social performance and
CSR disclosure (Ibrahim and Angelidis, 1994; Siciliano, 1996). Board diversity
enhances board independence as individuals from different ethnicity, gender and
cultural backgrounds ask questions which might not have been asked by a less diverse
board of directors (Carter et al., 2003). Women directors are less economically
oriented and more philanthropically driven than male directors (Ibrahim and
Angelidis, 1994). Presence of women directors in board increases corporate reputation
and CSR ratings (Bear et al., 2010). The organizations with higher proportion of
women on boards tend to engage in more charities as compared to the firms having
smaller proportion of women on boards (Williams, 2003). However, a study conducted
in Bangladeshi banks could not prove a relationship of women directors with CSR
disclosure (Khan, 2010). Appointment of female directors and appointment of
directors from different ethnic groups has been argued to be an act of legitimation
(Farrell and Hersch, 2005).Barako and Brown (2008), Bear et al. (2010) and Zhang
(2012) found a positive link between boards with female directors and CSR
disclosures. Ntim and Soobaroyen (2013) found no relationship between gender
diversity and CSR disclosures and Post et al. (2011) found having three or more
women on board did not relate to social and environmental disclosures. Based on the
above arguments and empirical findings, it is hypothesized that:
H4. There is a positive association between boards with female directors and
sustainability reporting.
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Family On Board
Majority of listed companies in Malaysia started off as family business. The
board of the firm is usually dominated by the family members and the CEO also from
the family itself. (Abdullah et al.2011). Therefore, the family shareholders would
expropriate the minority shareholders interest and enrich themselves via related party
transactions (Ho & Wong 2001). This condition potentially leads to the entrenchment
of family control (Faccio et al. 2001).Thus, it is predicted that family-controlled firms
tend to have lower incentives to disclose information in their annual reports because
both shareholders and management tend to be dominated by the members of the
controlling family. (Darmadi & Sodikin 2013).Hence, the controlling family may have
greater access to information, leading to a lower extent of information disclosed to the
outsiders (Ho & Wong 2001). Based on the above description, the first hypothesis is
formulated as follows:
H5. Family control is negatively associated with the extent of voluntary disclosures
in the annual report.
Company Size
Larger companies can be expected to disclose more CSR information to
portray their corporate citizenship and legitimizing their existence (Mohd Ghazali
2007). Therefore, larger companies usually undertake more activities, make a greater
impact on society, have more shareholders who might be concerned with social
programs undertaken by the company. Evidence from previous studies supports the
existence of a positive relationship between company size and disclosure level
(Wallace et al. 1994; Ahmed 1995; Zarzeski, 1996). Belkaoui and Karpik (1989) found
that there was a positive relationship between size and the content of corporate social
disclosure. A similar finding was also reported by Patten (1991), Hackston and Milne
(1996), Abdul Hamid (2004) and Mohd Ghazali (2007) and Said et al.(2009). Based
on the results of prior studies, a positive relationship is expected between company
size and CSR disclosure. The hypothesis is as follows:
H6. There is a significant positive association between company size and the extent of
CSR
Profitability
Socially responsible companies can be expected to be more profitable as these
companies would have the necessary ingredients of a successful company (Belkaoui
& Harpik 1989). However, investment in CSR activities may require additional costs
and hence reduce the profits of a company (Balabanis et al., 1998). In the Malaysian
context, empirical results on the association between profitability and the extent of
CSR disclosure are mixed. Company size and profitability did not have significant
relationship (Abdul Hamid 2004; Esa & Ghazali 2012).CSR has a significant positive
relationship with profitability (Haniffa & Cooke 2005; Said et al.2009). The
hypothesis is expressed as follows:
H7. There is a significant association between profitability and the extent of CSR
disclosure in Malaysian GLCs
Leverage
Firms with high debt levels are expected to incur high monitoring costs.
Therefore, managers of high debt companies may seek to reduce these costs by
disclosing more information in annual reports (Ahmed and Courtis, 1999). In other
words, highly leveraged companies are expected to disclose more information to
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assure creditors that shareholders and management are less likely to bypass their
covenant claims. Leverage has been found to be significant and positively associated
with the extent of disclosure by Naser et al. (2002) and Ferguson et al. (2002). In
contrast, Ho and Wong (2001), Chau and Gray (2002) and Huafang and Jianguo
(2007) did not find leverage to be significantly associated with voluntary disclosure.
Haniffa and Cooke (2005) did not find leverage to be a significant factor influencing
corporate social disclosure. As the empirical evidence is inconclusive, no expectation
is formed regarding the direction of association between leverage and the extent of
CSR disclosure. The hypothesis is as follows:
H8. There is a significant association between leverage and the extent of CSR
disclosure in Malaysian
Research Method
The aim of this study is to examine the influence of board’s characteristics on
corporate sustainability reporting. The dependent variable is the CSR which is
measured based on a disclosure index. Stratified random sampling was used to select
sample of this study comprise of 260 companies listed on main board of Bursa
Malaysia and data was collected from the company annual report for the year 2016.
This approach is consistent with previous studies by Clarkson (2008) and Aras et
al.(2010).
Measurement of Variables
The dependent variable in this study, corporate sustainability reporting (CSR),
is measured based on Global Reporting Initiatives (GRI4) performance indicator. The
indicator is considered to be a valid and suitable measure of CSR because it contains
comprehensive measure of social and environmental performance (Sutantoputra,
2009). This study adopts CSR disclosure rating by Sutantoputra (2009) and Clarkson
(2008), which has 83 total score of disclosure items for social performance, 95 total
score for environemntal performance and 19 total score for economic performance..
This rating system is developed based on GRI 2013 guidelines which categorized the
score based on two categories: hard disclosures and soft disclosures. The CSR score
in this study was obtained by content analysed annual reports of selected sample
companies.
Regression Model
The aim of the regression model is to provide empirical evidence on the
influence of board of directors’ characteristics on corporate sustainability reporting.
Therefore, the dependent variable is the corporate sustainability reporting or CSR. The
independent variables of interest include board size (BSIZE), board independence
(BIND), CEO duality (DUAL), women Director (WD) and family on board (FOB).
We include three control variables commonly found significant in prior studies
examining disclosure level issue, that is, firm size (SIZE), profitability(PRFT) and
leverage (LEV) Below is the full regression model utilised in this study:
SRit = β0 + β1SIZAwnit + β2INDit + β3CEODUALit + β4WD + β5FOBi + β6SIZEit +

β7PRTit + + β8LEVit + εit
Where:
SRit = Is Level of CSR for firm i at time t
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BSIZEit = Board size and is measured by number of directors on the board
(Nazli et al 2010)for firm i shareholders at time t
BINDit = Board independence is measured by Proportion of INDs to total
directors
CEODUALit = Duality of CEO is measured by percentage of shares owned by
shareholders at 5 % or more (Mustarudin et al 2010)
WDIR Women director is measured by Proportion of women on the
board of directors
FOB Family on Board is measured by proportion of family members
on board of directors
CSIZE = Firm size is measured by Total assets
PRTit = Profitability is measured by Return on asset (ROA) Nazli et
al.201
LEVit = Leverage is measured by Debt Ratio
εit = is error term for this regression model
Multicollinearity Issue
To check for multicollinearity issue, Pearson correlation was undertaken among
independent variables. Table 1 shows that the correlation found was between 0.021 to
0.417. Multicollinearity issue is considered under control because it is still below 0.80
(Cooper & Schindler, 1998; Griffiths, Hill & Judge, 1993).
Table 1. Pairwise Correlation among All Variables (N=100)
CSR Bsize Dual Csize Prft Lev Wo Fob Bin

b d
1
CS
R
Bsiz 0.178* 1
e *
Dua 0.043 0.021 1
l
Csiz 0.236* 0.337* 0.158* 1
e * *
Prft 0.202* 0.116 0.178* 0.131* 1
* *
Lev 0.021 0.040 0.019 0.039 0.008 1
Wo 0.512* 0.022 0.034 0.074 0.292* 0.03 1
b * * 6
Fob 0.22** 0.417* 0.035 0.303* 0.092 0.07 0.05 1
2 * * 9 9
Bin 0.106 0.280* 0.093 0.188* 0.061 0.08 0.10 0.220* 1
d * * 6 4 *
** , *Statistically significant at the 0.05 and 0.10 levels, respectively.
Table 2 Result Of Regression Analysis On Independent Variables

Variables Pred Sig Beta t Sig Collinearity
Statistics
Tolerance VIF
CSR
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BIND + 0.154 2.220 0.028 0.875 1.143
BSIZE + 0.125 1.663 0.098 0.742 1.340
CEODUAL NO 0.052 0.774 0.440 0.928 1.078
CSIZE + 0.135 1.868 0.064 0.813 1.230
PRFT ? 0.039 0.558 0.578 0.856 1.168
LEV ? 0.008 0.124 0.902 0.877 1.024
WOB + 0.471 6.847 0.000 0.890 1.294
FOB _ 1.30 1.760 0.080
R Square 0.351
Adjusted R 0.317
Square
F-value 10.392(0.000***)
*,**,*** Denote significance at the 10%, 5%, and 1% (two-tailed) levels, respectively
Empirical Result And Discussion Of Findings

Table 2 presents the empirical findings of regressing the independent variables on the
CSR. The coefficient of R2 is 35 percent, and the adjusted R2 is 32 percent, indicating
a reasonable variance proportion. The table 2 also shows that the p-value of the model
is significant at 0.0 per cent. The values of Tolerance are higher than 0.10, and the
variance inflation factor (VIF) for all independent variables did not exceed 10,
indicating that there is no multicollinearity problems between the variables (Kennedy,
1998). Table 3 also shows that board independence and women director have
significant positive influence on CSR disclosure at the 0.01, 0.05. Board size,
company size and family on board also have significant positive influence on CSR at
0.10 levels, respectively. This means that both variables are considered important
factors by public listed companies in deciding whether to disclose CSR information.
Thus, the findings support H1,H2,H4,H5,and H6.
This finding is consistent with previous studies (Haji 2013; Said et al.,
2009).The same applies for board independence which shows a positive relationship
with CSR disclosure. This result is also supported by previous studies (Esa & Ghazali
2012). Women director also shows a significant positive effect on CSR disclosure.
This is also supported by previous literature (Devi et al.2016) Further, the result shows
no significant relationship between CEO duality and CSR disclosure. It implies that
the separation of function between the CEO and the chairman does not affect CSR
disclosure, thus supporting hypothesis 3. This finding is consistent with the studies by
Li et al. 2008; Said et al. 2009.The results show a positive relationship with CSR. The
findings contradict with previous literature (Abdullah et al.2011). Profitability and
leverage also are not significant, which means that decision to disclose CSR
information in the annual reports is not influenced by these three factors.. The non-
significance of profitability is consistent with Esa & Ghazali 2012 ; Abdul Hamid
(2004).
Conclusion
The objective of this study was to examine the effect of board of directors
characteristics (board size, board independence, CEO duality, and women director) on
CSR disclosure by public listed companies in Malaysia. The study found that Board
size, board independence, company size, women directors and family on board have
an impact on CSR disclosure. As predicted, CEO duality has no effect on CSR
disclosure. It is suggested that future research should update data from this study and
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investigate more board characteristics that might given a different results. The findings
also shows that this study provide input to the regulatory bodies in Malaysia in
evaluating how board characteristics can further contribute toward CSR initiatives,
especially when there is a family members on board of directors as these board
members have inherent authorities and decision-making power.
References
Abdullah, S., Mohamad,R., & Mukhtar, M.(2011). Board independence,ownership
and corporate social responsibility of Malaysian large firms. Corporate ownership
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DEVELOPMENT OF FEMALE ADOLESCENTS CLOTHING SIZING

BASED ON CLUSTER ANALYSIS CLASSIFICATION
Siti Balkis Bari1

Naimah Mohd Salleh1
Syuhaily Osman1
sitibalkisbari@gmail.com1
1
Department of Resources Management and Consumer Studies Faculty of Human Ecology
1
University of Putra Malaysia, Serdang
___________________________________________________________________________
Abstract: Clothing sizing is very important in the clothing manufacturing industry. A critical
process in the development of clothing sizing is the process to classify the various forms of
body sizes. Identifying the correct body size will produce the correct clothing sizing that fits
consumers’ body. The objective of this study is to classify respondents’ body shape according
to groups of body sizes, thus developing clothing sizing. The study involved 110 female
respondents aged 13 years old and 97 female respondents aged 16 years old. The respondents
are selected from secondary schools in Selangor, Malaysia. This study began with the
collection of 36 anthropometric data of respondents. Factor analysis was conducted to identify
the important measurement criteria in the manufacturing of clothing for each age group.
Cluster analysis was chosen for classifying respondents’ body shape to a certain body size.
Clothing sizing of target population’s body shape were categorised into homogeneous sub-
groups based on some key measurements in the making of garments. The study findings provide
guidance to the parties concerned in the clothing manufacturing industry, in order to increase
customer satisfaction of ready to wear garments, especially among female adolescents.
Keywords: Cluster Analysis, Clothing Size, Female Adolescent

___________________________________________________________________________
Introduction
Clothing sizing are a series of graduated categories of dimensions whereby
manufactured garments are classified [14]. It is a process used to develop body measurement
size charts in order to make the garment fitting into one’s body size. The quality of clothing
products will enhance consumer satisfaction in a dress [19]. Garment manufacturers try to
develop clothing sizing to meet the needs of consumers in fitting garments to their bodies. In
the mid-18th century, clothing sizing system was based on the experience of tailors [12].
Various unique methods were used by professional dressmakers in the past to establish a
system of clothing sizing. The purpose of the development of clothing sizing is to achieve
consumer satisfaction.
The high demand for clothing in the market justifies a standard clothing sizing required
by the consumer [13]. Different researchers used a variety of methods to develop clothing
sizing [1]. In 1942, the U.S. Department of Commerce developed sizing data based on the
actual measurement of 10,000 American military women. These women were measured at
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different body points. As a result clothing sizing has become inconsistent and many consumers,
particularly female, feeling uncomfortable when their clothes do not fit them properly [20].
Researchers doubled their efforts and used current anthropometric data in the development of
clothing sizing [21]. Current anthropometric data are needed to produce accurate clothing
sizing in order to fit consumers’ bodies [4]. It is very important for manufacturers to know the
share of a certain size for the total number of products because they work for unknown
consumers [22].
In 1986, a method based on integer programming helped to reduce the number of
different sizes in the size chart. This method was an attempt to optimize the aggregate loss of
fit, which is an aggregate measure of the difference between the dimensions of the actual body
size chart formed [13]. Figure type plays a decisive role in a sizing system and contributes to
the issues of garment fit. In early times, the classification of figure types was based on body
weight and stature [6]. However, Gupta and Gangadhar [9], used statistical methods in the
development of clothing sizing. Later on, anthropometric dimensions were applied for
classification. Based on this method, a linear structure was found in many of the commonly
used sizing system. This type of sizing system has the advantage of easy grading and size
labelling. However, the disadvantage is that the structural constraint in the linear system may
result in a loose fit. Thus, some optimization methods have been proposed to generate a better
fit sizing system such as an integer programming approach and a nonlinear programming
approach [13]. A sizing system using a nonlinear optimization approach was conducted to
maximize the quality of fit. In addition, cluster analysis was used as an exploratory data
analysis tool for classification. A cluster which is typically grouped by the similarity of its
members’ body shape can be considered as a size category or a figure type. The advantage of
using cluster analysis is the way that it clusters the classification of objects into different
groups, more precisely [12].
Sizing system is a set of pre-determined body size designated in a standard manner. It
consists of a range of sizes from the smallest to the largest with fixed “steps” or intervals
between adjacent sizes. The essential elements of a sizing system can be set out simply as
comprising a size range with specified size intervals and a standard method of designating the
size of the garment. The number of sizes within this range should aim to be both convenient
for wholesale production and also satisfying the consumers’ requirements [4]. In other words,
the strategy is to fit the maximum number of target population with the minimum number of
sizes. It is therefore beneficial to both manufacturers and retailers to have clothing sizing that
have consistent intervals between sizes and is simple to read. Systematic system size of clothing
allows manufacturers to increase their profits and reduce their losses [10].
Clothing size is a communication tool between clothing manufacturers and consumers
[23]. This communication tool provides information to the manufacturer about the specification
of size, the development of fashion clothing, clothing pattern grading and market analysis. Use
of this tool allows manufacturers to make decisions for the production of clothing sizing for
different persons having different body shapes. Meanwhile, consumers use this tool to find
clothes that fit their body shape [3]. Therefore, the standard clothing sizing system that can fit
to the body is very important and is much necessary by manufacturers of clothes. Use of
anthropometric data in the development of clothing sizing will produce the right size for the
clothes to fit the body [8]. The anthropometric measurement and the relationship between them
changes with changing lifestyles, leisure patterns, dietary habits and also a growing population
diversity. Consequently, the association between garment sizing and body measurements also
changes all the time. As a result, regular sizing surveys and measurement series have to be
performed to provide a scientific foundation to these and to further provide information on the
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necessary size segments and their geographical market shares. Besides, clothing sizing needs
to be updated every 10 years to ensure that the size of clothes will produce clothing that fits
consumers’ body [4].
According to Petrova [13], setting up a sizing system generally begins with the
collection of anthropometric measurements of the target population. It is important for these
measurements to be current and accurate since human body measurements can change
considerably in time [18]. If population measurements are outdated and inaccurate, the sizing
system will not be able to ensure well-fitting garments for the consumers. Fit issues are related
to the sizing system. Ashdown and O’Connell [23] mention that fit is the first aspect which the
consumer uses to evaluate a garment and that the consumers’ perception of fit is important
when trying to improve the sizing system and hence the fit of a garment. Therefore, fit is the
prime concern for two reasons; comfort and vanity, where both are equally important. Besides,
a great fit helps to create confidence.
To be fit in a garment is one important factor that contributes to the confidence and
comfort of the wearer. Dissatisfaction with fitness is one of the most frequently stated problems
with garment purchases. Alexander and friends [3] reported that more than half of the female
population in the US cannot find apparel in the marketplace to fit. Women responding to their
surveys indicated that fitness was one of the most frequent reasons for not making an apparel
purchase. In other studies, women have reported trying on as many as 20 pairs of jeans before
they find a pair that fits [3]. From 1998 to 2004, the percentage of women who would pay more
than $70 for a pair of good fitting jeans increased from 2% to 10% among 16- to 19-year-old
[25]. In addition, according to Brown and Rice [25], more than 70% of the clothing relegated
to stock clearance sales is the result of bad fitting or construction. Hence, garment fitness is
regarded as the primary complaint among female consumers in relation to ready-to-wear
garments and is also used as an important factor in the acceptance or rejection of the garment
[24]. These fitness problems are associated with current sizing systems that often overlook the
diverse and variation in body shapes existing in other age groups.
Female adolescence aged 13 years old is also the period in the individual’s life when
drastic changes take place at the physical, psychosocial and cognitive levels, during which
these could have marked implications on the problems, needs and expectations about the
clothing of the early-adolescent years. Physical changes could have an effect, particularly for
the early-adolescent girl with relation to the fit of her clothing. It is when the clothes range for
children does not fit them anymore, but at the same time the size and proportion of clothes in
the adult range is also not suitable for their changing bodies [19]. Therefore, this study focuses
on the age group of 13 years old female, to try offering better clothing sizing based on their
anthropometric measurements.
Meanwhile, female youths aged 16 years old represent the population of young female
consumers. Istook and Hwang [26] indicated that problems with clothing fitness for women
consumers were based on outdated body measurement data and population average. To fit all
the age group of consumers, each manufacturer must successfully interpret body measurements
and produce apparels that satisfy their target customer’s fit preferences. Fit preference is very
subjective and varies from person to person. The fit preference of two consumers having the
same anthropometric measurements, height and weight can also vary greatly. Observation
indicates that people differ in their preference for clothing fit, from garments that cling tightly
to the body, to garments that barely touch the body. Therefore, the purpose of this study is to
identify current anthropometric measurement for each group of female youths aged 13 years
old and 16 years old in order to provide their clothing sizing system. Furthermore, in Malaysia
there is no clothing sizing system based on the Malaysian population. Therefore it is expected
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that the result of this study can help relevant parties in Malaysia to enhance consumer
satisfaction within the apparel or clothing arena.
Research Objectives
The objective of this study is to classify respondents' (female youths aged 13 years old and 16
years old) body shape according to groups of body sizes, and thus develop their clothing sizing
system.
Research Methodology
Data collection
The study involved 110 female respondents aged 13 years old and 97 female respondents aged
16 years old. The 13-year-old female is considered as having experienced the transition from
childhood to adolescence. Therefore, they need their own clothing sizing. They cannot share
the same size with the other age groups of adolescence. Researchers are trying to propose a
clothing sizing for this age group. On the other hand, female adolescents aged 16 years old are
considered having outgrown their teenage body, changing into an adult body shape.
Researchers have also tried to suggest clothing sizing that suits this age group. The female
adolescents aged 13 years old and 16 years old cannot share similar clothing sizing because
they have a very different body shape. The respondents are from secondary schools in Selangor.
The entire sample was recruited by using cluster sampling. A total of 36 anthropometric
measurements were taken. Thirty-six anthropometric measurements were taken because these
measurements were commonly used in clothing design [6]. Anthropometric measurements
were taken in their respective schools. The method of taking respondents’ measurements and
the standard used were based on the Anthropometric Standardization Reference Manual United
Kingdom (United Kingdom Anthropometric Standardization Reference Manual, 2003). The
equipment used for taking anthropometric measurement was a Stadiometer (Seca body 208
meters) for height, a weighing scale (TANITA Digital Bathroom Seca HD -312), a
measurement tape (Cotton T Twin brand) to take circumference measurement and a ruler to
take width and length measurements.
Factor Analysis
Factor analysis is a multivariate statistical analysis method used to group various variables into
factors that relate to certain body proportions [21]. Factor analysis in this study is used to obtain
important measurements which influence the fitness of a garment. The body measurements are
extracted by using Varimax rotation. Factor analysis is the best analysis to find important
factors for body shape representation [21]. The measurements contained in the table (Table 1.1
and Table 1.2) were the measurements that have been extracted.
Cluster analysis
Two-stage cluster analysis for combination of hierarchy and non-hierarchy was used to classify
the body shape of respondents to the group of body size. Dendogram used in identifying the
number of groups of body size. K-mean analysis was used to group individual with the same
body size in a same group. The cluster analysis was considered as the clothing size and would
be used in producing shirts and pants. Cluster analysis was the best analysis to segment the
respondents into homogeneous groups, whereby the respondents were grouped according to
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similar body characters [12]. Therefore, only 11 anthropometric measurements appeared in the
table of clothing sizing (Table 2.1 and Table 2.2).
Result
Table 1.0 shows the background information of the respondents. The majority of the
respondents involved in this study are aged 13 years old (53.1%), while the remaining 46.9
percent are aged 16 years old. Malay students recorded the highest percentage of respondents
at 54.59%, followed by Chinese (20.77%), Indians (23:19%) and others (1.45%). Meanwhile,
a total of 54.11 percent of the respondents are from SMK Seri Sepang, and the rest (45.89%)
are from SMK USJ 4. SMK Seri Sepang represented the rural location, while SMK USJ 4
represented the urban area. The status of whether the school is categorized in the urban or rural
areas is designated by the Ministry of Education. Selection of schools in the study area is based
on a vote conducted by researchers. Voting is done to choose one school located in the urban
area, and one school located in the rural area.
Table 1.0: Respondents’ Background (N = 207)

Demography N %
Age
13 years 110 53.1
16 years 97 46.9
Ethnic
Malay 113 54.59
Chinese 43 20.77
Indian 48 23.19
Others 3 1.45
Location
SMK Seri Sepang – rural 112 54.11
SMK USJ 4 – urban 95 45.89
Identifying the important factors of measurement for female adolescents (13 years old).
Factor analysis was used to extract critical important factors of anthropometric dimensions.
Using the Kaiser criterion of eigenvalues, the factors that have eigenvalues more than 1.0 will
be selected [29].
Table 1.1 shows the results of factor analysis of anthropometric dimensions to make shirts and
pants. The KMO is 0.97 and the Barlett's test has a significant value at 0.000. Therefore, it is
considered appropriately to conduct factor analysis for this group. There are 5 factors that have
eigenvalues more than 1.5. These values explained 71.255 of the variance. Factor 1 contributes
the highest variance where its value is 47.579. Result from the scree plot criteria showed that
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only one factor must be maintained. Table 1.1 showed that factor 1 had a factor loading of more
than 0.4. There are only a few items that have a factor loading of 0.4 on the remaining 4 factors.
These results support the conclusion of the scree plot criteria whereby only one factor must be
maintained. Referring to Table 1.1, hip circumference on factor one has the highest factor
loading which is 0.934. This measurement was commonly used by clothing designers to make
pants [1] [25]. The chest circumference measurement also had one of the highest factors
loading which is 0.865. This measurement should be given attention when making shirts [9]
[11]. Therefore, the key measurement should be taken exactly as it affects in the making of
shirt and pants that fit to the consumer’s body [16].
Table 1.1: Female adolescents aged 13 years old

Measurement 1 2 3 4 5
Hip circumference .934
Waist
.912
circumference
Abdominal
.900
circumference
Weight .895
Knee
.878
circumference
Chest
.865 -.373
circumference
Lower abdomen
.856 -.363
circumference
Elbow
.856 -.329
circumference
Neck
.856
circumference
Point to point of
.830
chest
Across chest .825
Arm hole
.772
circumference
Ankle
.770
circumference
Wrist
.748
circumference
Crotch length .718
Cervical to
.710
armscye base line
Shoulder to waist .665 .489
Shoulder width .632 .417
Height .627 .502
Right hand width .581
Left hand length .579 .491 -.375
Right feet length .568 .499 -.322
Left feet width .561 -.304 .369 .454
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Left feet length .549 .502

Arm length .537 .366 .455 .373
Right hand length .533 .486 -.353
Right feet width .482 .305 -.352 .413 .420
Left hand width .433 -.331
Head
.361
circumference
Feet height .635 .378
Neck to waist .401 .527 -.400
Shoulder to elbow
.392 .421 .498 .396
length
Waist to floor
.451 -.455
length
47.57 8.316 7.414 4.219 3.728
Variance explained
15.701 2.744 2.447 1.392 1.230
Eigenvalue
Identifying the important factors of measurement for female adolescents (16 years old)
Table 1.2 shows the results of factor analysis conducted on the 16-year-old group. KMO
result for this group is 0.835 and Barlett’s test has a significant value of 0.000. Therefore,
analysis factor is appropriate to be conducted for this group. For the total variance explained,
there are 7 factors that have greater eigenvalues than one (11.634, 3.898, 3.008, 1.485, 1.418,
1.383, 1.093). These 7 factors contributed 72.49 % of variance. Component that contributes to
the highest variance is component 1 which is 35.26.
Screeplot results showed that only one factor should be maintained. Factors maintained
have factor loadings higher than 0.4. There are several measurements in these factors having
factor loadings of more than 0.7. These are chest circumference (0.744), waist circumference
(0.855), hip circumference (0.855), abdominal circumference (0.752), arm hole circumference
(0.743), elbow circumference (0.798) and wide chest (0.72). These measurements are
important elements in the formation of the body of an individual. Essential elements must be
accurate in clothing making because the accuracy would produce the exact dress size which
fits to the body [4].
Table 1.2 Female adolescents aged 16 years old

1 2 3 4 5 6 7
Height .459 .658
Weight .811 -.393
Neck .715 -.397
circumference
Head .473 .422 .382
circumference
Chest .744 -.508
circumference
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Lower .687 -.438

abdominal
circumference
Waist .855 -.326
circumference
Abdominal .752
circumference
Hip .855 -.313
circumference
Arm hole .743
circumference
Elbow .798 -.313
circumference
Wrist .682
circumference
Shoulder to .649 -.304 .360
front waist
length
Neck to chest .527 -.455
point length
Neck to waist .562 .449
length
Arm length .530 .687
Shoulder to .435 -.336 .701
elbow length
Shoulder .681
width
Chest width .722
Chest point to .420 .308
chest point
Waist to floor .665 .447
length
Crotch length .422 -.527 .304
kelengkang
Ankle .695 .344
circumference
Knee .573
circumference
Left feet width .484 .528 -.326 -.303
Right feet .309 .454 -.419
width
Left feet length .547 .566
Right feet .485 .673
length
Feet height -.578 .514
Left hand .497 .460 -.384
width
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Right hand .589 -.439

width
Left hand .452 .409 .369 .439
length
Right hand .436 .594 .375
Length
Variance 32.22 11.812 9.116 4.499 4.298 4.190 3.313
explained
Eigenvalue 9.022 3.898 3.008 1.485 1.418 1.383 1.093
Classification of body size

Clothing Size for 13-Years Old Girls
Cluster analysis was conducted on all age group of respondents. Cluster analysis has
provided the ideal value of body size for measurement of each group required in the
manufacturing of clothing size [12]. Therefore, the implementation of the cluster analysis will
then form the right clothing size [21].
Table 2.1 is the result of cluster analysis for 13-year-old girls. There are three body
sizes of small, medium and large extracted by factor analysis. Measurements involved were
the measurements used in the manufacturing of shirts and pants. A total of 59 people (54%) of
female respondents aged 13 years old were on the medium size. Meanwhile, a total of 31 people
(28%) were small sized and 20 people (18%) were large sized. Control measurement for this
size is the circumference of the hips and waist for the pants, and chest circumference for shirts.
This is because the measurements used in the manufacture of clothing had a high factor loading
which contributed and highly influenced the production for the right size of consumer clothing
[14]. Therefore, for the clothing size of the 13-year-old girl, these measurements were
instrumental in the production of the right clothing size in that it represented the actual shape
of this group.
Table 2.1: Clothing Size for 13-Year Old Girls
Measurements Small (31 people) Medium (59 Large (20 people)

people)
Hip circumference 73 85 102
Waist circumference 57 67 84
Chest circumference 65 75 93
Arm length 49 57 58
Shoulder width 34 40 44
Neck to west length 35 38 39
Shoulder to front 33 37 39
waist length
Armhole 33 36 43
Waist to floor length 88 96 98
Ankle circumference 19 22 24
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Crotch length 63 70 83
Note: All measurements are in centimetres (cm)
Clothing Size for 16-Year Old Girls

Table 2.2 is the measurement size for 16-year-old girls. The study found a total of 38
respondents (39.1%) having a medium body size. The small and large sized respondents consist
of 40.2% and 20.6% respectively. The distribution of respondents for each size was almost
balanced. Young female consumers have a mind of their own in relation to the ideal body
shape. They feel that large bodies look more beautiful, and so does the other group [3].
Table 2.2: Clothing Size for 16-Year Old Girls

Measurements Small (39 people) Medium (38 Large (20 people)
people)
Arm length 54 60 62
Shoulder width 37 41 43
Neck to waist length 38 41 42
Shoulder to front 37 41 42
waist length
Armhole 36 40 44
circumference
Waist circumference 38 41 42
Hip circumference 84 94 104
Chest circumference 75 81 95
Waist to floor length 100 101 103
Ankle circumference 21 24 25
Crotch length 64 70 79
Note: All measurements are in centimetres (cm)
Conclusion
This paper discusses the development of clothing sizing using the method of cluster analysis.
Cluster analysis is used in classifying respondents’ body size. Analysis factor were conducted
firstly to identify important measurements in the manufacturing of shirts and pants. Cluster
analysis method is used to improve the clothing sizing system to classify the different sizes of
bodies with a more accurate method. The clothing sizing developed will be useful to
manufacturers of clothing, and apparel designers. Information regarding to the percentage of
consumers in each clothing size will also be useful to the manufacturers for a better
understanding of consumers’ body shape. Therefore, this information can give ideas to
manufacturers in estimating total production of each size. Good planning in determining the
amount of the production of consumers clothing will reduce losses and increase profits [6].
Novelty
This study differs from past research because this study used probability sampling in choosing
the samples of the targeted population. Besides, this study attempts to propose a clothing sizing
system for girls in their early adolescence which consists of females aged 13 years old and
based on their anthropometric measurements. This study also attempts to propose clothing
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sizing for young female consumers aged 16 years old and based on their anthropometric
measurement. Each age group has their own clothing sizing specifications. The objective of
this study is to develop a clothing sizing system based on current anthropometric measurement
taken on selected population in order to enhance consumer satisfaction within that niche group.
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[18] Tselepis, T. & Klerk, H.M.D. (2004). Early adolescent girls’ expectations about the fit of
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PROMOTING GOOD CORPORATE GOVERNANCE AND BUSINESS

SUSTAINABILITY THROUGH EFFECTIVE INTERNAL AUDIT FUNCTIONS
–A STUDY ON LISTED COMPANIES IN BANGLADESH
Shamsun Arefin1
E-mail:shamsun@du.ac.bd1
Zoinul Abedin Sakil2
E-mail: Shakilduais@gmail.com2
1
Assistant Professor, Department of International Business, University of Dhaka, Dhaka-1000.
2
Associate Member of ICAB (1759) Manage Internal Audit, Omera Petroleum Limited
_____________________________________________________________________________________________
Abstract: Internal audit function is a compliance mechanism that promotes good corporate
governance. Recent studies detected the need to improve corporate governance structures in
developing countries. This study evaluates the effects of the internal audit function on the quality
of corporate governance in the context of Dhaka Stock Exchange (DSE) listed companies in
Bangladesh. The results revealed that the effectiveness of internal audit functions significantly
affect corporate governance, particularly in management aspects. Moreover, the results showed
that maintaining a high level of independence in auditing system and professional competency and
scope of wider audit work creates value addition for the company in promoting fairness,
transparency, accountability, responsibility and as well as business sustainability. The result also
indicates that the reliability of the internal audit functions is significantly influenced by the top
level management of the companies.
Keywords: Internal Audit Function, Corporate Governance, Independency, Business

Sustainability.
______________________________________________________________________________
Introduction
In the past 15 years, several triggering corporate events like the financial crisis, corporate
scandals and failures have brought corporate governance issue in focus. Transparency
International Bangladesh (TIB 2017) stated that if the government refuses to heed public
opinion and limits the freedom of speech, there will be a crisis between the government and the
people and the higher the level of corruption demonstrates accountability was not fully completed
that reflects the high level of corruption is bad bureaucracy, which means also that the
implementation of good governance is still far from expectations. That means no governance
system, no matter how well designed, will fully prevent greedy, dishonest people from putting
their personal interests ahead of the interests of the organizations they manage. However, certain
steps can be taken to improve good governance and thereby reduce opportunities for accounting
fraud and irregularities.
Implementation of good governance in the field of financial management, one of which is
through the imposition of an obligation of the head to the area to prepare the result of financial
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statements in according to accounting standards and other prevailed regulations to evaluate the
report and the examiner expert opinion. Internal audit is described by Reding et al. (2013) as a
value proposition providing objective assurance to management on corporate governance, risk
management and internal control put in place as well as giving insight (consulting services) to
management on how to improve operational effectiveness and efficiency in order to achieve
organization’s goals and objectives (strategic, operations, reporting and compliance). On the other
hand external auditing is needed to provide true and fair view of financial reporting assurance,
conformity of GAAP, assessing the adequacy of internal control in order to determine the level of
reliance on the financial statements on an annual basis. Due to the complexity of the business
environment it can be assumed that there are still more factors affecting the audit function that
should be taken into account in business practice. In comparison to the field of external auditing,
internal auditing is more helpful improving corporate governance. The purpose of this study is to
review the literature in order to find the major internal auditing functions of listed corporation in
Bangladesh. Another objective is to measurethe level of effectiveness of internal audit functions
in relation with good governance and business sustainability and test them by using hypotheses.
Internal Auditing And Its Functions

Several regulations have been changed as response to corporate scandals and the global
financial crisis for internal auditors to prove the efficiency and importance of their work
professionally into the business environment. Regulations forced corporations, and especially their
internal auditors to take a much broader spectrum of risks and controls into account that is no
longer limited to financial controls (Baker and Writer, 2013). Internal auditors need to face the
challenge of complex and frequent changes in regulations, as they have to assure the compliance
of the company with those laws. As a consequence, many of them have an impact on the profession
of internal auditing and define the tasks of internal auditors more precisely (Chambers, 2014). It
helps an organization accomplish its objectives by bringing a systematic, disciplined approach to
evaluate and improve the effectiveness of risk management, control, and governance processes. A
system of internal audit consists of policies and procedures designed to provide management with
reasonable assurance that the organization achieves its objectives and goals (Monday et al., 2015).
Internal audit function (IAF) is part of the internal monitoring system of the organization and
therefore should be positioned within the organization such that the independence of internal
auditors can be guaranteed. To ensure adherence to financial regulations, laid down procedures,
policies and plans, internal audit units are established. The reliance of external auditors depends
on the internal audit function which is fostered by recent regulations and standards with the aim
of reducing repetitive work and managing corporate structure, culture, policies and strategies and
dealing with its various stakeholders (ANAO, 2014; Monday et.al, 2015 and Asalou,et al,2016 ).
The past few years can be seen as a dynamic period for internal auditing. A lot of literature can
be found about country and region specific stages of development of internal auditing, presenting
internal audit practices for instance in the United States, European countries, Latin America,
Australia, India, Estonia, Sweden, and China, Bangladesh, Nigeria, Indonesia Jordan, Saudi
Arabia, Malaysia, Kenya just to name a few (Rahmatika 2014;Caratas et,al.2014; and
Shetwi,M.A.2014; Grabmann,E et al 2014, Akinteye , S.A 2015; Dominic S.B 2015; Gary F. 2015.
Research on the country specific approach on internal auditing indicates great variations in the
maturity of internal audit practices worldwide, which can be seen as the result of cultural
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differences, the economic development state of the country, and different regulations in corporate
governance, macroeconomic trend for globalization and the rapid pace of change of modern
business environment. Recent standards for listed companies in Bangladesh are to keep internal
control system and auditors although their responsibilities and authority are not well practiced.
Keeping organization’s activities within the lines which are set by the code of conduct of the
internal audit tasks by OECD has promulgated some core principles within the internal audit
functions. The major IAFs from the literatures are as-
a) Identifying and evaluating significant exposure to risk and contributing to the improvement
of Risk Management.
b) Evaluating the adequacy and effectiveness of controls encompassing the organization’s
governance, operations, and information system and promoting their continuous
improvements.
c) Evaluating the reliability and integrity of financial and operational information and
communicating appropriately.
d) Evaluating the safeguarding of assets.
e) Evaluating the compliance with laws, regulations, bylaws, and contracts.
f) Reviewing operations and programs to determine whether the results are in conformity
with the objectives and goals.
g) Reviewing adequate control criteria to evaluate the accomplishment of objectives and goals
making appropriate recommendations for the audit functions.
h) Promotion of appropriate ethical values, culture and ensuring effective performance
management and accountability.
i) Preventing and detecting fraud by sharing information with other internal and external
providers of assurance and consulting service.
Understanding Good Corporate Governance And Its Characteristics

The issue of corporate governance (CG) coincided with the development of the corporate
system in the UK, Europe, and the United States around the 1840s . Cadbury Report itself defines
CG as the system by which organizations are directed and controlled. Good governance in the
sense of containing two- the values that uphold the desire of the people, and the values that can
improve people's ability to achieve the national goal of self-reliance, sustainable development and
social justice; and the functional aspects of an efficient and effective government in the execution
of their duties to achieve these goals. Thus, good governance is based on four important principles:
Transparency, accountability, predictability and participation. Effective corporate governance
ensures that long-term strategic objectives and plans are set and the proper management structure
is in place to achieve these objectives by maintaining the organizations integrity, reputation, and
accountability to its relevant constituencies.
The OECD guidelines, Cadbury report and Bangladesh Securities Exchange Commission’s
Notification provides Corporate Governance Framework. This Framework does not provide any
rules regarding internal auditor’s role and responsibilities directly. Although the internal auditor
does not have direct corporate governance responsibility, rather provides a great check on the
governance system. The process of governance is focused on the development and maintenance of
adequate and effective internal audit to protect assets from loss or steal. In this context, corporate
governance is seen as a mechanism to monitor the actions, policies and decisions taken by
management to achieve business objectives.
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Measurement The Effectiveness Of Internal Audit Functions With Corporate Governance

The most common definition of effectiveness is as the level of success of the organization
in an effort to achieve the objectives and goals. Internal auditors operate in two Capacities First,
provide independent objective assessment on the appropriateness of the organization’s activities.
Second, act as catalysts for change, advising or advocating improvements to enhance the
organization’s structure and practices. Several studies have been conducted to find out the
effectiveness of audit function and its relationship with promoting of good governance in recent
times. Asalou,et al,(2016) assessed the effectiveness of internal auditing in public organizations in
Nigeria. Professional proficiency of internal auditors, quality of audit work, organizational
independence, career and advancement and top management support were the variables used to
determine internal audit effectiveness. Using multiple regressionmodelthey showed that internal
audit contributes positively to good governance in the public sector by effectively checking fraud
and fraudulent activities. In a related study by Zwalif, I.M.A (2015), examined the role of internal
control, internal audit enhancing the corporate governance in Jordan. Employing t-test, the
hypotheses results showed that internal audit, internal control and organizational commitment had
significant relationship with good governance. Rahmatika (2014) examined the impact of internal
audit function effectiveness on quality of financial reporting and its implications on good
governance in Local Government Provinces in Indonesia. Employing structural equation
modelling (SEM), the results showed that the effectiveness of the internal audit function had
significant effect on the quality of financial reporting; internal audit function had significant effect
on good governance application.
Barasa (2015) examined statistical analysis of the role of internal audit in promoting good
governance in public institutions in Kenya. Internal audit function was measured by risk
management, control process, and governanceprocess, while accountability, transparency,
effectiveness, efficiency and responsiveness measured good governance. Using correlation
analysis, the study showed that there was a strong significant relationship between internal audit
and good governance in public institutions. The empirical studies showed that much research on
the subject matter have been carried out even in different countries. In this study effectiveness of
internal audit functions is measured on the basis of six categories as independence, professional
competence, scope of work, examination process and management support and sustainability
support in Bangladesh context.
Understanding Business Sustainability And Its Relationship With Internal Audit Function
Business sustainability is a pro-active approach to ensure the long-term viability and
integrity of the business by optimizing resource needs, reducing environmental, energy or social
impacts, and managing resources for environmental friendly while not compromising profitability
or compromising the ability of future generations to meet their own needs- Gary F.(2015).
According The United Nations Global Compact(2015),the three key approaches and
strategies are shifting in terms of future sustainability i)Driving a company’s strategy for
developing sustainable products and services for the customers ii) Providing importance to
technology and innovation. ii) Increasing partnerships and collaboration with suppliers and
government. Internal auditors can play vital role in maintaining business sustainability by
rendering advisory services on sustainability programs, participating in committees established
for sustainability or aspects of sustainability, including tests of sustainability in the audit programs
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to examine the policies and procedures and by identifying and managing strategic and operational
risks and to create strategic advantages through its diversified functions Gaffoor,F.H(2014).
Dominic S.B.(2015)addressed the issues to consider in sustainability auditing:
a) Assist in the design/implementation of sustainability management systems;
b) Assist in creating sustainability awareness or training employees,
c) Budgeting the development resources utilization;
d) Perform supply chain and compliance audits;
e) Advise on the appointment of outside assessors; and
f) Coordinate audit activities by external assessors.
In this study, it is checked whether internal auditors can assist to evaluate all of these activities.
Methodology
In Bangladesh, DSE listed companies are chosen as a target population. The companies are
562; within 22 different sectors. No special sector is chosen due to understanding business
variation associated with risk and internal audit functions and the necessity to ensure corporate
governance system for satisfying economic and social needs. In this study, non probability
sampling has been chosen due to fulfill the purpose. Total 50 companies have been chosen for the
study and one survey conducted for each company. The target respondents were member of audit
committee, financial manger, head of accounts department and internal auditors of those
companies.
Data were collected using a questionnaire consisting of two parts: The first part aimed to
identify the position ofthe respondent and their socio demographic characteristics, while the
second focused on the functional effectiveness in internal auditing. A Likert five-point scale was
used to examine participants' responses to questionnaire statements.
This study includes two main aspects: firstly, effectiveness of internal audit function which
was measured by independence of internal audit system (INDP), professional competency
(COMP), scope of work (WORK), examination process (EXAM), and management support
(MSUP) and Sustainability support (SS) ability. Secondly, good governance (GOV) which is
measured by fairness, transparency accountability and responsibility tested by developing
hypotheses.
The main hypothesis is
H1: The effectiveness of internal audit functions enhances the pillars of corporate governance.
H1/1: The commitment to independence enhances the pillars of corporate governance.
H1/2: The commitment to professional competency enhances the pillars of corporate governance.
H1/3: The commitment to wider scope of work enhances the pillars of corporate governance.
H1/4: The commitment to efficient examination process enhances the pillars of corporate
governance.
H1/5: The commitment to wider management support enhances the pillars of corporate
governance.
Statistical techniques were applied in the analysis by using the mean, median, percentage and
frequency. One sample t-test was applied to test the study hypotheses. Table 1 shows the
distribution of respondents according to the position and in percentage from the 50 sample
companies.
Table 1: Distribution of sample according to the position
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Positions Number of respondents Percentage

Member of audit committee 12 24
Financial manager 8 16
Head of accounts 12 24
Internal auditors 18 36
Total 50 100%
Data Analysis and Findings

Socio-demographic Characteristics of Respondents
The socio-demographic characteristics of the respondents captured in this study include gender,
age, academic andprofessional qualifications. The analysis in Table 2 showed that 84% of the
respondents were male, while only 16% were the female counterpart which it implies that more
males are involved in internal audit function in corporate sectors. Majority (30%) of the
respondents were in the age brackets of 36-40 years. This means young generation is coming
forward to this profession. This showed that majority of the respondents were mature and
knowledge to supply the relevant information. The analysis further showed that a very high
proportion (90%) of the respondents had postgraduate qualifications in MBA/ Masters, degree.
About 74% of the respondents are members of Institute of Chartered Accountant of Bangladesh
(ICAB), 10% are members of the Institute of Cost and Management Accountants of
Bangladesh(ICMAB) or other professional bodies and the remaining 16% do not have any
professional qualification degrees.
Table 2: Distribution of Respondents by socio Demographic Characteristics

Characteristics Classification Frequency Percentage
Gender Male 42 84
Female 8 16
Total 50 100
Age 35 years or under 10 20
36-40 15 30
41-45 10 20
46-50 10 20
51 years or above 5 10
Total 50 100
Highest Academic MBA 35 70
qualification MSC 10 20
Honors/BBA 5 10
Total 50 100
Professional CA/ACCA/FCA 37 74
Qualification CMA/CFA 5 10
NIL 8 16
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Total 50 100
Source : Survey result(2017)
Internal Audit Function In Listed Companies Of Bangladesh

The analysis in Table 3 showed the effectiveness of internal audit function (IAF) in listed
companies in Bangladesh. In terms of independence of internal audit system, all the respondents
agreed that the purpose and authority of internal audit in the organizations is clearly defined. about
71.14 % of the respondents agreed that internal auditors have full access to records and information
they need in conducting audits, they are free to choose any transaction or area of interest for audit,
and internal audit provides reports directly to the audit committee. However, a low proportion
(39.5%) of the respondents indicated that internal auditors are free to include audit findings intheir
audit report, audit findings in their audit reports accounts sometimes is very limited. Thus, the
internal audit system in the companies was not absolutelyindependent.
The analysis further showed that majority (over 74.86%) of the respondents indicated that
the scope of internal audit work includes checking adequacy of the auditees‘ record keeping when
appropriate, verifying accuracy of amounts infinancial records, reviewing information contained
in reports of operating departments, and assisting the managementby identifying risk exposures .
About 50.9 % of the respondents agreed that the scopeincludes performing audit of major fraud
cases. This revealed that the scope of internal audit work in the companies was comprehensive as
it covered the financial management, fraud prevention and detection, and risk assessment
andmanagement.
Considering professional competence, the analysis showed that 72.7 % of the respondents
agreed that internalaudit activities are conducted in accordance with recognized standards, and
internal auditors undertake continuousprofessional development activities. Majority of the
respondents 79.1% agreed that internal audit units or departments have appropriately qualified
staff whoPossess requisite capabilities as well as knowledge and skills in a variety of areas (beyond
accounting and finance). However, some respondents provide information regarding complex
issues is not deal greatly due to not having enough technological expertise of those areas. About
51.7% of the respondents indicated that internal audit faces the challenge of insufficient budget
tosuccessfully carry out its duties and training sessions. Thus, the professional competence of the
internal audit unit of the companies couldbe described as relatively high except for the challenge
of insufficient funds to fully execute its responsibilities.
In terms of examination process of the internal audit unit, more than 82.7% of the
respondents indicated that internalauditors systematically review the risk management process,
review compliance with laws and regulations as well asreview checking of budget implementation.
In addition, the examination process involves evaluating the keeping ofaccounting records, and
evaluating management’s efforts in the recovery of receivables, taxes & other collectables. The
evaluation process varies from the nature of risk, complexity and industry practices. Therefore, the
examination process was scientific and thorough.
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Table 3. Effectiveness of internal audit function in listed companies of Bangladesh (in %)

Independence of internal audit system SA A N D SD
The purpose and authority of internal audit is clearly 70 30 0.00 0.00 0.00
defined
Internal auditors have full access to records and 20.7 48.3 24.1 0.00 6.9
information they need in conducting audits
Internal auditors feel free to include any audit findings in 5.0 34.5 31.5 18.5 10.5
their audit reports.
The internal audit unit is free to choose any transaction 14.5 60.4 7.5 9.7 7.9
or area of interest for audit
Internal audit provides reports directly to the Audit 27.6 44.7 21.5 6.2 0.00
committee
Overall 27.56 43.58 16.92 6.88 5.04
Scope of Work
Checking adequacy of the auditees record keeping when 55.5 40 4.5 0.00 0.00
appropriate
Verifying accuracy of amounts in financial records 59.5 13.8 13.8 0.00 12.9
Reviewing information contained in reports of operating 34.5 40.0 20.0 5.5 0.00
departments
Performing audit of major fraud cases 6.9 44.0 34.0 13.0 2.1
Assisting the management by identifying risk exposures 56.5 23.6 19.9 0.00 0.00
of the audit committee
Overall 42.58 32.28 18.44 3.7 3.00
Professional Competency
Audit activities are conducted in accordance with 34 48 0.00 18 0.00
recognized standards
Internal auditors undertake continuous professional 41 52.5 6.5 0.00 0.00
development activities
Audit Unit or department have appropriately qualified 25.8 34.8 30.5 8.9 0.00
staff
The internal audit staffs possess knowledge and skills in 34.3 44.8 6.9 14.0 0.00
a variety of areas
Internal audit obtains a sufficient budget to successfully 27.6 20.7 0.00 37.0 14.7
carry out its Duties
Overall 32.54 40.16 8.78 15.58 2.94
Examination Process
Auditors systematically reviews the risk management 47.0 27.0 20.7 5.3 0.00
process
Auditors systematically review compliance with laws 55.5 44.5 0.00 0.00 0.00
and regulations
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Auditors review checking of budget implementation 34.2 34.4 6.7 24.7

Evaluating keeping of accounting records (mistakes, 41.4 44.5 14.1 0.00 0.00
delays, etc.)
Evaluating management’s efforts to the recovery of 31.0 54.0 2.0 13.0 0.00
receivables, taxes and other collectables
Overall 41.82 40.88 8.70 8.60 0.00
Management Support
Management follow up recommendations made by the 24.6 34.8 6.9 23.7 10.0
internal audit unit
Adequate provision of material incentives (bonuses and 20.7 44.8 27.6 0.00 6.9
recompenses) for the internal audit staff
Internal auditors receive full cooperation and support 24.5 30.5 10.0 30.5 4.5
from management
Management regards internal audit as a value-adding 27.5 34.8 0.00 12.5 25.2
service to the organization
Overall 24.32 36.22 11.13 16.68 11.65
Sustainability Management Support
Assist in the design/implementation of sustainability 40 25 20 15 0.00
management systems;
Assist in creating sustainability awareness or training 20 30 25.5 15.5 9
employees;
Perform limited scope audits requested by top 30 26.6 27.6 9.5 6.3
management
Perform supply chain and compliance audit 45.0 25.0 10.0 5.0 15.0
Advise on the appointment and coordination of audit 30.2 23.0 20.5 26.3 0.00
activities by external assessors
Overall 33.04 25.92 20.72 14.26 6.06
Source: Based on Survey 2017
Management support is a pivotal factor that influences the effectiveness of the internal audit unit
in any company. The analysis further reveals that the top management of the companies adequately
supportedinternal audit activity as they follow up reports and recommendations made by the
internal audit unit and also provideadequate material incentives for internal audit staff in order to
motivate them. The overall agreed rate is 60.54%, which is the lower percentage among other
areas. Furthermore, management sometimesdisregardsinternal audit as a value-adding service to
the organization and thus, give full cooperation and support to internalauditors is insufficient. The
main reason may me in some cases to fulfill the company’s specific targets( political, unethical
financial), top management can go far from helping reviewing process or editing the detected risk
in auditing process.Management do not give due recognition to internal auditor’s reports and
recommendations properly in that situation.
In sustainable management support issue, approximate 58.96% of the respondents indicated that
internal auditors can systematically assist in designing, implementing sustainability management
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of its resources and relationship with other parties. Internal auditors perform sustainability
awareness, value chain, compliance report and coordination with external assessors.Thus the
effective internal audit function influences the business sustainability.
Hypotheses Testing
The following hypotheses were tested using t-test at 95% degrees of confidence. According to the
decision rule,the hypothesis would be accepted if the calculated (t) is larger than tabulated (t)
(Zikmund, 2000). The results ofthis test are presented in Table 4.
Table 4. T-Test results to examine the hypotheses of the study

Hypotheses Median value Calculated Tabulated-t Sig
–t
H1 0.7239 19.37 1.96 0.00
H1/1 0.7114 17.53 1.96 0.00
H1/2 0.7486 18.65 1.96 0.00
H1/3 0.727 18.78 1.96 0.00
H1/4 0.827 18.76 1.96 0.00
H1/5 0.6054 17.50 1.96 0.00
Main hypothesis (H1) and sub hypothesizes:
As indicated in table 4, the value of calculated (t) for the main hypothesis amounted to 19.37 with
thesignificance level of 0.00, which was larger than the tabulated (t) value at the level of
significance of 0.05. Theseresults proved that this hypothesis is accepted, which states that: The
commitment to effective internal audit functions enhances the pillars of corporate governance. The
major hypothesis is divided into five sub-hypotheses as follows. As the major hypothesis is
accepted all other sub hypothesizes are accepted at the significance level of 95%.
Conclusions
More specifically, when we examine the effectiveness of different dimensions of IAF, we
find that internal audit functions effectiveness depends largely on independence of audit system,
professional competency and extensive support from the top level management. The evidence from
the study showed that the internal audit system was not absolutely independent and professional
competence of the internal audit system was limited in meeting the challenges of complex business
environment due to insufficient funds to successfully carry out its duties. However, scope of
internal audit work was comprehensive, examination process was scientific and systematic, and
management gives adequate support to internal audit process in most of the cases. Thus, the
effectiveness of internal audit function is moderate and hypotheses provides effective internal audit
functions promote good corporate governance and business sustainability by enhancing fairness,
accountability , transparency and accountability of the listed companies in Bangladesh. This
internal audit creates value addition to the business process. To get more effective internal audit
function, the audit departments of the corporations needs to be versatile in attaining a big-picture,
proactive perspective on the entire organization-Value, integrated technologically, proficient to
mitigate risks, improve processes for evaluating business, technology, control and governance
challenges in their organizations.
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References
Akinteye , S.A.( 2015), “Corporate Governance Mechanism: An Investigation of the Internal
Audit Function Quality in Nigerian Listed Firms”, International Journal of Business and
Social Science Vol. 6, No. 1.
ANAO. (2014) ,”Better Practice Guide - Public Sector Governance: Strengthening Performance
through GoodGovernance. Canberra: Australian National Audit Office.
Asaolu, T. O. et.al. (2016),” Promoting Good Governance through Internal Audit Function: the
Nigerian Experience”, International Business Research, Vol.9,No.5, pp.196-204.
Barasa, K. S. (2015), “Statistical Analysis of the Role of Internal Audit in Promoting Good
Governance in PublicInstitutions in Kenya”, Journal of Investment and Management,
vol.4, no.1pp, 38-46.
Carataset,al. (2014), “Contemporary approach in internal auditing, Emerging Markets Queries in
Finance and Business local organization”, Procedia Economics and Finance vol.15,pp
530 – 537.
Chambers, A.D. (2014), “Guidance on internal audit's interface with regulators: An analysis and
appraisal of recent developments”, Managerial Auditing Journal, Vol. 29 No. 3, pp. 268–
283.
Dominic S.B.(2015), “Internal auditors perceptions of their role in environmental, social and
governance assurance and consulting”, Managerial Auditing Journal vol,30 no.1,pp 80-
111.
Gary F. and Andrea M.(2015),“The Association between Sustainability Governance
Characteristics and the Assurance of Corporate Sustainability Reports”, AUDITING: A
Journal of Practice & Theory ,vol.34, no.1, pp163-198.
Gaffoor ,F.H.(2014), “Internal Audit Role in Modern Corporate Governance and Business
Sustainability, IUP Journal of Corporate Governance, Vol. 12 No. 4, pp. 17–21.
Grabmann,E. et, al. (2014), “ Impact Factors on the Development of Internal Auditing in the 21st
Century”,ACRN Journal of Finance and Risk Perspectives Vol. 3, Issue 3, p. 67 – 80.
Monday, J. U., &Aladeraji, O. K. (2015), “ Strategic Management and Corporate Performance:
A Resource-BasedApproach”. The Journal of Humanities and Social sciences,
vol.2,issue.1, pp15-32.
Rahmatika,D.N (2014), “ The Impact of Internal Audit Function Effectiveness on Quality of
Financial Reporting and its Implications on Good Government Governance Research on
Local Government Indonesia “, Research Journal of Finance and Accounting,Vol.5,
No.18, pp.64-75.
Reding, K. F. et al. (2013), “ Internal Auditing, 3rd edition. The Institute of Internal Auditors
Research Foundation. Altamonte Springs, Florida.
Transparency International Bangladesh (TIB2017), “Tripartite partnership among the government,
mass media and citizens can contribute to good governance as enshrined in SDG 2016.
Zwyalif, I.M.A.(2015), “The Role of Internal Control in Enhancing Corporate Governance:
Evidence From Jordan”, International Journal of Business and Managemennt, Vol.10,
No.7,pp.57-66
152
Proceeding: International Business Management Conference (IBMC 2017)3-4 December 2017,
Adya Hotel Langkawi, Kedah, Malaysia
ISBN: 978-967-14841-4-2
THE ROLE OF THE SPECIAL EVENT IN DESTINATION MARKETING
Thi Thong Nhat Nguyen1

Email: thongnhat108@gmail.com1
of Economics – The University of Danang – Vietnam

1University
_________________________________________________________________________________________________________
Abstract: Destination marketing is a effective tool to attract tourists and develop destinations.
Special events are the selection of destination management organization to develop the market and
increase the competitiveness of the destination. The image of the destination will be improved in
the perception of visitors through special events. The event plays a role as a destination promotion
factor, which is important for customers to select destinations, can generate trips to a region,
thereby delivering huge benefits to the destination. This article aims to clarify the role of the
special event in destination marketing and to provide destination marketing suggestions through
the special events.
Keywords: event, special event, marketing, marketing destination, destination management

______________________________________________________________________________
Introduction
Today festivals and special events are being viewed as a part of the travel product, special events
are considered an important component of the tourism industry and is perceived as an industry by
local governments that create it. Special events are considered an important factors in attracting
tourists of a tourism destination. Destination management organization have considered investing in
special events as a strategy for branding, enhancing the local image. Special events are organized to
create add
ed value for destinations, which play an important role in promoting tourism in a locality. The
event can bring prosperity to the economy, improve the life of communities, especially to create a
positive image and branding of destination. Thanks to the contribution of special events in
marketing, the destination becomes more attractive, increasing the ability to attract tourists; as a
result, there is a rise in the number of visitors coming back. The relationship between the special
event and the destination marketing is to create a locality that has its own identity. Special events
are like a strategy to make a difference for locality’s tourism products. The success in attracting
visitors by events has raised consumers’ awareness of the destination. Special events are organised
can have a multifaceted impact on destination marketing, which is a major advantage for locals in
attracting customers, especially when exploiting large-scale events. A great success for the
destination, so that marketing activities are enhanced, maximizing the benefits of destination.
Therefore, clarifying the role of the event in the Destination Markeing will help destination managers
identify strategies for the event to promote tourism development, enhance the competitive advantage
of the destination.
Definition Of Special Event

It can be said that there are many definitions of special events discussed by the authors on
different aspects of research. Differences are expressed through different approaches by the author
to define certain events, the definition of special events can flexibly to adapt to different situations.
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Goldblatt (2005) highlights that the special event is as an unique moment of event with rituals and
etiquette to meet specific needs. Getz (2008) states that the event is a temporary event that is either
planned or unplanned. To describe the difference between events outside the plan and in the plan,
events often include the word "special" to refer to the human factor. Therefore, a special event is a
one time occurrence or regular occurrence outside of a normal program, due to the human factor in
the planning and management. Special events are growing rapidly with a larger scale. Special events
take place, following the planned arrangements before and beyond the daily routine of the people.
Special events are always predetemined in space and time. Mostly, the attractions of the events are
not the same, and you have to be present to enjoy that unique experience, if you miss, you will lose
the opportunity.
According to McDonnell et al. (1999), special events can help the destination attract more
tourists, create compelling profiles for the destinations, position the destination in the travel market
and create a competitive marketing advantage. Special events are held once or regularly. This means,
a special event usually occurs outside of the program and normal activities (Getz, 1991). Jago &
Shaw (1998) also claims that "one occurrence or infrequency" is one of the most important event
attributes. Jago and Shaw (1998) propose six features of special events. According to them, special
events should: (a) attract tourists or develop tourism; (b) take place within a specified period, (c)
may take place once or regularly; ) to raise awareness about the region, (e) bring about social
experiences, and (f) take place outside of the ordinary. Events are considered to be national,
international or global (Getz, 2008).
According to the level of attraction of the events to tourism, they can be classified in three
categories:
1. Festivals and events which are held mainly for local residents and usually helped ofbyvolunteers
2. Regional and provincial events in which there may be asignificant attraction tourists
3. National and international events and they are the most attractive destinations. These events attract
national and international visitors, and can continue to enhance the prestige and attractiveness of
certain destinations. Unlike local events, the main goal of national and international events is to
increase the attraction of the destination as much as possible (Getz, 1991).
Destination Marketing With Special Events

Destination tourism marketing is not only a good tool to attract tourists, but also a mechanism to
achieve the overall development goals of the destination. Destination marketing is a bridge
connecting the destination and the potential customer, directly impact the decision to choose the
destination of the customer. Customers will be the beneficiaries of marketing activities by
experiencing high quality products and services with competitive prices. Today's travel destination
is not only a place to satisfy the needs of fun, entertainment, discovery of customers but also a
product that creates their class. This trend affirm the importance of destination marketing in creating
the level of tourism of the destination in the eyes of customers.
Destination marketing is also a key orientation for all tourism service company in designing
their marketing products, thereby creating a synchronized, professional and cost effective in the
effort to attract tourists.Many countries have used events to earn reputation, highlighting the
achievements of the nation, attracting visitors. Tourists can choose a destination to visit due to the
positive image of the destination or also because of attending an event held here.
According to Getz (2008), all events in a destination can be grouped according to two criteria:
the demand measured by the number of tourists, and the value measured by other tourism purposes,
such as media attention, image enhancement, development and sustainability. Getz has developed a
model for describing a catalog of events illustrating how different events have different needs and
values. The portfolio approach and the model mentioned are designed based on one basic principle.
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Almost all events have tourist and local value, but only some of them are able to generate enormous
tourist demand. Therefore, the hierarchy of events will be present within any destination, with most
of the events that have little or no direct tourist attraction, regardless of the type of event.
Accordingly, local and regional events which are at the lower part of the model cannot be of major
importance for the destination image, while hallmark and mega events, which are at the higher part,
can attract a lot of tourists and have large and long-term impact on the image and attractiveness of
the destination.
Figure 1: The portfolio approach (Getz,2008)
Current events can be considered as resources for the exploitation of destinations, which are
rooted in social and cultural perspectives (Getz, 2008). Destination management organization
(DMOs) approach the comprehensive investment portfolio to focus more on creating new events
and attracting targeted customers. The portfolio approach (Figure 1) is similar to how a company
evaluates its strategy and develops its product line and service. This goal is value oriented. DMOs
must decide what they want from the events (benefits) and how they measure the values. Measurable
values are development potential, market share, quality, image, community support, environment,
economic benefits, sustainability and relevance. The model introduced by Getz can help DMOs
assess existing event strategies and their values, and improve their portfolio in order to produce
suitable destination marketing strategiesto maximize the value of tourism Thismay have an impact
on customer needs.
The Role Of Special Event In Destination Marketing

Special events are important factors for inspiring interest in destinations, as the opportunity to
attract tourists. The effective of Destination Marketing will be improved based on the special events
and festivals held here. Events have important roles in Destination Marketing.
Firstly, special festivals and events are important factors to create unique tourism products to
attract customers; they are capable of promoting tourism development and is a catalyst for the
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development of the destination. Events are components of a destination, which can be classified
according to its attractiveness to tourism and has unlimited potential. The event is also referred to as
"public product" (Getz, 2010) because it can benefit the local community. Thanks to the events,
tourists can understand more about the cultural values of the locality; hence the number of visitors
will increase. Destination marketing through events aims to provide good means to enhance the
competitiveness of destinations (Y. Liu, C. Chen, 2007). Developing events impacts on the country's
economic growth, and this is also an attractive element for visitors to a tourist destination. At present,
more and more destinations are trying to find out the potential of events to achieve different
economic and tourism goals.
Secondly, festivals and special events are considered to be the key elements of the destination
image. Organizing a festival or special event is an effective way to position the destination brand,
improve marketing capabilities. Special events and festivals have a positive impact on the image of
the city that organizes the events and convey positive, unique images to the target audience. It has
the function of creating awareness among target customers about the image of cities, people
unconsciously form a kind of cognitive transformation between "events" and "cities" and have s a
compatibility when thinking about the hosting special events (Jago et al, 2003). Customer's
destination selection is related to festivals and special events. Festivals and special events not only
attract visitors but also appeal to them as well as indirectly promote the city's marketing. Special
events are, with increasing frequency, used by destination marketers to promote the brand of
destinations (Chalip & Costa, 2005). The event performs a function as a promotional element of the
destination, creating a positive image for customers to choose. (B.B. Esu, V. M-E Arrey, 2009). It
is therefore necessary to enhance the city's reputation through the positive effects of festivals and
special events in order to promote marketing.
Thirdly, each type of event will help meet the different objectives of tourism event development
and to achieve that, they need to approach the investment portfolio (Getz, 2008). The portfolio
approach is like a company strategically evaluates and develops product lines and services , this
goal is value oriented. The destination decides what they want from the event, what the desired
benefits are and how to measure its value. The destination develops its events according to its
portfolio approach by type, season and attractiveness to the travel market, and by doing so they will
achieve specific tourism value (S.Olobdžija, 2015). The main role of the portfolio approach is to
attract new visitors. The portfolio approach and model are all based on a fundamental principle.
Almost all tourist events have local value, but only some of them can create huge tourist needs.
Local and regional events that do not have great importance to destination images may not generate
demand, while national and international events of may attract a lot, having a strong and lasting
impact on the image and attraction of the destination
Fourth, festivals and special events are conducted as a good opportunity to build top projects to
promote destination development. To increase the ability to attract visitors and attend events, the
infrastructure is a prerequisite for customers to choose destinations and bring satisfaction to guests.
Many projects are invested to create a modern, synchronous and distinguished destination,
becoming a catalyst to bring customers to destination,the event held.
Fifth, the event creates the attraction of the locality in the destination marketing process. Events
contribute to increasing the ability to attract visitors, the average consumption, the length of stay
and affecting the return of visitors to a given destination. The events also have the potential to attract
tourists in off-season, increase the usability of the service and create more income from tourism.
The event is like a catalyst for urban renewal, enhancing the infrastructure and capacity of
destinations, nurturing a positive destination image, contributing to local marketing in general;
enriching the attractions of the region. Festivals and special events are designed to raise the
awareness of people about the destination, orienting the spiritual value of the destination. Cities use
festivals and special events as tools to attract the attention of target customers (Pike, 2004).
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Moreover, with events, cities can call for public attention in large scale. When the brand of events
are built branded properly, they have the potential to contribute to the attractiveness of the
destination in order to make the destination unique and even propagate to potential visitors.
Recommended Destination Marketing Through The Special Events

Firstly, destination managers should use events as a "tool" for tourism development at
destinations and apply them in the long run by a strategic approach, put them in the field of planning
and development in order to realize the full potential of the destination.
Secondly, it is important to view festival events as an important part of planning and developing
tourist destinations. Events can provide an opportunity for visitors to experience unique cultural,
social or recreational experiences.When assisting the tourism events, the government and the private
sector need to build and prepare technical facilities, thereby enhancing the attractiveness of the
tourist destination.
Third, along with the events and festivities being held, diversification of tourism products should
be encouraged to increase the ability to attract visitors to destinations. Visitors to a local event can
stay before and after the event. During this period, goods and services were sold, which affected the
diversification of local tourism products.
Fourth, the satisfaction of guests affecting the next event attendance, the image events affect
potential visitors must be captured, and especially, the event must consolidate and build brand image
of destination.
Fifth, the promotion of events in various forms must be strengthened, thereby highlighting the
distinguished features of destination, raising awareness about the destination. Simultaneously, the
value of the event in promoting a positive destination image, positioning in destination marketing
must be evaluated.
Conclusion
Special events are organized to create added value for destinations, which play an important role
in promoting tourism in a local area. The event can bring prosperity to the economy, improve the
lives of local communities, especially to create a positive image of destination and branding
destination. Thanks to the contribution of events in Marketing that make the destination more
attractive, having the ability to attract more visitors; the number of visitors coming back will increase
. Festivals and special events are important factors in creating unique tourism products to attract
visitors, promoting tourism development; they are also a catalyst to promote destination
development. Special events are considered to be not only a factor to create the the destination
image but also an important part in the marketing of the destination image. Held festivals and
special events are a good opportunity to build top projects to promote destination development.
Events create local appeal in the destination marketing process. Events are especially important in
Destination Marketing, so destination managers should use events as an effective “tool” for tourism
development, considering a festival event as an An important part of tourism destination planning
and development. It is important to diversify tourism products to increase the ability to attract visitors
to destinations, capturing visitor satisfaction affecting the attendance of the next event The event
image affects potential visitors. The promotion of the event in various forms must be intensified,
thereby highlighting the distinguished features of the destination , raising the awareness among
customers about the destination
References
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[1] Chalip, L., & Costa, C. A. (2005). Sport event tourism and the destination brand: Towards a
general theory. Sport in Society, 8(2), 218-237
[2] B.B. Esu, V. M-E Arrey (2009), Tourists’ Satisfaction with Cultural Tourism Festival: a Case
Study of Calabar Carnival Festival, Nigeria, International Journal of Business and Management, Vol
4, No 3 (2009)
[3] Getz (1991), Festivals, Special Events, and Tourism, Van Nostrand Reinhold
[4] Getz (2008), Event tourism: Definition, evolution, and research, Tourism Management Vol.29,
No.1, (2008), 403-428
[5] Getz (2010), The nature and scope of festival studies, International Journal of Event
Management Research Volume 5, Number 1, 2010
[6] Jago & Shaw (1998), Special Events: A Conceptual and Definitional Framework, Festival
Management and Event Tourism, Volume 5, Numbers 1-2, 1998, pp. 21-32(12)
[7] Jago et al (2003), Building events into destination branding: Insights from experts. Event
Management, 8 (1), 3-14.
[8] Y. Liu, C. Chen (2007), The effects of festivals and special events on city image design, Front.
Archit. Civ. Eng. China 2007, 1(2): 255–259
[9] McDonnell et al. (1999), Festival and Special event management, 5th, Wiley, Australia
[10] S.Oklobdžija, 2015, The role of events in tourism development, BizInfo Journal Year 2015,
Volume 6, Number 2, pp. 83-97
[11] Pike, S., & Ryan, C. (2004), Destination Positioning Analysis Through a Comparison of
Cognitive, Affective, and Conative Perceptions, Journal of Travel Research. 42(4): 333-342
158
Proceeding: International Business Management Conference (IBMC 2017)3-4
December 2017, Adya Hotel Langkawi, Kedah, Malaysia
ISBN: 978-967-14841-4-2
TAX PAYER’S OBLIGATION TO PAY ZAKAT IN SELANGOR
Sahaida Laily Md Hashim1

Ainul Fajrina Leha1
1
Department of Finance & Economics
1
Universiti Tenaga Nasional Sultan Haji Ahmad Shah Campus, Muadzam Shah
__________________________________________________________________________________________
Abstract: Zakat is a spiritual act by which the obligation of a Muslims and as expression of
showing concern to less fortunate or needy members of the society, while tax is a requirement of
secular law. Paying zakat on employment income urged by Shariah and the concept of zakat is
to assist the poor and those who are in need. The aims of this study is to investigate the tax
payer’s obligation to pay zakat on employment income with attitude, knowledge of zakat and
satisfaction of zakat authority (Majlis Agama Islam Selangor). Data was collected by using
questionnaire which adopted from previous researchers. This study explores the relationship
between theories of planned behavior, attitude theory and contingency theory with tax payer
obligation on paying zakat on employment income, besides the impact of those variables.
Reliability test, descriptive statistics test, Spearman’s test and OLS test were carried out. The
findings from the study shown a relationship between the independent variables and dependent
variable and attitude theory found to be the most significant factor that give impacts on the tax
payers.
Keywork: Tax Payer, Zakat, Atitude, knowledge, Statisfaction With Zakat Authority.
____________________________________________________________________________
Introduction
Zakat is one of the five pillars of Islam and it means both ‘purification’ and ‘growth’.
Whereby zakat is declare as the third pillar in Sunnah as well as in Quran (Dr Yusuf al Qardawi).
It also stated in the Quran that terms such as sadaqat carry the meaning of giving and of charity.
It mean that an individual wealth for the needy and the poor. According to Jabatan Kemajuan
Islam Malaysia (2009), there are various types of zakat such as zakat on savings, zakat on
business, zakat on EPF, zakat on crops, zakat on wages, zakat on shares and zakat on silver and
gold.
According to Alias et al., (2011), the researcher also states that zakat also helping
educating and preventing the individual Muslim form being materialistic. They stated that zakat
is derived from the root word in Arabic. It carries the meaning of “that which purifies” and “that
which fosters”. Besides that, it also carries another meaning of ‘increase’ and ‘virtue’, as well
as ‘giving’. Therefore, the act of paying zakat helps to purifies ones wealth and also help to
gain blessing from the Allah. Apart from that, Sapingi, Ahmad & Mohamad (2011) indicate
that it also prevent the receipt of zakat from being jealousy, envy and angry with wealth of the
rich individual. A study done by Kaslam (2007), mentioned the zakat al mal is being paid only
by Muslims who does taxable own exceeds a threshold called nisab. The nisab is calculated
based on the condition of the wealth held for one year by the lunar calendar and nisab is
calculated at the end. Zakat al mal must be paid by an individual Muslim owned wealth by
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virtue of its legitimate owner profession of Islam. It is imperative that Muslims know exactly
how much zakat they owe. Imam Shafie, Hambali, Hanafi and Maliki the four leading Muslim
Jurists have explained in detail the rules relating to zakat payment. Besides the four leading
Muslim Jurist, Yusof al Qardawi had written a recent book named Fiquh Az Zakat as a
contemporary authentic references for practising zakat in the Muslim State. Zakat payment by
Muslims cannot be used for building, bury the deceased or to clear the debt of the deceased.
According to Azman, Mohammad & Syed Mohd Najib (2012), offering money and goods to
the needy and poor members in society will contribute to the development of the economy. This
is because the resources collected from zakat payment are distributed to the poor and needy
member of the society. Therefore, if the zakat system in Malaysia is managed efficiently and
effectively, it will definitely have a positive effect on the socio-economic positions. Mahyuddin
& Abdullah (2011) stated that there are mainly two forms of zakat distribution which is to
support and help the recipient sustain themselves in the form of capital, tools and equipment
and direct financial for those who are not productive. Zakat distribution is given to them because
they are not able to work. Thus, it helps them to run activities that can support their living and
help to pull them out of poverty.
Muslims today have surprisingly low level of education and understanding on zakat.
Most of them have minimum knowledge on the information about zakat. Besides that, Abdul
Aziz & Abdullah (2015) indicated that most of the Muslims can be proud that there is an
increase in the amount of zakat collected each year. However in reality the situation is not as
idealistic as the nation’s economic strength today. Apart from that, Wahid, Ahmad & Mohd
Noor (2006) also indicated that those who pay income taxes do not necessarily pay zakat on
income although he amount of zakat to be paid is relatively lower compare to the amount of to
be paid. Thus, no matter how good the system is developed, an institution is considered as
inefficient if it could not cater the problems and need of the society especially the poor and
needy. A number of issues and problems need to be encounter, in order to empower zakat
institutions in Malaysia.
This paper is intends to identify the relationship between attitude, knowledge of zakat
and satisfaction with zakat authority (MAIS) and tax payer obligation of paying zakat on
employment income.
This study was design to study the relationship between attitudes, knowledge of zakat and
satisfaction with zakat authority on the obligation of tax payers to pay zakat in Selangor. It will
provide some contribution and will be useful for future benefit to promote eligible Muslim tax
payer to pay zakat on employment income. Thus, it can increase the amount of zakat collection
in the state of Selangor. Besides that, the findings from this study will help the zakat authority
to invent other effective solution or programme to encourage the eligible Muslim employee’s
obligation to pay zakat on employment income.
Literature Review
Zakat is compulsory on Muslims, provided they meet certain criteria and some
conditions. Any Muslims possessed the minimum amount of wealth (Nisab) that one must have
before zakat is payable for one whole year is bound to pay zakat on that wealth. The literal
meaning of zakat is to “cleanse” or “purification”. Zakat is not only means by purify one’s
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wealth but it also as spiritual purification which serves as a means to draw an individual closer
to the creator. To acknowledge that everything we own belongs to Allah SWT and to work
towards the betterment of the Muslim Ummah. Prophet Muhammad said “whoever pays the
zakat on his wealth will have its evil removed from him” (Ibn Khuzaimah at- Tabaraani). This
mentioned how Zakat means of connection between the person and Allah SWT.
Attitude
Attitude also can be define which some level to which some person has an evaluation on a
good or poor to a particular behaviour. The decision to give zakat or not to give zakat is depends
on the person control which was concluded by Halizah, Kasumalinda, Agoos Munalis (2011).
Nurul et al., (2012) argued that attitude is psychological tendency that shown in the degree of
favour or disfavour to an individual. Every individual in the form of evaluation must have
psychological tendency present in them. One from that can determine the attitude is based on
one behavioural belief that involve in a valuation of the cost or possible outcome of a particular
behaviour. On the other hand, Zainol & Kamil (2007) highlighted that attitude towards pay
zakat influence employee intention to pay zakat. Results of these studies on this research
encourage expecting that attitude also play a role in compliance behaviour in employment zakat.
Thus, a positive attitude towards zakat will strengthen their compliance behaviour, while
negative attitude will inhibit the behaviour.
Knowledge of Zakat
Ahmad, Md Nor & Daud (2011) found knowledge is one of factors affecting compliance to
pay Zakat. In the study of Ram (2010) identified two factors internal and external which are
significant factor that influence the intention to pay Zakat. The level of knowledge is
categorized under external factors. The internal factors (level of knowledge) have significant
influence towards intention of Zakat payment. Thus, this study will test both the internal and
external factors as gender, age of the individual, marital status, knowledge of religion, level of
education, type of job, income and so on.
Satisfaction with Zakat Satisfaction

Sanep, Hairunnizam & Adnan (2005) indicated organizational factor play important role in
paying zakat. Besides, researchers determined the public opinion on distribution of zakat and
its effect on the payment of zakat in formal institution, in the study he found there are some
negatives cases occur and the distribution factors were unhappy the zakat payer, besides the
study also prove that the obligation to pay zakat in influenced by society perception of the
distribution zakat. If the society has good perception towards zakat centre it will increase the
payment of zakat to the zakat collection centre and vice versa. The confidence and trust of the
community should be given to zakat institution in order to enhance the third pillar of Islam and
improve the effectiveness of the collection and distribution of zakat to perform effectively and
efficiently. In addition, they also proved that the attitude of compliance zakat influenced by
society perception of the distribution of zakat. This means the community satisfaction plays a
vital role in determining the payment of zakat, the higher the satisfaction of individuals in the
management of zakat centre the higher the compliance of individual to pay zakat. Therefore,
the aspect of zakat distribution is an aspect that needs to be concern by zakat centre.
Methodology
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The survey is conducted in Selangor by distributing questionnaires among tax payers

through convenience sampling with 250 respondents and only 197 were collected. Variables of
attitude (five questions), knowledge of zakat (five questions), satisfaction with zakat authority
(five questions) and intention to pay zakat on employment income (five questions) were
measured. All the question used a two-point Likert Scale in which indicate ’4’ and ‘5’, whereby,
‘4’ indicates agree and ‘5’ indicates disagree. Correlation and regression analysis were used to
analyse the data.
Model Equation
Y = α + β (ATT) + β (KNW) + β (SAT) + ε
Where:
Y = Tax Payers’ Obligation
α = Constant
β = Coefficient
ATT = Attitude
KNW = Knowledge of Zakat
SAT = Satisfaction of Zakat Authority
ε = Error
Research Hypothesis
Correlation of Coefficient
H0 : There is no significant relationship between the factors and tax payers’ obligation.
H1 : There is a significant relationship between the factors and tax payers’ obligation.
Multiple Linear Regression

H0 : There is no significant impact of the factors on the tax payers’ obligation.
H1 : There is a significant impact of the factors on the tax payers’ obligation.
Results & Findings

Correlation Analysis
Table 4.1: Correlation Result

ATT KNW SAT OBL
Spearman’s Rho ATT Correlation Coefficient 1.000 .710** .869** .915**
Sig. (2-tailed) . .000 .000 .000
N 197 197 197 197
**
KNW Correlation Coefficient .710 1.000 .589 .655**
**
Sig. (2-tailed) .000 . .000 .000

N 197 197 197 197
SAT Correlation Coefficient .869** .589** 1.000 .765**
Sig. (2-tailed) .000 .000 . .000
N 197 197 197 197
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OBL Correlation Coefficient .915** .655** .765** 1.000

Sig. (2-tailed) .000 .000 .000 .
N 197 197 197 197
**. Correlation is significant at the 0.01 level (2-tailed).
Based on the table above, all the independent variables show a positive correlation to the
dependent variable. Attitude of tax payers found to have a very high correlation with 91.5%,
whereas knowledge of zakat and satisfaction with zakat authority have moderate and high
correlation respectively. All of them indicate a positive relationship towards obligation to pay
zakat in Selangor.
Regression Analysis
Table 4.2: Regression Result

Model Unstandardized Standardized
B Std. Beta t Sig.
Error
1 (Constant) 2.441 .857 2.847 .005
ATT .998 .070 .998 14.212 .000
KNW -.006 .051 -.005 -.115 .909
SAT -.098 .061 -.096 -1.601 .111
R-Squared 0.832
Adjusted R-Squared 0.829
Sig. 0.000
a. Dependent Variable: OBL
Researchers found that 83.2% of the variation of obligation to pay zakat was significantly
explained by the three predictable variables of attitude, knowledge of zakat payers and
satisfaction of authority. The remaining of 16.8% of the variation was explained by other
possible variables that are not tested in this study. The result implies that the model is fitted and
all the independent variables are significantly have relationship with dependent variables. Only
attitude of tax payers is significantly affected the obligation to pay zakat in Selangor since the
significance value is 0.000, fall below 0.05. The other independent variables found to be
insignificant to the dependent variables.
Y = 2.441 + 0.998 (ATT) – 0.006 (KNW) – 0.098 (SAT) + ε

Holding other independent variable are constant, 1 unit increase X1 (attitude) would
increase Y by 0.998 units. There is a positively strong and significant relationship between
attitude and obligation of paying zakat by tax payer, the attitude has shown that there is a
positive relationship between the two variables. The finding support by the argument made by
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Abdul Aziz & Abdullah (2015), where attitude working provide the perception and
interpretation of the life to assists in focusing or information relevant to particular trust
information that can help confirm existing beliefs. Most of the studies have been conducted an
attitudes in various field by using decomposition approach and this studies identified a few
factors that contributed to the attitude construct. Moreover, Zainol and Kamil (2007) have
proven that attitude toward zakat on employment income. Furthermore, the findings shows that
attitude towards pay zakat on employment income is significant relationship with obligation to
pay zakat on employment income. Thus Hypothesis 1 accepted.
Holding other independent variable are constant, 1 unit increase X2(Knowledge of zakat)
would decrease Y by -0.006 units. The relationship between knowledge of zakat and obligation
of paying zakat tax payer has been experienced. The results shows that there is a positive
relationship between the two variables (r=0.655, n=197, p=0.000). The relationship is positive
with strong relationship. It is been proven that another individual internal factor that is expected
to affect the obligation to pay zakat is knowledge of zakat. These finding are also consistent
with the factor understanding and knowledge of zakat, have an impact on the payment of zakat
said by Abu Bakar (2002). In the study of Ram (2010) identifies two factors internal and
external which significant factor that influence the obligation to pay zakat. Adherence to a
particular law of regulation is associated with on internal factor and knowledge is a prerequisite
for doing behaviour. The internal factor (level of knowledge) determines the extent they have
control over the compliance behaviour of zakat. Hence, Hypothesis 2 is also accepted.
Holding other independent variable are constant, 1 unit increase X3 (satisfaction of zakat
authority) would increase Y by -0.098 units. The relationship between satisfaction of zakat and
obligation of tax payer paying zakat has been experienced. The results shows that there is
appositive relationship between the two variables (r=0.765, n=197, p=0.000). The relationship
is positive with strong relationship. Although the administration of zakat has undergone many
improvements in terms of infrastructure, human capital, delivery system and governance
transparency, there are still issues that need to be tackled to ensure that the administration of
zakat is moving on the right track. No matter how good the system is developed, if it could not
cater to the needs of the community especially the poor and needy, such institution is considered
as inefficient. In order to empower zakat institutions in Malaysia a number of issues need to be
addressed (Alias et al., 2011). On the other hand, this finding is supported by Mustaffha (2007)
also agree that zakat collector play a significant role. No much of research is carried out on the
leave of satisfaction and public confidence in the satisfaction of zakat. The community plays
important role in determining of payment of zakat. Therefore, Hypothesis 3 is accepted.
Conclusion and Recommendation

As for conclusion, the hypothesis has been tested and the results will be compared to the
previous research. In the current study, all the correlation between attitudes, knowledge of
zakat, satisfaction of zakat authority and obligation to pay zakat on employment income is
significant and has a positive relationship. The present study has found that a positive attitude
was important in influencing tax payers to develop obligation to pay zakat on employment
income, an appropriate approach should be carried out to develop such a favourable attitude
amongst tax payers. For instance, continuous and concerted efforts should be made to
disseminate relevant information via all forms of media, both electronic and printed. The zakat
authority should be more efficient in improving the awareness of the obligation of paying zakat
and how the collection can benefit the government and the nation as a whole.
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Here are some recommendations that can be made from the findings and result to obtain
through this research. Most important thing is tax payer should gather more knowledge on
zakat. To gain knowledge individual need to find a qualified teacher. The result is very useful
for zakat authority especially for Majlis Agama Islam Selangor (MAIS) to know the satisfaction
level of society towards them. Zakat authority can improve the zakat service that provided by
them to society especially for zakat payers and tax payers. This is because this group plays a
vital role in contributing to zakat collection in Selangor. Besides that, the zakat authorities need
to advertise the information on distribution of the zakat collection to the public.
This study only concentrate on certain variable they are indeed, more segment of the area
which for the research examples variable that are investigate or not enough as such will
recommend further future research should be conduct that looking into more area. Sample size
as used in this current study is only 300. To increase position of finding, the researcher needs
to increase sample size by reaching more respondents in the area for in order to get more
accurate findings and reliable conclusion. Besides that, future researcher can undertake a
nation-wide study in zakat compliance, which may help to improve zakat collection all over
Malaysia.
References
Abdul Aziz, M., & Abdullah , M. (2015). The Comparison Between Zakat For Income And
Income Tax: Perceptions Of Academician In The State Of Perak. Al Qimah AL
Mudhafah The Journal Of Management And Science, 1-5.
Abu Bakar, N. (2002). A Zakat Accounting Standard (ZAS) For Malaysian Companies. The
American Journal Of Islamic Social Science, 74-92.
Ahmad , S., Md Nor, N., & Daud, Z. (2011). Tax-Based Modeling Of Zakat Compliance. Jurnal
Ekonomi Malaysia, 101-108.
Alias, M., Mat, I., Zulkefli, Z., & Mohd Ramli, A. (2011). Zakat Institution in Malaysia. 3rd
INSANIAH-IRTI Langkawi Islamic Finance and Economics International Finance, (pp.
89-213).
Azman, A., Mohammad, H., & Syed Mohd Najib, S. (2012). Zakat Institutions In Malaysi:
Problems And Issues. GJAT, 35-41.
Halizah , M., Kasumalinda, A., & Agoos Munalis, T. (2011). Factors Influence Company
Towards Zakat Payment: An Exploratory Study. 1-8.
Jabatan Kemajuan Islam Malaysia. (2009). Keputusan Muzakarah Jawatankuasa Fatwa Majlis
Kebangsaan Bagi Hal Ehwal Ugama Islam Malaysia. Kuala Lumpur: Visual Print Sdn
Bhd.
Kaslam, S. (2007). Governing Zakat As A Social Institution: The Malaysian Perspective.
Persidangan Zakat Asia Tenggara . Padang Sumatera.
Mahyuddin, A., & Abdullah, A. (2011). Towards Achieving The Quality Of Life In The
Management Of Zakat Distribution To The Rightful Recipients (The Poor And Needy).
International Business And Social Science, 237-245.
Mustaffha, N. (2007). Zakat Disbursement Efficiency - A Comparative Study Of Zakat
Institutions In Malaysia. International Islamic University Malaysia.
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Nurul, H., Nova, R., Yosi, M., & Purnama, P. (2012). Analysis Of Attitudes, Subjective Norms,
And Behavioral Control On Muzakki's Intention To Pay Zakah. International Journal
Of Business And Social Science, 271-279.
Ram, A. (2010). Gelagat Kepatuhan Zakat Perniagaan Di Negeri Kedah. Universiti Utara
Malaysia, Sintok.
Sanep, A., Hairunnizam, W., & Adnan , M. (2005). Penswastaan Institusi Zakat Dan Kesannya
Terhadap Pembayaran Secara Formal Di Malaysia. Seminar Ekonomi Dan Kewangan
Islam.
Sapingi, R., Ahmad, N., & Mohamad, M. (2011). A Study On Zakah Employment Income:
Factors That Influencing Academics' Intention To Pay Zakah. 2nd International
Conference On BusinessAnd Economic Research, (pp. 2492-2507).
Wahid, H., Ahmad, S., & Mohd Noor, M. (2006). Kesedaran Membayar Zakat Pendapatan Di
Malaysia. Kumpulan Kajian Ekonomi Dan Perniagaan, Universiti Kebangsaan
Malaysia.
Zainol, B., & Kamil, M. (2007). The Role Of Attitude And Subjective Norm On Intention To
Comply Zakat On Employment Income. IkaZ International Journal Of Zakat, 113-134.
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A STUDY ON THE 6 P’s OF MARKETING MIX TOWARDS THE

ACCEPTANCE OF EQUITY FINANCING CONCEPT BY SMEs IN
SABAH
Rozita @ Uji Mohammed1
1
Universiti Teknologi MARA Sabah Branch
___________________________________________________________________________
Abstract: The marketing mix is a global medium in order for an organization to represent itself
through product, price, place and promotion. However, there are opinions that the fifth ‘P’
which is people and the sixth ‘P’ represents process are also important when it comes to
offering service. This paper focuses on the equity financing concept because its nature of
creation that has potential to help small and medium-sized enterprises (SMEs) to expand in
business ventures as compared to debt financing. None of the study done before in the area of
marketing that focusing on the equity financing. In 2017, based on a report issued by BNM, it
was recorded that in terms of demand rate, equity financing is still far below average from its
counterparts. A study needs to be done to confirm this scenario. Hence, this paper focuses on
three main objectives i.e. (i) to identify major components of banking choice factors that can
be turned into the 6 P’s marketing mix for local Islamic banks to market its equity financing;
(ii) to determine the most influential factors among the marketing mix that contributing to the
equity financing acceptance; and (iii) to analyse the relationship between the six components
of the marketing mix against the acceptance of equity financing concept among local SMEs in
Sabah. This empirical study brought together 350 SMEs in the Kota Kinabalu City Centre as
the respondents in gathering information about their banking choice factors towards the
acceptance of equity financing.
Keywords: Marketing Mix, Equity Financing, SMEs.

___________________________________________________________________________
Introduction
The marketing mix is a set of controllable, tactical marketing tools that a company uses
to produce a desired response from its target market. It consists of everything that a company
can do to influence demand for its product (Mars, 2014). As SMEs have a very unique and
different financial need as compared to retail customers, Islamic banks are advised to be more
pro-active and innovative in offering their Islamic banking financing products to the said group
of customers. Al-Harran (1993) and Mohammed (2015) claimed that less effective marketing
strategy has been identified as one of the reasons for the low acceptance of financial products
offered. Therefore, Islamic banks need to enhance their marketing strategy tactically and
strategically in order to capture larger market share among business customers. Equity
financing concept involves partnership (Mudharabah) and joint venture (Musharakah). Both
are still considered as a new practice in Malaysia. The majority of the establishments are small
and medium in size and depend too much on short-term and debt financing. This practice can
hamper the economic development and mitigate investment-like activities. Haron et al. (1994)
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claimed that it is essential to know the degree to which various product or service
characteristics are important and how these factors influence customers in the form of
marketing mix. This information is sorely needed before a bank comes up with a new or hybrid
product. Hence, it is considered timely to determine the marketing mix of the equity financing
for the SMEs market. Their possible acceptance can open doors to a banker-partner relationship
and make Islamic banks more enterprising in nature by becoming active partners for SMEs.
Problem Statement
This study has been prompted by two major issues. Firstly, equity financing is not widely
accepted by SMEs (Usmani, 1998; Samad and Hassan, 1999; Rammal, 2004; BNM, 2005;
Mohammed 2015). Most of Malaysian SMEs prefer short-term financing facilities such as
overdrafts and credit cards as the main types of credit facilities (Ariff, 1988; Census, 2005).
Based on the BNM statistics (BNM 2005; BNM 2017), more than 90 percent of the transactions
in the Malaysian Islamic banking market come from debt-based financing and the remaining 9
percent or even less are from the equity-based financing (refer to diagram 2.1).
Table 2.1 Islamic Financing by Concept as at July 2017 (million)

Financing Concept Total Percent Percent
Bai Bithaman Ajil 67,030.80 14.5 Debt-based financing
Ijarah 10,354.50 2.2 90.2
Ijarah Thumma Al-Bai 70,747.20 15.4
Murabahah 178,645.30 38.8
Istisna' 2,018.10 0.4
Others 86,960.90 18.9
Musyarakah 44,884.90 9.7 Equity financing
Mudharabah 66.2 0.0 9.8
Total financing 460,707.90 100
Source: BNM (2017)
Rosly and Abu Bakar (2003) and BNM (2017) claimed that the most common trend in
Islamic banking operations in Malaysia has been the application of debt financing such as
Murabahah, Bai Bithaman Ajil and Ijarah Thumma Al-Bai rather than the equity financing
(Mudarabah and Musharakah). The second issue is with regard to the marketing mix. The
marketing mix is seen as to uplift the existence of a product in the market. However, how many
studies have been done on the marketing mix for equity-based financing? Due to the nature of
financial services and the differences from tangible products, researchers in marketing
(Kushwaha and Agrawal, 2015) consider that the most appropriate mix of such services, are
the seven elements (P’s) i.e. product, price, place, promotion, people, process and physical
evidence. Since this study is only looking for the acceptance of equity-based financing and not
up to the ‘ijab qabul’ process or contract signing, so the last component i.e. the physical
evidence was not discussed. A study on partnership financing in two countries i.e. Indonesia
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and Malaysia, shows that banks with equity financing are more efficient than other banks
(Othman et al., 2017).
Literature Review
SMEs play an important role in an economy of a country and make a substantial
contribution to the economic growth. However in Malaysia, their contribution to the economy
is still disproportionately low, i.e. only 36.6 percent of gross domestic product (GDP) and 18.6
percent of the total export value as reported by SME Corp in 2016. By exploring equity
financing as the alternative way of doing business, it is believed that the business of SMEs
could be diversified to a large scale. Under this sub-topic, all variables which are categorized
as the dependent variable, including the acceptance of equity financing concept and the
independent variables which are product, price, place, promotion, people and process are
further defined.
Equity Financing Concept

Musharakah and Mudharabah are the equity-based concept. They are offered as the financial
alternative for debt-based financing. They are unique to Islamic finance. They in some sense,
distinguish the Islamic finance from the conventional one on the grounds of ethics and
efficiency. However, in reality, Islamic financial institutions are not engaged in equity
financing as they should. They prefer to engage in less risky activities (Borras, 2016).
Musharakah means a joint venture where two or more partners (mushariks) combine either
their capital or labour to take on a business venture, sharing the profits and enjoying similar
rights and liabilities (Nik Yusoff, 2002). Mudharabah is a profit sharing contract in which one
party (Rab al Maal) provides funds and the other or the managing trustee (Mudarib) provides
management expertise. Profits are shared between the parties or partners in a proportion agreed
in advance. Losses, if any, are the liability of the bank, and the trustee loses his share in the
expected profits.
Product
The main component of the marketing mix is the product. A product is the item offered for
sale. A product can be a service or an item or goods. It can be tangible or intangible. Every
product is made at a cost and each is sold at a price. For this reason, the marketing strategy
must be designed around products. For a financial product to be successful, it must highlight
the benefits/ qualities (Cetina, 2011) offered to the buyer/investor/partner/depositor. In case of
equity financing concept, the value cannot be seen, smelled or felt, so it can be difficult for a
customer to evaluate it. Hence, when buying a product, the customer needs to trust that
company and the person who sells the service. Furthermore, when it comes to Islamic products,
they need to be Shariah compliant which basically based on Al-Quran, As-Sunnah, Ijma’ and
Qiyas.
Price
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Another element of the marketing mix is price. Normally, the price that can be charged depends
on the market, the quality, the marketing and the segment that is targeted (Borras, 2017). Price
is the only element of the marketing mix that generates revenue for the company (Kotler, 2008).
However, for equity financing, a unique pricing concept is used which is based on ratios. Profit
loss sharing and profit sharing are applied by Musharakah and Mudharabah accordingly. Both
are based on actual profits earned from their business project(s). Pre-agreed ratios upon
establishment are set based on the contributions of capital and factors of production from both
parties/partners e.g. 70:30. Hence, it provides an alternative financing arrangement, which
replaces the practice of lending on interest. Islamic law prohibits interest-based banking. The
rationale of prohibition is based on the fact that it assures a fixed return to the bank while the
customer is left to bear the entire business risk.
Place
Traditional distribution channels cannot be used in financial services marketing. Discussing
placement or distribution of financial products, Catană (1999) emphasizes the role of
intermediaries in the marketing channel that could be implemented either offline i.e. through
branches and agencies, or online, via the internet for trading platform. Zineldin (1996) stated
that the bank delivery system is a combination of human resources, locations, and facilities
provided. Using an effective mix of these three is a vital aspect for developing a competitive
position in the marketplace. Turnbull (1983) studied medium and large-sized companies, and
found that corporate customers tend to choose to deal with foreign or overseas banks over the
local banks. Alternatively, smaller traders may be better served by branch offices. Rosenblatt,
et al. (1988) asserted two factors that influence the decision of corporate customers in
patronizing banking products and services i.e. better branching networks and bank staff
services. Based on the study, corporate customers preferred the bank to assign special officers
who had the most knowledge about their business operations.
Promotion
Hassan and Lewis (2007) contended that Islamic banks in Muslim countries should implement
their own unique marketing approach in order to reach distinct market segments. This is
because the implementation of Western marketing tools in an Islamic banking environment
was unsuccessful due to failure to recognize different cultural, priorities, lifestyles, and the role
of religion. In general, Islamic banks have not been proactive in their search of innovative
marketing strategies. Despite having a lot of opportunities, they remain practicing short-sighted
selling strategies such as focusing only on the high-income segment and neglecting other
segments. In order to woo more SME operators towards Islamic banking, Islamic banks have
to go out and do personal marketing in order to grasp an understanding of factors affecting the
attitudes of customers towards their specialized Islamic banking products (Edris and
Almahmeed, 1997; Liang et al., 2013).
People
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Tahir (2003) and Mohammed (2015) found that most of the staff, particularly at the bank
branch level, act passively with less promotion, innovation, and R&D due to being highly
dependent on well-known debt instruments. They entertain requests for financing rather than
going out and seeking investment avenues. As the competition in the banking industry is
becoming intense, Islamic banks should begin to make determined efforts to attract and retain
trade customers by offering specialized knowledge, expertise, product, and service. Thus, being
different from conventional banking practices is seen as essential in order to differentiate
Islamic banks from their counterparts. However, to further develop the Islamic financial service
industry into a mainstream business, policymakers, regulators, and market participants,
including the government, NGOs, trade associations, and the public must work together to
ensure that Islamic financial products receive an acceptance of global proportion.
Process
The process is part of the marketing mix that ensures the availability and quality of services in
order to balance supply and demand service (Yasanallah and Vahid, 2012). The challenge for
equity financing is its complicated process. The process really needs experts in handling it.
Many could not imagine if Islamic banks actively start offering the equity financing. It is
because banking staff should change their nature of work from just waiting for customers at
the front counters, but need to go out and becoming business partners to SMEs.
Scope of Study
For the purpose of staying focused and in line with the research objectives, a few points
that determined the scope of the study are highlighted:
a. SMEs. Only the owners of the SMEs or their financial managers were interviewed. The
enterprises must be registered and possess a valid business license from Kota Kinabalu
City Hall (KKCH). Only enterprises which conduct their businesses in premises,
whether rented or owned, were considered as respondents. So, all hawkers or petty
traders were excluded from the study.
b. The study covered 350 SMEs, which sprawled over 15 main strata in the Kota Kinabalu
City Centre, including Sinsuran, Kampung Air, Bandaran Berjaya, Lorong Dewan,
Jalan Pantai, Segama, Asia City, Pelabuhan, Centre Point, Api-Api Centre, Wisma
Merdeka, Wawasan Plaza, Gaya Centre, KK Plaza and Warisan Square.
Research Methodology and Analysis

Census (2016) claimed that the total number of SMEs in Sabah was 56,238 operators.
Unfortunately, no up-to-date and detailed data about the type or size of businesses, according
to the region have been recorded using the accessible database. Hence, the sampling plan was
designed based on the probability sampling technique, namely ‘Stratified Random Sampling’.
Therefore, the results obtained from the sampling tend to be more representative of the
population. The research made use of structured questions in the questionnaire for SMEs. For
the analysis, Babbie et al. (2003) prefer Gamma to interpret the strength (i.e. strong, moderate,
and low) of association between ordinal variables and it is a statistical measurement that
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examines the relationship between two variables without any interest of looking at their
relationship either as dependent variable (DV) or Independent variable (IV). In addition,
Somers’d is an extension of Gamma. It involves the measurement of two observed variables in
the ordinal scale that are classified as DV and IV (refer to Table 6.1). Table 5.1 shows the
guidelines for interpreting strength of association.
Table 5.1: Guidelines for Interpreting Strength of Association

No. Strength of Association Correlation Coefficient
1. None 0.00
2. Weak/Uninteresting association ± 0.01 to 0.09
3. Moderate/Worth nothing ± 0.10 to 0.29
4. Evidence of strong association/Extremely ± 0.30 to 0.99
interesting
5. Perfect/Strongest possible association ± 1.00
Source: Babbie et al. (2003)
This study conducted a bivariate analysis. This analysis can be done using a cross-tab,
which is applied in order to explain the association, strengths, and direction of two variables.
Generally, cross-tab refers to a table that organizes data by groups or classes. It is a joint
frequency distribution of observations on two sets of variables. The study uses the cross-tab to
determine whether there is an association between two variables i.e. IV and DV. The IV is
normally displayed across the top in the columns and the DV is displayed down on the left side
of the table in the rows. Besides, cross-tab also explains other important things about a
relationship between two variables, namely the strength of the association and in some cases,
the direction of association (Babbie et al., 2003).
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Table 6.1 The 6 P’s of Equity Financing Concept
Variable list Value
Value of
Section A of
Banking Choice Factors (Marketing Mix Somers’
Question Gamm
Elements) d
a
A1 Islamic banks offer a wide range A1_WIDE_RANGE_PRO 0.354 0.250
of financing products to small DUCT
and medium scale traders. ***Product
A2 Islamic banks offer more short- A2_MORE_ST_FIN 0.209 0.148
term financing (e.g. Overdraft) ***Product
than medium/long-term
financing (e.g. Joint venture).
A3 Islamic banks offer more A3_COMPETITIVE_CHA 0.362 0.257
competitive financing charges to RGE
small and medium scale traders ***Price
compared to other financial
institutions.
A4 Islamic banks have implemented A4_ADEQUATE_PROM 0.328 0.230
adequate promotion programs to OTION
capture the small and medium ***Promotion
scale traders’ market.
A5 Islamic banks possess high A5_HIGH_TECHNOLOG 0.305 0.216
technological banking facilities Y
to ease the banking process (e.g. ***Process
ATMs and on-line banking
services).
A6 The staff of Islamic banks are A6_KNOWLEDGEABLE 0.426 0.305
knowledgeable and very well- _TRAINED
trained. ***People
A7 The staff of Islamic banks are A7_FRIENDLY_HELPFU 0.319 0.225
friendly and helpful. L
***People
A8 The Islamic banks are competent A8_COMPETENT_GOO 0.302 0.217
in handling financing products D
and good at solving problems ***Process
(e.g. Late payment).
A9 The staff of Islamic banks are A9_STAFF_TRUSTWOR 0.324 0.228
trustworthy. THY
***People
A10 The Islamic banks take the A10_SEARCH_NEW_M 0.212 0.149
initiative to search for new ARKET
markets/ventures. ***Promotion
A11 Islamic banks have good A11_REPUTATION_IMA 0.528 0.380
reputation and image. GE
***Place
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A12 The financing process offered by A12_FAST_EFFICIENT 0.373 0.266

Islamic banks are fast and ***Process
efficient.
A13 Islamic banks have good social A13_SOCIAL_RELATIO 0.281 0.198
relationships with the public (e.g. NSHIP
Donation and welfare activities). ***Promotion
A14 Islamic banks have enough A14_ENOUGH_BRANC 0.328 0.232
branches to serve small and HES
medium scale traders’ financing ***Place
needs.
A15 Islamic banks are easily A15_EASILY_ACCESSI 0.254 0.179
accessible to the public (e.g. BLE
Logistic and parking lots). ***Place
A16 The office environment of A16_COMFORTABLE_E 0.396 0.281
Islamic banks is comfortable NVIRONMENT
(e.g. Layout and interior design). ***Place
A17 The ‘Musharakah’ term sounds A17_FAMILIAR_TERM 0.190 0.133
familiar. ***Product
A18 I accept the Islamic equity A18_ACCEPT_CONCEP
financing concept (i.e. T
Partnership/Joint Venture) based ***Process
on the maxim al-ghonm bi al- ***Dependent variable
ghorm whereby “the Islamic
bank and trader form a new
business and become partners
for a certain period of time. Both
are responsible for the capital
contribution/factors of
production and entitled to the
profit. They are also accountable
for any loss incurred by the
business (based on the pre-
agreed ratio). However, the
participation of the bank in
managing the business is
optional”.
A19 I will only accept the concept if A19_ACCEPT_IF_UNDE 0.586 0.436
the bank takes adequate RSTAND
measures to enhance my ***Process
understanding of the product.
A20 Both equity financings A20_EQUITY_FIN_DESI 0.612 0.453
(Partnership and Joint venture) GN
are designed for both Muslim and ***Product
non-Muslim traders.
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A21 The concept of a profit sharing A21_PLS_PRINCIPLE 0.671 0.524

ratio is better than charging a ***Price
specific interest.
A22 In my opinion, entering into a A22_NON_RISKY_FIN 0.392 0.284
partnership with an Islamic bank ***Process
will not put my business at risk.
Note: All factors of Section A are in the ordinal scales, so, since all values of measurements are
positive, the increase in IV will increase the DV and vice versa. In order to determine the
relationship between DV and IV, Somers’ d was used as the main indicator of the association.
Conclusion
Table 6.1 arranged all the 22 factors under Section A. Based on the arrangement, it can
be concluded that 16 factors under the measurement of Gamma produced strong values ranging
from 0.671 to 0.302, and they are classified as having strong relationships with factor
A18_ACCEPT_CONCEPT (refer to Table 6.1). In addition, Somers’d involves the
measurement of two observed variables in the ordinal scale that are classified as DV and IV.
Thus, A18_ACCEPT_CONCEPT is classified as DV against other observed variables that are
classified as IVs. As a result based on Table 6.1, the values of Somers’d were ranged from
0.524 to 0.133. However, from the range, the factor of A18_ACCEPT_CONCEPT (DV)
strongly depends only on five IVs as shown in table 6.2. The values are arranged in descending
order i.e. from 0.524 to 0.305. It can be concluded that future customers really care about (i)
price – the ratio of return gained from their business venture, (ii) product – the design of equity
financing offered to them, (iii) process – their understanding on the concept applied during the
process of ijab (offer), (iv) place – the reputation and image, which reflect the package offered
to the customers and people’s belief, and (v) people – the qualified staff in handling more
complicated and specialized financing.
Table 6.2 Factors With Strong Gamma And Somers’ D Values

No. Factors Value Of Value Of 6p’s
Gamma Somers’d Marketing
Mix
1. A21_Pls_ Principle 0.671 0.524 Price
2. A20_Equity_Fin_Design 0.612 0.453 Product
3. A19_Accept_If_Understand 0.586 0.436 Process
4. A11_Reputation_Image 0.528 0.380 Place
5. A6_Knowledgeable_Trained 0.426 0.305 People
6. A16_Comfortable_Environment 0.396 Place
7. A22_Non_Risky_Fin 0.392 Process
8. A12_Fast_Efficient 0.373 Moderate Process
9. A3_Competitive_Charge 0.362 Price
10. A1_Wide_Range_Product 0.354 Product
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11. A14_Enough_Branches 0.328 Place

12. A4_Adequate_Promotion 0.328 Promotion
13. A9_Staff_Trustworthy 0.324 People
14. A7_Friendly_Helpful 0.319 People
15. A5_High_Technology 0.305 Process
16. A8_Competent_Good 0.302 Process
Akhtar (1997) asserted that there are some important features that need to be considered when
executing equity financing, especially for small traders. One of the features is the venture has
to be done in a location within a distance of 0.5 to 4 kilometres from the bank for the purpose
of monitoring and following-up. In addition, Dauterive and Fok (2004) claimed that typically
the further the places from the capital city, the lesser the facilities provided. Hence, the city
becomes a preference in venturing capital as it is relatively difficult in monitoring and
overseeing ventures in rural areas, which are not yet fully developed in terms of their physical
and communication infrastructure. Outside the major cities, travelling in remote areas can
present challenges for the outsiders, especially for those with limited language capability.
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Haron, S.N., Norafifah, A. and Planisek, S.L. (1994). Bank Patronage Factors of Muslim and
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of Factors Contributing to the Acceptance of the Musharakah Financing Concept by
SMEs. PhD Thesis. Universiti Malaysia Sabah.
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Rammal, H.G. (2004). Financing Through Musharaka: Principle and Application. Business
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THE DETERMINANTS OF UNEMPLOYMENT IN MALAYSIA
Nur Azwani Mohd Azmin1

Salwani Affandi1
Nabilah Abdul Shukur 2
Nur Azliza Aumran1
1
Faculty Of Business And Management, Uitm Cawangan Terengganu.
2
Faculty Of Business And Management, Uitm Cawangan Negeri Sembilan.
___________________________________________________________________________
Abstract: High unemployment has became a serious issue in Malaysia which indicates the
labour resources are not being used efficiently and will create the bad impact to the country.
The aims of this paper is to study the determinants of unemployment in Malaysia and to find
out the most significant factor that contribute to this problem. The variables used in this paper
are economic growth, population and exchange rate. The findings reveal that all the variable
used has a positive significant relationship.
Keywords: Unemployment, Malaysia, Economic Growth.

___________________________________________________________________________
Introduction
Unemployment is a global issue in the recent years not only in developed countries but also
in developing countries with growing population. This problem arises when the resources in
the country are not fully utilised efficiently. Thus, it will lead to slower economic growth and
also other economic problem such as urban and rural poverty, education, higher crime rate and
social problems.
Unemployment also can be defined as the percentage of total labor force that is unemployed
and actively seeking job and willing to work. The world unemployment rate also fluctuates
from 1992 until 2016 where the highest rate is in 1999 at 6.598 percent. Data obtained from
CIA World Factbook as of January 1st, 2014, Malaysia ranked as the 179th among 181 countries
in the world.
Figure 1: Trend of world unemployment rate.
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Comprising the whole worlds, unemployment rate had rising and become expanded in the
year 1999 which is 6.598 % based on the whole worlds that has been shown at figure 1.1. It
was a highly rate to the all countries in the worlds. Besides, it can be seen that in the year 1999
the worlds having a serious issue of unemployment rate.
Figure 3: Unemployment rate in Malaysia.
The figure 3 shows that the unemployment rate in Malaysia and the high unemployment
rate are in 1986 in 8.6% of total labor force. The unemployment rate was highly in 1986 because
the Malaysia had crisis in 1986. In 2008, unemployment rate had slightly increased due to the
global economic crisis happened in the worldwide.
In addition, according to the Department Statistics of Malaysia, the number of unemployed
people climbed to 478 100 in December 2015 from 453 300 in the previous month. Then in the
latest year 2016 the unemployed person rising to 506 000. According to The Star, (2016)
worker’s retrenchments in March until April 2016 were dominated by the manufacturing sector.
Nonetheless, the higher the unemployment rate the slower the growth.
Based from Department of Statistics in Malaysia also job vacancies and job placement in
Peninsular Malaysia in 2012, it is revealed that job vacancies are increasing from year to year.
However, only a part of the workers fills these job vacancies. This shows that the
unemployment issue is happened because of the economics condition in the country such as
slower economic growth, restructuring of the economics and some of the companies shut down
due to the economic cycle.
There are some studies done by previous researchers on the factors influencing the
unemployment rate. Among the factors are economic growth, the quality of graduates, inflation
rate of the country, and etc. Thus in this study, the variables chosen are real GDP indicates the
economic growth, exchange rate, and population to determine the unemployment rate in
Malaysia. The questions are what are the relationship between the independent variables and
unemployment rate? And what is the most significant factor that determines the unemployment
rate.
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Hence, the study done to answer two objectives which are, to study the relationship between
the independent variables and dependent variable and to identify the most significant factor to
determine the unemployment rate.
Literature Review
Unemployment
In previous research, the researchers found more determinants affecting of the
unemployment rates. Websites from the Economywatch in October 2010 stated that the
unemployment rate will be contributed by rapid changes in technology, undulating business
cycles, changes in tastes as well as alterations in the climatic conditions. This may in turn lead
to decline in demand for certain services as well as products, attitude towards employers,
discriminating factors in the place of work (may include discrimination based on age, class,
ethnicity, colour, and race.
In additions, Aurangzeb & Asif (2013) has investigate the factors effecting unemployment
a cross country analysis. On their studies, they have chosen gross domestic product, exchange
rates, inflation and population has their macroeconomic variables. These findings of their
results were all significant impact of all variables and they are using regression analysis for
their studies. As indicated by Tello (2015) study on the determinants of unemployment rate in
selected Asian also has choose to use real GDP, inflation rate, population, real interest rate,
foreign direct investment, real wage, and literacy rate as independent variables.
For their result, gross domestic product, inflation, real interest rate and real wage are
negatively associated with unemployment rate while for the population is positive relationship
with unemployment rate. Besides, the research from Noor, Nor, & Ghani (2007) study on the
relationship between output and unemployment in Malaysia show that negative relationship
between output and unemployment. This is because they are use Okun law has stated that
negative relationship between movements of unemployment rate and real GDP can be
determined. Besides, From the above statements, this study chooses to used gross domestic
product, population and exchange rates as independent variables to examine the determinants
of unemployment rate.
Unemployment Rate And Gross Domestic Product

Gross domestic product can be defining as annual growth in the gross domestic product of
a country. Besides, Aurangzeb & Asif (2013) has indicates that on their study towards factor
effecting unemployment in three countries which is Pakistan, China and India. These variables
are selected was inflation, gross domestic product, exchange rate and population. The result of
regression analysis has concluded that Gross Domestic Product and unemployment rate of
Pakistan showed positive relation. This is because they stated that the level of poverty and
underutilization of foreign investment.
Khan, Khattak and Hussain (2012) investigated the inter-relationship of GDP growth and
unemployment in Pakistan. They used time series data from 1960 to 2005. They also used the
Augmented Dickey-Fuller (ADF) test and the results were stationary at first difference. Then
they used the Johansen Co-integration test. Their results also showed that GDP in the long run
had a negative relationship with unemployment.
The study from Farzad and Stacey (2013) study an Empirical Analysis of the Relationship
between GDP and Unemployment in the case of United States. The researcher used twenty-
five years of quarterly U.S. data from 1977-2001 and applying the method of Dicker-Fuller
Test. In their study, there is an empirical analysis of the controversial relationship between GDP
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and unemployment. Following a review of recent studies in the area, twenty- five years of
quarterly U.S. data and empirically explored the correlation between unemployment rate and
GDP. The result shows a strong negative relationship does exist between the two variables and
found that unemployment rate Granger causes GDP.
The previous study from Jaradat (2013) examined the impact of unemployment and
inflation on Jordanian GDP using time series data from 2000 to 2010. He used the OLS method
to estimate his model, and the result showed that increase in inflation by 0.906% raised GDP
by 1%. The results further showed that a decrease in unemployment by 0.697% increased GDP
by 1%. The findings were concluded that GDP and unemployment have negative significant
relationship, but GDP and inflation have a strong positive significant relationship.
Unemployment Rate And Population

Population also is one of the variables to determine the unemployment. The study that
indicated from Flaim (1990) examined the population changes and unemployment rate for baby
boomers. He studied population changes and changes in rates of unemployment covering period
from 1960 to 1990. The results explored that unemployment rate had an upward trend in 1960
and 1970 and the reason was the growing rate of population and this rate had a fall in the decade
of 1980. There results confirmed that changes in age and population have a big impact on the
rate of unemployment.
A previous study from Aurangzeb & Asif (2013) has investigates macroeconomic
determinants of the unemployment for Pakistan, China and India. The variables are being used
is inflation, gross domestic product, exchange rate and the population. The result shown on the
population also showed positive impact on the unemployment rate. It explains that when
population grows unemployment rate is increased too.
Unemployment Rate And Exchange Rate

Exchange rate refers to the rate of one currency that will be exchanged for other currencies.
Besides, exchange rate also showed the significant impact on the unemployment rate based on
the study by Berument et al. (2008) studied that how macroeconomic policy shocks affect the
unemployment in Turkey for nine sectors. For this purpose, quarterly data from period 1988 to
2004 was collected. Vector Autoregressive (VAR) technique was used on selected data. Shocks
in real GDP, prices, exchange rate, bank interest rates, money supply and unemployment were
selected as variables. The results disclosed that positive income shocks and positive money
shocks leads to a decrease in unemployment and showed that positive interest rate shocks lead
to increase the unemployment.
Besides, the research from Aurangzeb & Asif (2013) which is factors effecting
unemployment has using inflation, gross domestic product, exchange rates and population on
their variables. The period of their study from 1980 to 2009. The results of analysis regression
show that significant impact to all variables.
Methodology
Theoretical Framework
ln UNMt = β0 + β1 GDPt + β2 ln POPt + β3 EXCt + εit

Equation 1
where ln denotes the natural logarithm and ε is the error term. UNM is the unemployed person
(thousand), POP is the population (15 – 64 years), EXC is the exchange rate (RM/USD) and
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GDP is real gross domestic product in percentage. The sign β1 is expected to be positive, β2 and
β3 are expected to be negative.
Descriptive statistics present the fundamental types of the data in a study. Besides that, they
form the basis effectively for each quantitative analysis of data. This test expects to generate
the estimation of mean, maximum, minimum, variance, standard deviation and coefficient of
variation and after clarifying them.
Correlation of Coefficient
OLS Multiple Regression Analysis
The relationship between variables is essential to the researcher to recognise which is
independent variables are gives effect to the dependent variables. To decide this effect,
Ordinary Least Square (OLS) Multiple Regression Analysis had been utilized as a part of this
study. Before run the OLS regression, R-Square will be tested in order to measure how close
the data are to the fitted regression line. It is also known as the coefficient of determination, or
the coefficient of multiple determinations for multiple regressions. T-statistic is used in a T test
when deciding whether to support or reject the null hypothesis. T-statistic is being used when
a small sample size, or if there is no population standard deviation. F-statistic in the linear model
output display is the test statistic for testing the statistical significance of the model. The F-
statistic values in the analysis of variance display are for assessing the significance of the terms
or components in the model. Durbin Watson is being used to test for auto-correlation problem.
The Rule of Thumb is being used in Durbin Watson in which if d is in between 1.8 to 2.2 auto-
correlation is absent and vice versa.
Results
Descriptive statistics are methods used to compose and summarize the data sets of all
variables. It also includes mean, median, maximum, minimum, standard deviation and
skewness.
Table 1: the descriptive statistics.

Variables Mean Median Max Min Std.Dev. Skewness
lnUNM 12.1901 12.6073 13.0811 10.2651 0.9314 -1.0413
GDP 5.7736 6.0121 10.0027 -7.3594 3.9331 -1.4887
lnPOP 9.5738 9.5860 9.97185 9.1299 0.2646 -0.0928
EXC 109.8247 100.6001 172.7285 91.8691 18.4408 1.5288
Table 1 shows that, all the variables which are lnUNM, GDP, lnPOP and EXC show the
positive mean with the value 12.1901, 5.7736, 9.5738 and 109.8247. In this research the
skewness of EXC is 1.5288. There showing that the variables which is EXC are positively
skewed or skewed to the right. The skewness of lnUNM, GDP, and lnPOP are -1.0413, -1.4887
and -0.0928 respectively. It shows that these variables are adversely skewed.
Correlation Analysis
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Table 2 shows the correlation between lnUNM, GDP, lnPOP, and EXC. The correlation
matrix is used to identify the strength of one variables affecting the other variable either positive
or negative correlation.
Table 2: Correlation of coefficient

VAR LUNM GDP LPOP EXC
lnUNM 1.000000
GDP 0.006833 1.000000
lnPOP -0.205147 -0.158048 1.000000
EXC 0.418347 0.042211 -0.811682 1.000000
Based on the result above, it shows that a negative correlation exists between lnUNM with
lnPOP which is -0.205147. Besides, the result shows positively correlation between lnUNM
with GDP and EXC which are 0.006833 and 0.418347 respectively. Besides, its indicates that
the GDP and lnPOP has negative correlation. The correlation is value -0.158048. In addition,
the correlation between GDP and EXC has positively correlation which is 0.042211. Lastly, the
correlation between lnPOP with EXC has negatively correlation because the value is -0.811682.
The correlation result will identify the strength of relationship between two variables. If the
correlation value is more than 0.5 (>0.5), it shows that there is a strong correlation between the
independent variables and dependent variable. Overall, multicollinearity problem exists in the
model since lnPOP and EXC more than 0.5.
Linear Multiple Regression Analysis
Table 3: OLS Regression Analysis

VAR Coefficient T- Probability R- F- Durbin
Statistics squared statistic Watson
C -10.8789 -1.6142 0.1190
GDP -0.0459 -1.9611 0.0611*
0.8031 25.5054 1.9017
lnPOP 1.1251 1.8198 0.0808*
EXC 0.0248 2.0631 0.0496**
Note: ***, **, and * denotes the significant level of variables at 1% , 5% and 10% significant
level respectively
Based on the Table 3, the result form OLS regression shows the value of R-squared is
0.8031 that means 80.31% of the variation in the dependent variables which is unemployment
can be explained by independent variables which are population, exchange rate and gross
domestic product. The balance of remaining 19.69% of the variations is unexplained. The model
in this study is significant. The regression of the model looks to fit because the R-Squared value
is more than 50%. The result showing that the value of R-Squared has a coefficient of
determination.
For Durbin Watson in this study is 1.90. Based on the rule of thumb, the value for Durbin
Watson is from 1.8 to 2.2. Based on the result, there is no autocorrelation problem since the
value is within the rule of thumb. Furthermore, to reduce or avoid the autocorrelation
occurrence in this study, there are using lagged in the dependent variables which is lnUNM.
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lnUNM = -10.8789 - 0.0459 ln GDP + 1.1251 lnPOP + 0.0248 EXC

Equation 2
where ln denotes the natural logarithm and ε is the error term. UNM is the unemployed person
(thousand), POP is the population (15 – 64 years), EXC is the exchange rate (RM/USD) and
GDP is real gross domestic product in percentage.
The equation 2 shows the estimation of the relationship between unemployment rate with
inflation rate, population, exchange rate and gross domestic products. From the above equation,
the value -10.8789 represent the constant variables in this study.
Besides, GDP has negative relationship towards unemployment at 10% significant level. It
shows that if 1% increases on GDP, the value of unemployment will decrease by -0.0459 %. It
is supported by studies from Khan, Khattak and Hussain (2012) investigated the inter-
relationship of GDP growth and unemployment in Pakistan. Their results also showed that GDP
had a negative relationship with the unemployment.
Furthermore, the study from Farzad and Stacey (2013) study an Empirical Analysis of the
Relationship between GDP and Unemployment in the case of United States. The researcher
used twenty- five years of quarterly U.S. data from 1977-2001 and applying the method of
Dicker-Fuller Test. In this paper, there is an empirical analysis of the controversial relationship
between GDP and unemployment. Following a review of recent studies in the area, twenty- five
years of quarterly U.S. data and empirically explored the correlation between unemployment
rate and GDP. The result shows a strong negative relationship does exist between the two
variables and found that unemployment rate Granger causes GDP.
Secondly, population has positive relationship towards unemployment at 10% significant
level. It shows that if 1% increases on population, the value of unemployment will increase by
1.1251 %. This supported by Aurangzeb & Asif (2013) has investigates macroeconomic
determinants of the unemployment for Pakistan, China, and India. The variables are being used
is inflation, gross domestic product, exchange rate and the population. The result shown on the
population also showed positive impact on the unemployment rate. It explains that when
population grows unemployment rate is increased too.
Furthermore, exchange rate also has positive relationship towards unemployment at 5%
significant level. It shows that if 1 unit increases in EXC, the value of unemployment will
increase by 0.0248 %. This supported by Aurangzeb and Asif (2013) which is factors effecting
unemployment has using inflation, gross domestic product, exchange rates and population on
their variables. The period of their study from 1980 to 2009. The results of regression analysis
showed that significant impact of all variables.
From the finding analysis, the most significant for this study is population because the
coefficient of the population is higher compared to three variables. Besides the coefficient for
the population is 1.1251 is higher than gross domestic product and exchange rate.
Conclusion
This study is to identify the determinants of unemployment rate in Malaysia. It is important
know the determinants of macroeconomics factors towards unemployment, especially for
organization, fresh graduates, and also other researchers. In this study, using time series
techniques to analyse the determinants of unemployment rate in Malaysia. In particular, the
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goal of this study to examine the relationship between variables and unemployment in year
1985 up until 2016.
In the final analysis, it was found that all variables which is gross domestic product,
population and exchange rates are significantly. Besides, the most significant for this analysis
is population. This is because the coefficient of the population is higher compared to three
variables. The results have many implications to consider for future policy decisions both at
state levels and national levels. Malaysia had been facing unemployment for many years. And
the unemployment rate had been fluctuated according to the economic condition.
Recommendations
Through this research, there is negative relationship between the gross domestic product
and unemployment rate. While for population and unemployment rate, there is positive
relationship. This means if the gross domestic product increase, the unemployment rate will
decrease and if the population and exchange rate is increase, the unemployment rate increase.
The economy becomes good when the gross domestic product increase. This may help the
Malaysians as a tool to measure the condition of the economy and decide whether to spend or
saving. During good economy condition, Malaysians have more purchasing power and price of
good decrease.
Besides other recommendation for future researcher perspectives is they may change the
variables for instance interest rate or inflation rate. This is because the researcher can make this
research are more significant. Besides, variables are the crucial part for every research.
Furthermore, the future researchers also may extend their observation to 40 years or above.
Otherwise, the future researchers may change the method using Augmented Dickey Fuller or
others.
Last but not least, the other recommendations are the other researchers also can change the
time series data to the panel data. This research is providing information with 30 observations,
so the other researcher can provide information on a variable at a given time.
References
Aurangzeb, D., & Asif, K. (2013). Factors Effecting Unemployment: A Cross Country
Analysis. International Journal of Academic Research in Business and Social Science,
3(1), 219–230. Retrieved from http://www.hrmars.com/admin/pics/1448.pdf
Awani (2016) Increase in Malaysia Unemployment Rate Trend¬- MIDF Research Retrieved
31 October 2016 from http://english.astroawani.com/business-news/increase-
malaysias-unemployment-rate-trend-midf-research-94955
Berumet H., Dogan N., & Tansel A. (2008). Macroeconomic Policy and Unemployment by
Economic Activity: Evidence from Turkey.
Claire Larzen Z Tello - Academia. (n.d.). Determinants of Unemployment Rate in Selected
ASEAN (Association of Southeast Asian Nations) Member States_ A Panel Data
Analysis _
Collins, R. (2009). Factors related to the unemployment rate: A statistical analysis.
Condratov, I. (2014). Determinants of Youth Unemployment: A Survey of the Literature.
Ecoforum Journal, 3(2), 16.
Ebiringa, O., & Emeh, Y. (2013). Determinants of Foreign Direct Investment Inflow: A Focus
on Nigeria. European Journal of Business and Management, 5(24), 41–53.
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Farzad F. & Stacey Q., (2013) (2003) "An Empirical Analysis of the Relationship between
GDP and Unemployment", Humanomics, Vol. 19 Iss: 3, pp.1 – 6
Force, L., Force, L., Rates, P., Law, O., Nor, N. M., & Ghani, J. A. (2017). Cause And A? ect
Of Unemployment In Malaysia Economics Essay Chapter 2 Literature Review, 1–13.
Increase in Malaysia unemployment rate trend MIDF Research. (2017), (October 2014),
94955.
Jaradat (2013). The Impact of Unemployment and Inflation on Jordanian GDP.
Khan Q., Khattak R., & Hussain A. (2012). Inter-Relationship of Gross Domestic Product
(GDP) Growth and Unemployment in Pakistan (1960-2005). Pakistan Instittute of
Development Economics Islamabad Pakistan
Muhd Irpan, H., Mat Saad, R., Shaari Md Nor, A. H., Md Noor, A. H., & Ibrahim, N. (2016).
Impact of Foreign Direct Investment on the Unemployment Rate in Malaysia. Journal
of Physics: Conference Series, 710(January), 12028. https://doi.org/10.1088/1742-
6596/710/1/012028
Noor, Z. M., Nor, N. M., & Ghani, J. A. (2007). The relationship between output and
unemployment in Malaysia: Does Okun’s Law exist? International Journal of
Economics and Management, 1(3), 337–344.
O. Increase (2015). Does Unemployment Significantly Impact on Economic Growth in
Nigeria? Global Journal of Human Social Science Economics
Tang, C. F. (2009). The linkages among inflation, unemployment and crime rates in Malaysia.
International Journal of Economics and Management, 3(1), 50–61.
https://doi.org/10.1016/j.sbspro.2014.01.1269
The Star, (2016) Unemployment rate in Malaysia stable at 3.4% Retrieved 31 October 2016
from http://www.thestar.com.my/business/business-news/2016/04/26/unemployment-
rate-in-malaysia-stable-at-34/
Umair, M., & Ullah, R. (2013). Impact of GDP and Inflation on Unemployment Rate: A Study
of Pakistan Economy in 2000-2010. International Review of Management and Business
Research. 2(2), 388-400
2017 Budget Will Strengthen Malaysian Economy In Facing Global Slowdown, Says Najib.
(2017), 1292554.
500,000 currently jobless - Nation _ The Star Online. (n.d.).
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EXAMINING THE CRITICAL SUCCESS FACTORS OF

KNOWLEDGE-BASED SOCIAL ENTERPRISES IN MALAYSIA
Aznur Hafeez Kaswuri1

Prof. Dr. Rohana Jani1
Assoc. Prof. Dr. Azmah Othman1
1
Faculty of Economics and Administrative, Univesity of Malaya
___________________________________________________________________________
Abstract: This is a conceptual paper to examine the critical success factors of Malaysian Social
Enterprises based on the effect of structural factors and agency factors. Structural factors
comprise of social economy, market type and relevant public policies while agency factors
include the people, organization and finance stability. There has been relatively little research
that examines the relationship between structural factors and agency factors and the
consequences on business performance of specific sector of Social Enterprises in developing
countries. This paper represents an attempt to do so from the context of Malaysian knowledge-
based Social Enterprises.
Keyword: Structural Factor, Agency Factors, Performance, Social Enterprise, Knowledge

Basic Economy.
___________________________________________________________________________
Introduction
Social enterprises have strong potential in Malaysia due to the growing interests shown
by entrepreneurs to provide social impact missions in a more sustainable way through
businesses revenue. The Malaysian government has also undertaken various initiatives to
develop supportive ecosystem for social enterprises. However, majority of social enterprises in
Malaysia were reported to struggle in sustaining the respective businesses which then affect
their social impact activities.
Studies on SE has been widely undertaken in many developed countries. However, there
is limited numbers of researches been done in the context of developing countries especially
where SE are not being governed by any specific legal framework. This research aims to
examine the critical factors which determine the success of social enterprises with a specific
focus in knowledge-based economy in Malaysia.
Research Questions
Based on the research background stated above, the main purpose of the research is to
explore how the success of Malaysian Social Enterprise in knowledge-based economy was
affected by certain drivers, which are the agency factors and structural factors. More
specifically, understanding the connection between the success of Malaysian Social
Enterprises, and structural factors and agency factors.
The study will be guided by major research questions as follows:
RQ1: What factors influence the success of Malaysian social enterprises?
RQ2: How structural factors (social economy and government policy) give impact to the
performance of Malaysian social enterprise?
RQ3: How agency factors (social entrepreneurs, employees, organizations and capital) give
impact on the performance of Malaysian social enterprise?
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The first question was constituted to recognize various elements influencing success, and
this would principally be done through the literature review in the process of constructing the
theoretical framework. Drawing on this theoretical basis, the elements found would be
categorized into structural factors and agency factors.
The second and third questions aim to discover how the elements identified in the first
question affected success.
Research Objectives
Based on the research questions stated above, this study aimed to explore the critical
success factors of Malaysian Social Enterprises particularly among the knowledge-intensive
businesses.
RO1: To examine the various factors influencing the success of social enterprises in
Malaysian context.
RO2: To examine the influences of structural factors on the performance of Malaysian
social enterprise.
RO3: To examine the influences of agency factors on the performance of Malaysian social
enterprise.
Literature Review
Social Enterprise
The concept of social enterprise or social entrepreneurship has different meanings to
different individuals and there is no clear understanding on how to categorise it and on how to
qualify social enterprises or social entrepreneurs. Definitions of social enterprise and social
entrepreneurship is vary at the international level with some authors using the two terms
interchangeably (Peredo & McLean, 2006).
As proposed by Austin et al. (2006), definitions of social entrepreneurship range from
broad to narrow. The broad definition of social entrepreneurship refers to an approach that can
fit in any business and setting (Roberts and Woods, 2005), either in the for-profit, non-profit,
public sector or across sectors, such as hybrid organizations. It mixes for-profit and non-profit
approaches (Austin et al., 2006).
The dimensional differences between Social Enterprise in different countries were
derived from the diverse contextual situations (Kerlin, 2006) (Seong, 2013). While there may
not be a universal definition, the inception of this sector has been primarily attributed to the
convergence of the three traditional sectors; non-profits (social), for-profits (private), and
government (public).
In the context of Malaysia, facilitation of social enterprise development is undertaken by
Malaysian Global Innovation and Creativity Centre (MaGIC). MaGIC defines social enterprises
to have primary and secondary characteristics as follows:
“Primary: A social enterprise is an entity which balances both impact and business in
order to solve a legitimate social or environmental issue through its offerings, which are
driven by market needs.
Secondary: A social enterprise is an entity that operates by being inclusive and
transparent in its activities, while being fully accountable to its shareholders and
beneficiaries.” (MaGIC, 2015).
The Malaysian Social Enterprise sector is currently in its infancy stage. According to the
national survey done by Malaysian Global Innovation and Creativity Centre (MaGIC) in 2015,
there are over 100 Social Enterprises in Malaysia. It is a huge different compared to other
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countries like United Kingdom for around 60,000 organisations in 2013, South Korea with more
than 1,000 social enterprises in 2015 and even Thailand with 115,000 social enterprises.
Critical Success Factors of Social Enterprise

Structural Factors
In the framework, structural factors that represent the environment, or external or
contextual elements, include three sub-factors: the social economy, market type, and
government policy. This category can be called structural factors because it includes rules and
resources for Social Enterprise activities (Giddens, 1984).
First of all, the social economy provides an important structure for Social Enterprise, as
it affects their success by nurturing social entrepreneurs, forming social networks and supplying
finance as suggested by Peattie and Morley (2007).
Secondly, the market is also one of the most important basic grounds for Social
Enterprise, which derives profits from it through selling products and services.
Finally, the critical role of government policy for Social Enterprise movements cannot
be underestimated. The success of Social Enterprises can be critically affected by their policy
context, as central and local government take the roles of a funding stream and a large buyer,
and create and modify necessary legal framework for Social Enterprise activities.
All three structural variables have been chosen on the assumption that they have close
reciprocal effects on one another.
Agency Factors
Agency factors are internal elements that have an effect on the success of Social
Enterprises. They include social entrepreneurs, employees, organizations and finance.
The competency of leaders, and their social network are essential to the success of Social
Enterprise. An organizational culture open to change, innovation, and fluid communication are
identified as organizational factors. Last but not least, the capital factor is vital in terms of the
success and sustainability of Social Enterprises. A number of social entrepreneurs and scholars
insist that improved access to capital is an urgent issue in the field of Social Enterprise.
This is aligned with Mellahi and Wilkinson (2014) that the influence of agents is
modified by structure. Additionally, the influence of environmental change can be mediated by
the role of agents.
Theoretical Framework
Theoretical framework describing the factors for the success of Social Enterprises is
presented in Figure 1.1.
The framework basically draws on Giddens’s, Mellahi and Wilkinson’s, and Lee’s
integrative approach into Social Enterprise success and sustainability variables. One clear point
in the theoretical framework is that the study mainly aims to examine the relationship between
organizational success and various drivers.
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Figure 1.1: Theoretical framework of success factors of social enterprise
Methodology
Qualitative Research
Qualitative research is selected due to some reasons. Firstly, this study aims to gain in-
depth understanding of the influencing factors of Social Enterprises in Malaysia. Secondly,
Social Enterprises in Malaysia is in a nascent stage with only around 100 Social Enterprises
recorded by MaGIC in 2015.
Multiple Cases through Theoretical Sampling

Oliver and Kandadi (2006) explain that the case study design is an appropriate option
when researchers have to examine various factors and multiple dimensions of a topic. Six cases
will be chosen with three organisations will be selected among the knowledge-based social
enterprises and another three organisations from the conventional social enterprises.
Data collection will be conducted through various sources including documents,
interview and secondary data. Respondents of interview will include the social entrepreneurs,
managers, operational staffs and beneficiaries of the respective social enterprises.
Contributions
This paper aims to contribute to the body of knowledge on the critical success factors of
social enterprise which is an emerging sector in Malaysia. The research is very timely as the
government aims to introduce a new policy and possibly a legal act to regulate and facilitate
social enterprises. Further studies could be done once the social enterprise policy or legal act is
implemented to further examine how the new policy implementation influences the
development of social enterprises in Malaysia.
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References
Austin, J., Stevenson, H., & Wei-Skillern, J. (2006). Social and Commercial Entrepreneurship:
Same, Different, or Both? Entrepreneurship Theory & Practice, 30(1), 1–22.
https://doi.org/10.1111/etap.12143
Giddens, A. (1984). The constitution of society: outline of the theory of structuration.
Cambridge: Polity Press.
Kerlin, J. (2006). Social Enterprise in the United States and Europe: Understanding and
Learning from the Differences. VOLUNTAS: International Journal of Voluntary and
Nonprofit Organisations. 17, 246-262.
Lee, E. (2015). Examining the Sustainability of Social Enterprise in Contemporary Korea.
Birmingham, United Kingdom.
Malaysian Global Innovation and Creativity Centre (MaGIC). (2015). Malaysian Social
Enterprise Blueprint 2015-2018: Unleashing the power of social entrepreneurship.
Cyberjaya.
Mellahi, K., & Wilkinson, A. (2004). Organisational Failure: A Critique of Recent Research
and a Proposed Integrative Framework. International Journal of Management Review,
Vol. 5/6, 21-41.
Oliver, S., & Kandadi, K. (2006). How to develop knowledge culture in organisations? A
multiple case study of large distributed organisations. Journal of Knowledge
Management, Vol 10., 6-24.
Peattie, K., & Morley, A. (2007). Social Enterprises: Diversity and Dynamics, Contexts and
Contributions. [WWW Document].
Peredo, A. M., & McLean, M. (2006). Social entrepreneurship: A critical review of the concept.
Journal of World Business, 41(1), 56–65. https://doi.org/10.1016/j.jwb.2005.10.007
Roberts, D. and Woods, C. (2005), “Changing the world on a shoestring: the concept of social
entrepreneurship”, Business Review, Vol. 7, 45-51.
Seong, Y. (2013). The Comparative Study of Characteristics of Social Enterprises Focusing on
UK, Italy and United States. Zeitschrift der Koreanisch-Deutschen Gesellschaft fur
Sozialwissenschaften, 23, 101-140.
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ALTERNATIVE DISPUTE RESOLUTION IN THE MALAYSIAN

CONSUMER CREDIT INDUSTRY WITH SPECIAL REFERENCE TO
OMBUDSMAN FOR FINANCIAL SERVICES
1Ibtisam @ Ilyana Ilias

1ilyana.ilias@uitm.edu.my
Rusni Hassan
hrusni@iium.edu.my
Salina Kassim
ksalina@iium.edu.my
Elistina Abu Bakar
elistina@upm.edu.my
1
Phd candidate, Ahmad Ibrahim Kulliyyah of Law, International Islamic University
and Senior Lecturer at Faculty of Law Universiti Teknologi MARA Malaysia
2
Professor, IIUM Institute of Islamic Banking and Finance (IIiBF)
3
Associate Professor, Ahmad Ibrahim Kulliyyah of Law, International Islamic University
4
Senior Lecturer, Faculty of Human Ecology, University Putra Malaysia.
___________________________________________________________________________
Abstract: This study examines the first scheme operator to run the financial ombudsman scheme
(FOS) approved by Bank Negara Malaysia (BNM) namely the Ombudsman for Financial
Services (OFS). The study employs a content analysis research methodology in analysing the
OFS’s membership, eligible complainant, jurisdiction, dispute resolution process and award.
The study also concisely discusses on the FOS to gauge an understanding on the scheme itself.
Whenever necessary, reference to the long established Australian Financial Ombudsman
Services is made to identify best practices. The FSR entails the OFS to abide by the core
ombudsman principle namely independence, fairness and impartiality, accessibility,
accountability, transparency and effectiveness and this is precisely incorporated in its TOR.
The service is free and simple since the OFS is not bound by strict court procedures. This study
however identifies some shortcomings which need to be rectified for further improvement and
proposes some recommendations. The recommendations include extending the scope of
eligible complainants, to include formula for reviewing its monetary jurisdiction, permitting
third party assistance for financial consumers, prescribing qualification for case manager and
ombudsman and establishing panel members to participate in the adjudication process. The
said recommendations offer valuable insight to respective parties especially BNM and the OFS.
Keywords: Alternative Dispute Resolution, Financial Ombudsman Scheme, Redress

Mechanism
___________________________________________________________________________
Introduction
One of the most essential components in consumer protection law is the existence of a proper
machinery of resolving consumer disputes. The ordinary court system which is not only
expensive but time-consuming, worrisome and complex has been generally considered a failure
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and ineffective in dealing with consumer cases (Rachagan, 1992, p. 8). Furthermore, most
consumer claims consist of small claims with low value which can suitably be handled by a
redress system that is comparatively simple, cheap and expedient (Amin, 2012).
The need for an effective, inexpensive and informal redress mechanism is apparent vis-
à-vis financial consumer. The range of financial products available to the consumer comes in
various shapes and sizes and can be a daunting experience for any financial consumer and the
necessity is stronger when the borders between financial sectors blur and the complexity of
products is greater (Yokoi-Arai, 2004, p. 333). According to Organisation for Economic
Cooperation and Development (OECD) (Organisation for Economic Co-operation and
Development, 2011), access to adequate complaints handling and redress mechanisms has been
incorporated in the G20 High Level Principles on Financial Consumer Protection. The redress
mechanisms are accessible, affordable, independent, fair, accountable, timely and efficient. In
addition, they are recognised as one of basic good practices for financial consumer protection
in ensuring a well-functioning consumer protection regime (World Bank, 2012, p. 9).
In Malaysia, there is no single alternative dispute resolution framework applicable to all
affected financial consumers in consumer credit industry. Access to alternative dispute
resolution largely depend on the regulator in charge of respective industry. This is attributed to
fragmented approach in regulating this business. For example, banks fall under the purview of
BNM, hire purchase is subject to Ministry of Domestic Trade, Co-operatives and Consumerism
while Ministry of Urban Wellbeing, Housing and Local Government regulates moneylending
and pawnbroking. For the purpose of this paper, the OFS which is the first external scheme
operated under the BNM i.e. FOS will be examined thoroughly.
Method
The study employs content analysis research method whereby relevant provisions of
primary sources of law are meticulously scrutinised namely the Financial Services Act 2013
(FSA), the Financial Services (Financial Ombudsman Scheme) Regulation 2014 (FSR) and the
Australian National Consumer Credit Protection Act 2009 (NCCP). Secondary sources of law
especially academic journals are substantially referred to. Furthermore, the terms of reference
of OFS (TOR), Australian Securities and Investment Commission Regulatory Guide 139 (RG),
FOS terms of reference as amended 1 January 2012 (AFOS TOR 2012) and AFOS terms of
reference as amended 1 January 2015 (AFOS TOR 2015) are also evaluated. The sources are
primarily accessed via institutions’ website and online databases such as CLJ Law, HeinOnline,
Lawnet etc. The secondary data collected are rigorously examined and analysed.
Results
The Financial Ombudsman Scheme (FOS)
Before discussing the OFS in detail, it is pertinent to comprehend at the outset on the
FOS itself. The FOS is a scheme approved by BNM pursuant to section 126(2) of the FSA. In
essence, the scheme aims at ensuring effective and fair handling of complaints for the resolution
of disputes between financial service providers and financial consumers referred to as eligible
complainant. The FSR has been enacted to govern the operation and management of the said
scheme. Disputes may be referred to the OFS after an attempt to resolve at bank’s level via its
Complaint Unit fails to reach satisfactory settlement.
BNM roles vis-a vis FOS are spelt out in the FSR. Firstly, pursuant to Regulation 4 of
the FSR, BNM is responsible to approve the scheme operator of the FOS in accordance with
considerations prescribed by the FSR. Matters to be considered include the capability to operate
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the scheme in a fair and timely manner, the availability of clear and documented governance
framework, the transparency of TOR which must also comply with sub-regulation 7(2),
adequacy of both human and financial resources and compliance with the principles of
independence, fairness, impartiality, accessibility, accountability, transparency and
effectiveness (Regulation 5 of the FSR).
The second role of the BNM is specified under Regulation 6 of the FSR. This
empowers it to withdraw or suspend the approval under certain circumstances including failure
to commence operation within six months from the approval date; cease operation or inability
to perform the duties; providing false, misleading, inaccurate or incomplete documents to BNM
which are material in nature; breach of any FSA provision; winding up or dissolution of the
scheme operator and finally when BNM opines that the scheme operator has not acted honestly
or the approved FOS is operated in a manner that is or likely to be contrary to public interest or
inconsistent with its constituent documents (Regulation 6 of the FSR).
Approving the TOR of the scheme operator is another crucial task of BNM. The FSR
clearly prohibits the amendment to the TOR without prior consultation and approval of BNM
(Regulation 7 of the FSR). Briefly, the TOR must specify the membership terms, types of
disputes, category of eligible complainants, awards, procedures and timeframe, circumstances
where a dispute may be refused or dismissed, circumstances and time period for mediation and
adjudication, and the procedure to ensure compliance with confidentiality duty by the disputing
parties.
BNM is also responsible in approving the appointment of the scheme operator’s
members of board of directors. Paramount criteria to be considered is the fulfilment of the fit
and proper criteria based on three main categories namely probity, integrity and reputation;
competency and capability and lastly financial integrity (Second Schedule of the FSR).
Once approved, the operation, management and performance of the scheme operation
are still subject to BNM’s oversight. This power is exercised pursuant to Regulation 6 of the
FSR by imposing several obligations on the scheme operator such as to notify BNM on matter
which may affect its ability to perform effectively and also to submit report to BNM within
three months after the end of each of its financial year on its activities carried out during that
financial year (Regulation 12 of the FSR). Examples of matters to be reported are the number
of disputes referred, types of disputes and the scheme operator’s audited annual account. In
addition, if matters which may be systemic in nature arise from the operation of the scheme
operator or in the event the operator has reasonable cause to believe that any member is involved
in any serious misconduct, then the scheme operator must as soon as practicable report such
matters to BNM. Other obligations cover disseminating information on its yearly operation and
publication of documents specified by BNM (Regulation 13 of the FSR). With regards to
independent review, scope of the review and terms of appointment of the independent reviewer
will be decided upon consultation with BNM. It is viewed that BNM as a regulator consumer
credit offered by banking institutions assumes significant role in the establishment and
operation of the appointed scheme operator.
Other obligations imposed on the scheme operator include to ensure that the decision-
making process is independent and fair, services offered are easy and affordable and procedures
are easy to understand, clear and transparent. Every decision and the grounds of the decision
must be informed in writing to the disputants. In creating public awareness on its services, the
operator must regularly publish necessary information.
The Ombudsman for Financial Services
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The OFS which is previously known as Financial Mediation Bureau (FMB) has been
appointed as the first operator of the FOS. The OFS is a company incorporated under the
Companies Act 1965 and commences its operation on 1st October 2016. The OFS operation is
subject to the Board of Directors’ oversight which comprises of members from various
backgrounds including representative from consumer association. As to date, there is only one
head office located in Kuala Lumpur. The OFS implements the scheme based on the duly
approved terms of reference (TOR).
Membership
Banking institutions are required to be members of the OFS alongside other financial
institutions under BNM jurisdiction. Other credit providers who are outside the coverage are
thereby unfit and not required to become members. Members are obliged to pay an annual levy
fee and case fee payable based on the number of disputes against the said member to fund the
operation of the OFS (Paragraph 5 of the TOR). Since the funding is derived from members,
the FSR has significantly emphasised the independence of board of director whereby the
chairman and majority of board of directors of the scheme operator shall not be under active
employment or service of any member and have any significant interest in any member
(Regulation 9(3) of the FSR). Likewise, under Paragraph 3(2)(b) of the TOR, the case manager
and ombudsman must also ensure that they have no conflict of interest with the disputing
parties.
Eligible Complainant
In respect of eligible complainant, only financial consumer who uses or has used any
financial services or products provided by a member either for personal, domestic or household
purposes or in connection with a small business are eligible to resort to the OFS to settle their
grievances (Paragraph 9 of the TOR; section 121 of the FSA 2013). Therefore, financial
consumers of banking institutions who use or have used consumer credit products whether
housing loan, hire purchase or personal loan are considered as eligible complainants if the
purpose of acquisition is either for personal use or for small business. Eligible complainant is
entitled to get the service free of charge (Paragraph 1(9) of the TOR). Financial consumers
dealing with credit providers not governed by BNM are unfairly treated since they are not
considered as eligible complainants although they are equally the user of consumer credit
products. This is attributed to the fragmented nature of consumer credit regulation in Malaysia
as earlier highlighted.
In Australia, one of the prerequisite for approving an Australian Credit License is to be
a member to the external dispute resolution scheme (EDR) approved by the Australian
Securities and Investment Commission (ASIC), the national consumer credit regulator Section
47(1)(h)(ii) of the National Consumer Credit Protection Act 2009 (NCCP). Currently there are
two ASIC-approved EDR schemes namely the FOS and the Credit and Investments
Ombudsman (CIO) (Australian Securities and Investment Commission, 2017, p. 43). Thus,
financial consumers dealing with all licensed credit providers are equally entitled to the benefit
of the scheme which is to be provided free of charge (RG 139.47).
It is suggested that the scope of eligible complainant to be extended to all financial
consumers of consumer credits products to enable equal opportunity to access this free
alternative dispute resolution. In doing so, the membership should also be extended to all non-
bank credit providers such as pawnbrokers, moneylenders, co-operatives etc.
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Jurisdiction
Third Schedule of the FSR spells out three different categories of monetary limit.
Firstly, in respect of dispute involving financial services or products developed, offered or
marketed by a member, or by a member for or on behalf of another person; the monetary limit
is up to RM250,000. Secondly, for a dispute related to motor third party property damage, the
monetary limit is not exceeding RM10,000. Finally, the limit for dispute involving an
unauthorised transaction through the use of a designated payment instrument or a payment
channel such as Internet banking, mobile banking, telephone banking or automatic teller
machine; or an unauthorized use of a cheque as defined in section 73 of the Bills of Exchange
Act 1949 is RM25,000 (Paragraph 10 and Schedule 2 of the TOR).
Accordingly, housing loan, hire purchase and personal loan are among common
consumer credit products offered by banking institutions and subject to the monetary limit of
RM250,000. Constant review of the monetary limit is necessary considering the upward trend
of market price of houses (Valuation and Property Service Department Ministry of Finance,
2016). For example, the monetary limit of AFOS is required to be reviewed on 1 January 2015
and every three years thereafter taking into consideration inter alia the Consumer Price Index
and the Male Total Average Weekly Earnings (Paragraph 9.8 of AFOS TOR 2012). In respect
of claims related to credit, it has been increased from $208,000 to $309,000 (Schedule 1 and
Schedule 2 of AFOS TOR 2015).
Nevertheless, regulation 18(4) of the FSR allows a dispute which involves a monetary
claim exceeding the monetary limit as set out in the Third Schedule to be referred to an FOS
subject to the unanimous agreement of the scheme operator, the eligible complainant and the
member involved in the dispute (subparagraph 12(3) of the TOR). If the other two parties
disagree, the eligible complainant has no choice but to stick to the original limit or to find other
avenues for dispute resolution.
There are several types of disputes which are outside the scope of the FOS (Paragraph
13 of the TOR). Firstly dispute that is beyond the monetary limit specified by the FSR as well
as the TOR except if mutually agreed in writing by the OFS, the eligible complainant and the
member. Secondly a dispute on general pricing, product features, credit or underwriting
decisions, or applications to restructure or reschedule a loan or financing which are commercial
decisions within the discretion of a member. The third situation is a dispute concerning the
actuarial standards, tables and principles which a member applies to its long-term
insurance/takaful business.
The OFS also will not entertain dispute related to employment contract between a
member and its officers and employees or agency matters concerning a member. A dispute that
has been filed in court or referred to arbitration or has been decided by a court or arbitrator
cannot be forwarded for another consideration by the OFS. Likewise, a dispute that had been
previously decided by the OFS (including a dispute decided under the predecessor scheme) is
not eligible to be submitted to the OFS unless new evidence, which are material facts that could
change the earlier decision, is available for the OFS’ consideration. With regards to timeframe
of submitting the dispute to the FOS, it will fall outside the jurisdiction if referred after more
than six months from the date the member has provided its final decision. Eligible complainant
must also ensure that the dispute is not time barred under the Limitation Act 1953 (LA) or
Limitation Ordinance (Sabah) (Cap.72) (LO) or Limitation Ordinance (Sarawak) (Cap. 49)
(LOS).
Additionally, the OFS can reject dispute concerning investment performance of a
financial product except in relation to non-disclosure of facts or misrepresentation, a dispute on
capital market services and products offered or marketed by a member and a dispute involving
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claims arising from third party bodily injury or death. The OFS may also discard a dispute
involving more than one eligible complainant which has been referred to it without the consent
the other party and the OFS views that it is inappropriate to deal with the dispute without that
consent. Finally, the OFS also has no jurisdiction to deal with the dispute relating to the
payment of policy moneys under a life policy and personal accident policy or payment of takaful
benefits under a family takaful certificate and personal accident takaful certificate made in
accordance with the provisions set out in Schedule 10 of the FSA.
Although a dispute falls within the jurisdiction of the OFS, it has a discretion to refuse
to consider such dispute if it is of the opinion that the dispute is frivolous, vexatious or lacking
in substance or the dispute has an element of fraud and is therefore more suitable to be handled
by other relevant law enforcement agencies (Paragraph 14 of the TOR). Such decision must be
documented as well as substantiated with written reasons and shall be subject to periodic review
by the Board of Director (Paragraph 15 of the TOR). Additionally, the OFS is obliged to advise
the eligible complainant or other related parties and provide reasons for such exclusion
(Paragraph 16 of the TOR).
Upon such explanation, the eligible complainant has a right to object to the said
exclusion within 30 days from the date of the receipt of the OFS’ decision to exclude a dispute.
Accordingly, the OFS may review the dispute if satisfied that the dispute is within the
competence and scope of the OFS after considering the eligible complainant’s grounds for
objection. With regard to this review exercise, the OFS is required to inform the eligible
complainant and the member on the results of its review and give them an opportunity to
provide their respective submissions, if any. Besides, OFS should also provide both parties
with copies of each other’s submission followed with reviewing the dispute and subsequently
inform them its final decision on whether or not to continue or to exclude such dispute.
Dispute Resolution Process

At the case management level, the dispute will be decided by a case manager while at
the adjudication stage, ombudsman is responsible to adjudicate the case. In this respect,
paragraph 6 of the TOR specifies that an ombudsman shall exercise all powers, duties and
responsibilities in accordance with the Articles of Association, the FOS Regulations and the
TOR including adjudicating and making a final decision on a dispute.
Under Paragraph 19 the TOR, negotiation, conciliation, mediation or adjudication are
among the techniques which may be utilised by case manager or adjudicator during the entire
resolution process. In addition, neither member or eligible complainant is allowed to engage
the services of a lawyer with respect to dispute referred to the OFS (Paragraph 20 of the TOR).
However, financial service providers may have an advantage of being represented by their legal
adviser who is someone with legal background albeit not a lawyer. On the contrary, financial
consumers especially those who lack of legal and financial knowledge may find it difficult even
at the stage of preparing relevant documentation and feel inconvenient during the resolution
process due to want of confident and unequal bargaining power.
Regarding this, AFOS anticipates the need for assistance by the applicant especially the
consumer during the application stage as well as negotiation itself. Thus, the AFOS TOR 2015
specifies that during application process, AFOS may assist applicant with the process. It also
allows the applicant to be represented or assisted by an agent who may receive remuneration
for the service and the interest of the applicant is protected when FOS may exercise discretion
to reject the application if the said agent is engaging in appropriate conduct against the interest
of the applicant (Paragraph 6 of AFOS TOR 2015). During determination stage, the presence
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of consumer representative as one of the panel members positively aid the financial consumer
and balancing the bargaining power against the other party (Paragraph 2.4 of AFOS TOR 2015).
Being an alternative dispute resolution body, the processes are inquisitorial in nature
and not bound by conventional court procedures such as rules of evidence, prosecution, defence
by a lawyer, sworn witnesses, cross-examinations and formal legal procedures while
investigation and examination of evidence will be carried out by case manager or adjudicator
themselves (Paragraph 28 of the TOR). Paragraph 29 of the TOR provides that a meeting or an
interview may be conducted with the parties either jointly or individually. The process is not a
mandatory procedure and the OFS has the full discretion to decide on the most effective
approach to resolve the dispute.
In deciding a dispute, the OFS must consider Paragraph 30 of the TOR which provides
that the OFS will do what in its opinion is fair and reasonable in all the circumstances taking
into account several factors including the terms and conditions of any contract for the financial
services or products entered into between the parties; any applicable law, regulations, standards
and/or guidance issued by BNM as well as industry best practices; and to have regard to, but
without being bound, by previous decisions of the OFS or the predecessor scheme, if any.
Moreover, for the purpose of dispute resolution, the OFS may also consult any persons
including the relevant associations for the financial industry, consumer associations, Bar
Council or relevant ministries or government agencies (Paragraph 31 of the TOR). In addition,
it may seek expert advice and the cost is to be borne by the member provided that the fees are
determined by the OFS to be reasonable and do not deviate significantly from the usual market
rate.
Full discretionary power and flexibility accorded to the case manager as well as
ombudsman as to the most effective, fair and reasonable mode applicable by referring to the
relevant sources of law and consulting appropriate authorities indirectly require them to be
highly competent and qualified decision maker. For example, having legal and financial
background as well as familiarity with ADR methods which will be applied in dispute
settlement process. These qualities not only will reduce the time and cost incurred because the
need to refer to third party or expert consideration is minimized but will boost confidence
among the disputing parties. Failure to meet the requirement may undermine the efficiency of
the OFS in providing speedy and effective dispute resolution. The TOR unfortunately do not
prescribe provisions as to the requirements of either case manager or ombudsman except that
they must not have conflict of interest with the disputing parties.
In this regard, the AFOS’s approach is worth to be referred. Firstly, at the determination
stage, the decision will be made by AFOS Panel consisting of ombudsman and one
representative from consumer association and industry respectively. Thus, ombudsman is not
vested with sole decision-making authority. Secondly, terms of reference provide that the
board of directors will consider candidates’ objectivity, qualifications, experience and personal
qualities before appointing the appointment of chief ombudsman, ombudsmen and adjudicators
(Paragraph 2.1 and 2.5 of AFOS TOR 2015). Furthermore, panel member from consumer
association and industry are also be appointed by board of directors (Paragraph 2.3 of AFOS
TOR 2015).
To recap, dispute resolution process can be divided into two, namely case management
by a case manager and adjudication by an ombudsman. The process will commence with case
management and if the decision given by case manager known as recommendation is
unacceptable by eligible complainant, he can opt to bring the case for adjudication. According
to Paragraph 2.4 of AFOS TOR 2015, ombudsman is not the only party involve in decision-
making during determination stage because its terms of reference also require the presence of
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two panel members from consumer association and industry who are jointly granted a power to
make decision.
However, a dispute may be referred directly to adjudication without a recommendation
having first been made by a case manager if the OFS considers that it would be in the best
interest of the disputing parties to resolve the dispute urgently, considering the likelihood of
systemic risks, the type of financial services or products involved, the amount of loss that may
be suffered and the technical complexity of the dispute (Paragraph 35 of TOR). If this course
of action is chosen, the parties must be informed and the adjudication will begin only when they
are given a reasonable opportunity to make further submissions and provide additional
information regarding the dispute (Paragraph 36 of the TOR).
Under Subparagraph 34(22) of the TOR, the decision made by ombudsman is final and
the end of the OFS’s dispute resolution process. However, neither parties can appeal against
the ombudsman’s decision. Under Subparagraph 34(23) of the TOR, the eligible complainant
can choose whether or not to accept the said decision. If he accepts the decision within 30 days
from the date of the decision, the parties are bound by such decision (Subparagraph 34(24) of
the TOR). The timeframe however may be extended subject to consideration by the
ombudsman on the reason for any delay. The terms of settlement agreeable by the parties shall
be recorded in writing and a settlement agreement shall be executed accordingly (Subparagraph
34(25) of the TOR). Under paragraph 12 of the TOR, it is compulsory for a member to comply
with the award within 14 days from the date the eligible complainant informed the member of
his acceptance of the award. Pursuant to Paragraph 52 of the TOR, once the dispute is resolved
by mutual agreement of the parties, the member shall not initiate any legal proceedings that are
inconsistent with that agreement. Conversely, if the award is not acceptable by the eligible
complainant, the disputing parties are free to pursue their rights through any other means
including a legal process or arbitration (Subparagraph 34(26) of the TOR).
An option to withdraw from the adjudication at any time prior to the final decision by
the ombudsman is available for eligible complainant under Subparagraph 34(21) of the TOR.
This can be exercised only by giving a written notice to the former indicating his intention to
do so. Concerning termination of adjudication process, it occurs in several circumstances
(Subparagraph 34(27) of the TOR). Firstly when the eligible complainant withdraws from the
adjudication. Secondly when the parties accept the preliminary assessment of the dispute by
the ombudsman before adjudication and enter into a settlement agreement. Thirdly when the
ombudsman makes a final decision and/or award with respect of the dispute and finally when
the eligible complainant has initiated a legal proceeding against the member in court or
arbitration.
Award
Award granted by the OFS and accepted by an eligible complainant shall be binding on
the member based on the combined effect of Regulation 18(1) of the FSR and paragraph 12(1)
of the TOR. According to Subparagraph 41(1)(a) of the TOR, the award may be in the form of
monetary award of such amount that ombudsman considers fair compensation subject to the
prescribed monetary limit. The monetary award granted may also exceed the prescribed
monetary limit provided that the OFS, the eligible complainant and the member involved in the
dispute consent in writing to refer such dispute to the OFS and that the eligible complainant and
the member agree to be bound by such monetary award that an Ombudsman may grant
(Subparagraph 41(1)(b) of the TOR). Non-monetary awards include a direction that requires
the member to take certain steps in relation to a dispute as the ombudsman considers
appropriate; a direction that requires the member to repay the actual cost incurred by the eligible
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complainant in relation to a dispute subject to a maximum of RM1,000.00 per dispute or such

other relief provided for in the TOR (Subparagraphs 41(1)(c), (d) and (e) of the TOR). Pursuant
to Paragraph 43 of the TOR, It is worth to note that an ombudsman is not allowed to award
punitive, exemplary or aggravated damages.
It is compulsory for a member to comply with award granted by the ombudsman within
14 days from the date of acceptance by the eligible complainant (Paragraph 12 of the TOR).
Under Subparagraph 41(3) of the TOR, failure to do so entitles the eligible complainant to
recover or enforce the award as a contractual debt through the court without any set-off or
counter claim. The OFS is also required to notify such non-compliance to BNM immediately
(Paragraph 14 of TOR; section 126(4) of the FSA).Thus, BNM may take regulatory action
against the member to enforce compliance. This will be an added benefit to eligible
complainant since reliance on financial consumers to enforce the award in court may place
superfluous burden on them. Additionally, in the event this non-compliance reaches the
knowledge of the OFS, the ombudsman may impose late payment charges computed based on
the one-year average fixed deposit rate published by BNM + 1% in respect of Members set out
in the First Schedule of the FSR (Paragraphs 13 and 42 of the TOR).
Conclusion
The appointment of the OFS as a scheme operator to exercise the role of financial
ombudsman scheme introduced by BNM indicates a continuous effort to strengthen financial
consumer protection framework including consumer credit industry. In performing its function,
it is incumbent on the OFS to observe five fundamental ombudsman principles namely
independence, fairness and impartiality, accessibility, accountability, transparency and
effectiveness. The dispute resolution service is freely accessible by the eligible complainants
and it aims to provide timely, fair and efficient dispute resolution. The selection of qualified
directors to oversee its operation and the continuous oversight of BNM by prescribing
mandatory obligations are among core mechanisms to guarantee the observance with the
ombudsman principle and the achievement of its previously stated objective.
Notwithstanding its commendable framework, it is submitted that there are several
aspects which can be enhanced to increase its efficacy. Firstly, the scope of eligible
complainant should be extended to non-bank financial consumers to improve accessibility. For
this purpose, its range of membership should cover non-bank credit providers as well. To
remain effective, its monetary jurisdiction should be reviewed within certain range of time and
based on specific determined formula. A reference to AFOS approach may be helpful. This
provision should be incorporated in its TOR. For the benefit of financial consumers especially
those falling within vulnerable group and unfamiliar with the technical process and formality,
providing assistance either by the OFS staff or by allowing appointment of third party to help
at the initial stage of preparing and submitting relevant documentation to the OFS would be of
great advantage. Likewise, being accompanied by a consumer representative during the
adjudication process will be a useful incentive to boost their confidence.
Another important element left out in the FSR is regarding the matters to be considered
in appointing the case manager and ombudsman such as objectivity, qualifications, experience
and personal qualities. These elements are vital in ensuring fairness, impartiality and
effectiveness of the OFS. It is also worth to consider the participation of panel members from
consumer association and industry during case management and adjudication process to achieve
twofold objectives namely to avoid heavy reliance on the case manager and adjudicator and
secondly to balance the bargaining power between the financial consumer and the member as
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the presence of consumer association representative will help consumers to conveniently

involve in the process.
Being at infancy stage, it is too early to evaluate the actual performance of the OFS.
However, with a strong commitment from BNM and the OFS itself, it is hoped that it will pride
itself as an excellent alternative dispute resolution in consumer credit arena in Malaysia.
Reference
Amin, N. (2012). Consumer redress mechanisms in Malaysia: prospects and challenges. IIUM
Law Journal, 15(2).
Australian Securities and Investment Commission. (2017). Annual Report 2015-2016.
Australia. Retrieved from http://download.asic.gov.au/media/4058626/asic-annual-report-
2015-2016-complete.pdf
Organisation for Economic Co-operation and Development. (2011). G20 High-level Principles
on Financial Consumer Protection. Retrieved June 7, 2015, from
http://www.oecd.org/daf/fin/financial-markets/48892010.pdf
Rachagan, S. S. (1992). Consumer Law Reform: A Report. Kuala Lumpur: United Nations
Development Programme.
Valuation and Property Service Department Ministry of Finance. (2016). The Malaysian House
Price Index. Retrieved April 18, 2017, from http://napic.jpph.gov.my/portal
World Bank. (2012). Good Practices for Financial Consumer Protection. Retrieved November
11, 2014, from http://responsiblefinance.worldbank.org/~/media/
Yokoi-Arai, M. (2004). A comparative analysis of the financial ombudsman systems in the UK
and Japan. Journal of International Banking Regulation, 5(4).
Acknowledgements
This study is part of the findings of FRGS research project Ref:

FRGS/1/2016/SSI10/UIAM/02/5
1 This paper excludes Islamic banking from the discussion.
1 Other than the FSA, the FOS is also established pursuant to the Islamic Financial Services
Act 2013 (IFSA) and the Development Financial Institutions Act 2002 (DAFIA). Thus, the
scheme is also available to deal with complaints and disputes related to Islamic financial
services and products as well as products offered by development and financial institutions.
Applicable regulations are the Islamic Financial Services (Financial Ombudsman Scheme)
Regulations 2015 (IFSR) and the Development Financial Institutions (Financial Ombudsman
Scheme) Regulations 2016 (DFIR).
1 Regulation 19 of the FSR provides that three years from the date it commences operation, the
scheme operator is required to appoint an independent party with relevant expertise to conduct
an independent review. The review will cover both qualitative and quantitative assessment of
the scheme operator’s performance. For subsequent years, the review must be conducted at
least once in every five years.
1 Pertaining to membership, licensed bank, licensed Islamic bank, licensed insurer (excluding
professional reinsurer and licensed insurer carrying on financial guarantee insurance business),
licensed takaful operator (excluding professional retakaful operator), prescribed development
financial institution, approved issuer of a designated Islamic payment instrument, approved
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insurance broker, approved takaful broker, approved financial adviser and approved Islamic
financial adviser are required to be members of the OFS. See TOR no.4.
1 The TOR defines commercial decision to include but is not limited to an assessment of
risks (such as approval, rejection and rescheduling of credit facilities, taking of securities
and insurance underwriting) and assessments of financial and commercial criteria or of
character of a customer.
1 It refers to the dispute resolution scheme that was operated by the FMB prior to 1st October
2016.
1 Paragraph 14 of TOR. See also section 126(4) of the FSA. Notification to BNM is also
required in the event the member does not abide by other terms of membership as stipulated in
paragraph 14 of the TOR.
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THE ROLE OF THE TRIBUNAL FOR CONSUMER CLAIMS AS A

REDRESS MECHANISM IN CONSUMER CREDIT INDUSTRY
Ibtisam @ Ilyana Ilias1

ilyana.ilias@uitm.edu.my
Rusni Hassan2
hrusni@iium.edu.my
Salina Kassim3
ksalina@iium.edu.my
Elistina Abu Bakar4
elistina@upm.edu.my
1
Phd candidate, Ahmad Ibrahim Kulliyyah of Law, International Islamic University
and Senior Lecturer at Faculty of Law Universiti Teknologi MARA Malaysia
2
Professor, IIUM Institute of Islamic Banking and Finance (IIiBF)
3
Associate Professor, Ahmad Ibrahim Kulliyyah of Law, International Islamic University
4
Senior Lecturer, Faculty of Human Ecology, University Putra Malaysia.
___________________________________________________________________________
Abstract: This study examines the role of the Tribunal for Consumer Claims (TCC) as an
alternative dispute resolution for financial consumer in consumer credit industry. The scope
expansively covers its membership, eligible complainant, jurisdiction, dispute resolution
process and award. The study employs a combination of qualitative specifically semi-
structured interview and content analysis research methodology. The study finds that the TCC
has successfully served the role of cheap, expedient and flexible redress mechanism.
Nevertheless, there are still rooms for improvement. To rectify the weaknesses, some
recommendations are proposed including to improve accessibility, enhancing member’s
qualification, increasing its monetary jurisdiction, imposing statutory declaration as a way to
prove the purpose of credit, organising more awareness programmes, allowing representative
from consumer associations to accompany consumers during hearing, omitting counter claim
procedure and granting administrative power to Enforcement Division of MDTCC to enforce
non-compliance with the award Such recommendations will be helpful for consideration by
respective parties especially Ministry of Domestic Trade, Co-operatives and Consumerism
(MDTCC) and the TCC.
Keywords: Alternative Dispute Resolution, Consumer Protection, Redress Mechanism

___________________________________________________________________________
Introduction
The presence of an alternative dispute resolution which is inexpensive, efficient and
time saving has been acknowledged as an overarching component of consumer protection.
Cappelletti (1993, p. 283) lists three obstacles which hinder access to justice. First, there is an
economic obstacle whereby certain classes of people who, because of poverty and/or associated
factors, have little or no access to the kind of information necessary to uphold their legal rights
or to legal representation. Secondly, there is an organisational obstacle which arises because
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the isolated individual acting alone lacks sufficient motivation, information and power to take
the actions necessary to defend his or her rights (Cappelletti, 1993). Thirdly, there are
procedural obstacles which are inevitable features of developed legal systems. Cappelletti
argues that, because of such obstacles, in certain kinds of controversies, the “normal” solution
of traditional, contentious litigation in court might not be the best way of preservation
individuals’ rights (Cappelletti, 1993).
The significance of redress mechanism extends to financial consumers alike.
Organisation for Economic Cooperation and Development (OECD) (Organisation for
Economic Co-operation and Development, 2011) has incorporated access to adequate
complaints handling and redress mechanisms that are accessible, affordable, independent, fair,
accountable, timely and efficient in the G20 High Level Principles on Financial Consumer
Protection. Likewise, it has been recognized as one of basic Good Practices for Financial
Consumer Protection in ensuring a well-functioning consumer protection regime (World Bank,
2012). Brown and Marriot explain that tribunal, arbitration, negotiation, mediation and the
ombudsman are among common ADR currently being applied and each has distinctive values
and is useful in certain types of disputes (Brown & Marriott, 1999, p. 16).
In Malaysia, as a result of piecemeal approach in the institutional framework of
consumer credit industry, there is no single alternative dispute resolution available to all
affected financial consumers across wide range of consumer credit industry. Access to
alternative dispute resolution largely depends on the regulator in charge of respective industry.
For example, eligibility to forward dispute to the Ombudsman for Financial Services (OFS) is
restricted to banking consumers (Paragraph 9 of the TOR; section 121 of the FSA.). OFS is the
first scheme operator to run financial ombudsman scheme approved by BNM. The TCC on the
other hand legally qualified to hear consumer credit cases related to both bank and non-bank
institutions. For the purpose of this paper, the role of the TCC in providing redress mechanism
to financial consumers in consumer credit industry will be meticulously investigated.
Method
Two methods are employed in achieving the objective of this study namely qualitative
and content analysis method. The primary data for this study are collected using semi-
structured interviews. The main purpose of this method is to elicit information which is absent
in the literature. In particular, semi-structured interview was conducted with representative
from the TCC to collect information on its roles and functions particularly related to consumer
credit cases. Secondary data are gathered from primary sources of law namely the Consumer
Protection Act 1999 (CPA), the Consumer Protection (The Tribunal for Consumer Claims)
Regulations 1999 (CPR), the Financial Services Act 2013 (FSA), the Financial Services
(Financial Ombudsman Scheme) Regulation 2014 (FSR). Secondary sources of law are also
extensively relied on including the decided cases and academic articles. The sources are
accessed mostly via internet and online databases such as CLJ Law, HeinOnline, Lawnet etc.
In addition, certain terms of reference (TOR) of OFS are evaluated as well to compare some
aspects of the TCC with that of OFS. Both types of data are rigorously evaluated and examined
as presented in the results below.
Results
The Tribunal for Consumer Claims
The primary objective of establishing the TCC is to provide an alternative channel other than
ordinary court for a consumer to claim for any loss suffered in a less cumbersome and speedy
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manner at a minimal cost. Statutorily created as an independent body pursuant to Part XII of
the CPA, it came into existence on 15 November 1999. Specifically, section 85 of the CPA
provides that there shall be a tribunal known as the “Tribunal for Consumer Claims”. Part XII
of the CPA contains 38 sections governing various aspects of the TCC, its jurisdiction, awards
and other related matters. Other than the CPA, a significant reference should be made to the
CPR.
There is one headquarter in Putrajaya and 39 branches all over the country located
however in urban city. The TCC will then have sittings throughout the country to hear consumer
claims. The chairman, deputy chairman and other members of the TCC will then move around
the country chairing one-man tribunals to hear cases in two or more sittings on such day and at
such time and place as the Chairman may determine based on the provision of Section 96 of the
CPA. The availability of e-tribunal for enquiry and filing of claims as well as SMS services is
a commendable effort. Nevertheless, since the dispute resolution requires both parties to attend
a physical hearing, as far as rural folks are concerned, the distance may obstruct their intention
to forward their grievances due to travelling cost and time incurred what more if it involves
minor claim. Few studies confirmed that some of the reasons for consumers’ option to remain
silence is the effort and waste of time involved as compared to the expected gain as well as
inconvenience suffered in the process (Gronhaug, 1977; Wan Jusuh, Othman, Nuruddin, &
Ahmad, 2001). It is submitted that the number of TCC branches should be increased specially
to cater the need of the people in rural areas. For IT savvy consumers, online dispute resolution
would be a convenient alternative for consideration. However, the necessary infrastructure
should be in place to enable efficient implementation.
Membership
With regards to its membership, section 86 of the CPA provides that the TCC shall
consist of a Chairman and a Deputy Chairman who are the officers from the Judicial and Legal
Service and not less than five other members of the Tribunal all appointed by the Minister of
the MDTCC. Their tenure of appointment shall not exceed three years, but they may be
reappointed upon expiry of the term. Nevertheless, they shall not be appointed for more than
three consecutive terms. The members’ remuneration is derived from Consolidated Fund. To
enable the members to decide the consumer credit cases effectively and impartially, it is
submitted that they should have some background in finance and credit as well. For example,
understanding financial terms and concepts such as multi-tiered rate, floating rate, prepayment,
early settlement, annual percentage rate, base rate, base financing rate will be useful in resolving
credit related cases. Familiarity with relevant consumer credit laws such as the Hire Purchase
Act 1967, the Moneylenders Act 1951, the Pawnbrokers Act 1972 is equally fundamental.
In order to ensure the effectiveness of the TCC and in preserving its integrity as a dispute
resolution institution, membership may be revoked due to several grounds (Section 89 of the
CPA). Firstly, when the member has conducted himself in a manner which will bring discredit
to the TCC whether in connection with his duties as a member of the TCC or otherwise.
Secondly is due to his incapability to properly executing his duties as a member of the Tribunal.
Thirdly, if there has been proved against him or alternatively he has been convicted on a charge
in respect of an offence involving fraud, dishonesty or moral turpitude; an offence under a law
relating to corruption; an offence under the CPA or any other offence punishable with
imprisonment for more than two years. Bankruptcy or unsoundness of mind are also valid
justifications for revocation as a member. Finally, his membership may be dismissed on the
basis of his absence from three consecutive sittings of the TCC without leave of the Chairman.
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Eligible complainant
A dispute can be submitted by a consumer within the meaning of the CPA namely a
person who acquires or uses goods or services of a kind ordinarily acquired for personal,
domestic or household purpose, use or consumption. Financial services fits into the definition
of services under the CPA as decided in the case of Ong Siew Hwa v UMW Toyota Motor Sdn
Bhd & Anor [2014] 9 MLJ 640 whereby the judge held that the plaintiff who acquires the car
for his personal use under hire purchase agreement is a consumer under the CPA. Therefore,
pursuant to Section 98(1) and 99(1)(d) of the CPA, financial consumers who acquire consumer
credit products such as hire purchase, moneylending, pawnbroking from bank or non-bank
institutions are entitled to refer their cases to the TCC. However, there is a limitation in case
of financial consumer of banking institution whereby section 126(5) of the FSA explicitly
forbid any complaint which has been referred to an approved FOS from being lodged to the
TCC. Difficulty may arise in determining the purpose of acquisition of loan especially from
moneylenders or pawnbrokers as the purpose is outside the control of the credit providers unlike
hire purchase or housing loan. According to Cheng (2017), statistic shows those loans acquired
from illegal moneylenders are used for gambling while pawnbroking is the main source of credit
among small entrepreneurs (Ismail & Ahmad, 1997). Perhaps, statutory declaration would be
one method to be considered.
Section 98(1) of the CPA also stipulates that the TCC shall also have jurisdiction to hear
a claim if there is no redress mechanism provided by any statute to hear the said claim.
Additionally, section 99(1)(d) of the CPA provides that jurisdiction of the TCC extends to cases
which no tribunal has been set up to settle the dispute. Literal understanding of these provisions
indicates that cases associated with hire purchase by non-bank institutions, moneylending and
pawnbroking both conventional and Islamic are capable to be resolved by the TCC since there
is neither redress mechanism created by any statute nor tribunal is available in respect of these
industries. Nevertheless, based on the interview conducted and cases decided by the TCC, it
was revealed that the TCC does not so far entertain cases related to banking, hire purchase,
moneylending or pawnbroking even though complaints related to consumer credit issues
offered by non-bank institutions are numerous as evidenced from consumer associations’
reports. For example, alteration of the original terms of the contract by the moneylenders to
their whim and fancies prejudicial to the interest of the borrowers, (National Consumer
Complaints Centre, 2013, p. 86) disposal of pledge items without prior notification to the
pawner, and tampering of the pledge when it becomes shorter or lighter upon redemption
(National Consumer Complaints Centre, 2009, 2013).
Apparently, the awareness on the availability of the TCC as a redress mechanism is
imperfect and its accessibility to these financial consumers is dubious. Expertise of the TCC to
deal with consumer credit cases is one of the probable reasons. Another contributing factor is
possibly because moneylending and pawnbroking fall under the purview of Ministry of Urban
Wellbeing, Housing and Local Government (MUWHLG); thereby generating misperception
among consumers as to the proper body to submit their dissatisfaction. Thus, engaging more
expert to specifically deal with consumer credit matters would be indispensable while more
awareness program should be conducted.
Jurisdiction
By virtue of section 98(1) of the CPA, the TCC has a jurisdiction to hear and determine
claims filed by consumers under the CPA provided that the claim does not exceed RM25,000.
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This monetary jurisdiction is definitely small especially when it comes to consumer credit
disputes involving hire purchase as well as moneylending. This alone inhibits the role of the
TCC as an effective dispute settlement mechanism is respect of financial consumers.
There are a number of cases which may be submitted to the TCC but fell outside the
monetary jurisdiction. For example, Ong Siew Hwa v UMW Toyota Motor Sdn Bhd [2016] 1
MLJ 132 related to the issue of breach of implied guarantee as to acceptable quality under the
CPA. The appellant argued that the first respondent i.e. the car dealer is also liable together
with the second respondent; a finance company. The appellant’s case was dismissed with cost.
Breach of implied warranty that the hirer shall have quiet possession of the goods has been an
issue in the following cases whereby the vehicle has been detained by third party
(customs/police) during the tenure of the hire purchase. Nevertheless, the court held in Hong
Leong Bank Berhad v Jeyaprakash Pillay a/l Jegaualthan [2016] MLJU 279 and Guan Aik
Moh (KL) Sdn Bhd & Anor v Selangor Properties Bhd [2007] 3 CLJ 695 that any deprivation
of quiet possession of the vehicle was not attributable to any act or omission on the part of the
financier but was caused by the customs or by the hirer in his dealings with the dealer. Hence,
not only financial consumers have to endure the suffering of losing the case but have to incur a
lot of expenses to pay legal fees and other incidental costs. The trials were also time-consuming
as they went through an appeal process. It is viewed that to cater the need of consumer credit
disputes, the monetary jurisdiction to be reviewed. By way of comparison, the monetary
jurisdiction of the OFS is RM250,000-00.
Even though the TCC may entertain the claim which exceeds the prescribed limit, but
pursuant to Section 100(1) of the CPA it is subject to an agreement between the parties.
Similarly, Section 100(2) of the CPA provides that the agreement may be made prior to the
lodgement of claim or even after the agreed settlement has been recorded or has been
determined. If no consensus reached, the limit remains unchanged. In order to bring the claim
within the jurisdiction of the TCC, the claimant may abandon part of the total claim but
absolutely at the expense of the claimant (Section 101 of the CPA).
Section 99 of the CPA further provides list of claims which are excluded from the TCC’s
jurisdiction namely a claim for recovery of land or any estate or interest in land in which the
title to any land, or any estate or interest in land and a claim in which the title to any land, or
any estate or interest in land, or any franchise, is in question. Dispute concerning a will,
settlement or intestacy (including a partial intestacy), good will, chose in action, trade secret or
other intellectual property are also outside the TCC’s jurisdiction. Besides, it does not entertain
a claim which is under the jurisdiction of other tribunals as well as a claim arising from personal
injury or death. Section 99(2) of the CPA provides the scope of jurisdiction which is limited to
a claim that is based on a cause of action which accrues within three years of the claim. This
three years’ limitation period is not in line with the period prescribed under the LA, LO and
LOS which is six years in the case of contract.
Dispute Resolution Procedures

To initiate action for claims, a claimant needs to lodge his claim in a prescribed form
together with the prescribed fee as contained in the combined effect of Section 97 of the CPA
and regulation 5 of the CPR. The form can be obtained freely from the TCC while the filing
fee is as provided in the First Schedule of the CPR i.e. only RM10. The claim lodged may
include loss or damage of a consequential nature pursuant to section 98(4) of the CPA. The
said claim needs to be served either personally or through registered post by the claimant in
accordance with regulation 15 of the CPR. In the event the respondent disputes the claim, he
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must file his defence together with counter-claim (if any) within 14 days after the service of the
statement of claim. Failure to file a defence will entitle the TCC to make an award in favour of
the claimant on hearing date.
Prior to the actual trial, the TCC will assess as to whether it is appropriate to assist the
parties to negotiate an agreed settlement. Pursuant to Section 107(3) of the CPA, once the
parties reach an agreed settlement, it will be approved, recorded and recognised as an award of
the TCC. On the contrary, in case the negotiation is not viable or the negotiation fails, the TCC
shall continue with the proper hearing. Amin (Amin, 2012) submitted that providing an
opportunity for two-party negotiations between claimant and respondent with less involvement
of the tribunals will undoubtedly make the process not only simpler and faster but demonstrates
the true spirit of the ADR concept.
At the hearing, every party is entitled to attend and be heard but they are not allowed to
be represented by an advocate and solicitor (Section 108(1) and (2) of the CPA). However,
pursuant to Section 108(3) of the CPA, a corporation or unincorporated body may be
represented by its full time paid employee, while a minor or disabled person may be represented
by his next of kin or guardian ad litem. Inequality of bargaining power may arise what more if
the complainant is merely an ordinary layman unfamiliar with the technicalities involved in the
dispute resolution process. Lack of legal advice prior to hearing may cause potentially
successful complaints to be in vain. Pertaining to this, section 108(4) of the CPA provides that
the TCC may impose conditions as it considers necessary to ensure that the party who is not
represented is not substantially disadvantaged. Nonetheless its application is very ambiguous
(Amin & Abu Bakar, 2010). It is viewed that a provision to be made to allow consumer
representative to help during the preliminary process and accompany the consumer during the
hearing as this will increase their confidence in attending the hearing.
The hearing shall be presided over by a member of the Tribunal sitting alone either the
Chairman, Deputy Chairman or other ordinary members selected by the Chairman. Section 109
of the CPA provides that proceeding must be open to public and the TCC will consider
evidences on oath or affirmation whether oral or written and examine witnesses brought by the
parties whenever it deems necessary (Section 110(1) of the CPA and regulation 23 of the CPR.).
Additionally, it may also require the parties to produce books, records, documents or papers;
administer oath, affirmation or statutory declaration; seek other evidences as well as receive
expert evidences (Section 110(1) of the CPA and regulation 23 of the CPR.). Thus, in
supporting their cases, both parties are entitled to adduce evidence, call any witness or produce
any document, record or thing. Nevertheless, if the respondent admits the claim, an award will
be made as prescribed in Form 6 Regulation 20 of the CPR.
The TCC may proceed to hear and determine the claim despite the absence of any party
to the proceeding provided it has satisfied that a notice of the hearing has been duly served on
the absent party. If the claimant is the only party who does not appear, the President of the TCC
may either dismiss the claim provided the respondent has no counter claim or make an award
in favour of the respondent if there is a counter claim. It is inopportune that the TCC allows the
respondent to determine the counter claim although the original claim is withdrawn, abandoned
or struck out. This situation regrettably places a consumer in a fragile condition and may defeat
the purpose of providing an easy redress mechanism to consumers as its role has changed to a
medium where supplier recover their debts from consumers (Amin & Abu Bakar, 2010).
Arguably, the counter-claim procedure should be omitted from the hearing process.
On the other hand, if the respondent is the one who does not appear, the President has
two options namely to proceed with the hearing or to adjourn it to a later date. If the first option
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is chosen, the representation made by the claimant will be considered (Regulation 21(4) of the
CPR.). In the absence of both parties, the action shall be struck out pursuant to Regulation
(21)(5). There are several factors which determine the length of time taken to resolve a claim
such as the volume of cases filed at a particular time, the nature and intricacy of cases as well
as efficacy in servicing relevant forms or notices (Amin, 2012). In this regard, section 112(1)
of the CPA requires the TCC to make an award without delay and where practicable within
sixty days from the first hearing day.
Prior to making such awards, Section 113(1) of the CPA provides that the TCC may
refer to a High Court Judge a question of law which arose in the course of the proceedings or
which it thinks very important and merit such reference. Accordingly, the awards will be in
line with the decision of the High Court Judge in respect of such question of law. Based on
Section 114 of the CPA, it is obligatory on the TCC to provide reasons for its decisions in the
proceedings. Similarly, it is also compulsory for every agreed settlements and awards to be
recorded in writing (Section 115 of the CPA)
Based on Table 1.1, number of cases filed is equivalent with the number of cases filed
each year except for the year 2016 which saw 252 cases were pending. Thus, overall
performance is satisfactory.
Table 1.1
Number of Cases Filed and Settled by the Tribunal for Consumer Claims
Year Cases Filed Cases Settled
2011 10423 10423
2012 7873 7873
2013 7739 7739
2014 7382 7382
2015 6960 6960
2016 4855 4603
TOTAL 45232 44980
Source: Tribunal for Consumer Claims Putrajaya. TCC March (2017)
Award
Section 112(2) of the CPA empowers the TCC to make various types of awards such as
to require the respondent to pay money to the claimant, to supply or resupply the goods, to
replace or repair the goods and to refund the price or other consideration paid by consumers. In
addition to that, the respondent may be ordered to comply with the express or implied
guarantees provided under the CPA, to pay costs, to pay interest on any sum or monetary award
at a rate not exceeding eight per centum per annum, unless it has been otherwise agreed between
the parties. Furthermore, the TCC may also order the respondent to pay monetary compensation
for any loss or damage suffered by the claimant except the one which is non-pecuniary in nature.
Interestingly, dismissal of the claim is also part of the Tribunal’s awards.
The decisions of the TCC shall be final and binding on all parties to the proceedings and
shall be deemed to be an order of a Magistrate’s Court. The TCC has no power to enforce the
award but merely sends a copy of the award to the Magistrate court for record purpose. Failure
to comply with the said award after fourteen days it was made is an offence and if convicted
the person shall be liable to a fine not exceeding RM5000 or to imprisonment for a term not
exceeding two years or to both (Section 117(1) of the CPA). For a continuing offence, in
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addition to the previous penalties, Section 117(2) of the CPA provides that the offender shall
also be liable to a fine not exceeding one thousand ringgit for each day or part of a day during
which the offence continues after conviction. Lack of enforcement power does create a problem
for consumers who wins the case as they need to go to court by themselves for the execution
order in the event the respondent fail to comply with the award. They have to face cumbersome
procedures since the execution procedure under the Subordinate Courts Rules 1980 is not
straightforward. Even though non-compliance with the award is a criminal offence, the
responsibility for prosecution lies on the Enforcement Division of the Ministry of Domestic
Trade, Cooperative and Consumerism (MDTCC). It is questionable as to effectiveness of the
present mechanism due to backlog of cases in court (Amin & Abu Bakar, 2010). Thus,
providing the Enforcement Division with administrative powers to enforce the claim would be
more advantageous. As a comparison, non-compliance with the FOS awards will be reported
to BNM who is equipped with power to take administrative action. This will essentially save
time and cost and expedite the compliance process.
Conclusion
It is undisputable that the TCC offer inexpensive dispute resolution as it only imposes
a minimal filing fee. The procedures involved are uncomplicated compared to the litigation in
court. Consequently, time consumed to dispose of the case is also reduced and as practicable
the award should be granted within sixty days from the first hearing day. One way to evidence
the effectiveness of the TCC is based on its ability to settle cases in a speedy manner. The
statistic indicates that for the past six years, almost all cases filed are settled except for the year
2016 whereby 252 cases were pending out of 4855. Incontestably the TCC has established a
good standing as an independent body since its establishment is under the purview of the
government with the aim to protect consumers while the members’ remuneration is derived
from Consolidated Fund.
Notwithstanding those positive remarks, there are several aspects which need to be
upgraded. In terms of accessibility of the TCC, it can be improved by increasing the number
of branches and considering an online dispute resolution. Its role to deal with consumer credit
cases effectively can be enhances firstly by engaging who have background in credit, finance
and applicable laws and secondly to organise more awareness program on the role of the TCC
in relation to this area. Consumer credit usually involve high value of money for instance to
purchase motorcars. To accommodate the need of this class of action, monetary jurisdiction
should be reviewed. In determining the purpose of acquiring the credit, statutory declaration is
suggested. More awareness program on the role of the TCC in handling consumer credit cases
should be organised. The TCC should also consider provision which permits the assistance of
consumer representative in favour of financial consumer and the omission of counter-claim
procedure. Finally, in view of poor enforcement in respect of non-compliance with award,
conferring administrative power to MDTCC via its Enforcement Division to enforce the award
would be a viable option.
In conclusion, the TCC has a potential to be the preferred alternative dispute resolution
in favour of financial consumers in consumer credit industry in Malaysia. However, as
highlighted in the above discussions, some elements of the existing framework need to be
reinforced.
Reference
Amin, N. (2012). Consumer redress mechanisms in Malaysia: prospects and challenges. IIUM
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Law Journal, 15(2).

Amin, N., & Abu Bakar, E. (2010). ADR for consumers: an appraisal of the tribunal for
consumer claims in Malaysia. In I. J. Mohammad Naqib & A. M. Ashgar Ali (Eds.),
Mediation in Malaysia:The Law and Practice. Lexis Nexis.
Brown, H. J., & Marriott, A. L. (1999). ADR principles and practice. Sweet & Maxwell
London.
Cappelletti, M. (1993). Alternative Dispute Resolution Processes within the Framework of the
World-Wide Access-to- Justice Movement. The Modern Law Review, 56(3), 282–296.
Cheng, N. (2017, January 3). Licensed Moneylenders Finding It Tough to Survive. The Star.
Kuala Lumpur. Retrieved from
http://www.thestar.com.my/news/nation/2017/01/03/licensed-moneylenders-finding-it-
tough-to-survive/#plxm9DWfQtYdZa1f.99
Gronhaug, K. (1977). Exploring Consumer Complaining Behavior: A Model and Some
Empirical Results. Advances in Consumer Research, 4, 159–165.
Ismail, A. G., & Ahmad, N. Z. (1997). Pawnshop as an Instrument of Microenterprise Credit in
Malaysia. International Journal of Social Economics, 24(11), 1343–1352.
National Consumer Complaints Centre. (2009). Info Pengguna - Pajak Gadai. Retrieved July
13, 2017, from http://www.nccc.org.my/v2/index.php/pajak-gadai
National Consumer Complaints Centre. (2013). Annual Report 2013. Malaysia.
Organisation for Economic Co-operation and Development. (2011). G20 High-level Principles
on Financial Consumer Protection. Retrieved June 7, 2015, from
http://www.oecd.org/daf/fin/financial-markets/48892010.pdf
Wan Jusuh, W. J., Othman, K., Nuruddin, N., & Ahmad, H. (2001). Consumer Awareness,
Knowledge, Attitudes and Practices Related to Consumer Protection: An Exploratory
Study among Working Women in the Klang Valley. Malaysian Journal of Consumer and
Family Economics, 4, 26–36.
World Bank. (2012). Good Practices for Financial Consumer Protection. Retrieved November
11, 2014, from http://responsiblefinance.worldbank.org/~/media/
Acknowledgements
This study is part of the findings of FRGS research project Ref:

FRGS/1/2016/SSI10/UIAM/02/5
1
This regulation is made pursuant to section 122 of the CPA
1
Consumer has been generally defined under section 2 of the CPA as a person who acquires or
uses goods or services of a kind ordinarily acquired for personal, domestic or household
purpose, use or consumption.
1
Interview with Encik Mohammad Nordin Abd Raof, Deputy Chairman of the TCC on 14
March 2017 at the TCC Putrajaya and Mr Mogan S/O Arumugam, Head of Hire Purchase and
Credit Sale Unit, Enforcement Division, Ministry of Domestic Trade, Cooperative and
Consumerism at Ministry of Domestic Trade, Cooperative and Consumerism Putrajaya on 16
March 2017.
1
For the said year, under the category of non-conventional financial services, complaints against
the moneylenders was the highest namely 43%.
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1
Section 98(3) of the CPA and Regulation 9 of the CPR. Accordingly, if there is a counter-
claim the claimant shall file a defence to such counter-claim in a prescribed form; see regulation
13 of the CPR.
1
Regulation 19 of the CPR. An award shall be in Form 5. The TCC may also exercise its
discretion to adjourn the hearing. However, such award may be set aside on the application of
an aggrieved party. See Regulation 25 of the CPR.
1
Section 107(1) of the CPA. In making an assessment, the TCC considers factors that, in the
its opinion, are likely to impair the ability of either or both parties to negotiate an agreed
settlement; see section 107(2) of the CPA. See also regulation 22 of the CPR.
1
Section 96(1) of the CPA. The person is referred to as the President; see Regulation 2 of the
CPR.
1
Section 111 of the CPA. However, an award made in the absence of one party may be set
aside on the application of an aggrieved party. See Regulation 25 of the CPR.
1
Regulation 21(1) of the CPR. An award made in the absence of claimant shall be in Form 7.
1
Regulation 21(3) of the CPR. An award made in the absence of respondent shall be in Form
8
1
Section 113(2) of the CPA. For the purpose of appearance before the High Court Judge,
section 113(3) states that a Federal Counsel authorized by the Attorney General may appear on
behalf of the Tribunal.
1
Section 116 of the CPA. In this respect, a copy of the award made by the Tribunal will be
sent by the Tribunal’s Secretary to the relevant Magistrate’s court for recording purposes.
1
Execution of the order may be done through a writ of seizure and sale or specific performance
depending on the forms of order awarded by the Tribunals
1
Paragraph 14 of TOR. See also section 126(4) of the FSA. With regards to administrative
power, see section 234(3) of the FSA
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STRATEGIC ORIENTATION AND MOSQUES ECONOMIC

ACTIVITIES
Ahmad Raflis Che Omar1
Mohd Yahya Mohd Hussin2
Fidlizan Muhammad3
1
Fakulti Ekonomi dan Pengurusan, Universiti Kebangsaan Malaysia
(Postgraduate Student of Universiti Pendidikan Sultan Idris)
2,3
Fakulti Pengurusan dan Ekonomi, Universiti Pendidikan Sultan Idris
Abstract: This study examines the relationship between mosque’s strategic orientation and
mosque’s economic activities. A survey method was employed to gather response from
mosques’ top management committee member at the State of Selangor. The outcomes of path
model analysis revealed two important findings. First, strategic orientation practices exist
among mosques operations. Second, relationship between strategic orientation and mosques
economy activities is significantly related. The results confirm that strategic orientation is an
important factors contributed towards the involvement of mosques management committee in
economic activities within their capacity. The empirical evidence provides important insights
that could guide mosque’s management committee and state religious agencies in their
understanding of the strategic orientation and the benefits for mosques economic sustainability.
Keywords: Strategic Orientation, Mosque, Economy
Introduction
Organizational strategy is the principles that influence activities of organization and
generate the behaviours that intended to gain best performance. Organizational strategy
substantially influences organizational activity, investments direction, market focuses and
economic performance. Strategy will improve the capability of organizations to explore new
opportunities, innovate and improving their risk-taking propensity. Best strategy will provide
an excellent framework for the top management team to mobilise their assets, capabilities and
human capital to offers value added services or products, high quality services to customers as
compared to other competitors. Therefore, organization can formulate or adopt the best strategy
by coordinating their resources, technologies and network to achieve highest performance.
One of the most recent development in strategic management and entrepreneurship
perspective is related to the concept of strategic orientation. Strategic orientation is the strategic
process where the organization exhibit its internal strategy in exploring new products or
services, innovate and willing to take higher risk in order to gain better performance. Strategic
orientation guides the direction of the organization to pursue their economic activities. Balodi
(2014) revealed that strategic orientation contributes towards firm’s overall performance by
directly influence the activities of an organization.
Traditionally, strategic orientation relates to the organization’s culture and serve as the
basis for organizational practices, decision making and resources allocation (Balodi, 2014).
Under the flagship of entrepreneurship, strategic orientation is associated to the process,
practices and decision making activities towards new entry to the market by new or existing
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firms (Lumpkin and Dess, 1996). Miller (1983) measured the strategic orientation of an
organization by looking at the engagement of the firm in product or services innovation, risk
taking propensity, acquisition of technology, pro-activeness action in their operations.
However, past studies are more focusing on strategic orientation among business
organizations, private firms and corporate organization. Little study is known to measure the
existence of strategic orientation among non-profit organization or social organizations such as
mosques, churches and others. In fact, these organizations are currently facing new challenges
in term of widen social responsibilities, limited funds and donation, as well as reducing of
government budget. Thus requires them to become proactive and strategic oriented for survival.
Mosque for example are encourage to improve their conducts and activities related as the
economic centre, knowledge revealed centre and community centre (Mahazan and Wan Mohd.
Fazrul Azdi, 2013; Omar, 2008).
This study attempts to understand the existence of strategic orientation among mosques
organization in Malaysia and its relationship to the economic activities pursued by the
respective organization. It is our aims to understand on how the strategic orientation interact
with the business-liked activities under the mosques environment.
Literature Review
Mosque is the principle institution in Islam. By definition, mosque or “masjid” is the
place of prostration or “sajda” in Arabic term. Beside its core function as the place of
congregation, centre for Islamic teaching and reciting the Al-Quran, mosques are also
performing other functions such as the administrative centre, community centre, learning centre
and economic centre (Mohd Yahya et al., 2014). All are inclusion of worshiping for Allah in
Islamic thought.
Currently, there are almost 6,600 mosques being established in Malaysia. The State
Islamic Religious Council is the governance body responsible for policy making and the State
Islamic Religious Department is the execution body for the policies and operating procedures
to be followed by all mosques in each states. At the mosque level, two management parties
involved in managing mosque’s operation and activities. First is the Mosque Management
Committee (consist of Chairman or Nazir, Secretary, Treasurer and Committee members).
Their major duties are planning and executing the State Islamic Religious Council’s policies
and regulations regarding mosques operations and Islamic affairs within their qariah and
planning and execution of mosques activities. Second is the Mosque’s Officers (consist of
Imam, Bilal, and Siak) with the main responsibility to perform all religious duties in their
respective mosque and qariah.
The Second National Seminar on Mosque Management 2006 highlighted eight
resolutions to be implemented amongst mosques in Malaysia to improve their roles in
community and Islamic development. The first resolution urged all mosques in Malaysia to be
managed and developed as the central institutions for strengthening Islamic civilization. Omar
(2008) encouraged mosque management team to improve their conducts and related activities
to promote mosques as the economic centre, knowledge revealed centre and community centre.
As such, the involvement of mosques in economic activities is realized through the introduction
of mosque’s cooperative, as well as allocation of mosque’s properties and fixed assets to be
rent by outsiders and others (Joni Tamkin et al., 2011; Fidlizan et al., 2014; Mohd Yahya et al.,
2014).
Ahmad Raflis et al, (2015) revealed that certain mosques in Selangor are strategically
involved in social business activities as the alternative ways to gain additional income as
compared to other traditional sources. The inclusion of mosques in strategic orientation
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practices is considered one of the applied strategy for them to achieve better economic
performance, in particular the capabilities to gain other financial income as compared to the
traditional source of government grant, waqf and public donation.
Strategic orientation guides the direction of the social and service organization to pursue
their economic activities (Storey and Hughes, 2013). Balodi (2014) posited that strategic
orientation contributes towards firm’s overall performance by directly influence the activities
of an organization. The ideas are related to the Resource Based View Theory by Penrose (1950).
To strengthen the mosque institution and economic efficiency in the area of financial and
endowment capabilities, requires strategic management and operational practices among
mosques management committee (Allia et al, 2013). Strategic orientation of an organization is
a process in which firm engage with offering new products or services, innovation, risk taking
propensity, acquisition of technology, pro-activeness action in their operations or economic
conducts (Miller, 1983).
Methodology
Primary data were obtained through questionnaires distributed to the key personnel of
mosque administrative committee consist of Chairman (Nazir), Deputy Chairman, Secretary or
Treasurer in the State of Selangor from five districts – Petaling, Gombak, Klang, Sepang, and
Hulu Langat. The permission is first obtained from the Mosques Management Division of the
Selangor State Islamic Religious Department. The purposive sampling method was used in this
study as the targeted mosques are perceived to at pursue one type of economic activities.
The questionnaire comprised of three sections. The first section related to demographic
details of the mosque background. The second section related to the economic activities
performed by the mosque and the final section requires about their strategic orientation factors.
The economic activities are divided into five key elements which include the economic
activities initiatives performed, project management skills, economic projects management,
pro-activeness in dealing with economics project and risk-taking propensity. Finally, the
strategic orientation is measured by applying eight modified constructs proposed by Miller
(1983). Each of the questions used a five-point Likert scale.
The analysis of the data was done using the SmartPLS software. The aims are to analyse
the relationship between variables with linear equations representing the cause and effects
between variables. The descriptive analysis covers frequency, mean and outer loadings.
Cronbach Alpha teat, composite reliability and the average variance extracted was used to
validate the data.
Findings and Discussion

The study received feedback from 81 mosques from 105 questionnaires distributed.
Table 1 revealed the demographic information about the samples. Majority of the mosques are
the Kariah Mosque (82.7%) and mostly established since 1981 to 2000 (48.1%) and 2001 to
2016 (27.2%). Majority of the mosques have the congregational capacity of less than 1,000
people at one time (63%).
Table 1: Demographic of Mosques

Frequency Percentage
Mosque Location District of Petaling 30 37.0
District of Gombak 17 21.0
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District of Hulu Langat 15 18.5

District of Klang 11 13.6
District of Sepang 8 9.8
Mosque’s Category Royal Mosque 1 1.2

Institutional Mosque 8 9.9
Jamek Mosque 5 6.2
Kariah Mosque 67 82.7
Year of Establishment 1930 – 1980 20 24.7

1981 – 2000 39 48.1
2001 - 2016 22 27.2
Capacity for Congregation Less than 500 31 38.3

501 – 1,000 20 24.7
1,001 – 2,000 9 11.1
2,001 – 3,000 9 11.1
Above 3,001 12 14.8
Reliability test has been conducted on the factors measurement. Table 2 revealed the
results of the analysis. For the CA test, the value obtained were between 0.760 and 0.897
indicate that all factor items were strongly correlated to one another (Hair et al., 2007). CR and
AVE test shown the reliability of internal consistency. All factors indicate values of more than
0.50 and considered good.
Table 2: Results of Cronbach’s Alpha, Composite Reliability and Average Variance Extracted
Factor Cronbach’s Composite Average
Alpha (CA) Reliability (CR) Variance
Extracted (AVE)
Strategic orientation 0.841 0.877 0.510
Risk taking 0.850 0.898 0.688
Pro-activeness 0.841 0.904 0.758
Economic project management 0.897 0.923 0.707
Economic activities performed 0.879 0.916 0.733
Project management skills 0.760 0.809 0.515
Further analysis was done to measure the structural model. Table 3 revealed the results
of the convergent and discriminant validity analysis. It shown that all variance inflation factor
(VIF) values are less than 10. Indicating that multi collinearity that suggested there are no
indication of collinearity (redundancy) between the variables (Hair et al., 2007).
Table 4 show the results of hypothesis testing for all variables and expected relationship.
It is shown that all elements had positive relationship. However, there are two constructs that
was significantly associated to the strategic orientation of mosques. The first is the pro-
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activeness of the mosques management committee in strategically pursuing economic activities

(ß=0.290; t=2.718; p = 0.007). The second is the project management skills (ß=0.391; t=4.579;
p = 0.000). The results support the findings from Ahmad Raflis et al. (2017) that mosques had
certain experience in pursuing social business activities and the strategy was related to the pro-
active propensity among mosque’s management committee’s commitment.
Table 3: Results of Convergent and Discriminant Validity Analysis

Factor SO RT PA EPM EAP PMS
SO 0.670
RT 0.347 0.829
PA 0.654 0.367 0.841
EPM 0.584 0.343 0.570 0.871
EAP 0.614 0.294 0.758 0.681 0.856
PMS 0.646 0.127 0.502 0.437 0.534 0.718
Note: SO = Strategic orientation; RT = Risk taking; PA = Pro-activeness;
EPM = Economic project management; EAP = Economic activities performed;
PMS = Project management skills
Table 4: Hypothesis Testing Results

Hypothesis Beta t-test p-value VIF
Risk taking > Strategic Orientation 0.119 1.206 0.228 1.210
Pro-activeness > Strategic Orientation 0.290 2.728 0.007** 2.580
Economic project management > Strategic 0.194 1.656 0.098 1.987
Orientation
Economic activities performed > Strategic 0.019 0.140 0.889 3.128
Orientation
Project management skills > Strategic Orientation 0.391 4.579 0.000** 1.474
R Square 0.608
Adjusted R Square 0.582
Significant: ***=0.010; **=0.050, *=0.10
*H: Hypothesis
Conclusion and Recommendation

The study revealed that strategic orientation exists in mosques economic activities
engagement. Up to this date, mosques management committee are pro-actively looking for the
new source of income generating activities by utilising their existing accumulated financial
funds and fixed assets. Therefore, they are conducting various economic based activities such
as investment project, homestay, rented hall, establishing mosque’s cooperative and others.
Engagement on social entrepreneurship activities are very much valuable for the mosques
institution to move forward.
However, mosques management committee are still cautious in term of risk-taking
propensity. That is due to their accountability to the funds generated from the traditional sources
such as public donation, waqf and yearly government grant. It is understood that the committee
must submit yearly financial report to the State Religious Department for monitoring purposes.
In order for them to pursue various economic activities, there are still lacking in term of
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economic project management and numbers of economic activities performed. That was related
to the prudent mechanism implied to the selected activities that may performed by the
committee and the restriction set on the usage of mosque’s funds and assets by the authority.
As a recommendation, it is suggested that mosques management committee should be
empowered by the authorities to performed such economic and social business activities with
clear guidelines and execution policy. Professional committee members should be appointed to
lead the Economic Bureau of the mosque. Investment committee should also be established for
them to monitor and evaluate all economic project of the mosque. As such, certain recognition
award is also appropriate to be introduce to recognised the achievement of the best mosque
committee in pursuing strategic oriented economic activities. Further studies are needed to
measures the strategic orientation among mosques in other states in Malaysia and perform some
details comparison between states since the mosques procedures are related to individual states
religious authority.
References
Ahmad Raflis Che Omar, Mohd Yahya Mohd Hussin and Fidlizan Muhammad. (2015). Social
entrepreneurship practices among mosques in Selangor, in Amalan Keusahawanan Islam,
Konsep dan Isu Perlaksanaan, (eds.) Mohd Faizol Ibrahim, Kuala Lumpur : Pusat
Pungutan Zakat, Majlis Agama Islam Wilayah Persekutuan, 171-184.
Ahmad Raflis Che Omar, Mohd Yahya Mohd Hussin and Fidlizan Muhammad. (2017).
Perniagaan Sosial Menerusi Aktiviti Ekonomi Masjid, Journal of Global Business and
Social Entrepreneurship, 1(1), 39–46.
Al-Ansaari, Y., Bederr, K., and Chen, C. (2015). Strategic orientation and business
performance: an empirical study in the UAE context. Management Decision. 53(10),
2287-2302.
Allia Jaafar, Nurul Fadly Habidin, Mohd Yahya Mohd Hussin, Zainizam Zakaria and Asnida
Abdul Hamid. (2013). A proposed model for strategic management (SM) and mosque
performance (MP) in mosque management, BEST: International Journal of Management,
Information Technology and Engineering, 1(3), 29-36.
Balodi, K.C. (2014). Strategic orientation and organizational forms: an integrative framework.
European Business Review, 26(2), 188-203.
Fidlizan, M., Mohd Yahya, M.H., Azila, A.R., & Fatimah Salwa, A.H. (2014). Persepsi
masyarakat Islam terhadap idea penjanaan dana masjid: kajian di Perak, Sains Humanika,
2(1), 101-106.
Hair, J., Money, A., Samouel, P and Page, M. (2007). Research Methods for Business. New
York: John Wiley & Sons.
Joni Tamkin, B., Mohd Yahya, M.H., Fidlizan, M., and Mohd Fauzi, A.H. (2011). Membentuk
usahawan muslim: peranan dana masjid. Al-Basirah, 1(1), 53-63.
Lumpkin, G.T. and Dess, G.G. (1996). Clarifying the entrepreneurial orientation construct and
linking it to performance, Academy of Management Review, 21, 135-172.
Mahazan Abdul Mutalib and Wan Mohd Fazrul Azdi Wan Razali. (2013). Model pengimarahan
dan prestasi masjid di Malaysia: Satu pengenalan awal kajian. Seminar Kebangsaan
Pengajian Akidah dan Agama, Nilai : Universiti Sains Islam Malaysia.
Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management
Science, 29, 770-791.
Omar Said. (2008). Hadhari Dalam Sektor Pengurusan Masjid, Putrajaya: Jabatan Kemajuan
Islam Malaysia, Jabatan Perdana Menteri.
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Storey, C. and Hughes, M. (2013). The relative impact of culture, strategic orientation and
capability on new service development performance. European Journal of Marketing,
47(5/6), 833-856.
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FACTORS INFLUENCING THE INTENTION TO MIGRATE AMONG

ENGINEERING STUDENTS IN MALAYSIA: AN EXPLORATORY STUDY
Fahim Wazir1
Rohana Jani2
Azmah Othman1
Sharifah Muhairah Shahabudin1
1
Department of Development Studies, Faculty of Economics and Administration, University of Malaya
2
Department of Applied Statistics, Faculty of Economics and Administration, University of Malaya
______________________________________________________________________________
Abstract: Human capital and innovation plays a crucial role for economic growth of a country. To
advance in the development of talents, Malaysian government has developed strategies such as the
introduction of the Higher Education Strategic Plan to increase the number of graduates with
tertiary education particularly in the field of science, engineering and ICT to 33% by 2020.
Moreover, Intellectual Properties Corporation of Malaysia (MyIPO) was created to foster new
innovation among Malaysians and to protect infant inventions. But with all various strategies to
promote growth, Malaysia are struck with an issue of brain drain, the flight of high skilled human
capital to a foreign country with no intention to return home. In 2000, there were 184,000
Malaysian with tertiary-education who have migrated for economic reasons and in 2010, it was
estimated about 1 million Malaysian living abroad (The World Bank, 2011). Brain drain could
hinder Malaysia’s economic growth due to outflow of skilled human capital and may distort growth
of innovation of the country. Hence, this paper aims to investigate the root of the problem which
investigates the factors that influence migration intention among engineering students in selected
public and private higher learning institutions in Malaysia. Both descriptive and inferential
statistical tests will be employed in data analysis from the survey data. The findings should
provide exploratory information for Ministry of Higher Education, Malaysia and other
relevant stakeholders in understanding international migration and the likelihood of the
intention to migrate among future engineers.
Keywords: Brain Drain, Human Capital, Migration Intention, Innovation, Engineering, Students.
______________________________________________________________________________
Introduction
Science and technology plays a crucial role in helping the economic development of a country.
Either by expanding national income through improving the production of good and services or
create new jobs through the birth of new entrepreneur in applying latest technology on their
business.
In achieving the status of high income nation, Malaysian Prime Minister Najib Razak
introduced the Transformasi Nasional ‘50 (TN50) with a vision to transform Malaysia into a high
income nation by year 2050. To achieve this Malaysian government has invested heavily in science
and technology sector such as opening a Digital Free Trade Zone. The government has allocated a
sum amount of budget and tax incentives for SMEs that applied new technology in their business
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such as the Government Guarantee Loans to enable SMEs to automate their production,
Accelerated Capital Allowance for automation equipment and Capital Allowance Incentive for ICT
equipment.
The 11th Malaysian Plan reported that engineering related sector such as manufacturing and
construction contribute to a large share of GDP. Through the plan, the Malaysian government will
increase the number of technical and vocational students through Technical and Vocational
Education and Training (TVET) and introduced the Industry Graduate Development Centre
(AIGDC) to overcome job mismatch in strategic sector such as automotive, biotechnology and
health science.
The Ministry of Higher Education (MOHE) also plays a role in helping the government to
achieve the high income nation status by published The Higher Education Strategic Plan 2020 in
2015. The plan includes to increase the number of workers from tertiary education to 33%, produce
numbers of entrepreneurs and technopreneurs, improve the effectiveness of research universities,
introduced the Malaysian Technical Universities Network and also integrate science, technology
and engineering in universities curriculum.
Nevertheless with all the government’s policies, programmes and plans to produce a large
number of high skilled human capital, Malaysia is faced with a phenomenon called the “Brain
Drain”. Brain Drain as defined by Beine, Docquier & Rapoport (2008) is an international transfer
of capital in a form of human capital, mainly applies to the migration of highly skilled or educated
individuals from developing to developed countries.
An economic report published by the World Bank in 2010 reported an estimated 1 million of
Malaysians are living abroad. In 2011, Utusan Malaysia has reported that 500 Malaysian students
under the Department of Civil Service (JPA) scholarship who studied abroad do come back to
Malaysia after completing their study. If this trend continues and not addressed fast by the
Malaysian government, the nation may not achieve a developed status by 2050.
This study aims to investigate the factors that influence migration intention among engineering
students in selected public and private higher learning institutions in Malaysia. This investigation
is important to understand clearly the brain drain phenomenon as to stop the country from losing
the highly skilled and educated individuals. Brain drain may have a negative impact on per capital
income growth and the development of Malaysia. The manifestation from these will be Malaysia
may not achieve a developed country status in 2020 if this trend are not treated swiftly and
efficiently by the government
Theory of Migration
The earliest recorded work on theory of migration and migration activities were titled ‘Law of
Migration’ by E.G. Ravenstein (1885) in Journal of Statistical Society of London. He discussed
about the activities rural-urban migration in England, Scotland, Ireland, & Wales. In 1966, the
theory was expanded by Lee (1966) in a literature called ‘Theory of Migration’. He expanded the
Ravenstein’s theory and listed out variables that influence individuals to migrate. This variables
include salary, benefits, workplace, political situation, racial discrimination, and technological
advancement.
Factors of Migration
As found in the literature, there are various factors that influence an individual’s decision to
migrate.
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Private Benefits and Salary

The factors include attractive salary, allowances, benefits and allowances. Cash and non-cash
benefits are one of the main reasons why people migrated abroad and usually to a more a developed
country. A study by Junaimah, Yusliza & Khoo in 2009 on intention to migrate among 150
accounting students in University of Science Malaysia (USM), revealed that high salary and
benefits program had significant and positive effects on brain drain.
A study by Lim, Junaimah, & Hasnah (2004) in identifying factors that influence Penang
professional engineers to migrate found a similar results. Social welfare such as cash and non-cash
benefit given by firms in foreign countries influence the engineers’ intention to migrate abroad.
A conceptual study by Quah, Siti Rohaida, & Guok (2009) also pointed out that better salary
offered by firms in foreign country has attracted numbers of Malaysian diaspora to migrate abroad
based on the past research findings.
A similar situation are also occurred in African. A study by Dzvimbo (2003) found that skilled
workers from African region such as Algeria, Angola, Morocco, Mozambique and The Gambia
tend to migrate to a developed country due to higher salary. He give an example where a Kenyan
doctor can earn four or five times higher in United States or United Kingdom.
Workplace Environment
Workplace environment includes workplace environment, employee’s motivation, unable to
participate in decision making, expressing creativity on the job, career advancement, in job
training, job opportunities and also job mismatch. A study conducted by Jian, Poh, Tee, & Shi
(2013) found that from 200 tertiary education students from various universities and colleges in
Malaysia, there were a significance relationship between intentions to migrate among
undergraduate students, work stress and workplace environment.
Past conceptual study also recognize this situation as factor of migration such as by
Junaimah & Yusliza (2011) in constructing a conceptual framework to identify the propensity to
leave by Malaysian and also by Junaimah, Ahmad Bashawir, Mohd Hasanur, Muhammad Subhan
& Rabiul Islam (2015) in creating a conceptual framework for factors of migration among
Malaysian diaspora in Singapore.
Though the situation are different among accounting students and professionals. Where study
by Junaimah, Yusliza & Khoo (2009) found that there is no significant relationship between factors
related with “finding more promising jobs and more challenging job scopes” and the reasons to
migrate.
Political Stability
Political stability include a safer environment, political stability, bureaucracy and government
policies and how it influence the students to migrate. A study in Balochistan, Pakistan by
Mohyuddin & Ulllah (2015) found that civil unrest and political instability has become a main
driver Pakistan’s brain drain. Dzvimbo also point out a similar situation where political instability
has become a factor for African to migrate to a more politically stable developed country.
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Though for Malaysia this factor can be hit or miss. A study by Lim, Junaimah, & Hasnah
(2004) investigating how ‘Human Security’ influence professional engineers’ decision to migrate.
Human security include respondent’s perception toward safety, police performance and judicial
system of the country. The study found that human security are statistically insignificant and do
not influence the engineers to migrate abroad.
Family and Social Connection

A past study by Ukwatta (2010) has identified that Sri Lankan tend to migrate to abroad due to
family factors. This factors include to build and buy house for the family, to find a better education
for their children, family obligation and to recover husband’s illnesses. But only 6% of respondents
agreed that family factors is the reason for them to migrate and 94% stated economic factors are
reason for the to migrate.
Haug (2008) also studies migration activities due to family and social connections. In the case
study of Bulgaria that has emigrate abroad, 36.8% of long-term immigrant agreed that they will
migrate alone and bring their family later and 31.6% of them will migrate with their family. Haug
also applied logistic regression in identify the probability of an Italian immigrant in Germany to
return to Italy relative with the number of family members in a household. The author found out
that the probability for the Italian immigrant to stay increase as number of household increases.
Methodology
This paper aims to investigate the root of the problem which investigates the factors that influence
migration intention among engineering students in selected public and private higher learning
institutions in Malaysia.
The survey were developed based on past research and studies. The survey would answer
the aim of the research. Questions such as whether if they have any family members or friends
living, working or staying abroad; they have any intention to migrate; and which country they
prefer to migrate the most were posted to the respondents.
Both descriptive and inferential statistical tests are employed in data analysis from the survey
data. The findings should provide exploratory information for Ministry of Higher Education,
Malaysia and other relevant stakeholders in understanding international migration and the
likelihood of the intention to migrate among future engineers.
Data Analysis
Demography
Our empirical analysis is based on a survey conducted on 227 engineering students from public
and private universities. Data was gathered through survey using self-administered developed for
the study. The profile of the respondents is tabulated in Table 1.
Table 1. Profile of Respondents

Variable Frequency Percentage (%)
Gender (n=227)
Male 134 59.0
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Female 93 41.0
Institution
Public 174 76.7
Private 53 23.3
By gender, 59% of the respondents are male and 41% are female. By institutions, 76.7% of
respondents are from public universities and 23.3% are from private universities.
Do you have anyone living/working/studying abroad?

65.8
70
60
45.9
50 39.6
40 34.4
30 37.3
20 24
10.0
6.1 6.0 6.9 4.8 15.6
10 1.8 10.3
1.5
0
Father Mother Siblings Relatives Friends
Living Abroad Working Abroad Study Abroad
Figure 1: Family or Friends living/working/studying abroad
In gauging the factors that influence the intention to migrate among the engineering students
respondents were asked whether they have anyone related to them living, working or studying
abroad. Figure 1 shows that 65.8% of respondents has friends studying abroad and 45.9% has
relatives study abroad. For living abroad, 39.6% stated that they have relatives who live abroad and
34.4% are friends.
Migration Intention
Our main variable of interest is based on responses to the following question: “Do you have
any intention to migrate abroad after you finish your study?” The possible answers are “within 1
year after graduation”, “within the next 5 years after graduation”, “within 10 years after graduation”
and “not at all”. 35% reported they have no intention of moving abroad after graduation, 32% plan
to migrate within the next five years after graduation, as presented in Figure 2.
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Within 1 Year After

17% Graduation
35%
Within the Next 5 Years
After Graduation
32%
Within the Next 10
16% Years After Graduation
No At All
Figure 2: Intention to migrate abroad

Further analyses in table 2 showed a significant association between types of institutions and
intention to migrate (p = 0.04 < 0.05). More respondents from the public universities are inclined
not to migrate abroad (40%) as compared to 17% reported by respondents from the private
universities. A much higher percentage amongst the private universities students reported having
the intention to migrate, 28.3% and 41.5%, within 1 year after graduation and within 5 years after
graduation, respectively. No significant difference is observed across gender on the intention to
migrate. However, the survey found that within the first year of graduation more male has the
intention to migrate while more female are migrating only after five years of graduating as shown
in table 2.
Table 2: Intention to migrate among genders and institution

Intention to Migrate Abroad
Within the Within the
Within 1 Next 5 Next 10 Chi-Square
Variables No At Total
Year After Years Years (p-value)
All
Graduation After After
Graduation Graduation
Gender
Male 18.50% 27.70% 19.20% 34.60% 100%
0.196
Female 16.1% 38.7% 10.8% 34.4% 100%
Institution
Public 14.1% 29.4% 16.5% 40.0% 100%
Private Institution 28.3% 41.5% 13.2% 17.0% 100% 0.04*
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19.0%
17.2%
15.5% 15.6%
14.8%
13.1%
14.3%
8.3%
7.4% 7.4%
AUSTRALIA CANADA JAPAN NEW UNITED

ZEALAND KINGDOM
Male Female
Figure 3: Country Most Preferred to Migrate
Figure 3, list the top five countries with the highest percentage propensities to
migrate among the students based on gender.
Japan is the most preferred country to migrate among male and female students.
17.2% of male prefer to migrate in Japan and 19% of female student stated the same. For
male students second highest preferred country to migrate after Japan are United Kingdom
with 15.6% followed by Australia (14.8%), Canada (7.4%) and New Zealand (7.4%)
For female students most preferred country to migrate after Japan are New Zealand
with 15.5% followed by Australia (14.3%), United Kingdom (13.1%) and Canada (8.3%)
20.0% 18.0% 18.6%

16.7%
18.0% 16.0% 15.4%
16.0%
12.8%
14.0% 12.0%
12.0%
10.0% 8.0%
8.0%
6.0% 4.5% 4.0%
4.0%
2.0%
0.0%
Australia Canada Japan New Zealand United
Kingdom
Public University Private Institution
Figure 4: Country Most Preferred to Migrate by Type of Institution

Figure 4, list the top five countries with the highest percentage propensities to migrate among the
students based on type of institution.
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Japan has the highest percentage for most preferred country migrate among public
university students by 18.6% followed by Australia (16.7%), United Kingdom (15.4%), New
Zealand (13.8%) and Canada (4.5%).
In contrast, Canada is the most preferred country to migrate among private university
students by 18.0%. This is followed by Japan (16.0%), United Kingdom (12.0%), Australia (8.0%)
and New Zealand (4.0%).
Table 3: Selection Criteria for Migrating

Criteria Not Important Neutral Important Total
Attractive Salary 0.9 5.9 93.2 100%
Employment 0.9 4 95.1 100%
Opportunity
Career Advancement 0.4 5.8 93.8 100%
Challenging Job Scope 2.7 25.6 71.7 100%
Employment Benefits 1.3 6.3 92.4 100%
Safer, Low Crime Rate 0.9 8.5 90.6 100%
Free Education 3.6 15.2 81.2 100%
Family Members Abroad 21 39.3 39.7 100%
Friends Living/Working 8.9 24.6 66.5 100%
Abroad
Factors influencing the intention to migrate abroad were gauge from the answers given by
respondents on the importance of criteria for migrating to other countries
Table 3 presents the feedback on the important criteria for migrating abroad. 95.1%
reported that employment opportunity is an important criteria in making a decision to migrate. This
Followed by career advancement (93.8%), attractive salary (93.2%), employment benefits (92.4%)
and low crime rate (90.6%).
21.0% of respondent stated that family members that living or working abroad are not an
important criteria in making decision to migrate. Followed by friend living or working abroad
(8.9%), free education (3.6%) and challenging job scopes (2.7%)
Conclusion
In conclusion this study found 65% of the engineering students surveyed (from public and
private universities) have the intention to migrate at some point of time after graduation. Findings
of this study are supported by the theory of migration discussed by Lee (1966). Employment
opportunities, career advancement, salary, employment benefits and safer and lower crime rate
countries are the pull factors that influenced their intention to migrate. This study have identifies
similar factors also found by studies done by Junaimah, & Hasnah (2004) and Junaimah, Yusliza
& Khoo (2009). Unlike study done by Jian, Poh, Tee, & Shi (2013) this study did not find job
challenges to be important reason for migration. Efforts and programmes to curtail international
migration by the government and other relevant stakeholders in Malaysia should consider these
economic and noneconomic factors to be effective.
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References
Beine, M., Docquier, F., & Rapoport, H. (2008). Brain Drain and Human Capital Formation in
Developing Countries: Winners and Losers. The Economic Journal, 118, 631-652.
Dzvimbo, K. P. (2003). The International Migration of Skilled Human Capital from Developing
Countries. The World Bank Regional Training Conference, (pp. 1-16). Accra.
Haug, S. (2008). Migration Networks and Migration Decision-Making. Journal of Ethnic and
Migration Studies, 34(4), 585-605.
Jian, A. Y., Poh, K. N., Tee, S. C., & Shi, S. Y.-B. (2013). Brain Drain in Malaysia: Undergraduate
Students Perception. International Conference on Economics and Business Research 2013, (pp. 1-
6). Penang.
Junaimah, J., & Yusliza, M. Y. (2011). Brain Drain: Propensity to Leave by Malaysian
Professionals. International Journal of Innovation, Management and Technology, 2(2), 119-122.
Junaimah, J., Ahmad Bashawir, A. G., Mohd Hasanur, R. J., Muhammad, S., & Rabiul, I. (2015).
Brain Drain to Singapore: A Conceptual Framework of Malaysians' Diaspora. The Social Sciences,
10(6), 702-711.
Junaimah, J., Yusliza, M., & Khoo, M. Y. (2009). Factors that Dive Brain Drain of Accountants in
Malaysia. 6th International Conferrence on Intellectual Capital and Knowledge Management.
Montreal: McGill University.
Lee, E. S. (1966). A Theory of Migration. Demography, 3(1), 47-57.
Lim, H. K., Junaimah, J., & Hasnah, H. (2004). Brain Drain: The Determinants of Migrant
Intention of Professional Engineers in Penang. International Journal of Organizational Analysis,
7, 114-124.
Quah, C. H., Siti Rohaida, M. Z., & Guok, E. C. (2014). Return Intentions of Malaysia’s Diaspora:
The Push and Pull Factors. Case Studies in Business and Management, 1(1), 140-151.
Ravenstein, E. G. (1885). The Laws of Migration. Journal of the Statistical Society of London,
48(2), 167-235.
The World Bank. (2011). Malaysia Economic Monitor: Brain Drain. Bangkok: International Bank
for Reconstruction and Development.
Ukwatta, S. (2010). Economic and Social Impacts of the Migration of Sri Lankan Transnational
Domestic Workers on Families and Children Left Behind. The University of Adelaide. Retrieved
from https://digital.library.adelaide.edu.au/dspace/bitstream/2440/63080/8/02whole.pdf
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QUALITY OF LIFE OF PERSON WITH DISABILITIES IN MALAYSIA:

AN EXPLORATORY STUDY
Rohana Jani, Alias Abd Aziz1
1
Departments of Applied Statistics, University of Malaya
______________________________________________________________________________
Abstract: Malaysia through Convention on the Rights of Persons with Disabilities (CRPD) and
Incheon Strategy has made a commitment to improve the quality of life Persons with Disabilities
(PWDs) in Malaysia. A survey was carried out with sample assessed comprised of 142 respondents
who were stratified based on three types of disabilities, hearing, visual and physical impairment.
This paper aimed to explore the quality of life (QoL) of PWDs using the World Health Organization
Quality of Life instrument (WHOQOL-DIS) measuring seven domains, namely, physical health,
psychological, social relationship, environmental, discrimination, autonomy and inclusion. The
results indicated that the highest mean score was in domains social relationship (mean = 15.45,
sd = 2.82) followed by autonomy domain (mean = 15.15, sd = 3.21) with discrimination domain
scored the lowest mean (mean = 11.69, sd = 3.19). Results also revealed that persons with visual
impairment reported the highest mean score for social relationship, autonomy and social inclusion
compared to their counterparts. Persons with physical disability felt that they were the most
discriminated against. However, there is no significant different in mean score were observed for
all domains across the different types of disabilities except for physical domains. The study found
that persons with visual impairment seems to have the highest total QoL score. In addition, we
were able to identify the domains that should be given due attention based on the respective types
of disabilities.
Keywords: Exploratory Study, Person With Disabilities, Quality Of Life, WHOQOL – DIS
______________________________________________________________________________
Introduction
Malaysia commitment to ensure the Persons with Disabilities (PWDs) in Malaysia have equal
rights and opportunities for full participation in society can be seen from Malaysian government
participation in CRPD and implementation of Incheon Strategy in Malaysia (Ozel, Zhagan, Nor,
Daud, & Ali, 2017; Tah & Mokhtar, 2016). Since July 2010, Malaysia became a State Party to the
United Nations Convention on the Rights of Persons with Disabilities (CRPD). Three years later,
which is on July 2013, Malaysia was take one more step ahead by launched a new Decade for
Malaysians with Disabilities during the two day Conference: “Incheon Strategy 2013-2022: A New
Decade for Persons with Disabilities in Malaysia”.”(Abdul Rahim et al.). From that both
commitments, the struggle of the right and the future development of PWDs in Malaysia was be
stronger and manage in systematic manner. CRPD was played a role as a global mandate and at
the same time the most recent regional mandate for PWDs in Asia and Pacific region will be
undertaken through The Incheon Strategy “Make the Right Real” for PWDs in Asia and the Pacific
(2013 –2022) (Tah & Mokhtar, 2016). Malaysia is fully committed to both mandates (ESCAP,
2013). One of the core strategy in PWDs Action Plan & Incheon strategy in Malaysia is to improve
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mobility and quality of life of people with disabilities to be more productive and inclusive society
(Abdul Rahim et al.). To realize the commitment to improve the quality of life PWDs in Malaysia,
definitely requires a specific instrument for assessing the quality of life of PWDs, and also the form
of index for monitoring its development.
Assessing and monitoring in systematic manner are the key principle to understand the
development of QoL PWDs in Malaysia. Scientific research using strong and establish instrument
could provide systematic and summative information to the stakeholders. Through this, they can
utilize the information in providing policy-related solution in order to improve QoL of PWDs.
Besides that, the information also can be used as the tool for evaluating the effectiveness of the
current policies and programmes related to PWDs in Malaysia. Scientific research also can
explaining what the elements or factors will help PWDs to improve their QoL
World Health Organization’s Quality of Life Questionnaire known as WHOQOL-DIS is
useful for evaluating the quality of life (QoL) persons with disabilities (PWDs). But, since this
research still at the stage of data collection and need more data to fulfill the requirement for
advanced statistical analysis, therefore, the aim of this current study was to explore the QoL among
person with disabilities using the WHOQoL-DIS instrument and also to find the association
between the QoL of PWDs and selected demographics characteristics.
Methods
Participants
A cross-sectional study design carried out on convenience sampling consisted of 142 people with
disabilities stratified into three groups; Hearing Impairment, Visual Impairment and Physical
Impairment were participating in this study. Data were collected through face-to-face interviews
using WHOQOL-DIS instrument (Power & Green, 2010). After being given a full briefing on the
purpose of the study and Informed consents were obtained, the participants could answer the
questions on their own, as it was a self-reporting questionnaire. However, for visually impaired
students, researcher assisted the participants by reading out the questions while a Sign interpreter
assisted hearing impaired students answering questions.
Instrument
The WHOQOL-DIS is consisted of the administration of WHOQOL-BREF with the addition of
the disability module (DISQOL module). WHOQOL-BREF is a generic questionnaire consisting
four domains that comprising 26 items; physical health (7 items), psychological health (6 items),
social relationships (2 items) and environment (8 items) and two global items related to overall
QoL, and satisfaction with health. In WHOQOL-DIS, a supplementary module comprising 12
items that can categorized into three domains (discrimination, control and inclusion) one global
item which assesses the overall impact of disability. Overall there are 36 items which are grouped
into seven domains (physical health, psychological health, social relationship, environment,
discrimination, control and inclusion and 3 global items in WHOQOL-DIS. The items have a 5-
point Likert response scale. Items are scaled in a positive direction where one indicates low,
negative perception and five indicates high, positive perception. As such, higher scores denote
better quality of life. However, some items are scaled in a negative direction, meaning that for these
items higher scores denotes lower quality of life. In such instances, the items were reversely scored
to ensure that higher scores indicate better quality of life. All scores are transformed to reflect 4–
20 with 4 denoted as minimum score and 20 representing the maximum score for all QoL domain.
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Table 1: Domains and facets of the WHOQOL-DIS (Disability module)

Facet
Global items
General QOL
General health
Impact of disability
Domains
1. Physical health pain and discomfort
dependence on medicinal substances and medical aids
energy and fatigue
mobility
sleep and rest
activities of daily living
work capacity
2. Psychological bodily image and appearance
negative feelings
positive feelings
self-esteem
spirituality/religion/personal beliefs
thinking, learning, memory and
concentration
3. Social personal relationships
relationships social support
sexual activity
4. Environment financial resources
freedom, physical safety and security
health and social care: accessibility and quality
home environment
opportunities for acquiring new information and skills
participation in and opportunities for recreation/leisure
activities
physical environment (pollution/ noise/traffic/climate)
transport
5. Discrimination discrimination
advocacy
future prospects
6. Control control
choice
autonomy
7. Inclusion communication ability
social acceptance
respect
social network and interaction
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social inclusion and contribution

personal potential
Statistical Analysis
Data entry and statistical analysis were performed using SPSS software, version 18.0. Descriptive
analyses of the respondents were determined, categorical and numerical data were presented by
frequencies and means, respectively. An SPSS syntax file provide by WHOQOL-Group
automatically checks, records data and computes QoL domain score(World Health Organization,
1996). This transformation method converts QoL scores to range between 4 and 20. The mean
scores of items within each domain was used to calculate the domain score. The seven domain
scores denoted an individual’s perception of QoL in each particular domain. Domain scores were
scaled in positive direction, higher scored denoted higher QoL (Aaronson, Ahmedzai, & Bergman,
2000).
The Bivariate correlation procedure was computed by Pearson's correlation coefficient (r).
It is a measure of linear association, the correlation coefficients vary between -1 (a perfect negative
relationship and + 1 (a perfect positive relationship). To evaluate the differences whether there is
a significant difference in mean score between QoL domains and selected demographic profile
(Types of disabilities and self-evaluated health condition), One-way ANOVA test (normal
distribution) and Kruskal- Wallis test (non-normal distribution) were used. Findings with a p-value
< 0.05 were considered to be statistically significant.
Findings
Socio-Demographic Characteristics
A total of 142 Person with Disabilities (PWDs) participated in the study. The data with regard
gender, age group and educational level revealed that 92 (64.8%) of the respondents was male, 69
(56.1%) of them belong to age group 18 – 24 years, almost 70% of them have level of education at
secondary school. The study sample included 28.9% of PWDs category Hearing Impairment,
19.7% Visual Impairment and 51.4% Physical Impairment (Table 2). Data with regard to living
arrangement shows that most of the respondents (35.1%) stayed with their family (parents or
siblings). Only 25 (18.2%) stayed alone.
In terms of self-evaluated health condition, about 9.2% of the respondents were access their health
condition as poor, with about 34.5% access as neither poor or good. Majority of the respondents
access their health condition as good and very good, where 43.0% and 13.4% access their health
condition as good and very good respectively.
Table 2: Socio-demographic characteristics of the study population
Variable Frequency %
Gender
Male 92 64.8
Female 50 35.2
Age Group
18 - 24 69 56.1
25 – 39 35 24.6
40 – 60 38 26.7
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Education Level
Secondary School 97 68.8
College/University 44 31.2
Types of Disabilities
Hearing Impairment 41 28.9
Visual Impairment 28 19.7
Physical Impairment 73 51.4
Living Arrangement
Living alone 25 18.2
Spouse 29 21.2
Friends 35 25.5
Family (Parents, Siblings) 48 35.1
Self-Evaluate Health Condition
Poor 13 9.2
Neither Poor Nor Good 49 34.5
Good 61 43.0
Very Good 19 13.4
The data presented in Table 3 shows that Total QoL was 14.33 (sd 1.81), social relationship domain
has the highest value of mean score (15.45, sd = 2.83) among other domains of quality of life and
the lowest mean score was discrimination domain with value mean score 11.69 and standard
deviation 3.19. Physical domain has mean score 14.28 with minimum score as 8.68 and maximum
score as 19.43. Psychological and environment domain has mean score 14.93 and 14.54
respectively. Domain autonomy and inclusion which both related directly to disabilities has mean
score 15.15 and 14.29.
Table 3: Average quality of life score in each domain
Domain Mean SD Minimum Maximum
Physical 14.28 2.39 6.86 19.43
Psychological 14.93 2.27 8.00 20.00
Social 15.45 2.83 8.00 20.00
Environment 14.54 2.33 8.50 20.00
Discrimination 11.69 3.19 4.00 20.00
Autonomy 15.15 3.12 4.00 20.00
Inclusion 14.29 2.71 7.43 20.00
Total QoL 14.33 1.81 9.92 19.50
The highest correlation among the domains was found between inclusion and environment (r =
0.713) which is consider as strong correlation (Table 4). Followed by correlation between domain
psychological and environment (0.595). In Malaysia, PWDs are more likely to face much greater
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problems in the absence of a disabled-friendly environment. Although some changes in approach

have taken place, there is still a need for major changes if PWDs are to be integrated comfortably
within mainstream society. Disability affects the different facets of life of a person, and such a life
is often complicated by negative forces, such as ignorance, prejudice, negativism, and insensitivity
(Khoo, Ta, & Lee, 2012). There was no significant correlation was found between discriminant
domain and autonomy as well as with inclusion domain. This show that whether the respondents
have high or low score in autonomy and inclusion domain it's not effected the discriminant domain.
Table 4: Correlation coefficients (r) among the domains

Physical Psyc. Social rel. Env. Dis. Autonomy Inclusion
Physical 1
Psyc. 0.518* 1
Social rel. 0.494* 0.510* 1
Env. 0.583* 0.595* 0.579* 1
Dis. 0.218* 0.278* 0.150* 0.315* 1
Autonomy 0.339* 0.241* 0.296* 0.296* -0.187 1
Inclusion 0.509* 0.562* 0.547* 0.713* 0.194 0.387* 1
Env. = Environment Dis = Discrimination Psyc. = Psychological Social rel. = Social
relationship
*
. Correlation is significant at the 0.01 level.
Table 5 shows that significant difference in mean score of QoL between types of disabilities was
observed only in physical domain. Respondent with hearing impairment was assessed by the
highest score in physical domain and respondent with physical impairment assessed by the lowest
score. There were no significant differences in mean score between psychological, social
relationship, environment, discrimination, autonomy and inclusion with types of disabilities. These
result shows that person with disabilities have same problem in all WHOQOL-DIS domain except
for physical domain. Have lowest score in physical domain for respondent in category physical
impairment was expected since most of them have physical impairment.
Table 5: Average quality of life score by types of disabilities

Hearing Visual Physical
Types of Disabilities Impairment Impairment Impairment p-value
Mean (SD) Mean (SD) Mean (SD)
Physical 14.37 (2.39) 15.22(1.86) 13.87(2.49) 0.037*
Psychological 14.76(2.51) 15.67(2.22) 14.75(2.12) 0.165
Social relationship** 15.27(2.89) 15.27(2.89) 15.37(2.80) 0.702
Environment 15.05(2.39) 14.89(2.20) 14.11(2.29) 0.078
Discrimination** 11.82(3.02) 12.67(3.06) 11.25(3.29) 0.162
Autonomy** 14.40(3.04) 16.00(2.76) 15.25(3.24) 0.060
Inclusion 14.10(3.11) 14.85(2.60) 14.18(2.51) 0.471
Total QoL 14.23(1.85) 15.03(2.01) 14.11(1.68) 0.068
** non normal distribution *Significant at the level 0.05
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A strong association was noted between self-assessed health status and its QoL mean scores. As
shown in Table 6, respondent who assessed their health as ‘very good’ or ‘good’ have significantly
higher mean score in Total QoL than those answered ‘poor’ or ‘neither poor nor good. In physical
domain, respondent with ‘very good’ and ‘good’ self-evaluated health condition score 16.24 and
14.62 respectively compare to respondent evaluate their health condition as ‘poor’ and ‘neither
poor nor good’. Similar result were observed in the physiological, social relationship environment
and inclusion domain. No significant different only observed in discrimination and autonomy
domain. This mean, self-perception related to health condition does not give effect towards what
among disabilities person feel in term of discrimination and autonomy issues. Based on the result,
it show that PWDs have lowest mean score in the discrimination domain. Therefore, we can
conclude that PWDs feel there is discrimination towards them no matter how their feel about health
condition.
Table 6: Average quality of life score by Self-evaluate health condition

Self-Evaluate Poor Neither Poor Nor Good Very Good
Health Condition Mean (SD) Good Mean (SD) Mean (SD) p-
Mean (SD) value
Physical 12.79(2.80) 13.49(2.36) 14.62(2.01) 16.24 (1.87) 0.001*
Psychological 13.58(2.75) 13.93 (2.08) 15.40 16.91 (2.48) 0.001*
(1.63)
Social 14.30(2.81) 14.73 (2.57) 15.57 17.68 (2.42) 0.001*
relationship** (2.80)
Environment 13.23(2.03) 13.78 (1.89) 14.72 16.76 (2.54) 0.001*
(2.17)
Discrimination** 10.76(3.05) 11.15 (3.14) 12.01 12.70 (3.72) 0.198
(3.04)
Autonomy** 15.07(3.70) 14.47 (3.17) 15.25 16.63 (3.18) 0.084
(2.83)
Inclusion 13.33(3.64) 13.78 (2.27) 14.37 15.93 (3.65) 0.015*
(2.30)
Total QoL 13.17(1.95) 13.62 (1.46) 14.56 16.12 (1.89) 0.001*
(1.57)
** non normal distribution *Significant at the level 0.05
Conclusion and Discussion

In general, the PWDs in Malaysia were have good Total QoL, mean score 14.33 out of 20 (73.65%).
But, discrimination domain show quite low mean score, 11.69 out of 20 (58.45%). According to
United Nation Human Right “ In every region of the world, in every country, persons with
disabilities often live on the margins of society, deprived of some of life’s fundamental experiences.
They have little hope of going to school, getting a job, having their own home, creating a family
and raising their children, socializing or voting”. Therefore education programs and campaigns
should be implemented throughout the different levels of society to enhance the understanding of
disabilities so that it can create awareness about the right of person with disabilities.
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Environment domain have significant correlation with physiological and inclusion domain. So,
there focus must be on nurturing and developing the internal resources of individuals over their
lifetime within a supportive economic and social environment. People experience disability
differently, depending on their psychological, economic and social resources, which influence their
role and function in society. Overall, the findings of this study have important implications to
contributing to the intellectual enrichment in the body of knowledge in understanding the level of
QoL person with disabilities in Malaysia. According to Hosain, Atkinson, and Underwood (2002),
the QoL of disabled people has been studied in developed countries, and now greater attention is
being given to improvements in QoL among marginalized and underprivileged groups.
References
Aaronson, N., Ahmedzai, S., & Bergman, B. (2000). Quality of Life: Assessment, Analysis, and
Interpretation: New York: John Wiley.
Abdul Rahim, A., Samad, A., Amirah, N., Said, I., Seman, W., & Amin, W. Malaysian Plan of
Action for People with Disabilities 2016-2022: Way Forward.
ESCAP, U. (2013). Asia-Pacific Trade and Investment Report.
Hosain, G. M., Atkinson, D., & Underwood, P. (2002). Impact of disability on quality of life of
rural disabled people in Bangladesh. Journal of Health, Population and Nutrition, 297-305.
Khoo, S. L., Ta, T. L., & Lee, L. W. (2012). The Role of the state towards employability of
Malaysian PWDs–Myth or reality? World Academy of Science, Engineering and Technology, 66,
1102-1107.
Ozel, E., Zhagan, M., Nor, M. M., Daud, M. A. K. M., & Ali, N. A. B. N. (2017). THE HUMAN
RIGHT TO INCLUSIVE EDUCATION UNDER INTERNATIONAL LAW: MALAYSIAN’S
CONCEPT. Vol. 1: no. 3 (2017) page 234–243|.
Power, M. J., & Green, A. M. (2010). Development of the WHOQOL disabilities module. Quality
of Life Research, 19(4), 571-584. doi:http://dx.doi.org/10.1007/s11136-010-9616-6
Tah, I. H. M., & Mokhtar, K. A. (2016). MALAYSIA’S RATIFICATION OF THE UN
CONVENTION ON THE RIGHTS OF PERSONS WITH DISABILITIES (UN CRPD).
World Health Organization, W. (1996). WHOQOL-BREF: introduction, administration, scoring
and generic version of the assessment: field trial version, December 1996.
United Nation Human Right. Combating Discrimination against Persons with Disabilities
http://www.ohchr.org/EN/Issues/Discrimination/Pages/discrimination_disabilities.aspx Retrieved
November 15, 2017
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THE GREY AREA IN ISLAMIC FINANCING BETWEEN SMALL

MEDIUM ENTERPRISES AND ISLAMIC BANKS IN SABAH
Rozita @ Uji Mohammed1
1
Universiti Teknologi MARA Sabah Branch
___________________________________________________________________________
Abstract: Grey area means unclear. Nobody or party is sure enough on how to deal with it or
who is responsible for it, or it falls between two separate categories of things. The ‘grey area’
for this study can be classified as a ‘finance gap’ between two parties i.e. Small Medium
Enterprises (SMEs) and Islamic banks. SMEs are the backbone of both developed economies
and emerging markets and developing countries in terms of employment generation,
opportunity, sustainability, as well as economic growth. In addition, SMEs have the potential
to promote Islamic banking and finance. Therefore, prioritizing their development is critical
for promoting inclusive economic growth as Malaysia aspires to become a developed country
and a high income country by the year 2020. In 2016 as reported by SME Corporation, majority
business establishments in Malaysia can be classified as microenterprises (76.5%) followed by
small (21.2%) and medium (2.3%). Furthermore, their contributions to GDP are 36.6% and
their exports are 18.6%. This study discusses the issue in Islamic financing among SMEs. This
paper aims to identify the potential gap that might lead to finance gap between the two parties
mentioned earlier. A cross-tab analysis is conducted between variables in order to determine
the grey area in Islamic financing between SMEs and Islamic banks in Sabah.
Keywords: Grey Area, Islamic Financing, Smes And Islamic Banks

___________________________________________________________________________
Introduction
World Economic Forum (WEF, 2015) reported that SMEs worldwide account for more
than 60% of employment and 50% of GDP in high-income economies. They are equally
important in emerging economies, where they contribute on average to more than 50% of
employment and 40% of GDP. But, even though SMEs play such an important role in the global
economy, they have been struggling to obtain reliable access to financing. IFC Enterprise
Finance Gap Database, which using primary data from World Bank Enterprise Surveys, quoted
that between 55% and 68% of SMEs in developing countries are either financially underserved
or not served at all. These high numbers translate into significant lost opportunities to develop
viable businesses. Even in the G203 countries, it is estimated that SMEs face a financing gap of
$1.3 trillion. Table 1 shows the substantial credit gaps seen in selected G20 countries. This
3The G20 (or G-20 or Group of Twenty) is an international forum for the governments and central bank governors from
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russian Federation,
Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, United States, and the European Union.
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shows the opportunity cost incurred due to lack of financing to SMEs. The smallest credit gaps
are found in Indonesia and South Africa at 15%, and Korea at 17%, while the largest credit
gaps are in Brazil and Saudi Arabia at 42% and Russia at 44%. There are no countries that have
credit gaps lower than 15%, which indicates that there is room for substantial improvement in
increasing the access to capital for SMEs in all of the selected countries (Hassan, 2015).
Table 1.1 SME Credit Gap in Selected G20 Countries

Country No. of Enterprise Total Credit Gap Access to Finance as
(‘000) (US$ billions) Major Barrier (%)
Argentina 2,133 67 34
Brazil 16,030 237 42
China 103,548 338 18
India 49,634 140 23
Indonesia 41,116 28 15
Korea 4,644 114 17
Russia 3,605 50 44
Saudi Arabia 1,843 237 42
South Africa 2,213 13 15
Turkey 4,120 73 20
Total 228,886 1,297
Source: Joint World Bank Group–Islamic Development Bank G20 Islamic Finance Policy
Paper, Leveraging Islamic Finance for SMEs, Istanbul, 2015.
Whereas, Islamic banking is a banking system that is Shariah compliant. It follows what
is called as fiqh muamalat or Islamic rules on transactions. The rules and practices of fiqh
muamalat come from the Quran and the Sunnah/hadith, and other secondary sources of Islamic
law, such as opinions collectively agreed among Shariah scholars (ijma’) and analogy (qiyas).
Islamic banking can be defined as a banking operation that abides by Shariah, under which a
key rule is the prohibition of interest or riba, Islamic banks cannot engage in haram activities
prohibited under Shariah and Islamic banks must also minimize gharar (ambiguity) and avoid
maiysir (gambling) in their contracts. By looking at the Islamic finance industry as a whole, it
has expanded rapidly during the last decade, with annual growth rates of over 15% and Islamic
financial assets are estimated at over $1.7 trillion. In many majority Muslim countries, Islamic
banking assets have been growing faster than conventional banking assets. According to The
World Bank estimates, approximately 70 percent of all SMEs in emerging markets lack access
to credit. While the gap varies considerably between regions, it’s particularly wide in Africa
and Asia. The current credit gap for formal SMEs is estimated to be US$1.2 trillion; the total
credit gap for both formal and informal SMEs is as high as US$2.6 trillion (Elasrag, 2016).
According to Malaysian Prime Minister Datuk Seri Najib Tun Razak, Islamic finance is
currently gaining greater visibility. It is in a good position to assist the SME industry that is
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huge in number. In 2014, Malaysia’s total SME financing exposure in Islamic finance grew by
40.5 per cent year-on-year to more than US$10 billion. He emphasized on the equity-based
financing, which offers a truly workable alternative to conventional banking. He added that
partnerships under Musharakah or Mudharabah embed the participating financial institution as
a provider of advice and consultancy. With the sharing of risks and its rewards, the Islamic
requirement for fairness and equity is served (The Borneo Post, 2015).
Problem Statement and Aim of Study

As mentioned earlier, SMEs by number, dominate the world business stage. Although the
up-to-date data are difficult to obtain, estimates suggest that more than 95% of enterprises
across the world are SMEs. In Malaysia, although their establishments are also dominant in
number, but their contribution to the economy is still disproportionately low, i.e. only 36.6
percent of gross domestic product (GDP) and 18.6 percent of the total export value as reported
by SME Corp in 2016. In addition, majority business establishments in Malaysia can be
classified as microenterprises (76.5%) followed by small (21.2%) and medium (2.3%).
Furthermore, their contributions to GDP are 36.6% and their exports are 18.6%. By exploring
Islamic financing as the alternative way of doing business, it is believed that the business of
SMEs could be diversified to a large scale. This aspiration is further supported by a recent
finding by the International Monetary Fund that states “Islamic Finance’s emphasis on asset-
backed financing and risk-sharing feature means that it could provide support for SMEs”.
Given the importance of the SME sector and its potential development in the future, it is
unfortunate to notice that, all this while the finance gap does exist between SMEs and Islamic
banks (Alam, 2015). Something needs to be done to close the gap otherwise the financial
resources in the Islamic banking and finance will not be fully utilized to the targeted group.
Hence, this paper aims to identify the grey area in the Islamic banking market that might lead
to the phenomenon of the finance gap between two parties; SMEs and Islamic banks.
Scope Of Study
For the purpose of staying focused and in line with the research objectives, a few points
that determined the scope of the study are highlighted here. The first one is SMEs as the
respondents of the study. All SME operators were interviewed. Their enterprises must be
registered and possessed a valid business license from Kota Kinabalu City Hall (KKCH) or
registered with Suruhanjaya Syarikat Malaysia (SSM). The study managed to interview 350
SMEs. The second one is the area covered in the study. This study selected the capital city of
Sabah i.e. Kota Kinabalu as the focal point because most of the Islamic banks’ regional
headquarters are located in this area. It is also the capital of the West Coast Division of Sabah.
The city is located on the northwest coast of Borneo facing the South China Sea. Kota Kinabalu
is often known as KK both in Malaysia and internationally. It is a major tourist destination and
a popular gateway for travellers visiting Sabah and Borneo. Kota Kinabalu is also one of the
major industrial and commercial centres of East Malaysia. These two factors combine to make
Kota Kinabalu one of the fastest growing cities in Malaysia. Lastly, this study focused on the
equity financing instead of debt-based financing as urged by the Malaysian Prime Minister
during his opening speech at the World Islamic Economic Forum (WIEF) 2015.
Literature Review
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Most SMEs in Muslim countries operate as sole proprietorships or family businesses.

These enterprises primarily engage in cash transactions (due to their micro/small size) and,
thus, prefer to obtain funds from non-banking channels such as Ah long, family and government
agencies. They prefer informal funding alternatives that offer more flexibility in terms of
documentation, repayment, timing, and transaction costs, which formal banking and financial
institutions do not provide. Moreover, a large number of SMEs operate outside urban areas and
owners are not financially literate where the literacy rates are generally lower in Muslim
countries. Shaharuddin et al. (2005) asserted that SMEs would become a significant market
segment for Islamic banks in their effort to realize the aspirations. However, the research found
that SMEs still do not consider Islamic banks as the most desirable financial institutions when
seeking financing for their ventures. Thus, have limited information regarding their banking
needs. This is further aggravated by lack of knowledge of Islamic products among SMEs. They
are unaware of products that suit their needs given the complexity of Islamic financing models.
Hassan (2015) found that both banking systems, Islamic banks and conventional banks
have failed to provide financing to SMEs, because such enterprises lack of collaterals and
insufficient good track record. The situation is particularly frustrating on the part of Islamic
banks, as the core principle of Islamic finance demands that the SMEs underserved by
conventional banks should be included. The Islamic banks are violating this principle as they
are failing to promote Profit Loss Sharing (PLS) equity-based financial instruments such as
Musharakah (joint venture) and Mudharabah (partnership) to SMEs. According to Yavas et al.
(2004), SMEs do not have the privilege that large firms have, which is a ready access to both
debt-based financing and equity-based financing. In fact, SMEs have nowhere else to go to but
the banks. For SMEs, banks represent an important and indispensable business partner, since
they facilitate several functions necessary for their survival (Trayler et al., 2000; Madill et al.,
2002). However, SMEs in developing and developed countries have been found to have
difficulty in gaining access to credit from these institutions (Berger and Udell, 1998; Galindo
and Schiantarelli, 2003). This condition has allowed information asymmetry to circulate among
SMEs and Islamic banks in the market. Thus, the situation of unequal financial information in
decision-making has led to adverse selection and moral hazard. Finally, this situation will then
broaden the finance gap in the SME sector (Lund and Wright, 1999; Berger and Udell, 2002;
El-Hawary et al., 2004; Nguyen and Ramachandran, 2006; Siddiqui, 2008; Mohammed, 2015.
According to Raqaba (2017), unavailability of financing is mainly due to the reluctance of
banks towards extending credit to small and medium enterprises. It is relatively easy to lend to
large corporations where the economies of scale, published financial information, collaterals
and credit worthiness parameters are available. Due to lack of availability of data on the SME
sector, banks are unable to determine whether the borrower possesses technical, managerial and
marketing skills that will allow him to generate adequate cash flows and repay the loan on time.
Methodology and Analysis

For this section, the researcher have considered the cross-tab analysis, which was done
on the socio-demographic factors (Independent variables [IVs])) against their acceptance
towards the equity financing concept (Dependent variable [DV]) (refer to Table 5.1). The
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sampling plan was designed based on the probability sampling technique, namely ‘Stratified
Random Sampling’. Therefore, the results obtained from the sampling tend to be more
representative of the population.
Table 5.1 Socio-Demographic Factors against the Acceptance towards the Equity Financing Concept
No Sectio Factor (IV) Remark
. n
1. B1_EXPERIENCE_D The cross-tab between the IV and DV concludes
EALING that the more experience the entrepreneurs have in
dealing with the Islamic banks, the closer they
would be to the institutions and the more willing
they would be to accept the equity financing
concept. In turn, the finance gap could be reduced
and more financial products would be required by
and offered to the SME sector.
2. B2_HOW_FIND_OU The cross-tab between the IV and DV concludes
T that the more information the respondents received
Sectio from the internal sources (i.e. through personal
nB experience and word-of-mouth; family and
friends), the more they could accept the equity
financing.
3. B3_FAMILIAR_CON The cross-tab between the IV and DV concludes
CEPT that the more familiar the respondents are with the
Arabic terms used for the Islamic financial
products, the more receptive they would be of the
equity financing concept. In addition, it is to be
noted that although they were not familiar with the
Arabic terms, they did not totally refuse to accept
the said concept.
4. C1_AGE The cross-tab between the IV and DV concludes
that the equity financing concept is fairly accepted
by all age groups. However, younger entrepreneurs
have a more tendency to accept the concept than the
older ones.
5. C2_GENDER The cross-tab between the IV and DV concludes
Sectio that the male entrepreneurs are more willing to
nC accept the equity financing concept and to become
the business partners of Islamic banks than the
female entrepreneurs. Since the concept is inherent
with the risk factor, Islamic banks need to
emphasize more on the male market, and educate
female entrepreneurs about the concept and risks of
partnership venture.
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6. C3_RELIGION The cross-tab between the IV and DV concludes

that more Muslim entrepreneurs accept the equity
financing concept compared to non-Muslim
entrepreneurs. This might be due to the lack of
knowledge of the Shariah or Islamic laws,
particularly about the halal and haram concepts
that are related to the operation of the business, the
types of business that are allowed to form a
‘partnership’ venture with Islamic banks, and also
the stereotypical perception of non-Muslims about
the Islamic products that are perceived as only
suitable for the Muslim communities.
7. C4_RACE The cross-tab between the IV and DV concludes
that the race of entrepreneurs reflects their religions
where the majority of Malay entrepreneurs together
with other Muslim communities are more receptive
of the equity financing concept compared to the
other races of non-Muslim communities.
8. C5_EDUCATION The cross-tab between the IV and DV concludes
that the lower the level of education of
entrepreneurs is, the more willing they are to accept
the equity financing concept. On the other hand, the
higher their level of education is, the lesser their
willingness to accept the said concept.
9. D1_TYPE_BUSINES The cross-tab between the IV and DV concludes
S that the equity financing concept, which
encompasses the value of partnerships, is seen as
being very well-accepted by the partnership
establishments compared to sole proprietorship and
the limited company.
10. D2_FAMILY_BUSIN The cross-tab between the IV and DV concludes
ESS that on the average, there is no specific pattern in
terms of decision making made by the two types of
establishments towards the equity financing
concept i.e. family and non-family businesses.
Sectio
However, non-family business seems to be a more
nD
attractive type of segment than its counterpart. This
might be due to the fact that the decision of non-
family business to be involved in equity financing
does not take into account the opinions of family
members.
11. D3_SIZE_ BUSINESS The cross-tab between the IV and DV concludes
that the larger the business establishments, together
with a higher number of full-time workers, the
more willing they are to accept the equity financing
concept. Their stability and confidence, which are
normally the result of having more funds and more
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manpower in running the current business, make

them willing to be involved in the partnership
ventures with the Islamic banks. This particular
business also sees this venture as one of the ways
to upgrade the business size and to gain more funds
from the venture activities.
12. D4_BUSINESS_ The cross-tab between the IV and DV concludes
ACTIVITIES that relatively the more the entrepreneurs are
involved in complicated business activities, the
lesser their willingness to accept the equity
financing concept and vice versa.
13. D5_YEARS_OPERAT The cross-tab between the IV and DV concludes
ION that the longer the period of operations, the lower
the acceptance level of the equity financing
concept. This may be due to the fact that businesses
with a longer period of operations have chosen to
remain in the ‘comfort zone’ by doing routine
activities and refuse to accept the new financing.
14. E1_AVERAGE_PROF The cross-tab between the IV and DV concludes
IT that the more profits the entrepreneurs gain, the
more willing they are to accept the equity financing
concept. The financial strength motivates them to
expand their businesses through the partnership
venture.
15. E2_AVERAGE_SALE The cross-tab between the IV and DV concludes
S that the more sales the enterprises could generate,
the more willing they are to accept the equity
financing concept. This may be due to the strong
financial security of the enterprises which makes
them more eligible to be involved in business
ventures with the Islamic banks.
16. Sectio E3_SOURCE_FIN The cross-tab between the IV and DV concludes
nE that the entrepreneurs’ affiliations and experience
in dealing with the financial institutions have made
them more receptive of the equity financing
concept compared to those who do not have
experience borrowing money from the banking
sector. However, quite a number of the respondents
did not borrow money from the financial
institutions. This finance gap phenomenon exists
within the SME sector and it influences the Islamic
banks’ decision to not give loans to SMEs. And at
the same time, SMEs also have the tendency to stay
away from the banking sector when seeking
financing. The gap needs to be urgently minimized
and the information on financial products needs to
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be aggressively circulated by the Islamic banking

sector to the SME sector.
17. E4_FIN_PREFERENC The cross-tab between the IV and DV concludes
E that the entrepreneurs whose financing preference
is long-term and medium-term are more willing to
accept the equity financing concept compared to
those who prefer the shorter types of financing. It
seems that the SME market, to a great extent, has
not been utilizing the medium-term and long-term
financing in order to finance their medium-term
and long-term projects. This seems to be among the
biggest hindrances faced by the SME sector in its
effort to remain longer in the competitive market.
18. E5_PURPOSE_FIN The cross-tab between the IV and DV concludes
that more entrepreneurs go for equity financing not
during the early stage such as to run a business or
to purchase assets. It is at the intermediate stage
which means they need equity financing to meet
financing needs such as to expand business and to
conduct R&D activities. Therefore, it can be
concluded that more established businesses show a
higher level of acceptance of the equity financing
concept in comparison to fledgling businesses.
19. E6_CONSTRAINT_G The cross-tab between the IV and DV concludes
ET_ LOANS that the more problems faced by entrepreneurs in
applying for loans from financial institutions, the
more receptive they would be of the equity
financing concept, which to them is more of an
investment or joint venture activities with the
Islamic banks. They gave up on the banks due to
the long processing time coupled with so many
documents and collateral required prior to the
approval and disbursement of the conventional
borrowings. Through the equity financing, they
believed that all the problems could be mitigated
and avoided.
Conclusion
Based on what was analysed and discussed, the researcher had come out with the
illustration of the whole story behind the finance gap. Diagram 6.1 illustrates the summary of
the study’s analysis pertaining to sources that contributed to the phenomenon of ‘finance gap’
of the study. A finance gap can be detected from the SMEs and IBs current relationship.
Throughout the study, several factors were identified as contributing to the phenomena of
‘finance gap’ within the SME sector. The gap can be illustrated as follows:
Diagram 6.1 Finance Gap between Islamic Banks and SMEs
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Based on the analysis done, it was found that the two main players, i.e. Islamic banks and SMEs
possessed traits or in other words, characteristics that could bring them to the ‘grey zone’ or
area of unsure about something or somebody. Furthermore, these traits caused them to conduct
decision making with limited sources of information and form the wrong perception about the
observed matter(s). After all, there are 14 traits that are contributed by Islamic banks to the grey
zone including: (i) most Islamic banks only have few branches and these are insufficient to
serve all SMEs operating in the Sabah regions, (ii) most of the Islamic banks are new and in
turn are not well known to the SMEs, (iii) most of the staff of Islamic banks lack the knowledge
of equity-based financing products, particularly Musharakah and other financial products that
are rarely heard in the market such as Istisna and Salam, (iv) most of Islamic banks lack skilled
workers, especially to handle more complicated products such as Musharakah financing and
other unwell-known products, (v) most of Islamic banks, mainly at the branch level lack the
experience in handling the complicated products in comparison to their headquarters, (vi) most
Islamic banks at the branch level only depend on their in-house training programs, which are
conducted by their human resource departments, (vii) most Islamic banks do not have sufficient
market information and are unsure about the demographic background of SMEs, meaning no
feasibility studies had been conducted before in order to fulfil the financing needs of SMEs,
(viii) poor demand and inadequate provision of equity financing at the branch level had caused
the same product lines to lack aggressive promotion to the SME market, (ix) most Islamic banks
at the branch level offer only limited types of financial products, (x) besides being new to the
Sabah market, most Islamic banks do not aggressively involve in equity financing especially
Musharakah due to the risk factors, (xi) the only products that are popular and well-demanded
by SMEs are offered widely compared to the products that are new to the market, (xii) most
Islamic banks only promotes debt-based financing and conduct less promotion for equity-based
financing, (xiii) most Islamic banks at the branch level lack the initiatives to search for new
markets and business ventures with SMEs, and finally, (xiv) most Islamic banks offer
competitive rates only to the selected SMEs, not all.
However, the issue of ‘finance gap’ cannot be solely caused by the Islamic banks. The
SME sector is also responsible for the existence of the gap, which is created between the SMEs
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and the Islamic banks. From the perspective of SMEs, there are also 14 traits that are believed
to have encouraged the existence of a ‘finance gap’ within their market including: (i) most
SMEs lack the experience in dealing with the Islamic banking and financial products, (ii) most
of SMEs lack the understanding about the operations of the Islamic banking, the products and
services offered to them, and the Shariah or Islamic law as imposed by the Islamic banks, (iii)
there are very few sources of information with regard to the financing products that are suitable
for SMEs, (iv) most SME owners find it difficult to pronounce and are unfamiliar with the
Arabic terms used in the Islamic banking products, (v) most of the SME owners are young
entrepreneurs and possess secondary school qualifications only, and their insufficient
knowledge about the financing facilities available in the market has created a distance between
them and the IBs, (vi) there are more non-Muslim entrepreneurs compared to Muslim
entrepreneurs and this situation has contributed to the poor acceptance of equity financing
concept, (vii) there are more micro and small businesses in the market, which have limited
abilities and opportunities to borrow money or apply for loans from the Islamic banks, in turn
creating a small demand for financial products in the market, (viii) less profit and sales due to
the type or size of the business which affect the capability of SMEs to obtain loans from the
banking sector, (ix) the sources of funds for running the daily operations and other business
activities are still highly dependent on the internal sources, which are faster and cheaper in
terms of pre-payments, (x) SMEs also prefer short-term financing compared to the medium and
long-term financing, and since most of the equity-based financing products are longer in terms
of the duration, Musharakah is seen unsuitable for their financial needs, (xi) poor financial
record of SMEs hampers their possibility to become the borrowers or partners of the Islamic
banks, (xii) most small traders have not been able to prepare a proper business plan that is very
important in order to borrow money from a bank or to be a business partner of a bank, (xiii)
lack of collateral means most SMEs lack the collateral to be pledged as a back-up when trying
to obtain loans from the Islamic banks, and finally, (xiv) the lack of desire to become the
business partner of an Islamic bank remains if the partnership under the equity financing is not
widely accepted among the SMEs and not encouraged by the government.
References
Alam, N. Islamic Finance: An Opportunity for SME Financing. International Federation of
Accountants. (Online) https://www.ifac.org/global-knowledge-gateway/islamic-
finance/discussion/islamic-finance-opportunity-sme-financing. Retrieved 24 September
2017.
Berger, A.N. and Udell, G.F. 1998. The Economics of Small Business Finance: The Roles of
Private Equity and Debt Markets in the Financial Growth Cycle. Journal of Banking and
Finance. 22(6-8): 613-673.
Berger, A.N. and Udell, G.F. 2002. Small Business Credit Availability and Relationship
Lending: The Importance of Bank Organizational Structure. The Economic Journal.
112(477): 32-55.
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BNM (2017). Financial Inclusion: Financing for Small and Medium Enterprises (SMEs).
(Online) http://www.bnm.gov.my/index.php?ch=fi&pg=fi_sme&ac=443&lang=en.
Retrieved 12 September 2017.
Elasrag, H. (2016). Islamic Finance for SMEs. Munich: MPRA.
El-Hawary, D., Grais, W. and Iqbal, Z. 2004. Regulating Islamic Financial Institutions: The
Nature of the Regulated. Working Paper No. 3227, World Bank.
Galindo, A. and Schiantarelli, F. (eds.) 2003. Credit Constraints and Investment in Latin
America. Washington DC: Inter-American Development Bank.
Hassan, M.K. (2015). Entrepreneurship, Islamic Finance and SME Financing. Kuala Lumpur:
Islamic Financial Services Board.
IFC (International Finance Corporation). (2014). Islamic Banking Opportunities across Small
and Medium Enterprises in MENA. World Bank Group.
Lund, M. and Wright, J. 1999. The Financing of Small Firms in the United Kingdom. Bank of
England. 39(2): 195-202.
Madill, J.J. Feeney, L. Riding, A. and Haines Jr., G.H. 2002. Determinants of SME Owners’
Satisfaction with Their Banking Relationships: A Canadian Study. International Journal
of Bank Marketing. 20(2): 86-98.
Nguyen, T.D.K. and Ramachandran, N. 2006. Capital Structure in Small and Medium-Sized
Enterprises: The Case of Vietnam. ASEAN Economic Bulletin, Singapore. 23(2): 192-
208.
Raqaba (2017). Islamic Banks Need To Fill SME Gap. (Online)
https://www.raqaba.co.uk/?q=en/content/islamic-banks-need-fill-sme-gap. Retrieved 16
October 2017.
Mohammed, R.U. (2015). Financing Through the Maxim Al-Ghonm Bi Al-Ghorm: An
Analysis of Factors Contributing to the Acceptance of the Musharakah Financing
Concept by SMEs. PhD Thesis. Universiti Malaysia Sabah.
Shaharuddin, A., Abdul Hamid, S., Mohd Safian, Y. H. and Muda, M. (2005). A Study on
Small and Medium-Sized Enterprises' Perception towards Islamic Banking Products. The
Journal of Muamalat and Islamic Finance Research, 2(1): 1-26.
Siddiqui, A. 2008. Financial Contracts, Risk and Performance of Islamic Banking. Managerial
Finance. 34(10): 680-694.
SME CORP. (2016). Small and Medium Enterprise (SME) Annual Report 2016. Kuala
Lumpur: Bank Negara Malaysia (BNM).
The Borneo Post (2015). Matching SMEs with Islamic Finance. (Online)
http://www.theborneopost.com/2015/11/21/matching-smes-with-islamic-finance/.
Retrieved 22 October 2017
The Express Tribune Business (2012). Islamic Banking for SMEs: A Win-Win Situation’.
(Online) https://tribune.com.pk/story/375332/islamic-banking-for-smes-a-win-win-
situation/. Retrieved 22 October 2017.
Trayler, R., Nielsen, J. and Jones, R. 2000. How Small Business Firms Select a Bank:
Comparison between the United States and Australia. Journal of Financial Services
Marketing. 5(1): 73-85.
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World Economic Forum (2015). How Islamic Finance Can Grow SMEs? (Online)
https://www.weforum.org/agenda/2015/11/how-islamic-finance-can-grow-smes/.
Retrieved 22 October 2017.
Yavas, U., Babakus, E. and Eroglu, S. 2004. Bank Choice Behavior of SME Construction
Firms. Journal of Business and Industrial Marketing. 19(4): 258-266.
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BUSINESS INCUBATORS IN PAKISTAN – POLICY, PERFORMANCE,

AND PECULIARITIES
Najam A. Anjum1
1
IBA Karachi
______________________________________________________________________________
Abstract: Role of business incubators in the development and nurturing of new businesses is
considered to be reasonably significant. The presented study analyzes some of the characteristics
of business incubators in Pakistan and suggests some improvements in light of a focus group study
of incubated companies of different business incubators of Pakistan. Special emphasis has been
given to the incubation cycle from which new startups pass when registered in an incubator. One
such incubation cycle has also been formulated and discussed.
Keywords: Entrepreneurship, Business Incubation

______________________________________________________________________________
Introduction
The success of entrepreneurship as the most effective building block of world economy has given
rise to the formulation of tools and techniques aimed at supporting the creation and
commercialization of new ideas in order to accelerate the process of economic development.
Pakistani policymakers and business fraternity, being the citizens of a country with world’s 6 th
largest youth population, have also understood the importance of innovation and are coming up
with ways to enhance the process of economic development through entrepreneurship. Business
Incubation is one such tool the use of which has mushroomed throughout the world over the last
couple of decades. Although working for the common objectives of supporting young and fledgling
businesses, these incubation centers do vary in some of their characteristics. One of the main
difference is the cycle from which registered startups pass through. The presented research, in light
of a focus group study of 15 representatives of incubated startups in different business incubators
of Karachi suggests a few points for increasing the effectiveness of these support centers. A
suggested incubation cycle has also been formulated and discussed in the end.
Literature Review
This review of literature revolves around the three aspects of business incubators – The
incubators, incubation managers, and the incubation methodology. These aspects are discussed
below.
Business Incubators
According to International Business Incubation Association (IBIA):
‘Business incubators nurture the development of entrepreneurial companies, helping them survive
and grow during the start-up period, when they are most vulnerable.’ (IBIA, 2015)
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1st Generation 2nd Generation 3rd Generation
• Affordable space • Affordable space • Affordable space

• Shared facilities • Shared facilities • Shared facilities
• A variety of support • A variety of support
services services
• Business advisory • Business advisory
services services
• Networking • Networking
• Proactive support
• Mentoring & Coaching
• Business acceleration
• Network development
1980-1990 1991-2000 2001-to date
Figure 1: Evolution of Business Incubation Concept (Theodorakopoulos et al (2014))
Other sources state a more or less the same definition emphasizing on ‘support during initial
phases of a startup’. Theodorakopoulos et al (2014) provide a list of different names that are used
in the literature interchangeably for business incubators. These names include research parks,
enterprise centers, seedbeds, science parks, technopole, industrial parks, innovation centers,
knowledge parks, business accelerator, cold frames, hatcheries, hives, germinators, hubs, hot-
desks, graduators, grow-on-space, spokes, idea labs, managed workspace, venture labs, business
centers, fertilisators, and networked incubator. They claim that not only the terminology but the
concept of a business incubator has evolved over time as shown in figure 1. The study of Voisey
et al (2006) and Theodorakopoulos et al (2014) helps to extract out a list of critical success factors
(CSFs) for a business incubator. A combined list of these CSFs of these two separate studies is
given below:
a) The clarity of mission and objectives,

b) A concise program with clear policies and milestones,
c) Clear metrics for success,
d) The sector specificity,
e) The incubated company selection process,
f) Diagnosis of business needs,
g) Encouraging incubated companies to develop control systems during the early stage of
incubation,
h) On-site business expertise,
i) The proximity to a major university,
j) Ties with [the] university,
k) Access to financing and capitalization,
l) In-kind financial support,
m) Community support,
n) The extent of access to potential internal/external entrepreneurial networks,
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o) The selection and monitored application of business services,

p) Entrepreneurial education and leadership,
q) The level and quality of management support,
r) Provision of dynamic and proactive feedback to incubated companies,
s) The graduation/exit processes,
t) The monitoring of the performance of business incubation
u) Perception of success,
v) The competency of the incubator manager to configure hard and soft elements of the business
incubation environment and shape the relational context within which incubated entrepreneurs
operate
Importance of the last point, i.e. the competence of the incubator manager, has been
emphasized by several researchers. This is elaborated further in the following section.
The incubation manager

Research can be found on the recommended capabilities of an incubator manager for the
provision of effective incubation services. Hannon (2003), for example, proposes a few core and
contextually specific characteristics of an incubation manager and categorizes them into three areas
as shown in table 1 borrowed from Hanon (2003).
Table 4: The many disguises of an incubation manager - source: Hanon (2003)

Professional business Project manager Hard-nosed buyer
consultant
Business trainer Policeman Persuasive sales rep
Free legal adviser Everybody’s agony aunt Font of all knowledge
Computer expert Housekeeper Endless source of contacts
Health and Safety officer Trusted counsellor Rent collector
Social worker Ambassador to all Arbitrator
With the intention of empowering the incubation manager, United Kingdom Business
Incubation (Drapier and Shaffer, 2015) in collaboration with its other partners has proposed a tool
to measure performance and impact of business incubators (UKBI, 2010). This tool enables the
incubation manager to collect qualitative and quantitative data for analyzing the performance of
the incubator. The effort to develop such a tool highlights the importance of an equipped incubation
manager. A study was conducted by the European Commission Enterprise Directorate General for
developing a Benchmark of Business Incubators for European countries in February 2002 (CSES,
2002). This study concludes that the quality and suitable size of management team is the key to
successful incubator activities. Incubator managers, therefore, need to have expertise in personnel
management and business advising. With regards to size, the tenant to incubated companies’ ratio
should not go below 1:20. Ideally speaking, there should be two managers for every 20-30 tenant
companies. The study also sets a benchmark that an incubation manager should spend 50% of the
time on advisory services and the rest on other administrative matters. This highlights the important
role of knowledge and skill that an incubator manager essentially needs to have.
Some Domestic And International Incubation Practices

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In 2012, Forbes declared Y-Combinator the top incubator in US in terms of the value it
created. The assessment criterion might be debatable, but the incubation process they follow may
have some learning for the rest of the world. Apart from the usual shared space, funding, and
networking activities which can be found in all the incubators, the most effective thing which can
be seen in their methodology is that they work with 15 full-time and 11 part-time partners. These
partners are the top-notch entrepreneurs of USA who provide mentoring and guidance to the
incubated companies. YC runs two three-month funding cycles a year, one from January through
March and one from June through August. Their selected founders have to move to their designated
area in YC facility where they are closely monitored and mentored to bring the business into good
shape. Once their allowable period is completed they are allowed to pitch in front of investors (YC,
2015).
In Karachi, the most popular incubator is Nest I/O and the methodology that they use
appears to be most expeditious and effective. They are located in Bahadurabad, Karachi and induct
three batches per year and in this way each batch gets four months to develop their business into a
shape that can then exit their facilities to attempt to stand on their own feet. It is notable here that
a startup exiting Nest I/O after four months only mean that they stop using their premises. The rest
of the mentorship and networking opportunities are still open for these startups for the next 8
months. The strong point of Nest I/O that came out of the focus group discussion (FGD) appears
to be their marketing strategy. Throughout the four months, and then 8 months afterwards, they
support the startups though video advertises at prominent online places, through article publications
in popular magazines, and through pitching events attended by top investors of the country. They
also fund the startups for hiring employees and pay around 25,000 per employee per month for up
to six employees for four months. Their funding mostly comes from Google and Samsung (Nest
I/O, 2015).
Another incubator situated in Karachi in the Tariq Road area is dotZero. The methodology
they use, as can be seen on their website, appears to be quite similar to that of CED. Their website
shows that they charge the inducted startups for the space and utilities they provide and claim that
it’s a no profit no loss model. In return, the admitted startups get a co-working space, Wi-Fi, some
complementary refreshments, and mail services. The incubator also receives donations and have
displayed a few donors on their website. A discussion with their program manager revealed that
they do not have a fixed period of time for which a company is incubated. Apart from its founders,
they don’t have a specialized advisory staff either and they organize different events where
industrial gurus are invited or impart knowledge and insight to incubated companies (Dot Zero,
2015).
The most popular and, apparently, effective business incubator in Lahore is Plan9. They
are based in Lahore and for six months, they provide free office space along with a fixed stipend
to each member of the inducted startup. They have a board of advisors from the industry and work
with several international and domestic mentors. They claim to provide services for Business
Development, Financial Planning, Pitch Training, Marketing and PR, Corporate Communication,
Customer Acquisition, Internal Operations, and Support for Legal Concerns (Plan 9, 2015). Being
a government organization, their pool of funding is bigger as compared to other private incubators
as revealed by one of the FGD participants.
The incubation centers studied above do have some very effective practices and they have
produced some results. These business incubators, however, mostly follow the methodology
borrowed from the West. Due to this reason, a very few startup businesses survive when they leave
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the premises of the incubation center. Although no formal study exists that measures the survival
rate of startups in Pakistan, it is commonly understood that it is below 10%. Which means more
than 90% startups fail in infancy. A critical question arises, therefore, about the role of incubation
centers in preventing this failure. If the success rate of these centers is below 10% then how is their
existence and expense on their promotion and development, especially on a national scale, can be
justified. One of the reasons that comes out of the above presented literature review is that most
Pakistani business incubators follow the Western methodologies and none of them are involved in
researching what the incubated companies, that exist in the Pakistani culture and value system,
require. The presented study attempts to find out a few expectations and requirements of young
businesses that can then be used to redesign these Pakistani incubators in order to make them more
effective and in line with the requirements of the domestic environment.
Methodology
This is a qualitative research which collected data through a focus group study. The
participants of the study were presented with a few questions about the methodology and
performance of business incubators in Karachi, a city which is the financial capital of Pakistan.
The focus group comprised of representatives of 15 young companies which are incubated at
different business incubators of Karachi. These representatives were either the CEOs of the new
startups or one of the co-founders. These participants were shown the Theodorakopoulos et al
(2014) model of evolution of business incubators (shown in figure 1) and were asked to rate the
Pakistani business incubators accordingly. The responses of the participants were recorded,
qualitatively analyzed, and a consolidated set of findings has been compiled which is presented in
the next section. The questionnaire used for this study is given below:
a) What is a business incubator?

b) What should a business incubator provide?
c) How should a business incubator assist in business growth?
d) Where do you place the business incubators of Pakistan on the Theodorakopoulos et al
(2014) model?
e) What cycle do you think an incubated business should go through?
f) How long should startups be allowed to stay in a business incubator?
Findings
Following are the responses obtained during the focus group session:
a) When asked about incubation, most participants suggested that an incubation center is a
fostering ground for ideas and a space which provides a platform for opportunities with minimal
losses (overheads).
b) Incubation centers in Pakistan should provide advice, finance and networking opportunities to
incubated companies.
c) There should be permanent advisory desks for different business areas like marketing, legal,
finance, accounting etc.
d) There should be a collaboration space where all the incubated businesses may meet in a relaxed
environment and know each other.
e) For providing accounting, finance, and marketing services, business institutions of Karachi
should route its BBA and MBA students for internships with incubated companies.
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f) Legal position of a company working as an incubated company in a business incubator should

be clarified. So it needs to be determined if this company is independent or a part of the business
incubator.
g) Exiting should be dependent upon the type of business and it should be seen if exiting is going
to be a loss for the incubator or a benefit for the new comers. In any case, the decision of letting
a company go should be taken after an evaluation. This evaluation should take place
periodically. It could be four monthly, six monthly, or a yearly review.
h) Even after letting a company leave the incubator premises, the incubation should not stop. A
company leaving should mean that other services for the business should still be available to
them. This should continue again for a certain period of time before totally making them stand
on their own feet. In this way it can be said that the entire process of incubation should be
divided into Internal and External incubation.
i) Let the incubated companies present themselves in front of celebrity business people by
collaborating with business institution. These successful business people may have valuable
advice for business sustainability and growth.
j) For mandatory mentoring sessions, incubated companies agree that they can spare a couple of
hours every month. Similarly, for attending sessions, they agreed to spare around 5 hours a
month. A program of systematic learning needs to be structured for that.
k) Measurement of success should be based on the vacancies created, the revenue generated, and
the growth rate.
Discussion and Conclusions

With reference to the definition of business incubators coming out of the focus group study,
two words that clearly need to be defined are ‘support’ and ‘initial phase’. In this context, we have
to ask ourselves:
a) What kind of support do we intend to provide to startups?

b) What period of time do we house these startup in our facility?
Let’s look at these two questions one by one.

What Kind Of Support Should Business Incubators Provide To Startups?
Presently, most incubators provides:
a) Office space with all utilities,
b) Business and legal advice, and
c) Networking opportunities.
When the focus group was asked to place the business incubation of Pakistan in one of the
boxes of model of Theodorakopoulos et al (2014), they placed it somewhere between box 1, the
1st generation, and box 2, the 2nd generation. According to the focus group participants,
networking and business advisory services are the two areas where more activities need to be done.
Keeping in mind the available resources, and domestic culture and values, therefore, the level of
support to be provided by incubation centers need to be decided. Figure 2 illustrates the proposed
model of business incubation in Pakistani business incubators. The black circles indicate different
components of the proposed incubation services. As can be seen in the figure there are 6 different
components as listed below:
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a) Induction
b) Affordable space with all utilities and advisory services
c) Education and networking program for incubated companies
d) Knowledge transferring and mentoring program
e) Periodic assessment of incubated companies
f) Exit
It is proposed that all the incubated companies are made to flow through the following stages:
Stage I - Infancy : A very new startup that needs mentoring and financial subsidies
Stage II - Toddling : The startup has got its first client and is now generating some revenue
Stage III – Pre : The startup has started to make profit and is now ready to leave the
incubator
Stage IV - Teen : The startup is a big success and is growing aggressively
Stage V - Pro : It’s not a startup any more
Components of the proposed structured program that surround this stage-gate process are explained
next.
Incubation ecosystem with all necessary

consultation sources and facilities
Education & networking program for incubates

(Mandatory participation) Exit
Embryo Infancy Toddling Pre Teen Pro

First client Running in Looking for Looking for
acquired Profit Expansion Diversification
Mandatory Mandatory Mandatory Mandatory
Knowledge transfer and mentoring

Figure 1: Proposed incubation model
Induction
As described earlier, the incubated business selection process has an important role in the
success of an incubator. This process, therefore, needs to be structured. The first thing that should
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be decided is the industrial sector the incubator is targeting. The benchmark study by CSES (CSES,
2002), as pointed earlier, recommends that the selection of a specific industrial sector enhances the
performance of business incubator managers and thus the incubator itself. If this option is intended
to be kept open then this explicitly needs to be a part of incubator working policy. It is proposed
that incubation should be open throughout the year, whenever a position is available. This will also
distribute the load of periodic assessment of incubated companies over the entire year.
Affordable Space With All Utilities And Advisory Services

CED does provide affordable space for startups but the advisory services, as highlighted by
the focus groups, are not adequate. This inadequacy might be removed by structuring the education
program for incubated companies (explained in the next section) in the areas they need most help
in. This could be marketing, law, accounting etc.
The internet facility provided by incubators also has some limitations of speed and
browsing. For that reason, one of the participants of focus group indicated, that they use their own
internet and do not depend upon the one provided by the incubator.
Education And Networking Program For Incubated Companies

This is an area where a lot of work needs to be done. During the focus group discussion,
not a single person knew all the people present in the room although some of them were from the
same incubator. This weak internal networking can be improved by making it mandatory for
incubated companies to send at least one of their members to attend a bi-monthly meeting where
one of the incubated companies presents the details of its services, the challenges it faces, and the
future plans. Incubated companies should also be made to do speaking sessions for regular students
and certification program participants for 12 hours every year per incubated company for
supporting education and internal networking. These sessions could comprise of success and
troubleshooting stories. Furthermore, luncheons may be arranged at certain occasions where
incubated businesses have a chance of meeting and knowing each other. For external networking,
gatherings and seminars may be arranged where successful business people and industrial leaders
are invited to meet the incubated companies and offer help and support for developing their
businesses. Collaborations with other incubators in Karachi can also be done for them to allow
incubated companies of one incubator to attend events in other incubators. A proposed detailed
program in the form of a working calendar is shown in table 2.
Table 5: Program calendar for incubated companies
January February March April May June July August September October November December
Induction Induction throughout the year
Periodic First 2nd 3rd 4th
Assessment Assessment Assessmen Assessment Assessment /
Presentation Presentation Presentation Presentatio Presentation Presentation
by by by n by by by
Education & incubatees incubatees incubatees incubatees incubatees incubatees
Networking to to to to to to
incubatees incubatees incubatees incubatees incubatees incubatees
Annual 24 hours of mandatory attendance in advertized sessions
Knowledge
Sessions delivered by incubatees to regular students and certification programs participants (mandatory)
Transfer
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Knowledge Transferring And Mentoring

Knowledge transfer and external networking of incubated companies, could be enhanced
through, at least, 24 hours of mandatory attendance in open-to-all sessions. Incubators should
advertise these sessions on different occasions throughout the year generally for other audience
and specifically for incubated companies. Furthermore, the companies which leave the incubator
after achieving the ‘Teen’ status should also be requested to visit back the incubators time-to-time
to transfer business insights and knowledge to incubated companies
Periodic Assessment Of Incubated Companies

It is proposed that there be periodic assessment and evaluation of incubated companies, the
output of which would help to upgrade or maintain the status of a company as per the stages
indicated in the proposed incubation model. This will also help in deciding if the incubator should
let a company go or extend its period of incubation.
What Period Of Time Do We House These Startups In Our Facility?

The answer to this question depends upon, firstly, how we measure success, secondly, how
beneficial is an incubated company for contributing towards the entrepreneurship eco-system, and
thirdly, the queue size and the kind of startups waiting in the queue.
As can be seen in the previous sections, the period of time companies are incubated varies
from 4 months to an undeclared period. In case incubators support the organic growth of
companies, in contrast with heavily funding businesses to accelerate their growth, the companies
might require a longer period of time to reach the ‘Teen’ stage as compared to the companies
injected with heavy funding. I was found during the study that in one of the incubators there are
some startups which are more than 18 months old and are doing much better as compared to when
they started. This is roughly the maximum time that an incubator should allow incubated teams to
occupy space in an incubator. There could be some exceptions where a company may be given a
few months more but the process of induction and exiting has to continue to enable the circulation
of knowledge and generation of new ideas and businesses. It is therefore proposed, that incubators
allow a period of one year extendable to maximum 18 months. To execute this, however, the
process of incubation is to be made more rigorous and methodical so that it is ensured that the
companies reach a ‘Teen’ stage in one year or maximum 18 months before they leave the incubator.
An exception to the above criterion could be those companies which are beneficial for the
younger incubated companies in terms of mentoring and networking. These kind of companies may
be provided a space for an undefined period of time and can be designated as the Knowledge
Partners
References
CSES, 2015, ‘Benchmarking of business incubators’, European Commission Enterprise Director
General
Drapier, A., Shaffer, J., 2015, ‘A tool to measure performance and impact of business incubators’,
UKBI
Dot Zero, 2015, www.thedotzero.com, Accessed at 1700 hrs on 31-10-17
Hannon, P. D., (2003),"A conceptual development framework for management and leadership
learning in the UK incubator sector", Education + Training, Vol. 45 Issue 8/9 pp. 449 – 460
IBIA, 2015, www.nbia.org, Accessed at 1900 hrs on 30-10-2017
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Nest I/O, 2015, www.thenestio.com, Accessed at 1600 hrs on 31-10-17

Plan 9, 2015, www.plan9.pitb.gov.pk, Accessed at 11.00 hrs on 31-10-17
Theodorakopoulos, N., Kakabadse, N., Nada K., McGowan, C., (2014),"What matters in business
incubation? A literature review and a suggestion for situated theorising", Journal of Small
Business and Enterprise Development, Vol. 21 Iss 4 pp. 602 – 622
Voisey, P., Gornall, L., Jones, P., Thomas, B., (2006),"The measurement of success in a business
incubation project", Journal of Small Business and Enterprise Development, Vol. 13 Iss 3
pp. 454- 468
YC, 2015, www.ycombinator.com, Accessed at 1500 hrs on 31-10-17
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DIVIDEND PAYOUT DECISION: DOES OWNERSHIP STRUCTURE

MATTER?
Noorhayati Yusof Ali1

noorhayatiy@tganu.uitm.edu.my
Zuraida Mohamad1
zurai5312@tganu.uitm.edu.my
Nurul Syuhada Baharuddin1
nurul574@tganu.uitm.edu.my
1
Universiti Teknologi MARA Cawangan Terengganu, Sura Hujung 23000 Dungun, Terengganu, Malaysia;
___________________________________________________________________________
AbstracT: Drawing on the evidence indicating that ownership structure is predominantly

concentrated and controlled by families in emerging market, this study attempts to investigate
the effect of ownership structure on dividend payout decision of Malaysian listed firms. The
study employs a panel data analysis of 141 firms listed on Bursa Malaysia for the financial year
from 2009 to 2013. Multiple regression analysis is used to estimate the association proposed
in the hypotheses. The results support the hypothesis that ownership is positively and
significantly related to dividend payout decision. This finding is consistent with the view that
dividend policy can be used as a tool in reducing agency conflict between controlling and
minority shareholders. The findings also reveal that is profitability positively and significantly
related to dividend payout. This finding supports the assertion that highly profitable firms
distribute higher dividend to their shareholders. Finally, firm size and leverage are found to be
negatively and strongly related to dividend payout.
Keywords: Dividend Policy, Ownership Structure, Controlling Shareholders, Minority

Shareholders.
___________________________________________________________________________
Introduction
Literature on dividend policy has evolved since the influential work by Modigliani and
Miller (1961). Drawing on the evidence of the dividend irrelevance theory in the perfect market
occupied with rational investors, many researchers over the world have sought to identify the
determinants of dividend policy (Modigliani & Miller, 1961). These determinants include
investment opportunities (Abor & Bokpin, 2010; Pruitt & Gitman, 1991), firm size (Fama
&French, 2002; Abor & Bokpin, 2010), profitability (Amidu & Abor, 2006; Abor & Bokpin,
2010) and capital structure (Al-Kuwari, 2009; Allen & Michaely 1995). A more recent
constituent of literature has focused on the effect of ownership structure on dividend policy
(Harada & Nguyen, 2011; Mehrani, Moradi & Eskandar, 2011).
While empirical evidence on the determinants of dividend policy has largely focused on
developed economies with mixed results (Abor & Bokpin, 2010), the impact of ownership
landscape, in particular, concentrated ownership on firms’ dividend policy in emerging markets
such as Malaysia remains largely unexplored. More than 60 percent of listed firms in emerging
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market particularly in Malaysia are very much concentrated and these firms predominantly
owned by family (Claessen, Djankov & Lang, 1999). Previous study reveals that concentrated
ownerships are strongly associated with pyramidal structures that are likely to increase the risk
of expropriation (Claessens, Djankov and Lang, 2000). Thus, dividend distribution is found to
be a proficient resolution to prevent self-interest activities by the controlling shareholders (La
Porta et. al. 2000).
Other firm-specific characteristics such as firm size, risk level, investment opportunity,
profitability and leverage have also been found to be related to dividend payout policy (Abor
& Bokpin, 2010; Amidu & Abor, 2006; Al-Kuwari, 2009). Since it has been a universal
consensus that there is no single driven explanation for dividend policy (Abor & Bokpin, 2010),
this study incorporates some other variables such as firm size, profitability and leverage to
empirically test the effect of these variables on dividend policy in different contexts of corporate
landscape, specifically in Malaysia.
Literature Review
Dividend Payout Policy
Principally dividend is the distribution of profits to shareholders due to their ownership of
shares in a company. The main purpose of distributing dividends to shareholders is to reduce
the free cash flow that can reduce conflicts of interest between managers and shareholders, thus
preventing managers from engaging in value-destroying activities that may harm the
shareholders’ wealth (Jensen, 1986). Prior literature also reveals that dividend payout policy
has been used to convey management private information as well as to signal the company’s
future prospects, hence enable the investors to make appropriate decision for their future
investment (Abor & Bokpin, 2010). Furthermore, researchers in the field have agreed with
universal consensus where there is no absolute explanation for the dividend policy, thus it
becomes an important corporate issue that interacts in parallel with the financial and investment
decisions made by a firm.
Ownership and Dividend Payout Policy

Ownership structure can be described as the stock owned by the companies and distributed
among the investors (Nendi et. al. 2013). In widely held corporation ownership measured by
cash flow right, none of the owners has significant control rights whereas in controlling owner
that is measured by voting rights, the owners have absolute control and majority of the
companies’ shares (La Porta et. al. 2000).
Dividend policy manages the potential corporate governance conflicts by avoiding the
managerial habits of reducing available cash flows when investing in risky projects (Lace et.
al. 2013). Claessens, Djankov & Lang (2000), agreeing with Mehrani, Moradi & Eskandar
(2011) revealed that corporate governance enables owners to determine the dividend
distribution. La Porta, Lopez, Shleifer & Vishny (2000) also suggest that the country’s level of
corporate governance’s characteristics such as development of the stock market, the nature of
state intervention and the government regulation effect the dividend distribution. However,
Naceur, Goaied & Belanes, (2006) argued that concentration ownership does not affect
dividend policy in Tunisia, suggesting that economic condition of certain country may inverse
the relationship between ownership and dividend distribution. Harada & Nguyen (2011) stated
that as the concentration ownership increases, the rate of dividend paid decreases due to the
private interest among the controlling shareholders.
Different countries with similar level of economic and institutional development show
no significant difference in dividend payout despite incorporating different ownership such as,
a higher level of ownership concentration in East Asian corporations (La Porta et. al., 2000),
widely held corporation ownership for UK and Ireland’s financial and large firms (Faccio &
Lang, 2002), state control in Malaysia, Indonesia, Singapore and Thailand whereas most
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Japanese and Koreans corporations have widely dispersed ownership (Claessens et. al., 1999).
Thus, this hypothesis was developed;
H1: There is significant association between ownership structure and dividend payout policy.
Firm Size and Dividend Payout Policy

Eriotis (2005) agreeing with Pandey (2001) advocating that high dividend payout companies
are typically ten times bigger in size than those who do not pay out dividend to their investors.
Similarly, Farrelly et. al. (1985) revealed that most Canadian firms that pay higher dividend are
remarkably larger in size. Commonsensically, since larger firms have wider opportunities to
enter capital market and consequently able to raise fund at much lower cost without utilizing
internal funding, they have bigger cash flow, have greater ownership structure, thus able to
generate larger profit, and therefore able to pay higher dividend to their shareholders.
Conversely, Mehdi, Mahdi & Shahnaz (2010) debated that firm size does not affect dividend
distribution and was agreed by Afza & Mirza (2010) who discovered that only ownership
structure and cash flow to be significant with dividend payout. Besides that, Demsetz & Lehn
(1985) learned that firm size is negatively correlated with ownership concentration. Thus, this
hypothesis was developed;
H2: There is significant association between firm size and dividend payout policy.
Profitability and Dividend Payout Policy

Many studies show that an increase in profitability causes the dividend payout to appreciate
(Amidu & Abor, 2006; Gill et. al., 2010; DeAngelo et. al., 2006). The logical reason behind
this is because dividends are usually paid from annual profits, profitable firms are willing to
pay higher amounts of dividends, and hence a positive relationship is expected between these
two variables. Profitability is constantly described in many studies as the main indicator of
dividend payout (Glen & Singh, 2004; Anil & Kapoor 2008). Therefore, this hypothesis was
developed;
H3: There is a significant association between profitability and dividend payout policy.
Leverage and Dividend Payout Policy

Financial leverage is the financial activities which involve rising of funds from outsource and
bear the cost to fix it (Muhammad Usman, 2012). Zeng (2003) indicated that if financial
leverage is used as an indicator of the future default and positively related to the cost of
financial, paying dividends may increase the financial distress for a firm with high leverage
ratio. The result of this study show there is inversely related between the said variables. Similar
results reported by Fenn & Liang (2001) find there is an inverse association between these two
variables. Nash et. al. (2003) also support the argument due to the inclusion of debt covenants
to minimize dividend payments by the bond holders. In addition, Ozdagli (2009) shows, there
is significant relationship between dividend offers by the companies with regards to financial
leverage. In fact, the leverage level of the companies will reflect to the changes in return to their
investor. The higher the leverage level of the companies the lower the return to the shareholders
because the companies have to bear the cost of financing. However, Al-Kuwari (2009),
demonstrate a link between financial leverage and dividend payout of the companies. He also
asserted this link is positive when the optimum capital structure is able to pay higher dividends
to the shareholders. Thus, this hypothesis was developed;
H4: There is a significant association between financial leverage and dividend payout
policy.
Data and Method

Sample and Data Collection
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The sample comprises the Bursa Malaysia listed companies excluding financial related
companies. Financial and corporate data are obtained from Bloomberg’s database and annual
report of the companies. This study utilizes panel data of 141 companies for five-year windows
period from the year 2009 to 2013. Sample represents 4 major sectors classified by the Bursa
Malaysia namely, industrial product (37%), followed by trade and service (26%), and consumer
product sector (21.3%) while property sector contributes 15.7%. Although there is some
concentration in certain sectors, this study does not control the effect of this concentration.
Measurement of Variables and Model Specifications

Prior research on dividend has examined association between several variables and dividend
payment. For instance, dividend is found to be associated with firm size, profitability, efficiency
and leverage (Nendi et. al., 2013; Harada & Nguyen 2011; Lace et. al., 2013). This study
employs a panel data analysis of 705 firms-year observations for the year 2009 to 2013. Pools
ordinary least square regression (POLS) is used to test the hypotheses developed in the study.
Following existing literature, this study uses dividend model employed by Harada &Nguyen
(2011) with some modifications of the variables. In addition to firm ownership, this study also
includes several other hypothesized variables such as firm size, profitability and leverage.
Therefore, the following is the model employed to test the hypotheses developed in the study.
DPR = β0 + β1 Ownership + β2 Firm Size+ β3 ROA +β4 DR + ɛ

Where:
β0 = intercept of the equation
β = a regression coefficient
DPR = a fraction of dividend to net income
Ownership = percentage of equity hold by top 5 substantial shareholders
Firm Size = log of total assets
ROA = return on assets
DR = long term debt to total assets
ɛ = error term

Table 4.1 provides descriptive statistics for the variables used in the study. Descriptive analysis
shows that the sample firms encompass a wide range of firms’ dividend payout ratio ranging
from 6.3 percent to 201.36 percent. The average dividend ratio is reaching almost 50 percent.
With respect to ownership structure, following the table 4.1 the study finds that, on average the
percentage of the shareholdings for all firm is 33.47 percent. The result also indicates the
ownership structure of the companies is highly dispersed at 4.35 percent and highly
concentrated at 99.89 percent shareholdings. With regard to firm size, the sample firms also
cover a wide range of firms, some moderately small and some relatively larger ranging from
RM 35.85 million to RM 71495.5 million. In average, the total asset is worth RM2612.23
million. Return on assets (ROA) ranging from -12.21 percent to 38.67 percent with a mean of
7.86 percent. On average, firms employ slightly less debt in their capital structure (22.30
percent) relative to equity. This finding provides evidence that closely held firms are less
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levered because the managers cum owners of these firms are more risk-averse since debt
increases the probability of bankruptcy (Mishra & McConaughy 1999).
Table 4.1: Descriptive statistics

Variables All Firms
(141 firms)
Min Max Mean CV Std. Dev
DPR 0.0063 2.0136 0.4949 0.49498 0.3368
Ownership 0.0435 0.9989 0.3347 0.33476 0.1787
Firm Size 35.85 71495.5 2612.23 2612.23 6940.1
ROA -0.1221 0.3867 0.0786 0.07857 0.0666
DR 0 3.5509 0.2230 0.22303 0.2769
Correlation Matrix
Table 4.2 presents the correlation matrix of the variables employed in this study. The higher
value correlations of coefficient show the stronger relationship between variables. Based on table
4.2, it shows the dividend payout ratio is negatively correlated with ownership structure, firm
size and ROA. However, debt ratio is found to have positive relationship with dividend payout
ratio which is resulted at 0.0402. Correlation matrix shows that independent variables are not
highly correlated. For this reason there is no multicollinearity problem found in the study
Table 4.2: Correlation matrix of the independent variables

Variables DPR Ownership Firm Size ROA DR
DPR 1.0000
Ownership -0.0351 1.0000
Firm Size -0.0231 0.0699 1.0000
ROA -0.0037 0.0371 -0.1198 1.0000
DR 0.0402 -0.0717 -0.0440 -0.0144 1.0000
Empirical Regression Results

The primary results of the study are presented in Table 4.3. The regression analysis is used to
test the hypotheses developed in the study. Recall that Hypothesis 1 predicts a significant
association between ownership and dividend payout policy. The results reported in Table 4.3
show the association between dividend payout and the hypothesized variables derived from the
extant literature. The adjusted R- square is about 14.02 percent which implies that the
hypothesized variable and other firm-specific variables explain about 14.02 percent variation in
dividend payout ratio of the sample firms.
Table 4.3: Pools Ordinary Least Squared (POLS)

DPR Coef . Std. Dev T P> l t l 95% Coef. Interval
Ownership .4175043 .0675729 6.18 0.000 .2848335 .5501752
Firm Size -.0370131 .0086304 -4.29 0.000 -.0539579 -.0200684
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ROA .5251304 .1865639 2.81 0.005 .1588359 .8914249

DR -.0718528 .04292 -1.67 0.095 -.1561208 .0124151
As shown in Table 4.3, dividend is positively and significantly related to ownership (coefficient
= 0.417; p<0.01). The result supports Hypothesis 1 which predicts that dividend payout is
significantly related to firms’ ownership. The finding of this study is consistent to the widely-
held view in the dividend and corporate ownership literature that shows closely held firms is
associated with high agency problem, hence they pay higher dividend to shareholders to reduce
conflict of interest between managers and shareholders (Jensen, 1986). The regression result in
Table 4.3 also shows that dividend payout is negatively and significantly associated with firm
size (coefficient =-0.037; p<0.01). The finding suggests that larger and diversified firms are
more likely to have better knowledge of market and thus they are more likely to have better
investment opportunities. Therefore, larger firms pay low dividend, since dividend and
investment denote competing possible uses of firm’s free cash flow (Abor & Bokpin, 2010).
Another variable that is found to have strong positive association with dividend payout is return
on assets (ROA), a proxy for profitability (coefficient = 0.525; ρ<0.01), suggesting that highly
profitable firms pay higher dividend. The strong positive association between dividend payout
and profitability is also consistent with findings previously reported elsewhere. Intuitively,
Amidu and Abor (2006) and Anil and kapoor (2008) argue that firms with higher profitability
have higher internal resources available to pay high dividend to their stockholders. Leverage is
found to be negatively and significantly associated with leverage (coefficient = -0.071; p<0.1).
The result is consistent with those found in the literature which majority argues that firms which
employ larger portion of debt in their capital structure have bigger tendency to pay lower
dividend due to the needs to serve debt obligation (Rozelf & Michael, 1982)
Conclusion
Despite the prominent form of business organization in emerging economies, many studies have
examined the influence of ownership structure and other features of corporate landscape on
dividend payout decision. Drawing on the prevalence of closely held firms coupled with a unique
corporate landscape in which ownership is dominated by families, this study attempts to
investigate the influence of ownership on the dividend payout decisions of Malaysian listed
firms. The findings contribute to the growing literature on dividend decisions in different
contextual setting specifically found in developing economies. Overall, the study finds that
dividend is positively and significantly related to ownership structure. Agency theory suggests
that when managers are also the controlling shareholders, their interest may not be aligned with
minority shareholders. As a result, these firms are likely to pay higher dividend in order to
dampen agency conflict. The findings also reveal that is profitability positively and significantly
related to dividend payout. This finding supports the assertion that highly profitable firms
distribute higher dividend to their shareholders. Finally, firm size and leverage are found to be
negatively and strongly related to dividend payout. This finding suggests that larger firms are
more likely to have better market knowledge and therefore are more likely to have better
investment opportunities than other firms. Therefore the excess cash flow will be more focused
on these needs, thereby causing a low dividend payout.
References
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Abor, J. and Bokpin, G. A. (2010). Investment Opportunities, Corporate Finance, and Dividend
Payout Policy: Evidence from Emerging Markets, Studies in Economics and Finance 27(3):
180-194.
Afza Talat and Mirza Hammad Hassan. (2010). Ownership Structure and Cash Flows as
Determinants of Corporate Dividend Policy in Pakistan. International Business Research,
3(3), 210-221
Al-Kuwari, D. (2009). Determinants of the dividend policy in emerging stock exchanges.
Global Economy & Finance Journal 2(2):38-63
Allen, F. and Michaely, R. (1995). Dividend Policy. In: Handbook in OR&MS, Elsevier
Science, Vol. 9, 793-836.
Amidu, M and Abor, J. (2006). Determinants of dividend payout ratios in Ghana, Journal of
Risk Finance, 7(2):136-45.
Anil, K., and S. Kapoor. (2008). Determinants of dividend payout ratios: A study of Indian
information technology sector. International Research Journal of Finance and Economics
15 (May); 63-71.
Claessens, S.,Djankov, S. and Lang, L.H.P.(1999). Who controls East Asian Corporations?
World Bank Discussion Paper No.2054. Washington: The World Bank
Claessens,S.,Djankov, S.,and Lang, L.(2000). The Separation of ownership and Control in East
Asian Corporations, Journal of Financial Economics 58:81-112.
DeAngelo,H.; De Angelo, L.;Stulz, R.M.(2006). Dividend Policy and the earned/ contributed
capital mix: A test of the life-cycle theory, Journal of Financial Economics 81(3):227-254
Demsetz,H.and Lehn, K.(1985), The structure of corporate ownership: causes and con
sequences. Journal of Political Economy, 93:1155-77
Eriotis N. (2007). How firm characteristics affect capital structure: an empirical study,
Managerial Finance, 33 (5), 321-331.
Faccio, M.and Lang, L. (2002). The ultimate Ownership of Western European Corporations.
Journal of Financial Economics 52:187-223
Fama, E.and French, K. (2002), “Testing tradeoff and pecking order predictions about
dividends and debt”, Review of Financial Studies, 15:1-33.
Farelly, Gail E.H., Kent B., RIichard B., Edelman, (1986) Corporate Dividends: Views of
Policy makers, Akron Business and Economic review, 17(4) (Winter): 62-74
Fenn, G., Liang, N., 2001. Corporate Payout Policy and Managerial Stock Incentives. Journal
of Financial Economics 60: 45-72.
Glen, J. and Singh, A. (2004). Comparing capital structures and rates of return in developed
and emerging markets, Emerging Markets Review 5 (2004): 161 – 192.
Harada, K. and Nguyen, P. (2011). Ownership Concentration and dividend policy in Japan,
Managerial Finance 37(4):362-379.
Jensen, M. (1986). Agency cost of free cash flow, corporate finance and takeovers. American
Economic Review Papers and Proceedings, 76: 323-329.
Lace, N., Bistrova, J.,and Kozlovskis, K.(2013). Ownership type influence on dividend
payments in CEE countries, in Contemporary Issues in Business, Management and
Education: 259-266.
La Porta, R., Lopez-de Silanes, F., Sheifer, A. and Vishny, R. (2000),” Agency problems and
dividend policies around the world”, Journal of Finance, 55:1-33.
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Mehdi Moradi, Mahdi Salehi and Shahnaz Honarmand (2010), Factors Affecting Dividend
Policy: Empirical Evidence of Iran, Poslovna Izvrsnost Zagreb, GOD. IV BR. 1., pp 45-62
Mehrani, S.: Moradi, M.;Eskandar, H.(2011). Ownership structure and dividend policy:
Evidence from Iran, African Journal of Business Management 5(17):7516-7525.
Miller, M. H., & Modigliani, F. (1961). Dividend policy, growth, and the valuation of shares.
The Journal of Business, 34(4): 411-433.
Muhammad Usman J. (2012). Impact of financial leverage on dividend policy: Case of Karachi
Stock Exchange 30 Index, Journal of Contemporary Issues in Business Research 1(1): 28-
32.
Naceur, S.B., Goaied, M. and Belanes, A. (2006). On the Determinants and Dynamics of
Dividend Policy. International Review of Finance, 6(1-2): 1–23.
Nash, R. C., Netter, J. M. and Poulsen, A. B. (2003). Determinants of contractual relations
between shareholders and bondholders: investment opportunities and restrictive covenants,
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THE INTENTION TO BREASTFEED AMONG MIDDLE AGE

MOTHERS: THE APPLICATION OF THEORY OF PLANNED
BEHAVIOR
Nur Zainie Abd Hamid 1

Shamsinar Ibrahim2
Hasyimah Razali3
Hafizah Besar Sa’aid (PhD)4
1234
Universiti Teknologi MARA, Kedah Branch, 08400 Merbok, Kedah, Malaysia
___________________________________________________________________________
Abstract: Breastfeeding is associated with health risks for both mothers and infants. Studies
proved, breastfeeding may give a lot of benefits to them and the breast milk is the best
nutritional choice for infants. Unfortunately, many still neglect and ignore it. To encourage
the practice, knowledge of exclusive breastfeeding need to be spread as the basis for the
mothers. Then, the contributing factors influencing the intention of the practice should be
understand. The objective of this study is to measure the middle age adult mother intention’s
to exclusive breastfeed by using the Theory of Planned Behavior. A quantitative and cross-
sectional study was carried out involving middle age adult mothers with children, aged between
36 to 55 years old. The survey instrument was distributed by hand in Klang Valley, the
Malaysia’s focal point. The main finding indicates that, the respondents have high intention to
breastfeed their babies exclusively. Among the three factors; attitude toward the behavior,
subjective norms and perceived behavioral control, the respondents held attitude towards
behavior as the main factor contributed to their intention to exclusively breastfeed. There is
also positive significant relationship between the theory’s factors as well as knowledge with the
intention of exclusive breastfeeding. Given the range of population health is declining in recent
years, efforts are urgently needed by all parties to raise awareness about the importance of
breastfeeding.
Keywords: Antenatal, Breastfeeding, Intention, Theory of Planned Behavior

___________________________________________________________________________
Introduction
Recent years, consideration has been given to support breastfeeding among mothers as a
recommendation for children health. It is a significant solution to reduce infant morbidity and
mortality rate. The act of not giving the mother breast milk is studied to associate with sudden
infant death syndrome and other neonatal morbidity and mortality conditions. The World
Health Organization (WHO) recommends mothers to have the first six months of exclusive
breastfeeding to achieve optimal growth and development starting from the first half hour after
delivery. Then, mothers are encouraged to continue breastfeed their babies alongside with
complementary food until 12 months age and beyond. Malaysia has shown a slight increase in
overall prevalence of breastfeeding among children aged less than 12 months. In fact, the
significance of breastfeeding and infant nutrition has been recognized by the government of
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Malaysia. Unfortunately, the rate is still low, and it is not an active practice. Various factors
have found to be associated with the behavior of breastfeeding including demographic,
biosocial, cultural, and employment policies.
Moreover, one of the demographic aspects, the maternal age is showed to associate with
breastfeeding duration. With increased age, there is often associated with higher breastfeeding
(Mogre, Dery & Gaa, 2016). Older mothers are more likely to be confident because they have
more life experience. Yet, such study has not been conducted in Malaysia. Therefore, this
study aimed at examining factors that influence the intention to breastfeed among middle aged
mother in Klang Valley, Malaysia by applying the concept proposed by the Theory of Planned
Behavior. The following research objectives guided the researcher works.
a) To determine the intention of breastfeeding among middle aged mothers.

b) To determine the most influential factor toward intention of breastfeeding among middle
aged mothers.
c) To examine the relationship between attitude toward behavior, subjective norms and
perceived behavioral control with the intention to breastfeed among middle aged
mothers.
Literature Review
The Benefits of Breastfeeding
Breastfeeding is recognized to reduce mortality and morbidity rate (Brulde, 2011). Studies have
demonstrated benefits of breastfeeding on both mothers and babies. Mothers may lower their
risk of type 2 diabetes, osteoporosis as well as breast, ovarian and endometrial cancers. It is
also one of the family planning methods where breastfeeding can delay menses of mothers to
prevent them from getting pregnant. Mothers also may decrease their risk of fatal postpartum
hemorrhage and premenopausal breast and ovarian cancer. For the babies, study shows
breastfeeding may prevent deaths among children below 5 years old (Maonga, Mahande,
Damian & Msuya, 2016). Besides, it also may reduce the risk of respiratory tract infections
(RTI) including pneumonia, gastrointestinal infections such as gastroenteritis and acute watery
diarrhea among children. The breast milk contains antibodies that produce protection against
many infectious diseases and as result, will strengthen the immunity system. It also important
for brain development as it contains the carbohydrates, proteins and essential fatty acids. A
study by American Academy of Pediatrics (2012) demonstrated that bottle fed babies tend to
frequently admit in hospital, have rashes and other medical problems compared to breastfed
babies. However, as a mother, the most valuable benefit is when breastfeeding may promote
psychosocial bonding between mother and child.
The Application of the Theory of Planned Behavior

Theory of Planned Behavior is originally proposed by Ajzen (1991). It is a modification
version of the Theory of Reasoned Action. The Theory of Planned Behavior considers desire
control as variables where a man must have the resources, opportunity and support to perform
a behavior or conduct. According to the theory’s concept, the initiation of breastfeeding can
occur when the three constructs exist; attitude toward behavior, subjective norms and perceived
behavioral control. Positive evaluation of consequences may lead to a positive attitude toward
breastfeeding. Besides, the formation of positive subjective norm may also increase the
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motivation to follow the social believe. Supports from social networking including the
workplace will encourage mothers to initiate breastfeeding effort. Such supports. Mothers with
sufficient level of confidence on her skills and her adequate supply of milk for the baby will
foster the continuation of breastfeeding behavior. This is because, mother with strong perceived
behavioral control may initiate behavior realized on the easiness of practicing and continue the
behavior for some period.
Methodology
This study employed quantitative and cross-sectional study. A set of questionnaires was
conveniently distributed among mothers with caesarean section experience in Klang Valley,
Malaysia. The distribution was done manually, in four randomly selected districts. To ensure
the validity of the instrument, all items in the survey were adapted from the previous research.
The survey includes five sections prepared in bi-language to access the respondents’ socio-
demographic background (age, race, education and working status), perception on the influence
of attitude towards behavior, subjective norms and perceived behavioral control on the intention
to breastfeed. A minimum of 10 minutes were given and allocated to each respondent to
complete the survey. The scale used for the main section (B, C, D and E) is five points Likert-
scale ranging from strongly agree to strongly disagree.
Findings
Reliability of the Instrument
To measure the reliability of the instrument used, the Cronbach’s Alpha values are
examined. Value of more than .80 is considering to be good, value of .70 is acceptable whereas
value less than .60 is poor (Malhotra, 2004). The results are postulated in Table 1.
Variable Cronbach’s Alpha Indication

Value
Attitude toward Behavior .562 Poor
Subjective Norms .950 Good
Perceived Behavioral Control .796 Acceptable
Intention of Breastfeeding .828 Good
Table 1: Reliability Analysis of the Variables
The results indicate that, attitude toward behavior and intention to breastfeeding have
good reliability values. However, perceived behavioral control and attitude toward behavior
both have acceptable and poor reliability values respectively.
Demographic Profile
The following Table 2 demonstrated the analysis of demographic information of the
respondents using frequency analysis.
Demographic Profile Frequency (%)
31 to 40 years old 72.7
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Working Status: Government Sector 49.1

Salary: RM2001 – RM3000 32.7
Marital Status: Married 96.4
Mode of the Latest Delivery: Vaginal 78.2
Table 2: Frequency Analysis of Respondents’ Demographic Profile
4.3 The Relationship between Attitude towards Behavior, Subjective Norms and
Perceived Behavioral Control with the Intention to Breastfeed.
The frequency analysis indicates that intention to breastfeed among mothers are high.
Among the three factors, attitude toward behavior demonstrated the highest mean compared to
subjective norms and perceived behavioral control (Table 3).
Variable Mean
Attitude toward Behavior 3.74
Subjective Norms 3.29
Perceived Behavioral Control 3.34
Intention to Breastfeed 3.80
Table 3: Means of Variables
Then, correlation analysis is conducted to describe the relationship between continuous

variables. The coefficient has a range of possible value from -1 to +1 and the value indicates
the strength relationship, while sign (+ and -) indicates the direction. The eyeball method
(Salkind, 2011) is adopted to interpret the correlation among variables (Table 4).
Correlation Between Are Said To Be

.8 and 1.0 Very Strong
.6 and .8 Strong
.4 and .6 Moderate
.2 and .4 Weak
0 and .2 Very Weak
Table 4: The eyeball method
Attitude toward Subjective Norms Perceived Behavioral

Behavior Control
Intention .277 .477 .385
P-value .002 .001 .002
Table 5: Correlation Analysis of the Variables
Based on Table 5, there is a weak and positive correlation between both attitude toward
behavior and perceived behavioral control and the intention to breastfeed and moderate and
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positive correlation between subjective norms and intention to breastfeed. However, all
correlations are statistically significant, since the P-value is lower than 0.05.
Discussion
The main objective of the study is to determine the relationship between attitude toward
behavior, subjective norms and perceived behavioral control with the intention to breastfeed
among middle aged mothers. The findings indicated that most of the respondents have intention
to breastfeed their babies. Among the three factors, attitude towards behavior is the most held
influential factor to the mother. This finding is consistent with Lucy and Mary (2014) where
they also found that, attitude is a significant predictor of breastfeeding behavior. Moreover, all
the three factors demonstrated positive correlation with the intention to breastfeed, even though
the correlation values are low compared to the precedent studies. This is consistent with
findings from Persad & Mensinger (2008), Scott, Narcisse & Lindholm (2015) and Hassan,
Yasmeen, Ahmed, Begum, Rob, Ahmed & Rahman (2015).
Conclusion
Based on these findings, it is concluded that, the intention of breastfeeding is high
among middle aged mothers. Attitude toward behavior identified as the most influential factor
held by the respondents and all factors tested are correlated with the intention of breastfeeding.
The following measures should be considered to improve the breastfeeding practice:
a) Enhancing social support efforts including counseling during ante and post-natal period
to improve the prevalence of breastfeeding among mothers.
b) The government should always be active in implementing and encouraging the Baby-
friendly Hospital Initiative (BFHI), especially in the rural areas.
c) Implementing community based education and support program to disseminate
breastfeeding awareness and knowledge.
This study has highlighted the critical importance of breastfeeding to the mothers and
infants. Breastfeeding has positive impacts on society at every level. The findings are useful to
the healthcare facilities for regulating policies to support women to optimally practicing
breastfeeding.
References
Ajzen, I. (1991). The theory of planned behavior. Organizational behavior and human decision
processes, 50 (2), 179-211.
Brulde, B. (2011). Health, disease, and the goal of public health. Key Concepts and Issues in
Policy and Practice, 20-47.
Hassan, M., Yasmeen, B. N., Ahmed, T. U., Begum, M., Rob, A., Ahmed, A. U. & Rahman,
H. (2015). Practice of giving exclusive breastfeeding among the babies of working
mothers and house wife mothers: A comparative study. Northern International Medical
College Journal, 5 (2), 339.
Lucy, A. M. & Mary, K. W. (2014). Applicability of theory of planned behavior in
understanding breastfeeding intention of postpartum women, International Journal of
Multidisciplinary and Current Research, 2, 258-266.
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Maonga, A. R., Mahande, M. J., Damian, D. J. & Msuya, S. E. (2016). Factors affecting
exclusive breastfeeding among women in Muheza District Tanga Northeastern
Tanzania: A mixed method community based study, Maternal Child Health Journal,
20, 77-87.
Mogre, V., Dery, M., & Gaa, P. K. (2016). Knowledge, attitudes and determinants of exclusive
breastfeeding practice among Ghanaian rural lactating mothers, International
Breastfeeding Journal, 11 (1), 211-218.
Persad, M. D. & Mensinger, J. L. (2007). Maternal breastfeeding attitudes: Association with
breastfeeding intent and socio-demographics among urban primiparas. Journal of
Community Health, 33 (2), 53-60.
Scott, A. L., Narcisse, M. & Lindholm, L. (2015). Promotion of exclusive breastfeeding in a
clinic setting did not increase its rates. Clinical Lactation, 6 (1), 40-44.
The American Academy of Pediatrics (2012). Breastfeeding and the use of human milk,
Pediatrics, 129 (3).
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IMPROVING THE NATURE OF TEACHING IN PROJECT

MANAGEMENT: A PROPOSED MODULE
Nor Syamaliah Ngah 1

Norazlin Abd Aziz 1
Nasrudin Mohammed 2
Thenmolli Vadeveloo 1
1
Faculty of Administrative Science and Policy Studies Universiti Teknologi MARA, Kampus Seremban 3, 70300
Negeri Sembilan, Malaysia
2
Faculty of Administrative Science and Policy Studies Universiti Teknologi MARA, 40450 Shah Alam, Selangor,
Malaysia
______________________________________________________________________________
Abstract: This study aims to create instructional structures for project management students by
testing the possibilities and inadequacies of the material for the undergraduate students of
Administrative Science Programme. It also encompasses a diverse range of elements to develop a
module by employing constructivist knowledge theory by investigating the effects of the module
developed for the project management course particularly in technical sections. In order to achieve
the research objective, an experimental method with a stratified random sampling of 134 final year
students and five lecturers in Universiti Teknologi MARA (UiTM) is adopted. The findings indicate
that there is a significant level of happiness among the students and lecturers on the development
of the module. Furthermore, the research proposes a module to be adopted by the students and the
whole UiTM system as it is very comprehensive and engaging in increasing the level of
understanding.
Keywords: Project Management, Constructivism, Module, Student

______________________________________________________________________________
Introduction
Project management is a standout amongst the most well-known ranges of management
study (Ika, 2009). This area of study remains relevant and critical (Winter et al., 2006), and this
has resulted in multiple research efforts in order to set up a learning base for practicing purposes.
However, the gap amongst theory and practice is yet to be fulfilled. This is found in the
incompatibility of project management including low quality, reviews, cost and time delayed and
client disappointment (Gauthier and Ika, 2012). Without a deep understanding on project
management, one will face difficulties in figuring out on how the working environment could be
successful (Noe, 2010). Premack indicates (1984; cited in Eddie, 2016), that human learning is
inclusive of three criteria of instructional method such as: an objective for taking in; a precise way
to deal with learning; and instructor direction of learning progress. Clearly, if an educator does not
fulfill these three criteria, learning would not occur.
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Conventional teaching techniques are thought to be inappropriate to teach higher order

aptitudes that require application, investigation and assessment (Piercy, 2012). According to Balan
et al., (2012) many studies in specific learning methodology will give more desired results and,
materials ought to be prepared to support current learning approaches. In addition, reading material
from time to time assess students' previous experience (Kim and Van, 1998). This statement is
also supported by Niaz (2001) who highlighted that learning materials are necessary as specified
in the learning theory or rationality of educating and learning. Kurt and Akdeniz, (2002) and Saka,
(2001) also indicated that by using instructional material based on the sound learning theories, the
learning process will be enhanced. Proctor et al., (1934) recommended, utilization of worksheets,
as proposed by constructivist learning theory, will attract students to participate in learning. They
also pointed out that worksheets are characterized as the key devices containing required process,
steps and helping students to organize learning. In the meantime, worksheets give full support to
the students in class while doing exercises. This notion is supported by Yiğit, Akdeniz and Kurt,
(2001), Kisiel (2003) and Kirschner, Sweller and Clark (2006). It has been discussed that
worksheets give direction and offer answers for issues. Consequently, the purpose of this study is
to create instructional materials for project management students, test the reliability of this material
and improve the quality to avoid inadequacies. Based on these points, a module inside the structure
of the constructivism theory was created.
Literature Review
In the last quarter century constructivist learning has developed as one of the best methods in
education (Chandra and Shang, 2017). Educators have grasped constructivist-based teaching and
learning method (Powell et al., 1985). According to Mvududu and Thiel-Burgess (2012)
constructivist learning is a method that prescribe students’ knowledge by investigating and
demonstrating their understanding towards the learning. Constructivism depicts the way that the
students can comprehend the material and furthermore how the materials can be educated viably
(Amineh and Asl, 2015). Some instructors emphasize on building the significance of learning
process with prior knowledge since constructivist-based rule positively relates educational needs
to students' learning. Constructivism theory depends on the possibility that individuals build their
own particular learning through their own involvement (Baki, 2008; Charmaz, 2011). The viability
of Constructivism is that it prepares the students for critical thinking in complex condition. In
Constructivism theory, students are more dynamic in building and making information, exclusively
and socially, in light of their experience and interpretations. Educator's role is basic and essential
in learning process. The role of the educator in Constructivism theory is to assist the students in
interpreting the information and to guide and help them to refine their knowledge and
understanding in changing any misinterpretation that emerges among students at a beginning period
and enhance their learning knowledge (Keiser et. al, 2014).
Conventional classroom teaching emphasized on the theoretical phases as compared to the
cross-functional processes of construction and procedures (Kakouris, 2017). A radical concept of
action learning is where the learning requires programmed knowledge (routine knowledge in using
and questioning insight). It is evident that activity learning has been held out by numerous analysts
to give a sound premise to taking a shot at issues, concentrating on learning and implementation of
solutions (Marquat, 2000; Spence, 2003). This concept is student driven and focused on the need
to discover an answer for a genuine issue. According to Lyle et. al (1998), the capacity to think and
interpret the information is perceived as fundamental to be successful in learning and increase the
performance.
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Learning activity is one of the well-demonstrated individual activities, comprehensive and it

imposes advancement of rationales (Wood, 2017 and Cheng, 2016). Joining learning activity into
classroom will encourage the educators to keep up a harmony between theory and practical, while
improving quality education at universities (Pun, Yam and Sun, 2003). This encourages students’
interest and cooperation to finish task of shared objectives: consequently, this creates a wonderful,
secured and pleasant learning environment.
Methods
The study employs an experimental approach. A survey was carried out in Faculty of
Administrative Science and Policy Studies, UiTM Seremban in the state of Negeri Sembilan with
134 students and five lecturers. Data for the study were collected based on a structured
questionnaire. There were a total of 134 respondents for this study, chosen based on Sekaran (2013)
from one faculty who participated in the utilization of module. The process of drawing the diagram
was created in a module as students and instructor materials. During the initial phase of material
production, the discussion was held with the lecturers who are teaching the subject. From the
discussion, it was found that, students were experiencing some issues in drawing the diagram. In
addition, there are few lecturers who drew the diagram in a different way. As a result, it was realized
that instructional materials in showing drawing segment are required to ensure uniformity in
teaching as well as to help the students in learning.
The module was produced based on the constructivist learning theory which was utilized as a
part of the examination. The module then was distributed to the students to get their perception
towards the effectiveness of the module. The module consists of step-by-steps process in drawing
the technical section of the project management subject. At the end of the module, a few questions
pertaining the diagrams were also included to test their knowledge in drawing the diagram. The
module also was then analyzed by two project management senior lecturers who have been
teaching the subject for a long time. The academicians affirmed that the module is very helpful as
a support material to be used by the students and lecturers.
Data analysis
Likert survey with four-item overview, with a 5-point rating scale, was produced to gather
information on students' learning background using the module. The students rated the module as
a learning material for (a) engagement in learning; (b) emotional respond; (c) comprehensiveness;
and (d) improvement of understanding and commercialization. Furthermore, utilizing a similar 5-
point scale, the students appraised the three-other major instructional assets customarily utilized as
a part of the course: (a) assignments, (b) instructional exercise, and (c) reading material. The
evaluations of numerous learning devices on a similar scale took into account relative correlations
between learning exercises. The survey was conducted during the seventh week class meeting for
the current semester. Table 1 refers to students’ perception on the effectiveness of the module.
Table 1: Perception on Effectiveness of Module

Response Rate / Variables Strongly Agree Neutral Disagree
agree (%) (%) (%) (%)
Engagement 100
Positive emotional responses 40 45 10 5
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Comprehensive 90 8 2
Tool to improve understanding 100
Findings and discussion

In summary, 100% or all of the students perceived that the module was attractive compared to
95% students agreed that the module reduced their anxiety and increased the excitement in learning
project management course. However, fewer students, 0.2% respectively, disagree with the
statement that module was comprehensive. Since, they perceived that lecture notes and textbooks
were inadequate; the students agreed that the module was very helpful in understanding the project
management course. While editing the subjective reports because of the open-ended question,
"How did the module encourage you to acquire new knowledge?" various students referred to that
the module as an advanced supporting tool for the course. These reactions boost the Likert
appraisals and furthermore give knowledge to the method of reasoning for the evaluations. The
explanations behind their expanded interest varied among students. A few students connected their
enthusiasm in examining project management course to the project's association with certifiable
development (Aleksic et al., 2017)
The outcome for this study is compared with the studies conducted by Ozmen and Yildirim
(2005), Yidiz et al (2010) and Dilek (2010). These outcomes strengthened the researcher
examination’s outcomes on the use of module. Furthermore, it can be concluded that learning
materials are needed in assisting the students to think of the ideas and to connect their past learning
experience (Gonen and Akgun, 2005). Hence, the students indicated that the module would be
very useful in teach project management particularly the technical section. During the utilization
of the module, the researcher has not distributed the questionnaire to the lecturers yet the researcher
made individual assessments about the use of module. The lecturers expressed that they found the
materials very fascinating and useful for teaching and learning. Their expression towards the
module is: “The drawing was explained in a simple manner”, “It is modest and explicable”, “It
was great to relate the drawing with the real life project”, “I like the module”. Generally, the
lecturer said that this module should be distributed to all campuses to ensure the standardization in
teaching among all lecturers.
As written in the literature, many studies suggested that learning materials enable students to
learn (Yidiz et al (2010); Demirciogluet al., 2004). Previous studies on learning materials (Yidiz et
al. 2010; Dilek, 2010; Muammeret al, 2006) emphasised on the necessary to use the learning
materials in teaching and learning.
Conclusion
Module empowers students to build interest in learning process effectively and enhance
students' accomplishment. This study creates instructional module for students in view of
constructivism theory identified with project management subject. This model can be utilised as a
part of class activities which were successfully conducted. This is due to the fact that the quantity
of stages is little and at each stage, guidelines are clarified during the usage of materials and
exercises. In this specific situation, it is suggested that for classroom usage, practicality has been
taken into consideration. Since correct impression about project management is vital, this sort of
studies might be considered fundamental in project management guideline. Hence, it's prescribed
to utilise the materials created during the course in project management classes and to create
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comparative materials for other topics, and to examine the impact of this material on students'
academic accomplishment.
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Cheng, E. W. L. (2016) "The learning study approach to comparing two typologies of the cost
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Studies, Vol. 5 Issue: 4, pp.300-312, https://doi.org/10.1108/IJLLS-11-2015-0039
Gauthier, J.B., & Ika, L.A. (2012), “Foundations of project management research: an explicit and
six-facet ontological framework”, Project Management Journal, Vol. 43 No. 5, pp. 5-23.
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PEMBANGUNAN MODUL DALAM MENINGKATKAN PRESTASI

PEMBELAJARAN PENGURUSAN PROJEK
Nor Syamaliah Ngah 1

Norazlin Abd Aziz 1
Nasrudin Mohammed2
Thenmolli Vadeveloo1
1
Faculty of Administrative Science and Policy Studies Universiti Teknologi MARA, Kampus Seremban 3, 70300
Negeri Sembilan, Malaysia
2
Faculty of Administrative Science and Policy Studies Universiti Teknologi MARA, 40450 Shah Alam, Selangor,
Malaysia
___________________________________________________________________________
Abstract: Kajian ini bertujuan untuk mewujudkan struktur instruksional untuk pelajar
pengurusan projek dengan menguji kemungkinan dan kekurangan bahan untuk pelajar sarjana
Program Sains Pentadbiran. Ia juga merangkumi pelbagai elemen untuk membangunkan
modul dengan menggunakan teori pengetahuan konstruktivis dengan menyiasat kesan modul
yang dibangunkan untuk kursus pengurusan projek khususnya dalam bahagian teknikal. Untuk
mencapai matlamat penyelidikan, satu kaedah eksperimen dengan pensampelan rawak
berstrata daripada 134 pelajar tahun akhir dan lima pensyarah di Universiti Teknologi MARA
(UiTM) telah diterima pakai. Penemuan menunjukkan bahawa terdapat tahap kepuasan yang
signifikan di kalangan pelajar dan pensyarah mengenai pembangunan modul. Selain itu, kajian
ini mencadangkan keprluan uttuk menyediakan satu modul yang komprehensif yang boleh
diguna pakai oleh para pelajar dan seluruh warga UiTM dalam pembelajaran pemnegurusan
projek bagi meningkatkan tahap pemahaman para pelajar.
Keywords: Pengurusan Projek, Konstruktivis, Modul Dan Pelajar.

___________________________________________________________________________
Pendahuluan
Pengurusan projek adalah salah satu cabang tumpuan dalam kajian pengurusan (Ika,
2009). Bidang kajian mengenai pengurusan projek kekal relevan dan kritikal sehingga ini
(Winter et al., 2006), dan beberapa penemuan telah dihasilkan untuk membentuk pangkalan
pembelajaran. Walau bagaimanapun, jurang antara teori dan amalan belum dapat dipenuhi. Ini
ditemui dalam ketidaksesuaian pengurusan projek termasuk kualiti rendah, kos dan masa
tertangguh dan kekecewaan pelanggan (Gauthier dan Ika, 2012). Tanpa pemahaman yang
mendalam tentang pengurusan projek, seseorang akan menghadapi kesukaran dalam
memikirkan bagaimana persekitaran kerja dapat berjaya (Noe, 2010). Premack menunjukkan
(1984; di Eddie, 2016), bahawa pembelajaran manusia dibahagikan kepada tiga kriteria kaedah
pengajaran seperti: objektif untuk mengambil; cara yang tepat untuk menangani pembelajaran;
dan arahan pengajar kemajuan pembelajaran. Jelas, jika pendidik tidak memenuhi ketiga-tiga
kriteria ini, pembelajaran tidak akan berlaku.
Teknik pengajaran konvensional dianggap tidak sesuai untuk mengajar sesuatu subjek yang
berunsurkam teknikalyang memerlukan aplikasi, penyiasatan dan penilaian (Piercy, 2012).
Menurut Balan et al., (2012) banyak kajian dalam bidang pengajaran yang menekankan kepada
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metodologi pembelajaran akan memberikan hasil yang lebih diinginkan dan, bahan-bahan yang
menyokong kepada pembelajaran perlu disediakan bagi memenuhi pendekatan pembelajaran
semasa. Di samping itu, bahan bacaan yang digunakan perlu menilai pengalaman pelajar dari
semasa ke semasa (Kim dan Van, 1998). Kenyataan ini juga disokong oleh Niaz (2001) yang
menekankan bahawa bahan pembelajaran diperlukan seperti yang dinyatakan dalam teori
pembelajaran atau prinsip pendidikan dan pembelajaran. Kurt dan Akdeniz, (2002) dan Saka,
(2001) juga menunjukkan bahawa dengan menggunakan bahan pengajaran berasaskan teori
pembelajaran yang kukuh, proses pembelajaran seseorang dapat dipertingkatkan. Proctor et al.,
(1934) mencadangkan bahawa penggunaan lembaran kerja, seperti yang dicadangkan oleh teori
pembelajaran konstruktivis, akan menarik pelajar untuk turut serta dalam aktiviti pembelajaran.
Mereka juga menyatakan bahawa lembaran kerja boleh dijadikan sebagai peranti utama yang
mengandungi proses kerja dan langkah-langkah yang dalam menjalankan sesuatu aktiviti yang
mana boleh membantu pelajar dalam proses pembelajaran. Sementara itu, lembaran kerja
memberikan sokongan penuh kepada pelajar terutamanya semasa melakukan latihan di dalam
kelas. Idea ini disokong oleh Yiğit, Akdeniz dan Kurt, (2001), Kisiel (2003) dan Kirschner,
Sweller dan Clark (2006). Oleh itu, tujuan kajian ini adalah untuk menghasilkan satu bahan
pengajaran bagi kegunaan pelajar pengurusan projek, menguji kebolehpercayaan bahan ini dan
mencari kaedah untuk meningkatkan kualiti bahan tersebut. Berdasarkan perkara-perkara ini,
satu modul di dalam struktur teori konstruktivisme telah dicipta.
Kajian Literatur
Setelah beberapa abad, teori konstruktivis telah berkembang sebagai salah satu kaedah
terbaik dalam pendidikan (Chandra dan Shang, 2017). Pendidik telah menerima pakai kaedah
pengajaran dan pembelajaran berasaskan konstruktivis (Powell et al., 1985). Menurut Mvududu
dan Thiel-Burgess (2012) pembelajaran konstruktivis adalah kaedah yang menentukan
pengetahuan pelajar dengan menyiasat dan mendemonstrasikan pemahaman mereka terhadap
pembelajaran. Teori konstruktivis menggambarkan tentang penggunaan bahan pembelajaran di
kalangan pelajar dan bagaimana bahan-bahan tersebut dapat membantu meningkatkan proses
pembelajaran mereka (Amineh dan Asl, 2015). Sesetengah pendidik percaya bahawa
penekanan harus diberikan terhadap proses pembelajaran dengan mengambil kira pengetahuan
asas pelajar tersebut. Ini kerana, mengikut teori konstruktivis secara positifnya ia
menghubungkan keperluan pendidikan kepada pembelajaran pelajar. Teori konstruktivisme
juga berasaskan kepada konsep kebarangkalian individu membina pembelajaran mereka sendiri
melalui penglibatan mereka dalam proses pembelajaran itu (Baki, 2008; Charmaz, 2011).
Kaedah pengajaran dan pembelajaran dengan menggunkan teori konstruktivis ini dapat
melahirkan individu yang boleh berfikir secara kritis dalam keadaan siatuasi yang kompleks.
Dalam teori konstruktivisme, pelajar lebih dinamik dalam membina dan menghasilkan
maklumat, bekerja secara individu atau berkumpulan, dan manafsirkan sesuatu perkara
berdasarkan kepada pengalaman mereka. Peranan pendidik dalam kaedah ini adalah penting
dan menjadi asas dalam proses pembelajaran. Peranan pendidik dalam teori konstruktivisme ini
adalah untuk membantu pelajar dalam menafsirkan sesuatu maklumat dan membimbing mereka
meningkatkan pengetahuan dan kefahaman (Keizer et. al, 2014).
Pengajaran kaedah konvensional menekankan kepada pemahaman teori berbanding dengan
proses operasi yang pelbagai fungsi (Kakouris, 2017). Konsep radikal dalam proses
pembelajaran adalah di mana pembelajaran memerlukan pengetahuan yang diprogram
(pengetahuan rutin dan pandangan). Adalah jelas bahawa aktiviti dalam pembelajaran telah
banyak diadakan oleh para penganalisis seperti perbincangan yang kritis dalam memberi
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gambaran tentang sesuatu isu, penumpuan dalam pembelajaran dan kaedah penyelesaian
sesuatu masalah (Marquat, 2000, Spence, 2003). Konsep ini adalah didorong oleh pelajar
sendiri dan tumpuan diberikan kepada keperluan untuk menyelesaikan sesuatu isu. Menurut
Lyle et. al (1998), keupayaan untuk berfikir dan mentafsirkan maklumat dianggap sebagai asas
untuk berjaya dalam pembelajaran dan seterusnya meningkatkan prestasi dalam pembelajaran.
Aktiviti pembelajaran adalah salah satu aktiviti yang melibatkan setiap individu secara
terperinci, komprehensif dan menekankan kepada tahap kemajuan individu tersebut (Wood,
2017 dan Cheng, 2016). Penglibatan individu dalam setiap aktiviti pembelajaran di dalam bilik
kuliah menjadi faktor penyumbang utama kepada para pendidik dalam mengharmonisasikan
antara teori dan praktikal, sambil meningkatkan pendidikan berkualiti di universiti (Pun, Yam
dan Sun, 2003). Ini menggalakkan minat dan kerjasama pelajar untuk menyelesaikan tugas
secara objektif yang akhirnya mewujudkan persekitaran pembelajaran yang harmoni, selamat
dan menyenangkan.
Kaedah penyelidikan
Kajian ini menggunakan pendekatan percubaan. Satu tinjauan telah dijalankan di Fakulti
Pengajian Sains dan Pengajian Polisi, UiTM Seremban di Negeri Sembilan. Data untuk kajian
dikumpulkan berdasarkan soal selidik berstruktur. Terdapat sejumlah 134 orang responden
untuk kajian ini, yang dipilih berdasarkan Sekaran (2013) dari satu fakulti yang mengambil
bahagian dalam penggunaan modul yang telah dihasilkan. Proses lukisan rajah dicipta dalam
modul sebagai bahan pengajaran. Semasa fasa awal penghasilan modul tersebut, perbincangan
telah diadakan dengan pensyarah yang mengajar matapelajaran pengurusan projek. Dari
perbincangan tersebut, didapati bahawa pelajar mengalami beberapa isu dalam lukisan rajah.
Di samping itu, terdapat beberapa pensyarah yang melukis gambar rajah dengan cara yang
berbeza. Ini menyebabkan pelajar keliru kaedah mana yang sepatutnya mereka buat. Oleh itu,
bahan pengajaran dalam menunjukkan segmen lukisan diperlukan untuk memastikan
keseragaman dalam mengajar serta membantu pelajar dalam proses pembelajaran.
Modul ini dihasilkan berasaskan teori pembelajaran konstruktivis yang digunakan sebagai
sebahagian daripada bahan uji kaji. Modul ini kemudiannya diedarkan kepada pelajar untuk
mendapatkan persepsi mereka terhadap keberkesanan modul tersebut. Modul ini menjelaskan
tentang langkah demi langkah dalam melukis gambarajah teknikal yang terkandung di dalam
silibus subjek pengurusan projek. Di akhir modul, beberapa soalan yang berkaitan dengan rajah
juga dimasukkan untuk menguji pengetahuan mereka dalam lukisan rajah. Modul ini juga
dianalisis oleh dua orang pensyarah kanan pengurusan projek yang telah mengajar mata
pelajaran untuk jangka masa yang panjang. Mereka menegaskan bahawa modul ini sangat
membantu sebagai bahan sokongan yang boleh digunakan oleh pelajar dan pensyarah.
Analisis data
Tinjauan Likert dengan gambaran keseluruhan empat perkara, dengan skala penilaian 5
mata, dihasilkan untuk mengumpulkan maklumat tentang latar belakang pembelajaran pelajar
menggunakan modul. Para pelajar menilai modul sebagai bahan pembelajaran untuk (a)
penglibatan dalam pembelajaran; (b) tindak balas emosi; (c) komprehensif; dan (d) peningkatan
pemahaman. Selain itu, dengan menggunakan skala 5-mata yang sama, pelajar menilai ketiga-
tiga aset pengajaran utama yang lazimnya digunakan sebagai sebahagian daripada kursus: (a)
tugasan, (b) latihan pengajaran, dan (c) bahan bacaan. Penilaian alat-alat pembelajaran yang
banyak pada skala yang sama mengambil kira hubungan relatif antara latihan pembelajaran.
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Tinjauan ini dijalankan semasa perjumpaan dengan pelajar pada minggu ketujuh dalam
semester semasa. Jadual 1 merujuk kepada persepsi pelajar terhadap keberkesanan modul.
Table 1: Persepsi terhadap keberkesanan modul

Pembolehubah / kadar Sangat Setuju Neutral (%) Tidak
setuju (%) (%) Setuju(%)
Penglibatan 100
Emosi 40 45 10 5
Komprehensif 90 8 2
Peningkatan kefahaman 100
Penemuan dan perbincangan

Secara ringkasnya, 100% atau semua pelajar berpendapat bahawa modul itu menarik
berbanding 95% pelajar bersetuju bahawa modul itu dapat mengurangkan kebimbangan mereka
dan meningkatkan keseronokan dalam pembelajaran kursus pengurusan projek. Walau
bagaimanapun, terdapat 0.2% pelajar tidak bersetuju dengan kenyataan bahawa modul itu
adalah komprehensif dan menyeluruh. Oleh kerana mereka menyedari bahawa nota kuliah dan
buku teks tidak mencukupi, para pelajar bersetuju bahawa modul ini sangat membantu dalam
memahami kursus pengurusan projek. Soalan berbetuk kualitatif turut ditanya bagi
mendapatkan maklumat yang lebih mendalam terhadap hasil modul. Soalan seperti,
"Bagaimanakah modul itu mendorong anda untuk memperoleh pengetahuan baru?" Para pelajar
merasakan modul ini sebagai boleh dijadikan bahan bantuan pengajaran utama untuk
matapelajaran pengurusan projek. Penggunaan bahan pengajaran yang effektif boleh membantu
pelajar menghubungkan minat mereka dalam matapelajaran pengurusan projek dengan
pembangunan projek yang mereka lihat disekeliling mereka (Aleksic et al., 2017).
Hasil kajian ini tentang penggunaan bahan pengajaran adalah bersamaan dengan kajian
yang dijalankan oleh Ozmen dan Yildirim (2005), Yidiz et al (2010) dan Dilek (2010). Laporan
ini menguatkan hasil penyiasatan penyelidik mengenai keperluan penggunaan modul. Selain
itu, dapat disimpulkan bahawa bahan pembelajaran diperlukan untuk membantu pelajar berfikir
secara kritis dan menghubungkan pengalaman pembelajaran masa lalu mereka dengan
pengetahuan baru (Gonen dan Akgun, 2005). Oleh itu, para pelajar menunjukkan bahawa
modul ini akan sangat berguna dalam pembelajaran pengurusan projek terutamanya bahagian
gambarajah teknikal. Semasa penggunaan modul, penyelidik tidak mengedarkan soal selidik
kepada pensyarah namun penyelidik membuat penilaian individu mengenai penggunaan modul
tersebut. Pensyarah menyatakan bahawa mereka mendapati modul tersebut sangat menarik dan
berguna untuk pengajaran dan pembelajaran. Ekspresi mereka terhadap modul adalah: "Lukisan
itu dijelaskan dengan cara yang mudah", "Ia adalah sederhana dan jelas", "Sangat bagus untuk
mengaitkan lukisan dengan pengurusan projek sebenar", "Saya suka modul ini". Secara umum,
pensyarah berkata bahawa modul ini perlu diedarkan kepada semua kampus untuk memastikan
penyeragaman dalam mengajar di kalangan semua pensyarah.
Seperti yang ditulis dalam kajian literatur, banyak kajian menunjukkan bahawa bahan
pembelajaran sangat membantu dalam proses pembelajaran pelajar (Yidiz et al (2010),
Demirciogluet al., 2004). Kajian terdahulu mengenai bahan pembelajaran (Yidiz et al 2010,
Dilek, 2010; Muammeret al, 2006) menekankan kepada keperluan untuk menggunakan bahan
pembelajaran dalam pengajaran dan pembelajaran.
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Kesimpulan
Penggunaan modul dalam proses proses pembelajaran dapat menimbulkan minat
dikalangan pelajar dan boleh meningkatkan pencapaian pelajar. Kajian ini telah menghasilkan
modul pengajaran da pembelajaran untuk kegunaan pelajar dengan berasaskan teori
konstruktivisme dalam matapelajaran pengurusan projek. Modul ini boleh digunakan sebagai
sebahagian daripada bahan pengajaran selain daripada buku teks dan nota. Adalah disarankan
agar modul ini digunakan semasa menjalankan aktiviti pengajaran dan pembelajaran di dalam
bilik kuliah. Oleh kerana pengetahuan tentang pengurusan projek adalah penting, kajian
sebegini ini boleh dianggap sebagai asas dalam garis panduan pengurusan projek. Oleh itu,
adalah disarankan modul ini dijadikan sebagai bahan utama dalam pembelajaran matapelajaran
pengurusan projek. Bagi mencapai keberkesanan yang optimum dalam penggunaan modul ini,
kajian mengenai impak penggunaan modul terhadap pencapaian akademik perlu dijalankan.
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PERANAN BAHAGIAN WAKAF MAJLIS AGAMA ISLAM

NEGERI KEDAH DALAM PELAKSANAAN SKIM WAKAF KAKI:
SATU TINJAUAN
ROLE OF THE WAKAF DEPARTMENT STATE COUNCIL OF ISLAM IN THE
IMPLEMENTATION OF SCHEMES WAQF OF FEET: A SURVEY
Dr Alias bin Azhar4

Wan Suhairan Binti Wan Ahmad5
______________________________________________________________________________
Abstrak:Harta tanah wakaf yang dibangunkan secara skim wakaf kaki telah berfungsi sebagai
salah satu cabang menjana pembangunan sosioekonomi umat Islam di negeri Kedah. Namun
kewujudannya kadang-kala tidak disedari oleh segelintir umat Islam. Menyedari hakikat ini,
Majlis Agama Islam Negeri Kedah (MAIK) telah mengambil inisiatif dan langkah yang inovatif
untuk mengukuhkan institusi ini dengan memperkenalkan skim wakaf kaki. Harta tanah wakaf
yang wujud di negeri Kedah ini sejak dari dahulu lagi telah meletakkan taraf umat Islam lebih
tinggi berbanding kaum lain khususnya di negeri Kedah ini. Artikel ini akan membincangkan
tentang konsep wakaf kaki secara umum dan pelaksanaan skim wakaf kaki oleh MAIK, Kedah.
Data-data yang diperoleh hasil daripada kajian kepustakaan, dokumentasi, temu bual dengan
pihak berkepentingan, pemerhatian dan tinjauan tapak dijadikan sumber dalam membuat analisis
yang dijalankan secara kualitatif . Hasil kajian mendapati skim wakaf kaki telah berjaya
dilaksanakan dan menyumbang ke arah pembangunan institusi masjid dan pendidikan di Negeri
Kedah.
Kata kunci: Wakaf kaki, Majlis Agama Islam Kedah, wakalah, Jawatankuasa Masjid.
Abstract:Waqf property developed based on schemes Waqf of feet has functioned as a branch of
generating socio-economic development of Muslims in the state. But its existence sometimes
unnoticed by some Muslims. Recognizing this, the Kedah Islamic Religious Council (MAIK) took
the initiative and innovative measures to strengthen these institutions by introducing a schemes
Waqf of feet. Waqf properties that exist in this state over the years has put a higher level Muslims
compared to other races, especially in the state of Kedah. This article will discuss about the
general concept of Waqf and implementation of the schemes Waqf of Feet by MAIK. The data
obtained from the literature review, documentation, interviews with stakeholders, observations
and review of site as a source in the analysis conducted qualitatively. The study found schemes
4Profesor Madya, Pusat Pengajian Undang-undang, UUMCOLGIS, Universiti Utara Malaysia, 06010 Sintok, Kedah, e-
mel:az.alias@uum.edu.my
5
Pelajar Sarjana Pengajian Islam, Fakulti Sains Sosial Gunaan, Universiti Terbuka Malaysia
285
ISBN: 978-967-14841-4-2
Waqf of feet have been successfully implemented and contribute to the development of mosques
and educational institutions in Kedah
Keywords: Schemes Waqf of Feet, Kedah Islamic Religious Council, wakalah, Mosque Committee.
______________________________________________________________________________
Pendahuluan
Wakaf ialah apa-apa harta yang ditahan hak pewakaf ke atas harta tersebut daripada
sebarang urusan jual beli, pewarisan, hibah dan wasiat di samping mengekalkan sumber fizikalnya
(ain). Wakaf merupakan suatu pemilikan yang tidak sempurna kerana pemilikan ain (benda yang
diwakafkan) adalah kerana Allah S.W.T atau dihukumkan sebagai milik Allah S.W.T Adapun
manfaat atau hasil wakaf itu kepunyaan Maukuf ‘Alaih iaitu pihak atau jihah atau orang yang
ditentukan menerima manfaat wakaf.
Wakaf sebagai instrumen pengagihan harta dalam Islam bertujuan kebajikan(Quran,Ali
Imran,92). Amalan mewakafkan harta ke jalan yang baik akan diberi oleh Allah SWT ganjaran
pahala yang berkekalan dan berpanjangan selama harta wakaf itu masih ada dan terus
dimanfaatkan atau tidak musnah. Sebagai hadis Nabi s.a.w seperti dinukil oleh al-Nawawi (1994);
“Apabila mati seorang anak Adam, maka terputuslah pahala amalannya kecuali tiga perkara iaitu
sedekah jariah atau ilmu yang dimanfaatkan dengannya atau anak yang soleh yang sentiasa
mendoakannya.”
Wakaf adalah suatu pemberian atau sumbangan ikhlas sebahagian daripada harta yang
dimiliki untuk kepentingan dan kesejahteraan umum yang dibenarkan oleh syarak. Harta wakaf
boleh menyumbang dalam pembangunan sosio-ekonomi ummah contohnya mendirikan projek
komersil seperti hotel wakaf, pusat-pusat perniagaan, projek sosial seperti rumah anak yatim, pusat
perlindungan dan lain-lain selagi tidak bercanggah dengan hukum syarak.
Definisi Wakaf
Wakaf berasal dari bahasa Arab waqf, iaitu nama terbitan (masdar) dari kata kerja waqafa,
ia mempunyai berbagai-bagai makna mengikut tujuan dan penggunaan ayat itu sendiri. Dari segi
bahasa, waqf memberi makna berhenti , menegah dan menahan (Ibn Manzur: 1990). Fuqaha (al-
Nawawi:t.t, Abd. Salam: 1994, Ibn ‘Abidin: 1994 dan Al-Sarakhsi: t.t.) bersepakat mentakrifkan
wakaf dari segi bahasa sebagai al-Habs (menahan) kerana maksudnya lebih hampir kepada
pengertian syara’.
Wakaf ialah suatu bentuk penyerahan harta sama ada secara (sorih) terang, atau (kinayah)
sindiran, di mana harta berkenaan ditahan dan hanya manfaatnya sahaja yang diaplikasikan untuk
tujuan-tujuan kebajikan sama ada berbentuk umum mahupun khusus.
Dari segi istilah ia bermaksud menahan sesuatu harta seseorang untuk dimanfaatkan oleh
orang lain. Harta yang diwakafkan hendaklah berada dalam keadaan yang baik, kekal dan tujuan
ia melakukan wakaf adalah untuk mendekatkan diri kepada Allah SWT dan memberi kebajikan
kepada orang lain. Pewakaf juga tidak lagi mempunyai hak ke atas harta wakaf tersebut (al-
Syarbini:1997). Manakala Muhammad ‘Arfah al Dusuqi (1980) pula menjelaskan bahawa wakaf
adalah memberikan manfaat sesuatu harta yang dimiliki kepada orang yang berhak dengan satu
akad dalam jangka masa tertentu, sesuai dengan kehendak pewakaf. Menurut Ibn Qudamah (1972)
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dari ulama Mazhab Hanbali menyatakan bahawa wakaf adalah menahan yang asal dan
memberikan hasilnya.
Peraturan pengurusan wakaf adalah berdasarkan hadis di bawah (Ibn Hajar: 2001);
“Dari Nafi` dari Ibn Ùmar beliau menyebut bagaimana Umar r.a. telah memperoleh tanah di
bumi Khaibar. Beliau lalu bertanya kepada Rasulullah SAW: “Wahai Rasulullah, saya telah
memperoleh tanah di bumi Khaibar yang nilainya tinggi dan tidak pernah saya peroleh yang lebih
tinggi nilai daripadanya. Apakah yang tuan nak saya lakukannya? Rasulullah SAW bersabda:
“Kalau kamu mahu, bekukan sumbernya dan bersedekah dengannya.” Lalu Umar
menyedekahkan tanah tersebut kepada fakir miskin, kaum keluarganya, untuk memerdekakan
hamba, para tetamu, dana orang musafir. Tanah tersebut tidak boleh dijual, dihibah atau
dijadikan pusaka. Tetapi, ia boleh digunakan dengan cara yang munasabah oleh pihak yang
menguruskannya. Contohnya, memakan harta tersebut tanpa menjadikannya sebagai sumber
harta.”
Merujuk kepada hadis di atas para fuqaha menetapkan 3 prinsip peraturan wakaf yang perlu
direalisasikan dalam suatu pelaksanaan wakaf, iaitu (al-Syawkani:t.t.):
a) Harta wakaf tidak boleh dijual
b) Harta wakaf tidak boleh diberikan (dihibahkan) kepada orang lain
c) Harta wakaf tidak boleh diwarisi.
Pengurusan tanah wakaf adalah terus dibawah hal ehwal negeri seperti termaktub dalam
Perlembagaan Persekutuan dalam Jadual Kesembilan Butiran 1 Senarai 2 (Senarai Negeri).
Undang-undang kedua adalah Kanun Tanah Negara (KTN) 1965 (Akta 56) dibawah Seksyen 4
Pengecualian mengiktiraf undang-undang wakaf negeri yang sedia ada. Mengikut negeri,
pentadbiran wakaf diperuntukan mengikut enakmen-enakmen negeri seperti Undang-undang
Pentadbiran Islam Negeri dengan kuasa diletakkan dibawah Majlis Agama Islam Negeri (MAIN)
masing-masing untuk menguatkuasa peruntukan undang-undang tersebut.
Terdapat kepelbagaian undang-undang wakaf di Malaysia yang disebabkan oleh pecahan
kuasa yang diberikan di bawah Perlembagaan Persekutuan bertolak daripada pengekalan kuasa
negeri yang wujud dan dihormati sejak sebelum merdeka. Kerajaan Persekutuan tidak mempunyai
kuasa perundangan dalam hal ehwal penguatkuasaan harta wakaf dan zakat. Namun, adalah
menjadi keprihatinan Kerajaan Persekutuan untuk memajukan keseluruhan maksud pentadbiran
dan pengurusan jentera perkhidmatan awam negara bagi meningkatkan mutu perkhidmatan yang
disediakan oleh semua organisasi awam.
Wakaf Kaki
Wakaf kaki banyak diamalkan dewasa ini di Malaysia terutamanya di negeri Kedah kerana
ia merupakan salah satu usaha untuk memperbanyakkan tanah wakaf sekaligus
membangunkannya. Memandangkan harga tanah semakin meningkat sehingga menjangkau RM
100.00 sekaki persegi, adalah mustahil bagi kebanyakan individu untuk membeli seluruh tanah
bagi tujuan wakaf. Justeru wakaf kaki merupakan satu alternatif untuk memberi peluang kepada
lebih ramai umat Islam supaya turut sama menyertai ibadah wakaf dan pada masa yang sama
berusaha untuk membangunkan ekonomi ummah.
Menurut Dr. Zulkifli Mohamad Al Bakri (2012), wakaf kaki adalah mewakafkan harta
bagi tujuan kebajikan dengan cara pengurusan wakaf membeli keseluruhan harta dan pewakaf
membayar harga mengikut sukatan tertentu yang dikehendakinya.
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Wakaf Kaki atau wakaf petak atau dikenali juga dengan nama wakaf lantai. Nazir wakaf
atau pemegang amanah akan membeli keseluruhan hartanah dan pewakaf akan membeli hartanah
berkenaan mengikut saiz/ kaki persegi dan kemudiannya mewakafkannya kembali (Mohd Shah
Firafizal bin Abu Bakar,2005). Skim wakaf kaki biasanya dianjurkan oleh institusi pendidikan atau
badan-badan tertentu untuk mendapatkan dana bagi membiayai aktiviti pembangunan. Lazimnya
apabila sesuatu projek pembangunan itu telah berjaya maka skim wakaf kaki ini akan dihentikan.
Ia akan dibahagi-bahagikan lot-lot tanah mengikut saiz tertentu dan dijual kepada orang ramai
dengan harga tertentu. Tanah-tanah yang dibeli ini disyaratkan agar diwakafkan semula kepada
institusi pendidikan atau badan-badan berkenaan Baharuddin Sayin,et.al,2006).
Pemegang amanah akan membeli keseluruhan hartanah dan pewakaf akan membayar
harga hartanah berkenaan mengikut sukatan saiz / kaki persegi tertentu yang dikehendakinya.
Wakaf kaki menjadikan tanah yang ingin diwakafkan dapat dibeli mengikut kiraan kaki , lalu tanah
tersebut menjadi milik bersama , iaitu kesemua pemilik tanah tersebut yang menjadi milik
bersama,iaitu kesemua pemilik tanah tersebut yang telah membelinya bersetuju untuk
mewakafkan tanah tersebut (Zaharuddin Abdul Rahman 2014). Wakaf kaki juga merujuk kepada
pembelian harta tanah mengikut ukuran atau kaki persegi dan kemudian akan diwakafkan kembali
saiz atau ukuran tertentu yang dibeli melalui pemegang amanah wakaf tersebut. Wakaf kaki juga
dikenali dengan wakaf lantai, wakaf petak atau wakaf jemba.
Metodologi Kajian
Kajian yang telah dijalankan adalah berdasarkan dua bentuk utama yang digarapkan
bersama iaitu kualitatif dan kajian lapangan. Metode kualitatif boleh definisikan sebagai kaedah
ini memberatkan usaha untuk mencari dan memberikan keterangan serta pemerhatian bukan
numerikal walaupun terdapat keterangan yang merujuk kepada statistik. Kebanyakan kajian dalam
bidang ini memberikan keterangan, interpretasi, atau makna dalam sesuatu proses komunikasi.
Kaedah ini juga lebih merupakan usaha untuk memberikan keterangan tentang sifat dan keadaan
manusia dengan menggunakan pandangan umum tentang apa-apa saja tindakan sosial. Justeru,
penyelidikan kualitatif tidak tertumpu ke arah pengutipan maklumat yang banyak. Sebaliknya,
kaedah ini berusaha untuk memperoleh maklumat berkualiti dengan memberikan tumpuan
terhadap sampel yang kecil (Azizah Hamzah, 2010).
Kajian turut menggarap bentuk analisis kandungan (Content analysis). Penyelidik telah
berusaha menganalisis dokumen untuk diketahui isi dan makna yang terkandung dalam dokumen
tersebut (Nazir, 1885; Ratna, 2004; dan Muhadjir, 2003). Antara dokumen yang dijadikan data
penyelidikan ialah website pihak responden, gambar, grafik, laporan, buku teks, surat khabar,
borang-borang wakaf, dan majalah berkaitan.
Penulis melakukan penelitian dan pengolahan serta perbandingan terlebih dahulu sebelum
membuat sesuatu kesimpulan. Penggunaan metode dokumentasi bertujuan mengkaji latar
belakang MAIK, pengumpulan data tentang realiti pelaksanaan skim wakaf kaki di Kedah.
Bentuk kajian lapangan berasaskan temubual merupakan salah satu bentuk penyelidikan
sosial (Anwarul Yaqin, 2007) yang merupakan satu interaksi sosial bertujuan mengumpul
maklumat bagi tujuan kajian. Sesi ilmiah bercorak perbualan terbuka dengan responden atau
informen berotoriti berkenaan tema kajian akan dijalankan.
Temubual merupakan interaksi bersemuka antara penemubual dan responden. Temubual
dijalankan dengan tujuan memperoleh maklumat daripada responden kajian secara lisan (Chua
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Yan Piaw, 2011). Menurut Denzin (2001), temubual haruslah lebih daripada hanya digunakan
sebagai alat pengumpulan maklumat, ia perlulah bersifat reflektif dan dapat mencerminkan
kehidupan dan keadaan yang sebenar mengenai suatu fenomena. Bagi mendapatkan maklumat
yang lebih tepat dan jelas, pengkaji menggunakan metode temubual dengan menggunakan teknik
berstruktur dan separa struktur untuk memperolehi maklumat yang diperlukan.
Dalam kajian ini, pihak- pihak yang berpengetahuan tentang sejarah wakaf Kaki di negeri
Kedah dan pihak-pihak yang terlibat secara langsung berkaitan dengan pengurusan dan
pentadbiran tanah-tanah wakaf serta pihak-pihak yang terlibat memajukan tanah wakaf melalui
skim wakaf kaki merupakan responden pilihan. Mereka terdiri daripada Dato’ Paduka Syeikh
Abdul Majid Bin Mohd Nor ( Mantan Yang Dipertua MAIK) , Dato’ Wan Muhammad Bin Dato’
Syeikh Abdul Aziz ( Mantan Ketua Pengarah JAKIM), pegawai – pegawai di Bahagian Wakaf
MAIK iaitu Syeikh Ahmad Zaki Bin Ghazali ( Ketua Bahagian Wakaf MAIK ) dan Norhairani
binti Saad ( Penolong Hal Ehwal Islam ) dan Dato’ Hj . Noh Bin Hj Dahaya ( Setiausaha MAIK
).
Ahli Jawatankuasa yang pernah dan sedang mengguna pakai skim wakaf kaki ini untuk
membangunkan tanah wakaf turut ditemubual iaitu Haji Zakaria Bin Md Zain ( Bendahari
Jawatankuasa Masjid al-Badar), Ustaz Hussain Bin Jusoh ( Pengerusi Darul Quran ) dan Haji
Bukhari Bin Abdullah ( Setiausaha Jawatankuasa Masjid Aman ) . Turut ditemubual Encik Ibnu
Bin Hubain ( Pegawai Bahagian Pemasaran MAIS ) dan Encik Azman Bin Hasan ( Bahagian
Sumber Am MAIM ).
Sejarah Pelaksanaan Wakaf Kaki Di Negeri Kedah

Maklumat terperinci tentang pelaksanaan awal wakaf kaki di Negeri Kedah tidak
diperolehi secara tepat kerana tidak pernah didokumentasikan dan belum ada kajian terperinci
yang pernah dibuat sebelum ini. . Namun melalui temubual dengan Pegawai Zakat, Tuan Syeikh
Ahmad Zaki bin Ghazali ( 2015) dan Mantan Yang Dipertua Majlis Agama Islam Negeri Kedah
Dato’ Paduka Syeikh Abdul Majid bin Mohd Nor ( 2015 ), pelaksanaan wakaf kaki telah
diperkenalkan pada tahun 60 -an hasil cetusan pemikiran Qadhi Besar Kedah pada masa tersebut
iaitu Dato’ Syeikh Abdul Aziz Bin Awang Besar ( ayahanda kepada mantan KP JAKIM, Dato’
Wan Muhammad Bin Dato’ Syeikh Abdul Aziz). Tarikh secara tepat tidak diperolehi dan
pengkaji menganggarkan demikian kerana Dato’ Syeikh Abdul Aziz meninggal dunia dalam nahas
kapal terbang di Bangkok pada tahun 1970 semasa masih menjawat jawatan Qadhi Besar. Dato’
Syeikh Abdul Aziz berasal dari Kampung Jerai Mukim Kupang Kedah dan pernah berkhidmat
kepada Syeikh Muhammad Ali bin Hussin bin Ibrahim bin Hussin Al Maliki selama tujuh tahun.
Semasa menjawat jawatan Qadhi Besar tahun 60-an, beliau telah berusaha untuk mengajak
masyarakat Islam pada masa itu untuk berwakaf dengan cara mewakafkan buah kelapa dari pokok
kelapa . Beliau juga terkenal dengan gelaran Syeikh Botol kerana memperkenalkan sistem
himpunan botol kaca yang akan dijual dan hasilnya diwakafkan .
Idea wakaf secara kaki persegi merupakan antara idea bernas beliau dan telah menjadi
satu amalan tradisi dan sentiasa diamalkan oleh umat Islam di negeri Kedah sebagai satu aktiviti
keagamaan sehingga sekarang. Jika sebelum ini ramai umat Islam tidak dapat mewakafkan harta
tanah disebabkan ketiadaan pemilikan hartanah namun sekiranya tanah tersebut dipecahkan
kepada unit kaki yang kecil dan mampu memenuhi syarat wakaf maka pendekatan ini sudah pasti
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membuka peluang kepada lebih ramai orang untuk mewakafkan harta secara kolektif untuk
membangunkan agama bangsa dan negara .
Sehingga kini, wakaf kaki masih lagi dilaksanakan dan telah berjaya membangunkan
puluhan tanah samada dalam bentuk wakaf am dan wakaf khas diseluruh negeri Kedah kerana ia
telah mendapat sambutan baik daripada pewakaf yang kurang berkemampuan untuk turut sama
melaksanakan tuntutan berwakaf.
Majlis Agama Islam Negeri Kedah (MAIK)

Harta tanah wakaf di Malaysia ditadbir oleh Majlis Agama Negeri (MAIN ). Manakala
sistem pentadbiran dan pengurusan harta tanah wakaf di setiap negeri boleh dikatakan berbeza
antara satu sama lain. Ia sangat bergantung kepada corak dan dasar kerajaan sesebuah negeri itu
melaksanakannya.
MAIK telah ditubuhkan dengan rasminya pada tahun 1948 dengan dinamakan Majlis
Agama Islam Dan Adat Istiadat Melayu Kedah. MAIK pada mulanya dianggotai oleh seramai
sepuluh orang ahli sahaja yang menjadi kakitangan Majlis ketika itu. Di antara ahli-ahlinya terdiri
daripada lima orang golongan Alim Ulamak Negeri Kedah dan lima orang lagi terdiri daripada
pihak Adat Istiadat Melayu Kedah. Kesemua mereka dilantik oleh Ke Bawah Duli Yang Maha
Mulia Tuanku Sultan Kedah ( KDYMM ) bagi tempoh tiga tahun sekali dalam satu penggal.
Majlis Agama Islam Kedah (MAIK) telah ditubuhkan secara rasminya pada 1 Ogos 1964,
menggantikan Majlis Agama Islam Dan Adat Istiadat Melayu Kedah disebabkan oleh masalah
pengurusan yang kurang cekap dan mantap oleh MAIK yang kerana kekurangan kakitangan serta
ketiadaan seorang setiausaha MAIK yang berjawatan tetap dalam mengurus dan mengatur sesuatu
mesyuarat. Maka dengan itu, pihak kerajaan negeri telah mengambil inisiatif ke arah untuk
mempertingkatkan kelicinan pentadbiran dan pengurusannya dengan melantik seorang setiausaha
yang berjawatan tetap.
Majlis Agama Islam Kedah yang ditubuhkan adalah menurut kepada perbekalan di bawah
perkara 33 B dalam undang-undang Tubuh Kerajaan Negeri Kedah Darul Aman No. 32/1959 dan
diwujudkan mengikut peruntukan Undang-Undang Pentadbiran Ugama Islam ( Undang- undang
Negeri Kedah N0.9/1962 ). Maka dengan ini jelaslah bahawa MAIK yang ditubuhkan di Negeri
Kedah pada masa sekarang adalah berdasarkan peruntukan Enakmen Pentadbiran Agama Islam
Negeri Kedah No. 9 tahun 1962 di mana undang – undang tersebut masih lagi diguna pakai
sehingga sekarang.
MAIK berperanan menolong KDYMM Tuanku Sultan dan menasihati Baginda dalam
perkara-perkara yang bersangkut paut dengan agama Islam dalam negeri ini serta membuat dasar
berhubung dengan pentadbiran dan pengurusan Hal Ehwal Islam di negeri Kedah Darul Aman.
Manakala peranan yang dimainkan oleh pihak Jabatan Hal Ehwal Agama Islam ( JAIK ) pula
adalah sebagai agensi yang melaksanakan dasar dan menguruskan pentadbiran serta
bertanggungjawab menyediakan program, skim atau projek mengikut pertimbangan majlis. Selain
itu juga, pihak JAIK bertanggungjawab mentadbir umat Islam di negeri ini di dalam semua hal
dan juga untuk merancang, mengurus dan menyelaras segala dasar dan maklumat berhubung
dengan agama Islam.
Majlis Agama Islam Kedah juga telah menggariskan beberapa objektif penubuhannya di
mana objektif penubuhannya adalah berdasarkan kepada enam objektif tersebut iaitu :
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a) Untuk mendidik, membentuk dan mewujudkan sebuah masyarakat Islam yang progresif
dan dinamik berdasarkan kehidupan kepada mencari keredhaan Allah;
b) Untuk memupuk dan mengukuhkan ukhuwah Islamiah serta keimanan orang-orang Islam
di negeri ini khasnya dan Malaysia amnya bagi mencapai perpaduan umat.
c) Untuk memperbanyakkan usaha-usaha kebajikan dan mencegah kemungkaran dalam
masyarakat Islam.
d) Untuk mengadakan rancangan program bagi menggalakkan, mempergiat, memudah dan
mengusahakan kemajuan ekonomi sosial Islam.
e) Untuk mendaftar, mengawal dan menyedia institusi ibadat dan Pusat-pusat Pengajian
Agama Islam di negeri ini dan mengadakan peruntukan- peruntukan bagi perkara-perkara
berkaitan dengannya; dan
f) Mengawal dan menyelaras perlaksanaan aktiviti-aktiviti yang tersebut di atas.
Penubuhan MAIK yang berdasarkan kepada Enakmen Pentadbiran Agama Islam Negeri
Kedah Darul Aman, membawa erti bahawa penubuhan Bahagian Wakaf juga ditubuhkan sejajar
dengan peruntukan yang sama bagi menjaga dan memelihara harta wakaf di Kedah. Walau
bagaimanapun tarikh tepat penubuhan Bahagian Wakaf tidak diperoleh kerana menurut Tuan
Syeikh Ahmad Zaki bin Ghazali Ketua Bahagian Wakaf (2015), penubuhan Bahagian Wakaf
adalah selari dengan tertubuhnya MAIK. Dalam pada itu juga, Baitulmal dan Bahagian Wakaf
juga berperanan sebagai penjana sumber kewangan kepada Majlis Agama Islam Negeri Kedah
Darul Aman di samping mendapat bantuan terus daripada Kerajaan Negeri Kedah.
MAIK dan Skim Wakaf Kaki

Sebagai badan tunggal di Negeri Kedah yang bertanggungjawab menguruskan hal
berkaitan harta tanah wakaf , (MAIK) melaksanakan tugasnya berpandukan kepada peruntukan
52 di dalam Enakmen Pentadbiran Undang-undang Islam Negeri Kedah Darul Aman ( 2008)
yang menyatakan bahawa “ walau apapun apa-apa peruntukan dalam mana-mana surat cara
atau perisytiharan yang mewujudkan , mengawal ,atau menyentuh perkara itu , Majlis hendaklah
menjadi pemegang amanah yang tunggal bagi semua wakaf sama ada wakaf am atau wakaf
khas…. ”
Berdasarkan kepada Enakmen Pentadbiran Agama Islam Negeri Kedah Darul Aman di
atas, maka jelaslah bahawa pihak MAIK merupakan pemegang amanah tunggal dalam menjaga
harta wakaf di negeri Kedah dan amanah ini merupakan amanah besar yang dipikul oleh MAIK
demi menjaga harta wakaf umat Islam khususnya di negeri Kedah. Justeru MAIK mempunyai
hak untuk membangunkan harta wakaf di negeri Kedah. Berdasarkan peruntukan MAIK juga
adalah penerima wakaf dimana pewakaf boleh mewakafkan harta kepada MAIK.
Oleh yang demikian, berdasarkan penjelasan di atas jelas menunjukkan kepada kita bahawa
harta wakaf termasuklah pelaksanaan wakaf kaki di negeri Kedah hanya ditadbir dan dikawal
selia oleh pihak MAIK sahaja iaitu di bawah pengurusan Bahagian Wakaf. Sebagai pemegang
amanah tunggal bagi harta tanah wakaf, MAIK berhak menjalankan sebarang kegiatan
pembangunan ke atas harta tersebut dan juga memungut sebarang hasil daripadanya.
Di dalam skim wakaf kaki ,MAIK merupakan badan yang bertanggungjawab untuk
menjadi pemegang amanah kerana tanah yang telah dikenal pasti akan dihebah terlebih dahulu
kepada pihak MAIK . MAIK juga akan mengawal selia kutipan wakaf oleh Jawatankuasa dan
wakil yang dilantik untuk membuat kutipan dari orang ramai secara kaki persegi .
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Wakaf kaki secara pelaksanaannya bermula apabila suatu pihak tertentu tidak mempunyai
tanah dan telah mengenal pasti sebidang tanah untuk dibangunkan dalam bentuk wakaf seperti
untuk pembangunan pondok pengajian, sekolah, masjid serta kawasan tanah perkuburan. Jadi,
pihak ini bercadang untuk membeli tanah tersebut dari pemilik namun menghadapi masalah
kewangan. Bagi menyelesaikan masalah ini pihak terbabit bercadang untuk menjual tanah
tersebut dengan mewakafkan secara kaki persegi kepada umum. Mengikut prosedurnya pihak
terbabit perlu membuat permohonan terlebih dahulu kepada MAIK . Kebenaran hanya akan
dikeluarkan oleh Yang Dipertua MAIK sahaja untuk menjual tanah ini. Jawatankuasa akan
dilantik dan bertanggungjawab untuk memastikan projek pembangunan wakaf kaki ini berjalan
lancar.
Tanah yang telah dicadangkan untuk dijadikan wakaf kaki hendaklah di hebah kan kepada
MAIK dan MAIK akan didaftarkan di dalam surat hak milik atau geran. Perjanjian untuk setuju
pindah milik antara pemilik dan MAIK akan dilaksanakan. Seterusnya tanah cadangan tadi akan
dipecahkan kepada lot-lot kecil bersaiz satu kaki persegi setiap satu. Nilai jualan setiap satu kaki
persegi adalah bergantung kepada jawatankuasa dan biasanya mampu untuk menampung harga
tanah, pembangunan dan belanja pengurusan. MAIK hanya membenarkan jualan wakaf kaki ini
di dalam negeri Kedah sahaja. Kuasa menjual lot-lot kaki persegi ini hanya diberikan kepada
individu-individu tertentu yang telah menerima wakalah dalam bentuk sijil Wakalah daripada
Setiausaha MAIK . Sijil Wakalah ini sepatutnya ditunjukkan semasa aktiviti jualan dan
penerimaan wakaf kaki ini.
Pihak jawatankuasa juga bertanggungjawab untuk menyediakan sijil wakaf kaki mengikut
format yang telah disediakan oleh MAIK dan resit jual beli hendaklah mempunyai cop dengan
cop mohor MAIK. Jumlah kutipan jualan wang hendaklah direkodkan dari semasa ke semasa dan
MAIK bertanggungjawab untuk mengawal selia hasil kutipan dana ini bagi memastikan ia
berjalan lancar dan tidak berlaku sebarang penyelewengan. Penerima Wakalah berhak untuk
menerima saguhati tidak lebih daripada 10 % kutipan sebagaimana yang telah ditetapkan oleh
MAIK
Kutipan jualan selalunya mengambil masa yang agak lama bergantung kepada usaha
jawatankuasa dan apabila semua lot kaki persegi telah selesai di jual tanah tersebut akan di pindah
milik menjadi hak milik MAIK secara sepenuhnya.
Proses Kerja Pengurusan Wakaf Kaki di MAIK

Proses Kerja Pengurusan Wakaf Kaki pada asasnya adalah sama dengan pengurusan wakaf
melainkan proses wakaf tidak disediakan dan tanah hanya dihebah kepada MAIK. Secara
ringkasnya syarat-syarat berikut perlu penuhi oleh pemohon iaitu:
a) Pemohon hendaklah menubuhkan satu jawatankuasa kerja pengurusan wakaf
kaki yang terdiri daripada pengerusi, setiausaha, bendahari, ahli jawatankuasa
dan pemeriksa kira-kira.
b) Jawatankuasa hendaklah menyediakan tanah cadangan wakaf kaki.
c) Jawatankuasa hendaklah menyediakan peruntukan kewangan yang mencukupi
bagi memperoleh tanah dan belanjawan pengurusan jawatankuasa.
d) Menyediakan surat permohonan dan kertas kerja wakaf kaki kepada Pegawai
Agama Daerah.
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e) Tanah yang dicadangkan hendaklah dihebah kepada MAIK terlebih dahulu dan
didaftar nama MAIK.
f) Mendapatkan kebenaran mengadakan program wakaf kaki dan kebenaran
membuka akuan khas wakaf kaki.
g) Jawatankuasa hendaklah mencadangkan senarai nama penerima wakalah untuk
menjual dan menerima wakaf bagi pihak MAIK.
h) Penerima wakalah hendaklah warganegara Malaysia, beragama Islam, dan
cukup umur.
i) Penama-penama yang dicadangkan hendaklah menerima wakalah daripada
Yang Di Pertua MAIK dan menerima sijil wakalah.
j) Penerima wakalah tidak dibenarkan mewakilkan kepada orang lain tanpa
kebenaran MAIK untuk menjual dan menerima wakaf bagi pihaknya.
k) Penerima wakalah hanya dibenarkan untuk menjual dan menerima wakaf kaki
di dalam Kedah sahaja.
l) Penerima wakalah hendaklah menunjukkan sijil wakalah semasa menjual dan
menerima wakaf kaki dan menggunakan sijil wakaf yang dicop MAIK.
m) Jawatankuasa hendaklah menyediakan sijil wakaf kaki mengikut format yang
ditetapkan oleh MAIK dan sijil wakaf kaki hendaklah dicop MAIK.
n) Penerima wakalah hendaklah merekodkan wang jualan wakaf kaki dan
menyerahkan kepada bendahari.
o) Penerima wakalah dibenarkan oleh MAIK untuk mengambil wang saguhati
tidak melebihi 10% daripada jualan wakaf kaki.
Majlis Agama Islam Negeri Kedah selaku pemegang amanah utama dalam menguruskan harta
tanah wakaf telah menjalankan kewajipannya dengan cara memperkenalkan beberapa mekanisme
yang bersifat inovatif, kreatif dan proaktif untuk memberi peluang kepada umat Islam seluruhnya
melibatkan diri dalam berwakaf mengikut kemampuan sebagai contoh wakaf umum ,wakaf
khusus, wakaf musytarak, wakaf kaki dan saham wakaf. Mekanisme-mekanisme baru ini adalah
selari dan bertepatan dengan tujuan wakaf disyariatkan iaitu untuk kebaikan Islam dan umat Islam.
Kesimpulan
Harta tanah wakaf adalah sesuatu yang bernilai, berpotensi dan boleh berkembang jika
sekiranya ia diurus dengan sebaik mungkin. Walaupun tujuan asal pewakaf bagi setiap tanah yang
diwakafkan adalah untuk keagamaan dan kebajikan umat Islam keseluruhannya, namun adalah
wajar tanah wakaf ini mendapat hak untuk dibangunkan secara optimum berlandaskan prinsip
Islam agar memenuhi sifat, konsep wakaf dan matlamat Islam dalam pembangunan sejagat.
Sejarah wakaf dalam Islam telah membuktikan bahawa berbagai jenis harta telah
diwakafkan oleh umat Islam. Jenis harta yang diwakafkan berbeza mengikut tujuan seorang wakif
dan berdasarkan kepada keperluan semasa. Di Malaysia, Majlis Agama Islam Negeri -negeri
(MAIN) termasuk MAIK berperanan di negeri Kedah.
Pelaksanaan wakaf tanah secara wakaf kaki yang telah dilaksanakan sejak sekian lama di
Negeri Kedah telah menampakkan beberapa kejayaan khususnya bagi kawasan yang bernilai
komersial tinggi. Adalah diharapkan sistem ini akan dapat menyelesaikan beberapa masalah
khususnya melibatkan kawasan tanah wakaf yang sedia ada tetapi mempunyai skala yang kecil
untuk dibangunkan. Prosedur dan syarat yang telah ditetapkan oleh pihak MAIK bagi sebarang
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permohonan wakaf kaki adalah untuk memastikan tidak berlaku sebarang penyelewengan dan
ketirisan serta penyalahgunaan kuasa dalam urusan jualan dan kutipan wakaf secara kaki persegi
ini. Pelaksanaan ini haruslah dipantau oleh pihak MAIK agar niat atau matlamat pewakaf untuk
mewakafkan tanah tercapai.
Rujukan
Al-Dusuqi, Syams al-Din al-Syakh Muhammad ‘Arfah (1980), Hasyiyah al-Dusuqi ‘ala Syarh al-
Kabir, j. 4. Qaherah: Dar Ihya al-Kutub al-‘Arabiyyah,
Al-Khatib al-Syarbini (1997), Mughni al-Muhtaj, jil. 2. Beirut: Dar al-Ma‘rifah.
Al-Nawawi, Muhyi al-Din (t.t.), al-Majmu‘, jil. 16. Jeddah: Maktabah al- Irsyad.
Al-Nisaburi, Imam Abi Husayn Muslim al-Hajjaj al-Qusyairi (1997), Sahih Muslim, Bab al-
Waqf, cet:1, jld. 3. Mu’assasah ‘Iz al-Din
Al-Nisaburi, Imam Abi Husayn Muslim al-Hajjaj al-Qusyairi (1997), Sahih Muslim, Bab al-
Waqf, cet:1, jld.3, Mu’assasah ‘Iz al-Din.
Al-Sarakhsi (t.t.), al-Mabsut, jil. 12. Lubnan: Dar al-Ma`rifah,
Al-Syawkani, Muhammad bin Àli, (t.t.), Nayl al-Awtar, jil. 6. Qaherah: Maktabah wa Matbaàh
Mustafa al-Babi al-Halabi wa Awladihi.
Al-Syawkani, Syaykh Muhammad b. ‘Ali (t.t.),Nayl al-Awtar Min Ahadith Sayyid al-Akhbar
Syarh Muntaqa al-Akhbar, jld.6, Kaherah: Mustafa al-Babi al-Halabi.
Al-Syirazi, Abi Ishak (1995), Al-Muhadhab fi fiqh al-Imam al-Syafi‘i, cet.1, jld.2. Beirut: Dar al-
Kutub al-‘Ilmiyyah.
Anwarul Yaqin. (2007). Legal research writing. Malaysia: LexisNexis
Azizah Hamzah. (2010). Kaedah Kualitatif Dalam Penyelidikan Sosiobudaya dalam Jurnal
Pengajian Media Malaysia 6 (1), Kuala Lumpur: UM.
Azman Hasan. (2015), Bahagian Sumber Am MAIK, Temubual pada 15 Jun 2015.
Baharuddin Sayin, Asmak Ali, S. Salahudin Suyurno (2006), Pengenalan Kepada Konsep Wakaf
dalam Islam, Pusat Penerbitan Universiti (UPENA)Shah Alam:UiTM
Chua Yan Piaw,( 2011), Kaedah penyelidikan, ed. ke-2. Kuala Lumpur :McGraw-Hill Sdn Bhd.
Dato’ Paduka Syeikh Abdul Majid bin Mohd Nor,(2015) Mantan Yang Dipertua Majlis Agama
Islam Negeri Kedah , Temubual pada 23 Mac 2015
Enakmen Pentadbiran Undang-undang Islam Negeri Kedah Darul Aman (2008)
Haji Zakaria Bendahari Jawatankuasa Masjid Al-Badar,(2015) Temubual pada 10 Jun 2015.
Ibn Hajar Al-‘Asqalani (2001), Fath al-Bari Syarh Sahih al-Bukhari, jil. 5, Kitab al-Syurut, Bab
al-Syurut fi al Waqf, no. Hadith 2737; Kitab al-Wasaya, Bab al- Waqf Kaifa Yaktub, hadith
no. 2772.
Ibn Manzur, Muhammad Ibn Mukarram (1990), Lisan al-‘Arab, j. 9. Beirut: Dar Sadr
Ibn Qudamah (2001), Al-Munaqalah wa al-Istibdal bi al-Awqaf, dalam Al-Asyqar, Muhammad
Sulayman, et. all (ed) Majmu‘ fi Al-Munaqalah wa al-Istibdal bi al-Awqaf , cet.2, Beirut:
Lubnan
Ibn Qudamah, Abu Muhammad ‘Abd Allah bin Ahmad (1972), al-Mughni, j.6, c.4. Beirut: Dar
al-Kutub al-‘Arabi.
Ibn Qudamah, Abu Muhammad ‘Abd Allah bin Ahmad (1997), Al-Mughni, jil. 8. Riyad: Dar
‘Alam al-Kutub
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Kanun Tanah Negara (KTN) 1965 (Akta 56)

Mohd Shah Firafizal bin Abu Bakar (2005), “Dana Wakaf MAINPP: Amalan dan Pelaksanaan”,
(Kerja Seminar Dana Wakaf Peringkat Negeri Pulau Pinang 2005, di Bilik Auditorium
Dewan Milenium, Kepada Batas Seberang Prai Pulau Pinang, Pada 17 Julai 2005/ 10
Jamadil Akhir 1426),
N.K. Denzin, (2001), Handbook of Qualitative Research, ed. ke-2. Thousand Oaks, CA : Sage
Publications Ltd.
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Ratna, Nyoman Kutha. (2004). Penelitian Sastra: Teori, Metode, dan Teknik. Yogyakarta: Pustaka
Pelajar.
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18 Jun 2015.
Tuan Syeikh Ahmad Zaki Bin Ghazali , (2015), Ketua Bahagian Wakaf MAIK, Temubual pada
9 April 2015 , 7 Mei 2015 dan 15 Jun 2015.
Ustaz Hussain bin Jusoh , (2015), Pengerusi Darul Quran, Temubual pada 10 Jun 2015.
Zaharuddin Abdul Rahman. (2014) .Sedekah luar biasa .Kuala Lumpur :Telaga Biru.
Zulkifli Mohamad Al Bakri (2012), Wakaf Dalam Islam, Kuala Lumpur: Bank Muamalat Berhad
295
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PERBANDINGAN PRESTASI SYARIKAT REITS KONVENSIONAL

(AMANAH PELABURAN HARTANAH KONVENSIONAL) DAN I-REITS
(AMANAH PELABURAN HARTANAH ISLAM)
Ahmad azam sulaiman @ mohamad

Mohamad Lukmannorhakim Kamuri
___________________________________________________________________________
Abstrak: Kajian ini bertujuan untuk menganalisis perbandingan prestasi syarikat REITs
Konvensional dan I-REITs bagi tempoh 2007 hingga 2014 yang mana di dalam tempoh
tersebut terdapat krisis kewangan global (2008-2009) sama ada ia memberi kesan kepada
ekonomi dan pasaran REITs di Malaysia. Memandangkan Malaysia merupakan negara yang
pertama mengeluarkan garis panduan I-REITs, kajian ini juga ingin melihat faktor-faktor yang
mempengaruhi prestasi syarikat REITs dan I-REITs di Malaysia. Kajian ini hanyalah
melibatkan empat (4) syarikat REITs Konvensional dan empat (4) syarikat I-REITs yang
disenaraikan di Bursa Malaysia dimana data tahunan bagi syarikat-syarikat berkenaan hanya
melibatkan tahun 2007 hingga 2014. Dengan menggunakan data yang telah diperolehi
daripada Bursa Malaysia, graf analisis digunakan bagi melihat perbandingan prestasi
syarikat REITs Konvensional dan I-REITs. Hasil kajian ini menunjukkan trend Nilai Aset
Bersih (NAB) setiap syarikat REITs dan I-REIT dalam kajian ini adalah stabil dan meningkat
setiap tahun dari tahun 2007 hingga 2014, disamping ia tidak terjejas akibat krisis kewangan
global 2008-2009. Selain daripada itu, krisis kewangan global tersebut telah menjejaskan
pembayaran dividen oleh syarikat-syarikat REITs dan antara syarikat tersebut adalah Axis
REIT dan Al-Hadharah Boustead REIT. Walau bagaimanapun, beberapa syarikat REITs
seperti Al-Aqar Healthcare REIT dan AmFirst REIT masih konsisten dalam pembayaran
dividen bagi tempoh seperti yang dinyatakan. Kesimpulannya, syarikat I-REITs menunjukkan
prestasi yang lebih baik berbanding syarikat REITs Konvensional berdasarkan Nilai Aset
Bersih terutama semasa dan selepas tempoh krisis kewangan global. Namun begitu, prestasi
pembayaran dividen oleh syarikat REITs Konvensional dan I-REITs adalah sama dimana ia
mencatatkan trend penurunan terutama semasa tempoh krisis kewangan global.
Keyword: I-Reits, Pasaran Modal Islam

___________________________________________________________________________
Pengenalan
Sistem Kewangan Islam Malaysia terutamanya Pasaran Modal telah berkembang
dengan pesat dimana peningkatan dalam saiz pasaran produk membuktikan wujudnya
kestabilan dalam Sistem Kewangan Islam yang mampu berdaya saing dengan produk Sistem
Kewangan Konvensional. Bagi merealisasikan matlamat Malaysia untuk menjadi Pusat dan
Hab Perbankan & Kewangan Islam Terbesar Dunia, usaha dan langkah-langkah untuk
membangunkan produk baru dan berinovatif mestilah dijalankan bagi mempelbagaikan lagi
produk di pasaran Malaysia.
Salah satu produk yang diperkenalkan oleh Malaysia pada November 2005 adalah I-
REITs (Amanah Pelaburan Hartanah Islam) dimana Malaysia merupakan negara yang pertama
mengeluarkan garis panduan I-REITs (Yusni et. al 2015). Dengan pengenalan pelaburan
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hartanah berlandaskan Syariah (I-REITs) ini telah memberi dimensi baru dan merupakan
kejayaan cemerlang dengan penambahan kepelbagaian produk berasaskan Syariah di Pasaran
Modal Malaysia (Hamdana & Ahmad Azam, 2011). Selain daripada itu, ia juga dapat menarik
minat pelabur-pelabur Islam global untuk melabur di Malaysia bagi mempelbagaikan portfolio
pelaburan patuh syariah mereka. Ini adalah disebabkan permintaan pelabur terutama dari Timur
Tengah terhadap produk-produk yang berasaskan Shariah khususnya dalam industri REITs
adalah tinggi.
REITs terbahagi kepada dua (2) iaitu Amanah Pelaburan Hartanah Konvensional dan
Amanah Pelaburan Hartanah Islam atau dikenali sebagai I-REITs. Kedua-dua Amanah
Pelaburan ini merupakan alat pelaburan kolektif yang mengumpulkan wang daripada pelabur
dan digunakan untuk membeli, mengurus dan menjual hartanah. Ia juga memberi pelaburan
kepada mereka yang ingin melabur dalam aset hartanah melalui instrument Pasaran Modal
(Suruhanjaya Sekuriti, 2013). REITs Konvensional dan I-REITs adalah dana amanah
pelaburan yang memiliki dan menguruskan hartanah komersial yang menghasilkan pendapatan
melalui sewaan seperti kompleks membeli-belah, hospital, ladang, bangunan-bangunan
industri, hotel dan bangunan pejabat (Bursa Malaysia, 2013). Pendapatan ini kemudian
digunakan oleh syarikat REITs untuk pengagihan dividen kepada pelabur dan ini telah menarik
perhatian pelabur global disebabkan kelebihan dan prestasi cemerlang yang direkodkan dimana
ia merupakan faktor penting menyumbang kepada pemilihan pelaburan mereka.
Hartanah komersial secara dasarnya merupakan aset yang menghasilkan pendapatan
secara kitaran dimana ia mempunyai cirii-ciri melindungi nilai yang mana nilainya akan
meningkat dalam tempoh jangka masa panjang. Oleh yang demikian, kebanyakan pelabur
menganggap REITs sebagai “Defensive Stocks” kerana mempunyai aset yang menghasilkan
pendapatan secara kitaran dan mempunyai potensi dalam peningkatan nilai aset dalam jangka
masa panjang serta tidak terkesan terhadap perubahan persekitaran ekonomi. Selain daripada
itu, sesebuah syarikat pengurusan REITs diberi keistimewaan dalam pengecualian cukai
korporat dengan syarat pengagihan dividen tahunan yang dibayar kepada pemegang sahamnya
adalah sekurang-kurangnya 90% daripada keseluruhan pendapatan bersih syarikat yang dijana
melalui aset hartanah (Bursa Malaysia, 2013).
Walau bagaimanapun, kita sebagai bakal pelabur dalam REITs ingin mengetahui
faktor-faktor mempengaruhi Pasaran REITs ini dalam menjana pulangan dividen kepada
pemegang saham? Bagaimana perbandingan prestasi yang direkodkan syarikat REITs
Konvensional dan I-REITs? Perkembangan dan peningkatan pelaburan dalam Pasaran Amanah
Pelaburan Hartanah pada masa ini menyebabkan persoalan di atas penting terutama kajian
melibatkan Malaysia yang diklasifikasikan sebagai negara membangun. Kajian ini ternyata
memberi manfaat kepada pelabur tempatan dan global untuk mempelbagaikan portfolio di
seluruh dunia dari segi masa dan pemilihan negara untuk melakukan pelaburan.
Objektif Kajian
a) Untuk mengetahui definisi REITs dan syarikat REITs Konvensional dan I-REITs serta
perkembangan I-REITs di Malaysia;
b) Untuk mengenal pasti faktor-faktor yang mempengaruhi prestasi REITs di Malaysia;
dan
c) Untuk mengkaji perbandingan prestasi syarikat REITs Konvensional dan I-REITs bagi
tempoh 2007 hingga 2014.
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Skop Kajian
Bagi mengkaji perbandingan prestasi syarikat REITs Konvensional dan I-REITs, skop kajian
ini hanya merangkumi faktor-faktor penting yang mempengaruhi sesuatu keputusan pelaburan
para pelabur seperti Nilai Bersih Aset (NAB) dan Hasil Dividen (Dividen Yield) yang
diberikan kepada para pelabur. Ia hanya melibatkan empat (4) syarikat REITs Konvensional
dan empat (4) syarikat I-REITs bagi tempoh 2007 hingga 2014 dimana kesemua data ini
diperolehi melalui carian di Bursa Malaysia.
Kajian Literatur
Ringkasan Perkembangan Industri REITs di Malaysia
REITs telah berkembang di Amerika Syarikat dan Australia sejak tahun 1960-an dan
1971. Manakala di Asia, REITs hanya mula diperkenalkan di akhir tahun 2001 dimana Jepun
merupakan negara pertama memperkenalkannya, diikuti dengan Singapura (2002), Korea
Selatan (2002), Thailand (2003), Hong Kong (2005) dan Taiwan (2005). Di kebanyakan negara
maju, REITs telah dibangunkan sejak beberapa dekad yang lalu dengan menawarkan
pendapatan yang konsisten dan sebagai alternatif kepada pelaburan deposit tetap. Kebiasaanya
pelabur REITs terdiri daripada pelabur jangka panjang yang menginginkan risiko pelaburan
yang sederhana seperti syarikat insurans, dana pencen, dana unit amanah dan pelabur individu.
Bagi pelabur runcit yang tidak mempunyai dana yang besar untuk melabur dalam portfolio
hartanah yang bernilai tinggi, REITs melalui dana yang dikumpul akan dilaburkan ke aset
hartanah yang bernilai tinggi untuk pulangan yang lebih baik.
Malaysia merupakan antara negara Asia yang terawal memperkenalkan Amanah
Pelaburan Hartanah (REITs) yang sebelum itu dikenali sebagai Property Trust Fund (Dana
Amanah Hartanah) pada tahun 1988 dan terdapat empat (4) amanah hartanah disenaraikan di
BSKL, iaitu Arab-Malaysian First Property Trust (Ogos 1989), First Malaysia Property Trust
(November 1989), Amanah Harta Tanah PNB (Disember 1990) dan Mayban Property Trust
Fund One (Mac 1997). Bursa Malaysia adalah pihak berkuasa bagi Bursa Saham Malaysia
termasuk REITs dimana ia merupakan platform pelaburan bagi pelabur runcit atau institusi dan
pengurus portfolio untuk melabur dalam hartanah komersial berkualiti tinggi tanpa perlu
membeli hartanah tersebut secara langsung (Bursa Malaysia, 2013).
Bank Negara Malaysia telah meluluskan rangka kerja perngawalseliaan yang pertama
di bawah Akta Syarikat 1965 dan Akta Suruhanjaya Sekuriti 1983 bagi mengawal penubuhan
dan operasi Dana Amanah Hartanah (REIT). Seterusnya, Suruhanjaya Sekuriti
memperkenalkan proses perundingan bagi dana amanah hartanah pada tahun 1999 dan
membawa kepada semakan semula garis panduan pada tahun 2002. Pada 3 Januari 2005,
Suruhanjaya Sekuriti mengeluarkan Garis Panduan Amanah Pelaburan Hartanah (REITs) bagi
menggantikan garis panduan yang diterbitkan pada 13 November 2002 bagi menggalakkan
pertumbuhan dan mewujudkan industri amanah pelaburan hartanah yang berdaya maju dan
kompetitif di Malaysia.
Garis panduan ini juga bertujuan untuk menarik penyertaan baru dan meningkat
kesedaran peserta industri tempatan dan pemilik/pemaju hartanah mengenai kelebihan
kewujudan sesebuah REIT serta untuk meningkatkan kecairan pasaran hartanah tempatan. Ini
sejajar dengan Pelan Induk Pasaran Modal bagi mewujudkan rangka kerja kawal selia yang
seragam bagi industri pengurusan dana, syarat kelayakan bagi syarikat pengurusan yang
mengurus REIT, termasuk skop perniagaan dan penglibatan ekuiti asing, telah diperkemas
supaya ianya konsisten dengan keperluan bagi syarikat pengurusan yang mengurus unit
amanah (Suruhanjaya Sekuriti, 2005).
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Bagi memenuhi keperluan umat Islam terhadap pelaburan hartanah berlandaskan

Shariah, Suruhanjaya Sekuriti pada November 2005 telah menerbitkan garis panduan Amanah
Pelaburan Hartanah Islam (I-REITs) dan ia merupakan titik permulaan industri I-REITs di
Malaysia. Ia juga sekaligus dapat meningkatkan kecairan pasaran hartanah tempatan terutama
hartanah Islam dan menyediakan alternatif bagi pelabur tempatan atau antarabangsa sama ada
Islam ataupun bukan Islam melabur di dalam pelaburan hartanah yang memenuhi ciri-ciri
instrument patuh syariah. Secara keseluruhan, REITs di Malaysia dikategorikan kepada dua
(2) iaitu Amanah Pelaburan Hartanah Konvensional dan Amanah Pelaburan Hartanah Islam
atau dikenali sebagai I-REITs. Kedua-duanya mempunyai rangka kerja operasi dan peraturan
yang sama, namun perbezaan utama terletak pada keperluan undang-undang untuk mempunyai
jawatankuasa atau penasihat Shariah bagi melaksanakan fungsi professional tertentu (Mahjom
et al, 2013).
Jadual 1: Senarai Amanah Pelaburan Hartanah Setakat 30 April 2017

Bil. REITs Syarikat Pengurusan Kategori
1 AmFirst REIT AmARA REIT Managers Sdn Bhd REIT
2 Axis REIT Axis REIT Managers Berhad I-REIT
3 AmanahRaya REIT AmanahRaya-REIT Managers Sdn Bhd REIT
4 Atrium REIT Atrium REIT Managers Sdn Bhd REIT
5 CapitaLand Malaysia Mall Trust CapitaLand Malaysia Mall REIT Management Sdn Bhd REIT
6 Al-Aqar Healthcare REIT Damansara REIT Managers Sdn Bhd I-REIT
7 Al-Salam REIT Damansara REIT Managers Sdn Bhd I-REIT
8 Tower REIT GLM REIT Management Sdn Bhd REIT
9 Hektar REIT Hektar Asset Management Sdn Bhd REIT
10 IGB REIT IGB REIT Management Sdn Bhd REIT
11 KIP REIT KIP REIT Management Sdn Bhd REIT
12 KLCC REIT KLCC REIT Management Sdn Bhd I-REIT
13 Pavilion REIT Pavilion REIT Management Sdn Bhd REIT
14 Amanah Harta Tanah PNB Pelaburan Hartanah Nasional Sdn Bhd REIT
15 YTL Hospitality REIT Pintar Projek Sdn Bhd REIT
16 MRCB-Quill REIT MRCB Quill Management Sdn Bhd REIT
17 Sunway REIT Sunway REIT Management Sdn Bhd REIT
18 UOA REIT UOA Asset Management Sdn Bhd REIT
Sumber: Suruhanjaya Sekuriti (2017)
Jadual 2: Ringkasan Statistik Pelaburan REITs Setakat 31 Disember 2016

Jumlah Nilai Aset Nilai Aset Bersih Modal Pasaran
(RM'Juta) (RM'Juta) (RM'Juta)
48, 757.57 32,616.89 44,194.86
Sumber: Suruhanjaya Sekuriti (2017)
Ringkasan Amanah Pelaburan Hartanah Islam (I-REITs)
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Kemunculan I-REITs dalam Pasaran Modal merupakan kejayaan Malaysia dalam

usaha mempelbagaikan produk berasaskan Syariah di Pasaran Modal Malaysia. Pengenalan
garis panduan Amanah Pelaburan Hartanah Islam (I-REITs) oleh Suruhanjaya Sekuriti pada
November 2005 dianggap sebagai permulaan kepada Pasaran Modal Islam kerana ia
merupakan garis panduan pertama di dunia bagi I-REITs dan ia adalah pelengkap kepada
pelaburan REITs konvensional. Melalui pengenalan ini, ia meningkatkan lagi peranan
Malaysia sebagai peneraju dalam pembangunan Pasaran Modal Islam di kalangan komuniti
kewangan Antarabangsa, disamping menggalakkan lagi pertumbuhan Pasaran Modal Islam
yang semakin kompetitif di Malaysia.
Garis panduan ini menjelaskan kriteria patuh Shariah bagi memandu aktiviti-aktiviti
syarikat pengurusan berkaitan syarikat I-REITs, termasuk sewaan dan aktiviti pelaburan yang
dibenarkan dan yang tidak dibenarkan oleh Shariah (Suruhanjaya Sekuriti, 2005). Di Malaysia,
REITs lebih dikenali sebagai Amanah Pelaburan Hartanah di mana sebelum ini hanya dikenali
sebagai “Tabung Amanah Hartanah” (Property Trust Fund, PTF). Selain REITs, terdapat juga
REITs Islam (Islamic Real Estate Investment Trust) atau dikenali sebagai I-REITs. Perbezaan
REITs Konvensional dan I-REITs hanya merangkumi jenis penyewaan dan / atau
aktiviti/perniagaan yang dijalankan bagi menjana pendapatan daripada hartanah REITs.
Konvensional REITs tidak mengehadkan sebarang aktiviti perdagangan dan perniagaan yang
sah, manakala I-REITs hanya membenarkan aktiviti dan perdagangan / perniagaan yang
mematuhi Shariah.
Al-Aqar KPJ REITs adalah amanah pelaburan hartanah Islam yang pertama
dilancarkan di dunia dan Malaysia. Al-Aqar KPJ REITs terdiri daripada hartanah yang dimiliki
oleh KJP Healthcare Berhad, pemilik dan pengendali hospital swasta yang terbesar di Malaysia
dimana pihak pengursannya memilik pengalaman 25 tahun. Manakala Al-Hadharah Boustead
REIT yang dilancarkan pada 15 Januari 2007 pula adalah syarikat I-REITs pertama yang
melabur dalam portfolio hartanah perladangan Islam. Bagi Axis REITs yang telah mula
beroperasi pada 2005 telah diklasifikasikan sebagai I-REITs pada December 2008 dimana
portfolio pelaburannya merangkumi hartanah komersial dan industri.
Pada hujung tahun 2013, terdapat empat (4) syarikat I-REITs yang menjalankan aktiviti yang
berbeza iaitu Al-Aqar KPJ REIT, Al-Hadharah Boustead REIT, Axis REIT dan KLCC REIT.
Namun begitu, jumlah syarikat I-REITs berkurangan menjadi tiga (3) selepas Al-Hadharah
Boustead REIT yang menguruskan 12 aset peladangan yang bernilai RM1.2 bilion
dinyahsenaraikan dari Bursa Malaysia pada 19 Februari 2014 setelah menyaksikan nilai
dagangan kecil sejak memulakan operasinya.
Faktor Mempengaruhi Pelaburan Di Dalam Amanah Pelaburan Hartanah

Terdapat beberapa faktor yang mempengaruhi pelaburan dalam REITs. Antaranya ialah
REITs dapat memberi peluang kepada pelabur memulakan pelaburan mereka dengan modal
pelaburan yang minimum. Pasaran REITs menawarkan kecairan berbanding sifat fizikal
hartanah yang dimiliki oleh REITs. Unit REITs yang tersenarai dan didagangkan di Bursa
Malaysia mudah ditukar kepada tunai.
Selain daripada itu, REITs cenderung membayar pendapatan atau dividen yang tetap
dan stabil, dimana pendapatan yang diperolehi oleh REITs daripada bayaran sewaan yang
dibayar oleh penyewa yang menduduki harta REITs. Para pelabur juga boleh memperoleh
faedah hartanah secara purata melalui pelaburan REITs yang berkualiti. Seterusnya, para
pelabur mendapat manfaat daripada REIT dan asetnya yang diuruskan oleh profesional yang
akan ditambah nilai untuk hasil yang lebih tinggi memandangkan REITs mempunyai rekod
prestasi yang baik dan reputasi terhadap kualiti pengurusan dan struktur korporat REITs.
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Terdapat juga beberapa faktor yang boleh menjejaskan prestasi REITs seperti saiz
pasaran, kadar cukai, kadar faedah dan kadar inflasi. Walau bagaimanapun, pelabur institusi
adalah faktor yang paling penting yang mempengaruhi Pasaran REITs di Malaysia. Ini seperti
yang ditunjukkan oleh literatur terdahulu.
Penglibatan Pelabur Institusi

Kajian oleh Hanim et al. (2009) mendapati prestasi setiap saham REITs menunjukkan
correlasi positif dengan beberapa jumlah analisis sekuriti M-REIT yang dikesan sepanjang
tempoh 2002-2006. Kajian ini mendapati korelasi positif yang kukuh antara penyertaan pelabur
institusi tahunan dengan pulangan penyertaan pelabur institusi dan jumlah dagangan M-REIT.
Manakala, satu kajian yang dijalankan oleh Lee, Hishamuddin dan Lee (2005) meneliti asas
penyertaan pelabur institusi dalam REITs. Kajian itu menyiasat asas reaksi pelabur institusi
dalam LPT dan situasi pelaburan mereka dalam mengambil bahagian dalam REIT Malaysia
yang baru. Kajian itu meninjau 21 daripada 57 pengurus dana kanan yang mana 10% daripada
mereka adalah dari syarikat insurans, 24% dari pengurusan aset dan 66% dari unit amanah.
Menurut Lee, Hishamuddin dan Lee (2005), faktor-faktor penting penyebab kekurangan minat
dalam LPT yang berada di kedudukan yang bawah dalam kepentingannya adalah jumlah
dagangan yang kecil, permodalan pasaran terlalu kecil di LPT di Malaysia, peningkatan modal
yang perlahan, mempunyai rekod sejarah LPT yang buruk, hasil dividen yang rendah
berbanding dengan pilihan pelaburan lain, turun naik yang rendah, kekurangan kepakaran
pengurusan portfolio dalam LPT dan bukan prestasi sektor hartanah.
Tiga faktor pertama dinilai sebagai antara faktor yang paling penting, dua faktor
seterusnya dianggap sebagai penting manakala ketiga-tiga faktor terakhir dinilai sebagai
sederhana. Seterusnya, beliau menegaskan bahawa ketidaktentuan M-REIT menyebabkan
jumlah transaksi urus niaga yang rendah. Oleh itu, ia mengurangkan tahap kecairan pasaran M-
REIT yang luas. Pada umumnya kebanyakan pelabur menginginkan volum perdagangan purata
sekurang-kurangnya 250,000 unit sebagai pengesahan kecairan dalam pasaran REIT J. Y. M.
Lee, Hishamuddin, & Lee, (2005).
Lee, Hishamuddin dan Lee (2005) mendapati pulangan harga lepas dan risiko purata
LPT dari tahun 1995 hingga 2004 menunjukkan bahawa LPT adalah pelaburan yang tidak
dapat dijangka dan juga lebih rendah dalam pulangan purata tahunan mereka berbanding
instrumen yang sama di luar negara seperti REITs di Amerika Syarikat dan
'FiscaleBeleggingsinstelling (FBI)' di Belanda. Oleh yang demikian, bagi menggalakkan
penyertaan pelabur dalam Pasaran REIT, faktor yang mempengaruhi penglibatan pelabur
institusi di dalam Pasaran REIT perlu dikaji secara empirikal. Ini adalah untuk memastikan
bahawa pembuat dasar terutamanya mengambil langkah-langkah yang tepat dalam memastikan
pembangunan REIT di Malaysia mencapai objektifnya. Ini adalah salah satu usaha yang
dilakukan dimana kajian ini bagi mendedahkan faktor yang mempengaruhi penglibatan pelabur
institusi ke arah REIT di Malaysia.
Ciri-ciri REITs yang Mempengaruhi Presetasi Sesebuah REITs

Kepelbagaian Hartanah dan Jenis Konsentrasi Hartanah
Dengan memfokuskan kepada sesuatu jenis hartanah dan lokasi tertentu akan menghasilkan
strategi khusus untuk REITs dan mengelakkan peningkatan kos pengurusan. Walau
bagaimanapun, strategi ini mempunyai kelemahan kerana REITs mempunyai boleh membuat
pengurangan risiko, tidak dapat menawarkan pelabur untuk memiliki kepelbagaian harta yang
lebih baik dengan pelbagai pilihan lokasi geografi.
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Oleh yang demikian, pelabur mempunyai pilihan sama ada ingin melabur di dalam
syarikat-syarikat REITs yang mempunyai portfolio hartanah yang pelbagai atau memilih
syarikat REITs yang memberi tumpuan kepada sesuatu jenis hartanah tertentu dan mewujudkan
portfolio mereka sendiri. Kepelbagaian dan perbezaan dalam jenis hartanah memberikan
REITs peluang yang lebih luas. Ini kerana perbezaan dalam jenis hartanah menyebabkan kesan
yang berlainan terhadap Nilai Aset Bersih yang mendasari REIT. Sebagai contoh, REITs runcit
diniagakan pada signifikan premium pada Nilai Aset Bersih (NAB) daripada purata REITs,
gudang dan industrial REIT yang diniagakan pada harga diskaun.
Kepelbagaian Jenis Hartanah Konsentrasi Jenis Hartanah

Amanah Raya REIT – pelbagai peruntukan  Axis REIT- fokus kepada bagunan pejabat dan
hartanah merangkumi ruang pejabat, Pusat Beli ruang pejabat;
Belah, Bangunan Kolej & Hotel.  Al-Aqar KPJ - Islamic REITs fokus kepada
REIT penjagaan kesihatan;
 Al-Hadharah Boustead – REIT perladangan
Islam.
Kepelbagaian Hartanah dari segi lokasi

Daripada perspektif lokasi REITs, para pengkaji lepas bersetuju bahawa kepelbagaian
lokasi hartanah, meminimumkan risiko, meningkatkan prestasi REITs adalah penting dalam
strategi portfolio. Kebanyakan pihak yang terlibat dalam REITs cenderung memberi fokus
kepada pemilihan lokasi hartanah atau jenis hartanah. Kebiasaanya, syarikat REITs yang besar
lebih memberi tumpuan kepada jenis REITs hartanah peruncitan (retail) dan syarikat REITs
kecil lebih cenderung melabur di dalam hartanah REITs pejabat dan bangunan industri.
Dari segi konsentrasi lokasi hartanah, syarikat REITs yang besar mempunyai
konsentrasi lokasi hartanah di bahagian pusat bandar seperti Kuala Lumpur, Petaling Jaya,
Subang Jaya, Pulau Pinang dan Johor Bharu. Selain daripada itu, aktiviti ekonomi di sesuatu
lokasi juga mempengaruhi nilai hartanah dan nilai sewaan hartanah.
Analisis pasaran berkaitan maklumat demografik menunjukkan bahawa kerajaan di negeri
berbeza, mungkin mempunyai inisiatif yang berbeza di kawasan perniagaan, peraturan dan
sekatan, suasana politik dan kesan sosiologi terhadap sewa dan kadar penghunian.
Kepelbagaian lokasi boleh mengurangkan risiko dan memaksimumkan faedah kepada para
pemegang saham sama ada mempelbagaikan dengan pegangan REITs yang telah
dipelbagaikan lokasi di negara lain atau mempelbagaikan dengan memegang jenis hartanah
khusus di negara yang berlainan untuk mengurangkan konsentrasi geografi.
Saiz Syarikat REITs

Saiz syarikat REITs merupakan kriteria penting yang dinilai oleh pelabur REITs dan REITs
akan mencatatkan prestasi yang baik sekiranya saiz firma adalh besar. Syarikat REITs yang
besar kebiasaannya mempunyai margin keuntungan yang lebih tinggi, nisbah pendapatan sewa
yang lebih tinggi dan kos modal yang rendah. Hartanah runcit REITs diniagakan pada harga
premium berbanding dengan hartanah REIT yang biasa. Manakala, hartanah REITs industry
atau gudang diniagakan pada harga diskaun. Syarikat REITs yang kecil biasanya diniagakan
pada diskaun dan REITs yang besar diniagakan pada harga premium.
Selain daripada itu, saiz sesebuah REITs juga mempunyai kesan yang signifikan ke atas
semua kos perbelanjaan kecuali perbelanjaan faedah atau pinjaman. Bagi syarikat REITs yang
besar, perbelanjaan Am dan perbelanjaan pentadbiran serta yuran pengurusan merupakan
perbelanjaan terbesar tetapi perbelanjaan operasi hanya mempunyai kesar yang sederhana.
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Saiz sesebuah syarikat REITs juga mempunyai hubungan yang signifikan dengan
penglibatan pelabur institusi dalam REITs. Saiz syarikat REITs yang besar mempunyai
keupayaan untuk menarik pelabur institusi. Saiz syarikat tersebut adalah faktor terpenting yang
menarik pelaburan REITs kerana REITs yang besar biasanya dimiliki oleh institusi kewangan.
Risiko pasaran mungkin memainkan peranan penting dalam pemilikan institusi REITs.
Polisi Pinjaman REITs

Polisi pinjaman syarikat REITs adalah sangat penting bagi kedua-dua syarikat REITs dan
pelabur REITs kerana ia menunjukkan keupayaan syarikat REITs untuk membuat pembayaran
dividen kepada pelabur. Sesebuah syarikat REITs boleh mengembangkan atau menambah
jumlah hartanah dalam pemilikannya sama ada melalui pembiayaan hutang (hutang terus atau
terbitan Sukuk atau Bon) atau terbitan unit saham REITs yang baru.
Walau bagaimanapun, setiap pilihan ini mempunyai faedah dan keburukan kepada syarikat
REITs. Sekiranya syarikat REITs memilih pembiayaan hutang, ia akan memberi kesan kepada
peningkatan dalam perbelanjaan terutama perbelanjaan faedah akibat daripada peningkatan
hutang. Sementara itu, penambahan terbitan unit saham REITs akan menyebabkan pelabur
tertekan kerana pengagihan dividen yang perlu dikongsi akan bertambah setelah penerbitan
unis saham REITs yang baru. Ia juga merupakan satu peningkatan komitmen syarikat REITs
kepada pemegang saham disebabkan syarikat REITs terpaksa meningkatkan pembayaran
dividen kepada pemegang saham setiap tahun.
Kaedah yang Digunakan untuk Menganalisis Prestasi REITs Malaysia

Nilai Aset Bersih (NAB)
Terdapat beberapa kajian yang secara khusus mengkaji elemen risiko REITs yang menjadi
salah satu faktor yang menentukan prestasi syarikat REITs. Bursa Malaysia (2013) telah
menyenaraikan 17 syarikat REIT yang mematuhi keperluan Akta Suruhanjaya Sekuriti 1993,
Garis Panduan Amanah Pelaburan Harta Tanah dan Garis Panduan Amanah Pelaburan
Hartanah Islam yang mempunyai perlindungan pelabur sebagai objektif utamanya. Bursa
Malaysia (2013) juga menyenaraikan petunjuk prestasi REITs yang merangkumi hasil
pengagihan, nilai aset bersih (NAV), nisbah perbelanjaan pengurusan dan jumlah pulangan.
Clayton dan MacKinnon (2001) menyediakan dan menjalankan model yang menghubungkan
hubungan antara harga REIT dengan Nilai Aset Bersih (NAB) yang dimiliki oleh REITs.
Kajian ini mendapati premium kecairan yang signifikan dalam harga saham REITs berbanding
dengan NAB hartanah yang berubah secara sistematik dengan kecairan hartanah persendirian.
Penemuan ini juga menunjukkan peranan penting dalam sentimen dalam harga REIT,
pulangan, dan garismasa penawaran awal ekuiti REIT dan berpengalaman sepanjang era REIT
1992 yang lalu.
Kajian Ying (2004) mengenai hubungan bersama integrasi jangka panjang dan dinamik jangka
pendek antara harga saham dan nilai aset bersih (NAB) syarikat hartanah tersenarai. Kajian ini
menunjukkan bahawa keputusan empirikal dari pasaran hartanah individu dan dari keseluruhan
pasaran secara konsisten mencadangkan hubungan rapat antara harga saham dan nilai aset
bersih dalam jangka panjang dan jangka pendek. Di samping itu, mereka juga mendapati
bahawa teori penilaian saham hartanah berasaskan NAB secara empirikal sebagai satu proksi
kepada nilai asas yang boleh dipercayai sebagai asas utama bagi penilaian prestasi syarikat
hartanah.
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Brent, Kelly, Lindsey dan Price (2011) mengkaji penentuan nilai (pertumbuhan) REITs
berdasarkan NAB sesaham berbanding dengan nilai buku sesaham sejak pengenalan nilai asas
aset REITs (NAB) mempengaruhi keputusan perdagangan. Mereka menunjukkan bahawa
harga pasaran saham dan harga NAB secara umumnya berbeza-beza dan ini menunjukkan
bahawa REITs menjual pada premium jika ia didagangkan pada harga yang lebih tinggi
daripada NABnya.
Ong (2011) mengkaji prestasi REITs di Malaysia berdasarkan pendekatan Nilai Aset Bersih
(NAB). Kajiannya mengkategorikan NAB pada premium NAB dan diskaun NAB dengan
menunjukkan bahawa REITs yang diniagakan pada premium NAB mempunyai keupayaan
produktif dan masa depan yang unggul, kecekapan organisasi dan operasi serta kualiti
pengurusan. Sementara, diskaun NAB iaitu apabila perdagangan di bawah harga saham semasa
yang mencerminkan prospek masa kini dan masa depan yang lemah bagi pendapatan dan
kesilapan syarikat dalam keputusan pembiayaan dan operasi.
Kaedah / Metodologi Kajian

Kaedah Pengumpulan Data
Fokus kajian ini hanyalah melibatkan empat (4) syarikat REITs Konvensional dan empat (4)
syarikat I-REITs yang disenaraikan di Bursa Malaysia. Sampel data tahunan bagi syarikat-
syarikat berkenaan hanya melibatkan tahun 2007 hingga 2014. Kesemua data yang digunakan
dalam kajian ini diperolehi daripada Bursa Malaysia. Kriteria pemilihan bagi tiga (4) syarikat
REITs ini adalah berdasarkan jenis hartanah. Empat (4) syarikat REITs dan I-REITs adalah
seperti berikut:
Jadual 3: Senarai Syarikat REITs Konvensional
Bil. Syarikat REITs Jenis Hartanah Tahun Bermula
1 Amanah Hartanah PNB Komersial & Pejabat 1990
2 AmanahRaya REIT Pelbagai (Pejabat, Industri, Hospital, Hotel) 2007
3 UOA REIT Komersial & Pejabat 2005
4 AmFirst REIT Pejabat, Hotel, Peruncitan 2006
Jadual 4: Senarai Syarikat I-REITs

Bil. Tahun
Syarikat I-REITs Jenis Hartanah
Bermula
1 Axis REIT Pelbagai (Pejabat,Pusat Beli Belah, Komersial, Industri) 2005
2 Al-Aqar Healthcare REIT Hospital, Pejabat 2006
3 Al-Hadharah Boustead* REIT Peladangan 2007
4. KLCC REIT Komersial & Pejabat 2013
*Al-Hadharah Boustead REIT dikeluarkan daripada Bursa Malaysia pada tahun 2013
Graf Analisis
Graf Analisis menyediakan gambaran ringkasan data yang lebih cepat dan memudahkan
maklumat penting disampaikan berbanding menggunakan jadual yang mempunyai nilai. Graf
analisis mengkaji dua (2) aspek penting dalam kajian ini seperti:
Nilai Aset Bersih (NAB)
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Kajian ini menggunakan data Nilai Aset Bersih untuk mengukur prestasi REITs yang mana
banyak digunakan dalam kajian REIT yang lepas i.e; Ong (2011), Brent et al. (2011), Ying
(2004), and Clayton and MacKinnon (2000;2001). Nilai Aset bersih adalah nilai bersih
keseluruhan aset sesebuah syarikat dimana jumlah keseluruhan aset ditolak dengan jumlah
liabiliti. Nilai ini juga yang menentukan nilai saham sesuatu REITs dan ia tertakluk kepada
prestasi sesuatu pelaburan itu sendiri.
Hasil Dividen (Dividend Yield)

Hasil dividen ini merupakan satu cara bagi menilai seberapa banyak sesebuah syarikat REITs
membayar dividen atau keuntungan kepada pemegang saham berkenaan pada setiap tahun. Ia
juga digunakan bagi mengukur seberapa banyak aliran tunai yang diterima oleh pemegang
saham dalam bentuk dividen bagi setiap ringgit yang dilaburkan ke dalam sesuatu syarikat
REITs dimana ia juga digunakan untuk mengira seberapa banyak keuntungan yang diperolehi
daripada pelaburan yang dilakukan. Pembayaran dividen oleh sesebuah syarikat REITs
bergantung kepada prestasi hartanah dan pendapatan syarikat tersebut. Sekiranya syarikat
REITs berjaya merekodkan pendapatan dan keuntungan yang tinggi, kecendurungan untuk
syarikat REITs membayar dividen yang banyak kepada pemegang sahamnya adalah tinggi
memandang terdapat insentif pengecualian cukai untuk perkara berkenaan.
Keputusan / Dapatan Kajian

Gambar rajah graf digunakan bagi menganalisis faktor-faktor penting terhadap prestasi REITs
(Amanah Pelaburan Hartanah) adalah seperti Nilai Asset Bersih (NAB) dan Hasil Dividen
(Dividen Yield). Kedua-dua faktor ini penting dalam mempengaruhi keputusan pelaburan
seseorang pelabur. Berikut adalah hasil keputusan analisis graf bagi Nilai Aset Bersih (NAB)
dan Hasil Dividen (Dividend Yield) bagi tempoh 2007 hingga 2014.
Analisis Graf Nilai Aset Bersih (2007-2014)

Graf bagi menganalisis Nilai Aset Bersih (NAB) bagi tempoh 2007 hingga 2014 adalah seperti
di bawah:
Rajah 1: Trend Analisis Nilai Aset Bersih
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Berdasarkan trend graf di atas, ia menunjukkan tren Nilai Aset Bersih setiap syarikat
REITs dan I-REITs dalam kajian ini adalah stabil dan meningkat setiap tahun bagi tempoh
2004 hingga 2014. Hasil kajian ini juga membuktikan bahawa saham syarikat REITs dan I-
REITs sebagai “Defensive Stocks”sepertimana tanggapan kebanyakan pelabur. Ini dapat dilihat
apabila Nilai Aset Bersih (NAB) kelapan-lapan syarikat ini tidak terjejas akibat krisis
kewangan global yang melanda dunia dan memberi kesan pada ekonomi Malaysia pada tahun
2008 hingga 2009.
Manakala bagi tempoh selepas krisis iaitu 2010 hingga 2014 menunjukkan Nilai Aset
Bersih kesemua syarikat REITs dan I-REITs tidak terjejas, sebaliknya terus meningkat. Selain
daripada itu, graf ini juga menunjukkan prestasi syarikat I-REITs yang terdiri daripada Axis
REIT (2007-2014), Al-Aqar Healthcare REIT (2007-2014) dan Al-Hadharah Boustead REIT
(2007-2012) merekodkan prestasi yang lebih baik atau melebihi (“outperform”) prestasi
syarikat REITs Konvensional yang lain. Oleh yang demikian, kajian ini membuktikan bahawa
I-REITs mempunyai prestasi yang lebih baik berbanding dengan REITs Konvensional
berdasarkan Nilai Aset Bersih (NAB) bagi tempoh 2007 hingga 2014.
Analisis Graf Hasil Dividen (Dividen Yield) (2007-2014)

Graf bagi menganalisis Hasil Dividen (Dividend Yield) bagi tempoh 2007 hingga 2014 adalah
seperti di bawah:
Rajah 2: Trend Analisis Hasil Dividen
306
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Dividend Yield
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
2007 2008 2009 2010 2011 2012 2013 2014
Amanah Harta Tanah PNB Al-‘Aqar Healthcare REIT* AmFirst REIT

Amanah Raya REIT AXIS REIT* Al-Hadharah Boustead REIT*
KLCC REIT* UOA REIT
Berdasarkan graf dividen yield di atas, trend menunjukkan setiap syarikat REITs dan I-REITs
mengurangkan secara drastik pembayaran dividen semasa berlakunya krisis kewangan global
(2008-2009). Ini menunjukkan krisis kewangan global yang berlaku pada 2008 dan 2009 telah
menjejaskan pembayaran dividen oleh syarikat-syarikat REITs kepada pemegang saham akibat
daripada ketidaktentuan dalam ekonomi Malaysia dan penurunan dalam keuntungan syarikat
REITs dan I-REITs.
Antara syarikat REITs dan I-REITs yang terjejas teruk semasa krisis ini dan terpaksa
mengurangkan pembayaran dividen adalah Axis REIT dan Al-Hadharah Boustead REIT.
Namun, terdapat beberapa syarikat seperti Al-Aqar Healthcare REIT dan AmFirst REIT yang
masih konsisten dalam pembayaran dividen. Ini membuktikan hanya beberapa sektor ekonomi
sahaja seperti perladangan dan sewaan bangunan pejabat yang terkesan semasa krisis
kewangan global, manakala sektor ekonomi seperti sektor hospital dan perubatan tidak terjejas.
Bagi tempoh selepas krisis iaitu 2010 hingga 2014, syarikat REIT dan I-REIT masih lagi
terkesan akibat krisis kewangan berkenaan ditambah dengan lebihan penawaran hartanah
seperti bangunan pejabat, bagunan komersial dan pusat membeli belah terutama di Lembah
Klang memburukkan lagi keadaan. Lebihan penawaran ini menyebabkan harga sewaan
menjadi rendah dan penyewa-penyewa hartanah tersebut mempunyai banyak pilihan hartanah
untuk disewa, sekaligus menjejaskan pendapatan syarikat REITs dan I-REITs.
Kesimpulan
Objektif utama kajian ini adalah untuk mengkaji perbandingan prestasi Amanah Pelaburan
Hartanah Malaysia (REIT) yang melibatkan syarikat REITs Konvensional dan syarikat I-
REITs bagi tempoh 2007 hingga 2014, dimana dalam tempoh tersebut berlakunya krisis
kewangan global. Oleh yang demikian, kajian ini ingin melihat perbandingan prestasi syarikat
307
ISBN: 978-967-14841-4-2
REITs Konvensional dan I-REITs terutama dalam aspek Nilai Aset Bersih (NAB) dan hasil
dividen (Dividend Yield) dalam tempoh tersebut.
Untuk tujuan ini, sampel data tahunan (bagi tempoh 2007 -2014) yang melibatkan empat
(4) syarikat REITs Konvensional dan empat (4) syarikat I-REITs diperolehi melalui carian
Bursa Malaysia, digunakan bagi mengenalpasti trend prestasi syarikat-syarikat berkenan. Data
berkenan kemudian dikumpulkan dan dianalisis dengan menggunakan Graf Analisis
berdasarkan Nilai Aset Bersih (NAB) dan hasil dividen. Hasil kajian ini menunjukkan Nilai
Asset Bersih (NAB) syarikat REITs Konvensional dan I-REITs menunjukkan trend menaik
sepanjang tempoh tersebut dan tidak terjejas akibat daripada krisis kewangan global 2008-
2009, ia sekaligus membuktikan tanggapan para pelaburan yang menyatakan REITs sebagai
“Defensive Stocks” adalah benar. Berdasarkan kajian juga membuktikan bahawa syarikat I-
REITs mempunyai prestasi yang lebih baik berbanding dengan syarikat REITs Konvensional
berdasarkan Nilai Aset Bersih bagi tempoh 2007 hingga 2014.
Namun begitu, graf analisis ini juga menunjukkan setiap syarikat REITs dan I-REITs
mengurangkan secara drastik pembayaran dividen semasa berlakunya krisis kewangan global
2008-2009 dan membuktikan krisis kewangan global telah menjejaskan pembayaran dividen
oleh syarikat-syarikat REITs kepada pemegang saham akibat daripada ketidaktentuan dalam
ekonomi Malaysia dan penurunan dalam keuntungan syarikat REITs dan I-REITs. Walau
bagaimanapun, terdapat juga syarikat REITs yang tidak terkesan akibat krisis kewangan seperti
Al-'Aqar Healthcare REIT dan AmFirst REIT. Selepas krisis, syarikat REITs Konvensional
dan I-REITs secara perlahan-lahan meningkatkan dan menstabilkan prestasi pembayaran
dividen kepada pemegang sahamnya.
Hasil keputusan kajian ini juga memberi gambaran bahawa kemungkinan krisis ekonomi
dan kewangan seperti yang berlaku pada tahun 2008 dan 2009 memberi kesan besar kepada
pembayaran dividen oleh syarikat REITs Konvensional dan I-REITs. Oleh yang demikian,
hasil kajian ini penting kepada implikasi dasar bukan sahaja kepada para pelabur dan pengurus
dana kewangan dalam melindungi nilai pelaburan mereka dan merangka strategi pelaburan
mereka, tetapi juga kepada pembuat dasar dalam membentuk dasar yang bersesuaian bagi
memastikan kestabilan ekonomi negara sentiasa tercapai sekaligus membantu merangsang
pertumbuhan pelaburan REITs Konvensional dan I-REITs di Malaysia.
Rujukan
Ahmad, M., &Izah. (2010). Empirical Investigation on the Performance of the Malaysian Real
Estate Investment Trusts in Pre-Crisis, During Crisis and Post Crisis Period. International
Journal of Economicsand Finance.
BintiMohamad, N. E. A., & Bin Zolkifli, I. A. (2014). The Determinant Factors of Real Estate
Investment Trust (REIT)’s Performance: Evidence from Asian REITs. Indonesian Capital
Market Review, 6(1).
Bursa Malaysia (2014), Real Estate Investment Trust,
http://www.bursamalaysia.com/market/securities/equities/products/real-estate-investment-
trust-reits
Chen, M., Tsai, I., Chen, K. L., & Lo, H. Y. (2011). A preliminary analysis for measuring
operating performance of real estate investment trusts in taiwan: Net income vs. operation
funds. Contemporary Management Research, 7(4), 271-290.
Clayton, J. F. and MacKinnon, G. H. (2001), The Time-Varying Nature of The Link Between
Reit, Real Estate and Financial Returns, Journal of Real Estate Portfolio Management,
308
ISBN: 978-967-14841-4-2
FMI, 2010. Real estate investment trusts: Is the Philippines ready? Capital research: First metro
investment corporation.
Hamzah, A. H., Rozali, M. B., & Tahir, I. M. (2010). Empirical investigation on the
performance of the malaysian real estate investment trusts in pre-crisis, during crisis and post-
crisis period. International Journal of Economics and Finance
Hanim&Hairulnizam (2009). Emperical Trend on Factors That Influence The Institutional
Investors Towards Investing In Malaysia Real Estate Investment Trust : A Preliminary Study,
Oxford Journal: An International Journal of Business and Economics.
Lee, J. Y. M., Hishamuddin, M. A., & Lee, C. L. (2005). The New Real Estate Investment
Trusts in Malaysia: Lessons from Listed Property Trust, Real Estate Educators and Researchers
Association 1st Conference. UniversitiTeknologi Malaysia
Newell, G., Ting, H.K. &Acheampong, P. (2002). “Listed Property Trusts in Malaysia”.
Journal of Real EstateLiterature.
Noriza Mohd Saad & Nuradli Ridwan Shah Mohd Dali, (2009). Real Estate Investment Trust
Performance in Malaysia: Islamic Versus Conventional Perspectives. Paper presented on
Islamic Economics System (Iecons 2009) Conference, Universiti Sains Islam Malaysia
Olusegun, O. O. (2014). Reit performance analysis: Are other factor determinants constant?
Asian Economic and Financial Review, 4(4), 492-502.
Oreagba, F., 2010. Position paper on implementation of reit in nigeria (n-reit): A seminar on
real estate investment trust (reit). Nigerian Stock Exchange
Ong, T. S. (2011), A Study on the Performanceof Malaysian Real Estate Investment Trust from
2005-2010 by using Net Asset Value Approach (NAV),Int. J. Eco. Res., 2(10), 1-15.
Suruhanjaya Sekuriti Malaysia (2005). Guidelines on Real Estate Investment Trusts. Kuala
Lumpur: Security Commission Malaysia.
Suruhanjaya Sekuriti Malaysia (2005). Garis Panduan REITS akan galak pertumbuhan
industri pelaburan hartanah, https://www.sc.com.my/my/post_archive/sc-reits-guidelines-to-
boost-real-estate-investment-trust-industry/
Suruhanjaya Sekuriti Malaysia (2005). Malaysia keluarkan garis panduan pertama di dunia
bagi REITs Islam, https://www.sc.com.my/my/post_archive/malaysia-issues-worlds-first-
guidelines-for-islamic-reits-sc-sets-global-benchmark-for-islamic-reits-development/
Suruhanjaya Sekuriti Malaysia (2008). Guidelines on Real Estate Investment Trust. Kuala
Lumpur, Suruhanjaya Sekuriti Malaysia
Umar Abdul Basar, Sanep Ahmad & Abu Hassan Shaari Mohd Noor (2012), Kesan
Pengklasifikasian Patuh Syariah Terhadap Kemeruapan Pulangan Saham Axis REIT, Journal
Ekonomi Malaysia
Lampiran 1
Syarikat REIT Tahun Nilai Aset Bersih Dividend yield
2007 147,828.00 7.02
2008 150,078.00 8.67
2009 150,792.00 7.61
Amanah Harta Tanah PNB 2010 153,667.00 7.27
2011 156,469.00 7.05
2012 159,393.00 6.73
2013 157,954.00 6.55
309
ISBN: 978-967-14841-4-2
2014 154,441.00 6.55

2007 384,710.00 7.32
2008 441,721.00 8.10
2009 540,455.00 8.10
2010 621,021.00 7.73
Al-‘Aqar Healthcare REIT*
2011 718,826.00 7.69
2012 696,226.00 7.80
2013 814,894.00 8.40
2014 831,543.00 7.85
2007 426,872.00 7.89
2008 426,873.00 8.39
2009 587,635.00 10.29
2010 601,580.00 8.86
AmFirst REIT
2011 605,985.00 8.41
2012 617,765.00 7.82
2013 836,903.00 6.31
2014 849,864.00 7.54
2007 404,967.00 5.50
2008 440,104.00 9.60
2009 440,104.00 8.32
2010 568,165.00 7.79
Amanah Raya REIT
2011 601,636.00 7.94
2012 606,783.00 8.10
2013 587,596.00 7.26
2014 657,951.00 7.83
2007 334,652.00 7.37
2008 467,985.00 13.63
2009 565,650.00 8.19
2010 755,230.00 6.75
AXIS REIT*
2011 944,097.00 6.56
2012 989,705.00 5.94
2013 1,028,640.00 6.31
2014 1,326,369.00 5.46
2007 473,137.00 7.74
2008 700,995.00 11.14
2009 732,364.00 7.15
2010 793,273.00 6.94
2011 1,132,416.00 7.80
Al-Hadharah Boustead REIT* 2012 1,145,673.00 5.46
2013 N/A N/A
2014 N/A N/A
2007 N/A N/A
KLCC REIT*
2008 N/A N/A
310
ISBN: 978-967-14841-4-2
2009 N/A N/A

2010 N/A N/A
2011 N/A N/A
2012 N/A N/A
2013 11,694,655.00 4.95
2014 12,025,991.00 5.01
2007 341,004.00 6.17
2008 341,510.00 9.37
2009 365,683.00 8.98
2010 371,926.00 6.65
UOA REIT
2011 601,501.00 7.02
2012 633,306.00 7.65
2013 632,960.00 7.36
2014 635,560.00 7.69
Lampiran 2
Senarai Syarikat Reits Di Malaysia
No. Nama Syarikat REITs Portfolio Hartanah Pengurus REITs
1. AmanahHarta Tanah Retail, Office PelaburanHartanahNasionalBerhad
PNB (PHNB)
2. Al-‘Aqar Healthcare Hospital, Nursing Damansara REIT Managers
REIT* College, Hotel SdnBhd
3. AmFirst REIT Office, Retail, Hotel Am ARA REIT Managers SdnBhd
4. Amanah Raya REIT Industrial, Office, Amanah Raya Investment
Hotel, Institutions, Management SdnBhd
Retail
5. Atrium REIT Indutrial, Atrium REIT Managers SdnBhd
Warehouse, Office
6. AXIS REIT* Office, Industrial Axis REIT Managers Berhad
7. Al-Hadharah Boustead Oil Palm Boustead REIT Managers SdnBhd
REIT* Plantations, Palm
Oil Mills
8. CapitalMalls Malaysia Retail CapitalMalls Malaysia REIT
Trust Management Sdn. Bhd
9. Hektar REIT Retail Hektar Asset Management Sdn.
Bhd
311
ISBN: 978-967-14841-4-2
10. IGB REIT Retail IGB REIT Management SdnBhd

11. KLCC REIT* Retail, Office KLCC REIT Management SdnBhd
12. Pavillion REIT Retail, Office Pavillion REIT Management
SdnBhd
13. Quill Capita Trust Commercial, Quill Capita Management SdnBhd
Carparks, Office,
Industrial
14. YTL Hospitality REIT Commercial, PintarProjekSdnBhd
(dulu dikenali Convertible
sebagaiStarhill Real Preference Unit of
Estate Investment REITs
Trust)
15. Sunway REIT Retail, Hotel, Office Sunway REIT Management
SdnBhd
16. Tower REIT Office GLM REIT Management SdnBhd
17. UOA REIT Office UOA Asset Management SdnBhd
312
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KESEDARAN PELAJAR INSTITUT PENGAJIAN TINGGI ISLAM DI

MELAKA TERHADAP APLIKASI MUDAH ALIH BERUNSURKAN
ISLAM
Shahrul Niza Samsudin 1

Ronizam Ismail 2
Norzaimah Zainol 2
Ab Wahid Sulaiman 2
Dina Syafini Zaid 1
1
Fakulti Inovasi Perniagaan & Perakaunan, Kolej Universiti Islam Melaka
2
Fakulti Sains & Teknologi, Kolej Universiti Islam Melaka
__________________________________________________________________________________________
Abstrak: Pembangunan teknologi maklumat dunia yang sentiasa pesat berkembang menjadikan
penggunaan “mobile apps” atau lebih dikenali sebagai aplikasi mudah alih atau ‘apps’ amat
popular. Selari dengan perkembangan itu, pembangunan pelbagai jenis perisian aplikasi mudah
alih, memudahkan pengguna mengaplikasikannya tanpa batasan lokasi dan masa. Malaysia
juga tidak ketinggalan dalam perkembangan arus perdana ini. Pelbagai aplikasi mudah alih
dihasilkan dalam bidang pendidikan, perbankan, perubatan, keagamaan dan banyak lagi
dengan hanya satu tujuan iaitu untuk kemudahan pengguna. Kajian ini dijalankan secara
kuantitatif dengan mengemukakan soal selidik terhadap 360 orang pelajar prasiswazah KUIM
untuk mengetahui kesedaran mereka terhadap aplikasi mudah alih berunsurkan Islam.
Berdasarkan kajian yang telah dijalankan, terdapat perkaitan yang positif antara kekerapan
penggunaan aplikasi mudah alih berunsurkan Islam dengan tahap kesedaran pelajar tentang
aplikasi mudah alih berunsurkan Islam. Hasil kajian yang positif ini menunjukkan tahap
kesedaran pelajar terhadap aplikasi mudah alih berunsurkan Islam adalah tinggi dan kajian ini
berjaya mengetengahkan bahawa aplikasi mudah alih berunsurkan Islam ini banyak memberi
manfaat kepada penggunanya.
Kata kunci: Aplikasi Mudah Alih, Aplikasi Mudah Alih Berunsurkan Islam, Mobile Apps,
Islamic Mobile Apps, Institut Pengajian Tinggi Islam
____________________________________________________________________________
Pengenalan
Pada masa kini terdapat banyak bahan dan rujukan telah dihasilkan dalam format digital.
Salah satu contoh teknologi digital yang popular adalah aplikasi mudah alih atau “mobile apps”
yang merupakan satu program yang direka khas untuk telefon pintar dengan kemudahan
Internet. Internet merupakan salah satu kemudahan yang dicipta melalui kemajuan teknologi
ICT. Sejak mula diperkenalkan pada awal tahun 1960-an Internet telah menjadi teknologi
penting dalam semua aspek kehidupan manusia (Leiner et al., 2009). Internet telah digunakan
secara meluas untuk pelbagai tujuan seperti untuk komunikasi, hiburan, pendidikan, aktiviti
ekonomi dan sebagainya. Aplikasi teknologi di hujung jari hanya boleh dimuat turun dengan
adanya jaringan Internet. Pelbagai maklumat dalam talian maya dapat diterokai dengan pantas.
Maklumat tidak hanya terbatas pada satu cabang bidang ilmu sahaja. Aplikasi mudah alih terdiri
daripada perisian atau set program yang berjalan pada peranti mudah alih dan melaksanakan
tugas-tugas tertentu untuk pengguna. Ciri-ciri aplikasi mudah alih yang mudah, mesra
313
ISBN: 978-967-14841-4-2
pengguna, dan murah membolehkan sebahagian besar pengguna telefon mudah alih
menggunakannya. Walaupun banyak aplikasi yang telah dibangunkan sejak kebelakangan ini,
namun aplikasi telefon pintar yang bercirikan keagamaan terutamanya agama Islam masih
kurang jika dibandingkan dengan aplikasi-aplikasi yang lain.
Pernyataan Masalah dan Objektif Kajian

Bilangan aplikasi mudah alih berunsurkan Islam melalui carian di Google Play Store hanya
250 aplikasi (Ronizam et. al., 2015). Ini menunjukkan jumlah tersebut masih kurang berbanding
aplikasi telefon pintar yang lain dan masih memerlukan kajian yang terperinci. Objektif kajian
ialah untuk mengenalpasti hubungan di antara kekerapan penggunaan aplikasi dengan
kesedaran pelajar tentang aplikasi mudah alih berunsurkan Islam, mengenalpasti kekerapan
penggunaan aplikasi mudah alih berunsurkan Islam dan mengenalpasti sistem operasi yang
digunakan pada telefon pintar atau tablet.
Kajian Literatur
Teknologi maklumat dan komunikasi (ICT) merupakan sebuah sistem yang boleh
digunakan dalam pelbagai aspek seperti memproses, mengurus, memanipulasi, menyimpan,
memindah dan menyebarkan maklumat melalui media elektronik. Oleh yang demikian,
pengaruh teknologi ICT dijangkakan akan memberi kesan yang lebih besar terhadap dunia akan
datang lantaran penggunaannya yang meluas pada masa kini. Internet pula merupakan salah
satu kemudahan yang dicipta melalui kemajuan teknologi maklumat dan komunikasi (ICT).
Internet telah menjadi kemudahan penting dalam kelangsungan kehidupan manusia sejak dari
awal ianya diperkenalkan lagi iaitu pada awal tahun 1960-an (Leiner et al. 2009). Bilangan
pengguna internet di seluruh dunia adalah berjumlah hampir tiga billion (Kende, 2014).
Telefon bimbit ditafsirkan sebagai satu alat yang mempunyai peranan yang penting sebagai
medium komunikasi dan telah berjaya menarik minat pelbagai golongan untuk memilikinya.
Bagi Aminuddin Hassan et al. (2015), istilah telefon bimbit juga boleh diakui membawa
maksud ianya turut terdiri daripada tablet skrin sentuh. Kajian-kajian lalu menunjukkan bahawa
telefon bimbit adalah alat yang penting dalam kemajuan dan penggunaan aplikasi. Lantaran
daripada itu, dapat dilihat bahawa peranan komputer yang dahulunya menjadi medium utama
di dalam sistem penyebaran maklumat di atas talian, kini telah diambil alih oleh telefon pintar.
Ini terbukti dengan pelbagai kemudahan dan alternatif yang telah di masukkan ke dalam telefon
pintar seperti melayari laman web, penggunaan internet, laman sosial dan sebagainya.
Pandangan tersebut disokong oleh pengkaji Aminuddin Hassan et al. (2015), yang menyatakan
bahawa, telah banyak tambahan item yang dimasukkan ke dalam telefon pintar pada masa kini
seperti kamera, pembaca kod bar dan sistem kedudukan global (GPS).
Teknologi adalah alat yang boleh digunakan oleh umat Islam dalam kehidupan seharian
mereka untuk membantu dalam ibadah mereka. Selain untuk ibadah, aktiviti dakwah juga
dilaksanakan dengan lebih berkesan. Dakwah tidak hanya terhad kepada seruan secara lisan,
tetapi juga harus menggunakan media yang luas dan terkini asalkan tidak bercanggah dengan
ajaran Islam (Syamsul Bahri Andi Galigo, 2006). Penggunaan aplikasi mudah alih berunsurkan
dakwah Islam yang bersesuaian dengan tujuan dan amalan harian semakin mendapat tempat di
Malaysia.
Kerangka Konsep
Tahap Kesedaran Pelajar Kolej

Kekerapan Penggunaan Aplikasi Universiti Islam Melaka Tentang
Mudah Alih Islamik 314 Aplikasi Mudah Alih Islamik
ISBN: 978-967-14841-4-2
Metodologi & Rekabentuk Kajian
Sampel dan Kaedah Pengumpulan Data

Rekabentuk kajian ini adalah seperti Jadual 1 di bawah :
Reka Bentuk Kaedah Pengumpulan Responden Jenis Data
Kajian Deskriptif Soal Selidik Pelajar KUIM Kuantitatif

Jadual 1: Rekabentuk Kajian
Populasi kajian ini adalah merujuk kepada semua pelajar di Kolej Universiti Islam
Melaka. Menurut sumber daripada Bahagian Akademik, KUIM (Jun 2015), seramai 5,543
orang pelajar berstatus aktif.
Instrumen Kajian
Penyelidik akan menggunakan format soalan berstruktur tertutup atau berskala. Bagi tujuan
interprestasi penilaian aplikasi ini, penyelidik mengunakan soalan berbentuk dwi pilihan dan
Skala Likert. Lima skala pilihan yang terkandung di dalam Skala Likert adalah diberi nilai satu
hingga lima, di mana 1 = sangat tidak setuju, 2 = tidak setuju, 3 = tidak pasti, 4= setuju dan 5=
sangat setuju.
Dapatan Kajian dan Perbincangan

Analisis Kebolehpercayaan
Kesemua konstruk menunjukkan nilai Cronbach’s Alpha melebihi 0.7. Nilai Cronbach’s
Alpha yang lebih besar daripada 0.70 adalah nilai kebolehpercayaan yang baik dan dapat
diterima dalam mengukur sesebuah instrumen ( Hair, 2013 ; Hair, Black, Babin, Anderson, &
Tatham, 2006).
Konstruk Kajian Cronbach Alpha (α)

Keseluruhan Instrumen 0.91
Kesedaran pelajar tentang aplikasi mudah alih 0.89
Islamik
Kekerapan penggunaan aplikasi mudah alih 0.75
Islamik
Jadual 2 : Tahap Kebolehpercayaan Item
Statistik deskriptif dan Analisis

Kajian ini dijalankan terhadap 360 orang responden yang terdiri daripada pelajar Kolej
Universiti Islam Melaka yang dipilih secara rawak. Jadual 3 menunjukkan jumlah responden
kajian mengikut jantina.
Jantina Jumlah
Lelaki 150
Perempuan 210
Jumlah Keseluruhan 360

Jadual 3: Jumlah Responden Kajian Mengikut Jantina
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Responden kajian juga terdiri daripada enam (6) buah fakulti dalam Kolej Universiti
Islam Melaka. Melalui Jadual 4 dapat disimpulkan bahawa responden yang terlibat dalam
kajian ini adalah mewakili setiap fakulti.
Fakulti Jumlah Peratusan (%)
Akademi Pengajian Islam (API) 83 23.1
Fakulti Sains Sosial (FSS) 171 47.5
Fakulti Kejururawatan (FK) 1 0.3
Fakulti Inovasi Perniagaan dan 93 25.8

Perakaunan (FIPP)
Fakulti Pengurusan Hospitaliti (FPH) 3 0.8
Fakulti Sains Teknologi dan Kejuruteraan 9 2.5

(FST)
Jumlah Keseluruhan 360 100

Jadual 4 : Jumlah dan Peratusan Responden Mengikut Fakulti
Responden juga merangkumi daripada pelbagai peringkat umur memandangkan kajian

tertumpu kepada pelajar pra-siswazah KUIM. Jadual 5 menunjukkan jumlah responden
daripada pelbagai peringkat umur dan program yang diambil.
Program
Diploma Ijazah Sarjana Muda
Jumlah Peratus Jumlah Peratus

(%) (%)
Umur 18 - 21 tahun 86 23.9 33 9.2
22 - 25 tahun 21 5.8 216 60.0
26 tahun dan ke atas 0 0.0 4 1.1
Jumlah Keseluruhan 107 29.7 253 70.3

N = 360
Jadual 5 : Peringkat Umur Responden Mengikut Program
Jadual 6 daripada data kajian mendapati bahawa kesemua responden mempunyai

telefon pintar. Manakala Jadual 7 di bawah, tidak kesemua responden mempunyai aplikasi
mudah alih berunsurkan Islam. Hanya 89.4% responden mempunyai aplikasi mudah alih
berunsurkan Islam dalam telefon pintar mereka.
Adakah anda mempunyai telefon pintar? Kekerapan Peratus (%)
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ISBN: 978-967-14841-4-2
Ya 360 100
Jadual 6 : Peratus Responden Mempunyai Telefon Pintar
Adakah anda mempunyai Aplikasi Mudah Alih Berunsurkan Islam dalam telefon pintar?
Ya Tidak
Jumlah Peratus (%) Jumlah Peratus (%)
321 89.2 39 10.8

Jadual 7 : Telefon Pintar Dan Aplikasi Mudah Alih Islamik
Berdasarkan Jadual 8 pula, majoriti responden mempunyai aplikasi mudah alih

berunsurkan Islam adalah pengguna Android iaitu sebanyak 73.9% seramai 266 orang. Diikuti
13.3% pengguna IOS iaitu seramai 48 orang, 1.4% Windows Phone dan 0.6% BBOS.
Adakah anda mempunyai Aplikasi Mudah Alih Berunsurkan

Islam dalam telefon pintar?
Ya Tidak
Jumlah Peratus (%) Jumlah Peratus (%)
Android 266 73.9 35 9.7
iPhone Operating System 48 13.3 3 0.8
BlackBerry Operating System 2 0.6 1 0.3
Windows Phone 5 1.4 0 0.0
Jumlah 321 89.2 39 10.8

Jadual 8: Aplikasi Mudah Alih Berunsurkan Islam dan Sistem Operasi Telefon
Disini dapat disimpulkan bahawa jumlah aplikasi mudah alih berunsurkan Islam dalam
telefon pintar dapat mempengaruhi kekerapan penggunaan oleh responden.
Berapakah Aplikasi Mudah alih berunsurkan Islam yang terdapat dalam

telefon anda?
Tiada 1 - 5 aplikasi 6 - 10 aplikasi 11 aplikasi dan ke

atas
Tiada 39 (10.83%) 0 0 0
Sekurang-kurangnya 1 kali 0 192 (53.33%) 17 (4.72%) 0

sehari
Sekurang-kurangnya 1 kali 0 89 (24.74%) 5 (1.39%) 1 (0.28%)

seminggu
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Sekurang-kurangnya 1 kali 0 14 (3.89%) 0 0

sebulan
Sekurang-kurangnya 1 kali 0 3 (0.83%) 0 0

setahun
Jumlah 39 298 22 1
Jadual 9 : Jumlah Aplikasi Mudah alih berunsurkan Islam Dengan Kekerapan Penggunaannya
Dapatan dalam Jadual 10 boleh diringkaskan bahawa secara purata, tahap kesedaran
pelajar tentang aplikasi mudah alih berunsurkan Islam dalam dapat membantu mengetahui
waktu solat adalah paling tinggi. Ini kerana, seramai 211 responden memilih menanda skor
sangat setuju (Skala 5). Responden yang memilih skor sama ada sangat tidak setuju dan tidak
setuju iaitu seramai 135 orang menunjukkan bahawa peranan guru tidak boleh diganti dengan
aplikasi mudah alih berunsurkan Islam.
Ekoran daripada jumlah responden sama ada sangat tidak setuju dan tidak setuju bahawa
aplikasi mudah alih berunsurkan Islam boleh menggantikan peranan guru telah menyokong
kepada kajian Khodijah Ab Rahman et. al (2015). Kajian tersebut menjelaskan bahawa
kemunculan aplikasi mudah alih berunsurkan Islam tidaklah untuk membelakangkan
kepentingan berguru secara berhadapan tetapi sebagai pendekatan yang dijadikan sebagai
cabang jalan lain dalam berguru. Hal ini demikian kerana, jumlah setuju dan sangat setuju
adalah sebanyak 127 orang, dapat disimpulkan bahawa aplikasi mudah alih Islamik dijadikan
sebagai alternatif lain yang digunakan untuk belajar berkenaan keagamaan.
No. ITEM MIN MEDIAN MOD SD
1 Aplikasi Mudah Alih Islamik dapat membantu dalam 4.48 5.00 5 0.739
mengetahui waktu solat.
2 Aplikasi Mudah Alih Islamik boleh menggantikan 2.85 3.00 3 1.259

peranan guru.
Jadual 10 : Item Kesedaran Pelajar Terhadap Aplikasi Mudah Alih Islamik
Melalui nilai peratusan tersebut juga dapat disimpulkan bahawa kekerapan responden
menggunakan aplikasi mudah alih Islamik untuk membantu mereka dalam mengetahui waktu
solat.
Jadual 11 menunjukkan nilai kekerapan penggunaan aplikasi berdasarkan item yang
disoal kepada responden melalui borang soal selidik. Berdasarkan konstruk, min dan median
item yang menunjukkan nilai tertinggi adalah 4.12 dan 4.00. Item1 ini menunjukkan nilai
jumlah setuju (Skala 4) adalah paling tinggi iaitu sebanyak 151 responden. Melalui jumlah
tersebut, boleh dikatakan aplikasi mudah alih kerap digunakan untuk dijadikan sebagai
peringatan apabila waktu solat tiba oleh responden. Manakala daripada lima (5) item tersebut
terdapat satu item yang menunjukkan jumlah min dan median yang terendah iaitu item3. Jumlah
setuju sebanyak 104 orang adalah lebih cenderung dan kerap menggunakan Al-Quran
berbentuk aplikasi berbanding kitab dan buku.
No. ITEM MIN MEDIAN MOD SD
318
ISBN: 978-967-14841-4-2
1 Saya lebih cenderung menggunakan Aplikasi Mudah Alih 4.12 4.00 4 0.922
Islamik untuk mengingatkan saya setiap kali waktu solat
tiba.
2 Saya lebih cenderung menggunakan Al-Quran berbentuk 3.10 3.00 4 1.171

Aplikasi Mudah Alih Islamik daripada menggunakan
buku dan kitab.
Jadual 11 : Item Kekerapan Penggunaan Aplikasi Mudah Alih Islamik
Penghargaan
Sekalung penghargaan buat pihak Kolej Universiti Islam Melaka di atas penganugerahan
Geran Dalaman yang menyumbang ke arah penerbitan artikel ini.
Kesimpulan
Alat mudah alih mahupun telefon pintar merupakan alat medium yang pada hari ini
masyarakat memilikinya. Hasil kajian melalui demografi responden mendapati bahawa
kesemua responden iaitu seramai 360 orang mempunyai telefon pintar dan dapatan ini
menyokong kata-kata Erdogdu & Erdogdu (2015). Walaupun jumlah aplikasi mudah alih
Islamik di Google Playstore menunjukkan hanya 250 aplikasi mudah alih Islamik sahaja
berdasarkan kajian Ronizam et. al (2015). Namun tidak mustahil berkemungkinan aplikasi ini
akan terus meningkat dan berkembang mengikut peradaran masa dan dunia teknologi.
Rujukan
Aminuddin Hassan, F. A. (2015). Meneroka Pemikiran Logik Melalui Penggunaan Aplikasi
Mudah Alih. International Journal of Education and Training (InJET) 1 (2) November , 1-
7.
Bahagian Hal Ehwal Akademik & Antarabangsa, Kolej Universiti Islam Melaka.
Erdogdu, F., & Erdogdu, E. (2015). The Impact Of Access To Ict, Student Background And
School/Home Environment On Academic Success Of Students In Turkey : An International
Comparative Analysis. Computers & Education, 82, 26-49.
Hair, J. F, Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate
Data Analysis (Vol. 6) : Pearson Prentice Hall Upper Saddle River, NJ.
Hair, J. F. (2013). Multivariate Data Analysis. Pearson Education Limited. Seventh Edition.
Kende, M. (2014). Global Internet Report 2014 : Open And Sustainable Access for All.
Internet Society : Switzerland.
Khodijah Binti Abdul Rahman, R. B. (2015). Perkembangan Aplikasi Mudah Alih Dalam
Penyebaran Dakwah Islam. International Conference on Information Technology & Society
, 230-237.
Leiner, B.M., Cerf, V.G., Clark, D.D., Kahn, R.E., Kleinrock, L., Lynch, D.C, Postel, J.,
Roberts, L.G., & Wolff, S. (2009). A Brief History Of The Internet. ACM SIGMOMM
Computer Communication Review, 39(5), 22-31.
Ronizam Ismail, Shahrul Niza Samsudin, Ab. Wahid Sulaiman, Norzaimah Zainol & Dina
Syafini Zaid. (2015). Kajian Tinjauan Literatur Terhadap Aplikasi Mudah Alih Berunsurkan
Islam. Journal of Global Business and Social Entrepreneurship (GBSE).
Syamsul Bahri Andi Galigo. (2006). Anjakan Paradigma Dakwah Dalam Menghadapi
Pelampau Agama. Kolej Universiti Islam Malaysia. Negeri Sembilan
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TAHAP PEMIKIRAN INVENTIF PELAJAR PINTAR DAN BERBAKAT

DALAM SUBJEK FIZIK
Mazliza Mohtar1
Yee Siew Kuan1
Ong Sy Ing1
1
Pusat PERMATApintar Negara, Universiti Kebangsaan Malaysia
__________________________________________________________________________________________
Abstrak: Pemikiran inventif merupakan salah satu elemen yang penting dalam kemahiran abad
ke-21 yang perlu dimiliki oleh setiap pelajar dalam mendepani cabaran globalisasi. Kajian ini
bertujuan untuk mengenalpasti tahap pemikiran inventif pelajar pintar dan berbakat di Malaysia
dalam subjek Fizik. Kaedah tinjauan menggunakan borang soal-selidik diedarkan kepada 97
orang pelajar dari Kolej PERMATApintar Negara, Universiti Kebangsaan Malaysia. Dapatan
kajian menunjukkan bahawa tahap pemikiran inventif pelajar pintar dan berbakat di Malaysia
dalam subjek Fizik adalah tinggi untuk setiap elemen dalam pemikiran inventif iaitu penyesuaian
diri dan pengurusan kerumitan, pengarahan kendiri, sifat ingin tahu, kreativiti, pengambilan
risiko serta pemikiran aras tinggi dan penaakulan yang baik. Tiada perbezaan yang signifikan
didapati dari segi jantina dan tingkatan pelajar. Oleh itu, kaedah pengajaran yang lebih
bersesuaian perlu diaplikasikan agar selaras dengan perkembangan kognitif dan tahap
intelektual pelajar pintar dan berbakat ini.
Kata Kunci: Pemikiran Inventif, Pelajar Pintar Dan Berbakat, Fizik.

____________________________________________________________________________
Pengenalan
Malaysia merupakan sebuah negara yang komited untuk mengembangkan institusi
pendidikan di mana kedua-dua ekuiti dan kecemerlangan merupakan matlamat utama proses
pembelajaran bagi setiap pelajar. Perkataan ekuiti di sini merujuk kepada peluang yang boleh
diperolehi oleh setiap pelajar untuk mendapat sokongan dan kesempatan bagi meningkatkan
tahap pembelajaran ke aras yang lebih tinggi. Kecemerlangan pula merujuk kepada keperluan
untuk mendapatkan peluang bagi mengembangkan potensi diri dan memaksimumkan
keupayaan pembelajaran masing-masing (Noriah et al., 2009).
Sejajar dengan perubahan masa dari abad ke-20 ke abad ke-21, banyak perkara perlu
mengalami perubahan termasuk sistem pendidikan dengan tujuan untuk melahirkan modal
insan minda kelas pertama yang bijak, kritis, kreatif dan berkemahiran serta boleh berhadapan
dengan pelbagai cabaran dan halangan. Dalam ekonomi global masa kini, kejayaan sesebuah
negara bergantung kepada pengetahuan, kemahiran dan kompetensi yang dimiliki oleh
rakyatnya. Maka tidak menghairankan sekiranya sesebuah negara yang mempunyai rakyat
berpendidikan tinggi mampu menjana ekonomi dengan pesat demi kemakmuran negara
(Azizah, 2015).
Perubahan demi perubahan dilakukan dalam sistem pendidikan di Malaysia untuk mencapai
matlamat melahirkan pelajar yang memiliki segala kemahiran yang diperlukan untuk merebut
peluang dan berdepan dengan cabaran abad ke-21 yang semakin sengit. Pembelajaran abad ke-
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21 memerlukan pelajar untuk menonjolkan diri dan kebolehan atau lebih tepat ia berpusatkan
pelajar. Sekolah harus menyediakan peluang pendidikan dengan kurikulum berasaskan projek
yang autentik dengan keadaan kehidupan sebenar, melibatkan pelajar menangani dan
menyelesaikan masalah kehidupan sebenar serta isu yang penting dalam kehidupan sejagat.
Perubahan yang dilakukan dalam kurikulum ini berhasrat untuk melahirkan pelajar yang
matang serta berkebolehan dalam komunikasi, bekerja dalam pasukan, menyelesaikan masalah,
mahir dalam pelbagai bidang serta kebolehan mencipta, bijak melakukan inovasi dan kreatif
(Azizah, 2015).
Terdapat lima komponen utama dalam kemahiran abad ke-21 iaitu kemahiran literasi era
digital, pemikiran inventif, kemahiran komunikasi berkesan, penghasilan produktiviti tinggi
serta norma dan nilai kerohanian. Dalam konteks ini, pemikiran inventif adalah salah satu
komponen penting dalam kemahiran abad ke-21 untuk mengukur tahap dan kebolehan murid
berfikir secara kritis, menganalisis masalah dan mengumpulkan maklumat, berkomunikasi dan
berkolaborasi, kreativiti dan inovasi bagi memenuhi aspirasi negara (Faiza & Zamri, 2017).
Pemikiran Inventif
Pemikiran inventif merupakan komponen penting dalam perkembangan kemahiran abad ke-
21. NCREL dalam enGauge 21st Century Skills for 21st Century Learners (NCREL, 2002)
menyatakan pemikiran inventif sebagai salah satu set tabiat minda dan menegaskan bahawa
setiap pelajar dalam abad ke-21 perlu berkeupayaan berfikir secara total kerana setiap cabaran
atau permasalahan perlu dihadapi dengan berstruktur dan bersistem.
Terdapat enam elemen penting dalam pemikiran inventif iaitu penyesuaian diri dan
pengurusan kerumitan, pengarahan kendiri, sifat ingin tahu, kreativiti, pengambilan risiko serta
pemikiran aras tinggi dan penaakulan yang baik (NCREL, 2002; Maria & Kamisah, 2010;
Aliamat, 2014).
Elemen yang pertama iaitu penyesuaian diri dan pengurusan kerumitan adalah merujuk
kepada keupayaan pelajar untuk mengenalpasti pelbagai perspektif, keupayaan untuk
memodifikasi pemikiran, sikap atau kelakuan agar dapat menyesuaikan diri dengan keadaan
semasa atau persekitaran masa depan, keupayaan untuk menangani pelbagai matlamat, tugasan
dan input di samping dapat memahami dan dapat menguruskan masa, sumber dan sistem yang
terhad dengan baik. Elemen yang kedua iaitu pengarahan kendiri merujuk kepada keupayaan
pelajar untuk menetapkan matlamat dalam pembelajaran dan perancangan demi mencapai
sesuatu objektif yang ditetapkan di samping dapat menguruskan masa dan usaha serta menilai
kualiti pembelajaran dan hasil pembelajaran secara kendiri.
Elemen yang ketiga ialah sifat ingin tahu. Aspek ini merujuk kepada keinginan untuk
mengetahui dan mempelajari serta melahirkan minat yang dapat memandu kepada inkuiri.
Kreativiti merupakan elemen keempat yang merujuk kepada keupayaan pelajar untuk
menghasilkan sesuatu yang baru dan asli dari pemikiran sendiri. Berani mengambil risiko
walaupun dibayangi kesilapan, mempunyai motivasi untuk mempelajari sesuatu yang mencabar
dan mempunyai personaliti yang matang.
Perasaan tidak takut atau kesediaan untuk melakukan kesilapan, berani menghadapi
keadaan yang luar biasa, berani untuk menerima masalah yang mencabar yang masih tidak
mempunyai cara penyelesaian yang jelas merupakan aspek-aspek yang terdapat dalam elemen
yang kelima iaitu pengambilan risiko. Manakala, elemen yang keenam iaitu pemikiran aras
tinggi dan penaakulan yang baik adalah merujuk kepada proses kognitif seperti menganalisis,
membuat perbandingan, inferens, interpretasi, penilaian dan penyelesaian masalah dalam
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kehidupan seharian mereka. Elemen-elemen ini perlu dikuasai oleh pelajar hari ini bagi
memastikan faedah berpemikiran inventif dapat diperoleh tepat pada masanya.
Pemikiran inventif menuntut pelajar agar sentiasa berusaha mencari jalan penyelesaian
dengan idea-idea baru dan bersedia untuk menghadapi persaingan dalam penyelesaian masalah
yang serba mencabar. Bagi menghadapi saingan dan cabaran ini, murid-murid perlu diterapkan
dengan kemahiran-kemahiran pembelajaran menerusi pembelajaran abad ke-21 ini. Cabaran
pendidikan abad ke-21 menjurus kepada Kemahiran Berfikir Aras Tinggi (KBAT) dalam
suasana pembelajaran dalam bilik darjah yang lebih kondusif serta dinamik. Selain itu,
pelaksanaan bahan pengajaran berasaskan teknologi dan maklumat dittitikberatkan untuk
impak pembelajaran yang lebih efektif dan relevan dengan perkembangan dunia hari ini. Pelajar
bukan diajar untuk mendapat keputusan yang baik dalam peperiksaan sahaja, tetapi perlu
menterjemahkan dan menghayati apa yang dipelajari sama ada dalam menyelesaikan masalah
di alam pekerjaan atau menjalankan kehidupan seharian mereka dengan baik dan teratur (Faiza
& Zamri, 2017).
Pelajar Pintar Dan Berbakat (Gifted And Talented)

Terdapat pelbagai takrifan diberikan dalam menjelaskan maksud pelajar pintar dan
berbakat. Secara umumnya, seorang kanak-kanak yang mempunyai kebolehan kognitif yang
jauh lebih tinggi berbanding rakan sebaya mereka dikatakan sebagai seorang kanak-kanak
pintar dan berbakat (Aliza & Hamidah, 2009). Kemampuan kognitif merujuk kepada kemahiran
dan pemprosesan mental seseorang untuk menyelesaikan tugasan yang melibatkan pemikiran.
Ini merupakan tahap serta kemahiran pemprosesan maklumat diminda seseorang. Pemprosesan
maklumat tersebut merangkumi daripada yang paling mudah kepada yang paling kompleks.
Sekiranya kemampuan kognitif tidak dipergunakan, kemampuan tersebut akan terhapus.
Sebaliknya sekiranya kemampuan kognitif sering digunakan ia akan menjadi bertambah baik
(Rosadah et al., 2009). Kanak-kanak ini menunjukkan keupayaan prestasi yang tinggi dari segi
intelek, kreativiti, seni atau memiliki keupayaan kepimpinan yang luar biasa atau mempunyai
bakat dalam bidang seni dan muzik atau cemerlang dalam bidang akademik yang khusus (Aliza
& Hamidah, 2009).
Gardner (1983) telah membincangkan ciri kanak-kanak pintar dan berbakat dari sudut
kemampuan individu untuk berfikir. Oleh itu, beliau merujuk kepada kecerdasan sebagai
kompetensi atau kecekapan untuk menyelesaikan sesuatu masalah, dan kadang kala
menghasilkan sebuah produk yang berkesan. Gardner (1983) turut mencadangkan bahawa
individu pintar juga berkemampuan untuk mencari atau mencipta masalah yang menjurus
kepada cetusan penemuan ilmu baru.
Pelajar pintar dan berbakat mempunyai keperluan khas yang berlainan daripada pelajar-
pelajar sederhana atau pelajar istimewa. Mereka mempunyai ciri-ciri seperti mempunyai rasa
ingin tahu yang tinggi, sentiasa tekun dalam mengejar minat dan mencari jawapan kepada
persoalan yang timbul dalam minda mereka dan dapat melihat hubungan yang wujud antara
pandangan-pandangan yang berbeza serta menghasilkan pelbagai idea dari satu rangsangan
yang spesifik yang memerlukan persekitaran pembelajaran yang sangat mencabar (Tuttle &
Becker, 1980).
Justeru itu, pendekatan yang dirancang khas adalah perlu agar dapat memberi cabaran yang
sesuai dengan keperluan pembelajaran pelajar pintar cerdas dan berbakat agar pembelajaran
mereka berlaku secara optimal.
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Kajian Lepas Mengenai Pemikiran Inventif

Tinjauan ke atas hasil kajian lepas menunjukkan bahawa tahap pemikiran inventif pelajar
tingkatan empat dan lima dalam subjek Biologi di Kolej PERMATApintar, Universiti
Kebangsaan Malaysia adalah tinggi dengan min skor 3.902. Tiada perbezaan yang signifikan
dari segi jantina pelajar dengan nilai t (67) = 0.300, p > 0.05 namun begitu terdapat perbezaan
yang signifikan dari segi tingkatan pelajar dengan nilai t (67) = 2.312, p < 0.05 (Ong &
Kamisah, 2014).
Kajian yang dijalankan oleh Nurul et al. (2015) juga mendapati tahap pemikiran inventif
pelajar tingkatan empat dalam subjek matematik di sebuah sekolah di Putrajaya adalah tinggi
dengan min skor 3.80 dan tiada perbezaan yang signifikan dari segi jantina pelajar dengan nilai
t (60) = 1.123, p > 0.05. Kajian oleh Maria dan Kamisah (2010) terhadap pemikiran inventif
pelajar darjah 5 di Malaysia dan Brunei pula mendapati terdapat perbezaan yang signifikan dari
segi negara dalam konstruk penyesuaian diri dan pengurusan kerumitan, pengarahan kendiri,
sifat ingin tahu dan kreativiti. Hasil kajian juga mendapati terdapat perbezaan yang signifikan
dari segi jantina dalam konstruk penyesuaian diri dan pengurusan kerumitan, sifat ingin tahu
dan kreativiti.
Dalam kajian-kajian yang dilakukan oleh Barak dan Mesika (2007) dan Alexander et al.
(2008), dapat disimpulkan bahawa tahap pemikiran inventif peserta kajian dapat diperkasakan
dengan menyediakan suasana pembelajaran yang mencabar fikiran pelajar melalui kaedah
penyelesaian masalah.
Objektif kajian
Menyedari penguasaan kemahiran abad ke-21 amat penting bagi pelajar untuk menempuh
kehidupan dunia global, kajian ini dijalankan bagi mengenalpasti tahap pemikiran inventif
pelajar pintar dan berbakat di Malaysia dalam subjek Fizik. Kajian ini juga dilaksanakan untuk
mengenalpasti tahap pemikiran inventif pelajar berdasarkan jantina dan tingkatan pelajar.
Metodologi
Reka Bentuk Kajian
Kajian ini merupakan kajian kuantitatif yang dijalankan secara tinjauan untuk
mengenalpasti tahap pemikiran inventif pelajar pintar dan berbakat di Malaysia dalam subjek
Fizik.
Sampel Kajian
Seramai 97 orang pelajar dari Kolej PERMATApintar Negara, Universiti Kebangsaan
Malaysia telah dipilih sebagai responden atau sampel kajian. Pelajar telah dikategorikan
mengikut tingkatan dan jantina. Daripada jumlah tersebut, 53.6% responden adalah pelajar
lelaki manakala selebihnya iaitu 46.4% adalah pelajar perempuan. Pecahan mengikut tingkatan
pula menunjukkan bahawa sebanyak 47.4% pelajar tingkatan 4 dan 52.6% pelajar tingkatan 5
terlibat dalam kajian ini.
Instrumen Kajian
Kajian ini menggunakan instrumen soal selidik sebagai alat kajian utama untuk mengukur
tahap pemikiran inventif pelajar dalam subjek Fizik. Borang soal-selidik yang digunakan dalam
kajian ini terbahagi kepada 2 bahagian, iaitu Bahagian A mengenai latar-belakang pelajar
manakala Bahagian B terdiri daripada soal-selidik pemikiran inventif yang diadaptasi dan
diubahsuai daripada instrumen soal selidik Ong & Kamisah (2014). Bahagian B mempunyai 42
item (5 skala likert) merangkumi enam elemen dalam pemikiran inventif iaitu penyesuaian diri
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dan pengurusan kerumitan, pengarahan kendiri, sifat ingin tahu, kreativiti, pengambilan risiko
serta pemikiran aras tinggi dan penaakulan yang baik. Kesemua 42 item ini telah disahkan
mempunyai nilai kebolehpercayaan yang tinggi iaitu 0.93 .
Analisis data
Data telah dianalisis menggunakan perisian komputer IBM SPSS v.22 (Predictive Analytics
Software) menggunakan statistik deskriptif dan inferensi. Statistik deskriptif digunakan bagi
mendapatkan nilai min, sisihan piawai, frekuensi dan peratusan. Manakala, ujian-t dijalankan
untuk menganalisis perbezaan tahap pemikiran inventif responden dari segi jantina dan
tingkatan.
Dapatan Kajian Dan Perbincangan

Kajian ini melibatkan seramai 97 responden yang terdiri daripada 46 orang pelajar
Tingkatan 4 dan 51 orang pelajar Tingkatan 5 di Kolej PERMATApintar Negara, Universiti
Kebangsaan Malaysia. Daripada jumlah tersebut, seramai 52 responden adalah pelajar lelaki
manakala selebihnya iaitu 45 respoden adalah pelajar perempuan.
Jadual 1 menunjukkan bahawa tahap pemikiran inventif kesemua pelajar adalah tinggi
dengan nilai min 3.704 dan sisihan piawai 0.465 dari keenam-enam aspek iaitu penyesuaian
diri dan pengurusan kerumitan (min = 3.742), pengarahan kendiri (min = 3.986), sifat ingin
tahu (min = 3.776), kreativiti (min = 3.492), pengambilan risiko (min =3.507) serta pemikiran
aras tinggi dan penaakulan yang baik (min =3.720).
Jadual 1 : Min Dan Sisihan Piawai Bagi Setiap Aspek Dalam Pemikiran Inventif.
Elemen Min Sisihan Piawai Tahap
Penyesuaian diri dan
3.742 0.478 Tinggi
pengurusan kerumitan
Pengarahan kendiri 3.986 0.538 Tinggi
Sifat ingin tahu 3.776 0.475 Tinggi
Kreativiti 3.492 0.373 Tinggi
Pengambilan risiko 3.507 0.449 Tinggi
Pemikiran aras tinggi dan
3.720 0.479 Tinggi
penaakulan yang baik
Jadual 2 menunjukkan keputusan analisis ujian-t dan skor min tahap pemikiran inventif
pelajar berdasarkan jantina. Hasil dapatan kajian menunjukkan tidak terdapat perbezaan yang
signifikan terhadap tahap pemikiran inventif antara pelajar lelaki dan pelajar perempuan dengan
nilai t (97) = 1.123, p > 0.05, walaupun min pelajar lelaki (m=3.753) lebih tinggi daripada min
pelajar perempuan (m=3.648) tetapi perbezaan ini tidak mempunyai sebarang perbezaan yang
bermakna dari segi statistik.
Jadual 2 : Analisis tahap pemikiran inventif berdasarkan jantina.

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Jantina Min Sisihan piawai t Sig

Lelaki (n= 52) 3.753 0.455
1.123 0.455
Perempuan (n= 45) 3.648 0.470
Jadual 3 juga menunjukkan bahawa tidak terdapat perbezaan yang signifikan terhadap
tahap pemikiran inventif berdasarkan tingkatan dengan nilai t (97) = -0.760, p > 0.05, walaupun
nilai min skor pelajar tingkatan 4 (m=3.658) lebih rendah daripada nilai min skor pelajar
tingkatan 5 (m=3.750) tetapi perbezaan ini tidak mempunyai sebarang perbezaan yang
bermakna dari segi statistik.
Jadual 3 : Analisis tahap pemikiran inventif berdasarkan tingkatan.

Tingkatan Min Sisihan piawai t Sig
Tingkatan 4 (n= 46) 3.658 0.434
-0.760 0.518
Tingkatan 5 (n= 51) 3.750 0.435
Kesimpulan
Hasil daripada analisis data membuktikan bahawa responden kajian iaitu pelajar Kolej
PERMATApintar Negara, Universiti Kebangsaan Malaysia mempunyai tahap pemikiran
inventif yang tinggi. Ini dapat diperhatikan melalui kesemua nilai min skor bagi keenam-enam
elemen pemikiran inventif yang terdiri daripada penyesuaian diri dan pengurusan kerumitan,
pengarahan kendiri, sifat ingin tahu, kreativiti, pengambilan risiko serta pemikiran aras tinggi
dan penaakulan yang baik. Justeru, kajian pemikiran inventif sangat penting kerana dapat
membantu para guru dalam mentransformasikan sistem pendidikan untuk pelajar pintar dan
berbakat ini. Pemikiran inventif merupakan salah satu kemahiran Abad Ke-21 yang amat
penting untuk diperkasakan kerana ia merupakan salah satu kunci teras kepada pemangkin
kemajuan individu yang bakal menjadi peneraju dan pengisi kepada kelangsungan dan
penyemarakan sektor ekonomi dan sosial negara (Aliamat, 2014). Oleh itu, inovasi dan
penambahbaikan dalam aspek pengajaran dan pembelajaran yang terancang dan bersesuaian
menerusi pembelajaran abad ke-21 perlulah diaplikasikan untuk mengembangkan lagi potensi
mereka selaras dengan kebolehan mereka yang boleh belajar di aras kognitif yang lebih tinggi.
Rujukan
Alexander Sokol, David Oget, Michel Sonntag & Nikolai Khomenko. (2008). The development
of inventive thinking skills in the upper secondary language classroom. Thinking Skills and
Creativity 3:34–46.
Aliamat Omar Ali. (2014). Pemerkasaan Pemikiran Inventif di Negara Brunei Darussalam: Satu
Percubaan Awal dalam Pengajaran dan Pembelajarannya dalam Mata Pelajaran Bahasa
Melayu. Procedia Social and Behavioral Sciences 134 : 416 – 425.
Aliza Alias & Hamidah Yamat@Ahmad. (2009). Ciri kanak-kanak pintar cerdas. Dlm. Noriah
et al. (pnyt). PERMATApintar: Pengalaman UKM. Bangi: Universiti Kebangsaan
Malaysia.
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Azizah Mat Ail. (2015). Analisis Penguasaan Kemahiran Penaakulan Saintifik, Kemahiran
Proses Sains Dan Kemahiran Abad Ke-21 Dalam Kalangan Pelajar Sekolah Menengah Di
Jajahan Bachok, Kelantan. Disertasi Ijazah Sarjana. Universiti Pendidikan Sultan Idris.
Barak Moshe & Mesika Pnina. (2007). Teaching methods for inventive problem-solving in
junior high school. Thinking Skills and Creativity 2:19 – 29.
Faiza Hasbullah & Zamri Mahamod. (2017). Penerapan Pemikiran Inventif Dalam
Pembelajaran Bahasa Melayu Murid Sekolah Rendah. Prosiding Seminar Pendidikan
Serantau ke-VIII/Fakulti Pendidikan, UKM: 756-766.
Gardner Howard. (1983). Frames of mind: The theory of multiple intelligence. New York:
Basic Books.
Maria Abdullah & Kamisah Osman. (2010). 21st Century inventive thinking skill in science
among students in Malaysia and Brunei. Procedia Social and Behavioral Sciences 9: 1646–
1651.
NCREL: enGauge 21st Century Skills. (2002). Digital Literacies for a Digital Age.
http://www/ncrel/org/engauge/skills/skills.htm
Noriah Mohd Ishak, Rosadah Abd Majid & Siti Rahayah Ariffin. (2009). Sejarah dan konsep
PERMATApintar. Dlm. Noriah et al. (pnyt). PERMATApintar: Pengalaman UKM. Bangi:
Universiti Kebangsaan Malaysia.
Nurul Nashrah Salehudin, Noor Hasimah Hassan, Nur Aida Abd Hamid. (2015). Matematik
Dan Kemahiran Abad Ke-21: Perspektif Pelajar. Jurnal Pendidikan Matematik 3 (1): 24-
36.
Ong Sy Ing & Kamisah Osman. (2014). Pemikiran inventif pelajar pintar cerdas malaysia dalam
mata pelajaran biologi. International Seminar on Global Education II : Educational
Transformation Towards a Developed Country / Fakulti Pendidikan UKM 1:405-418.
Rosadah Abd Majid, Noriah Mohd Ishak & Melor Md Yunus. 2009. Kepintaran dan pintar
cerdas berbakat: Definisi dan makna. Dlm. Noriah et al. (pnyt). PERMATApintar:
Pengalaman UKM. Bangi: Universiti Kebangsaan Malaysia.
Tuan Mastura Tuan Soh, Nurazidawati Mohamad Arsad & Kamisah Osman. (2010). The
relationship between 21st century skills on students’ attitude and perception towards
physics. Procedia Social and Behavourial Sciences 7(C):546-554.
Tuttle, F.B. & Becker, L.A. (1980). Characteristics and identification of gifted and talented
students. National Education Association, Englewood Cliffs: NJ.
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PENGUASAAN BAHASA MELAYU PELAJAR PINTAR CERDAS DAN

BERBAKAT: ANALISIS UNGKAPAN INDAH DALAM PENULISAN
KARANGAN
Mariati binti Mokhtar 1
Mior Muhammad Saiful Nizan bin Muhd Saali1
Endang Pertiwi binti Saidy 1
1
Pusat PERMATApintarNegara, Universiti Kebangsaan Malaysia
_________________________________________________________________________________
Abstrak: Makalah ini membentangkan dapatan kajian penulisan karangan bahasa Melayu
pelajar pintar cerdas dan berbakat di Malaysia. Sebuah pusat yang menempatkan anak-anak
pintar dan cerdas ini telah diwujudkan iaitu di Pusat PERMATApintar® Negara yang terletak
di Universiti Kebangsaan Malaysia (UKM) Bangi. Anak-anak pintar dan cerdas ini atau dalam
istilah lainnya digelar sebagai „Gifted and Talented‟ adalah pelajar terpilih berdasarkan IQ
dan EQ mereka yang tinggi. Makalah ini melihat penguasaan bahasa Melayu pelajar pintar
cerdas dan berbakat ini, yang mana lebih memfokuskan aspek pemilihan ungkapan indah
pelajar dalam sampel jawapan bagi soalan karangan. Aspek ungkapan indah yang akan dilihat
ialah peribahasa, pantun, cogan kata, frasa menarik, petikan ucapan, kata-kata hikmat, petikan
hadis, kosa kata yang menarik, maksud ayat Al-Quran dan sebagainya. Kajian ini akan
menggunakan data sebanyak 60 sampel manuskrip jawapan karangan pelajar Tahap Dua iaitu
pelajar yang berusia 16 dan 17 tahun. Hasil dapatan kajian mendapati 100 peratus pelajar
pintar cerdas dan berbakat menggunakan ungkapan indah dalam menjawab soalan karangan.
Oleh itu dapat disimpulkan bahawa pelajar pintar cerdas dan berbakat ini mempunyai
keupayaan dan kebolehan intelek yang umum dalam menguasai konsep penulisan bahasa
dalam diri mereka. Kata kunci: penguasaan, pelajar pintar cerdas dan berbakat, ungkapan
indah
Keyword: Penguasaan, Pelajar Pintar Cerdas, Ungkapan Indah Dalam Penulisan Karangan
___________________________________________________________________________
Pendahuluan
Bahasa merupakan aset manusia yang paling berharga dalam mengekalkan
kemanusiaan itu sendiri. Melalui bahasalah, segala bentuk peradanan dan ilmu pengetahuan
disampaikan daripada satu generasi ke satu generasi sejak zaman berzaman. (Zulkifley Hamid,
2015). Menurutnya lagi, bahasa itu terdiri daripada dua komponen pengetahuan, iaitu
tatabahasa dan kecekapan berbahasa. Tatabahasa merujuk kepada peraturan-peraturan yang
diguna pakai dalam menyusun pelbagai unsur dalam sesuai bahasa bersesuaian dengan kaedah
penyusunan secara sistematik atau secara mendatar dan kecekapan berbahasa pula merujuk
kebolehan para pengguna bahasa untuk memilih dan menggunakan unsur-unsur yang
terkandung dalam sesuatu bahasa secara wajar bersesuaian dengan keperihalan keadaan bagi
memungkinkan pelbagai tujuan komunikasi mendapat kesan yang diharap-harapkan. Kedua-
dua aspek ini merupakan aspek penting yang perlu ada pada mana-mana penutur bahasa, lebih-
lebih lagi penutur bahasa rasmi sesebuah negara. Setiap negara di dunia mempunyai sebuah
bahasa rasmi yang menjadi bahasa perhubungan sehari-hari, misalnya sebagai bahasa surat-
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menyurat rasmi, dalam perbincangan Parlimen dan Dewan Negara dan sebagainya (Nik Safiah
Karim et. al, 2012).
Pelbagai usaha dilakukan bagi pelaksanaan penggunaan bahasa Melayu sebagai bahasa
kebangsaan dan bahasa rasmi. Pelaksanaan ini dilihat dalam dua aspek. Aspek pertama melalui
penggunaan bahasa Melayu dalam sistem pelajaran negara. Aspek kedua pula merupakan
penggunaan bahasa Melayu sebagai
bahasa rasmi dalam pentadbiran kerajaan. Dalam menjayakan usaha ini, bahasa Melayu
diberikan tempat sebagai pengantar ilmu pengetahuan supaya dapat berkembang menjadi
bahasa yang mampu menjadi asas dalam pembinaan negara bangsa yang maju dan berdaulat.
(Adenan Ayob, 2009). Justeru, kepentingan bahasa Melayu dapat dilihat bukan sahaja tertumpu
kepada masyarakat yang luas, tetapi dari golongan yang kecil. Disebabkan itu bagi subjek
bahasa Melayu Sijil Pelajaran Malaysia (SPM), pelajar sekurangkurangnya perlu mendapat
kredit dalam subjek tersebut. Implikasinya, pelajar tidak akan mendapat sijil SPM mereka jika
pelajar tidak lulus subjek tersebut. Pernyataan disokong dengan petikan akhbar Utusan Online
(2009) iaitu kerajaan bersedia pada masa hadapan untuk mewajibkan pelajar lulus di peringkat
kredit bagi subjek Bahasa Melayu sebagai syarat layak memperoleh Sijil Pelajaran Malaysia
(SPM). Timbalan Menteri Pelajaran, Dr. Mohd. Puad Zarkashi berkata pertimbangan itu dibuat
selepas kajian mendapati pelajar bukan Melayu dan Melayu gagal menguasai bahasa
kebangsaan itu dengan baik terutamanya dalam penulisan. Cadangan ini merupakan satu
langkah yang baik kerana hal ini boleh menimbulkan kesedaran dalam kalangan pelajar bahawa
penguasaan bahasa Melayu yang mana merupakan salah satu lambang jati diri seseorang rakyat
Malaysia tidak boleh diambil mudah kepentinggannya.
1.1 Pelajar Pintar Cerdas Dan Berbakat Pusat PERMATApintarNegara Kamus Dewan (2007)
mentakrifkan pintar sebagai cekap, pandai, banyak akal, cerdik, licin, mahir dalam membuat
sesuatu pekerjaan. Menurut Rosadah Abd. Majid et. al (2009), pintar atau smart merujuk
kepada sesuatu tingkah laku yang bijak dan cerdik sifatnya. Tingkahlaku itu membuktikan
kecekapan berfikir si pelakunya. Individu ini menurut Rosadah lagi, juga dikatakan mempunyai
kecerdasan. Kecerdasan ini boleh dikatakan sebagai kemampuan seseorang untuk menaakul,
menyelesaikan masalah, menggunakan bahasa dan mempelajari sesuatu. Terdapat beberapa
kajian yang dilakukan terhadap kanakkanak pintar cerdas dan berbakat ini. Antaranya ialah
kanak-kanak pintar cerdas dan berbakat mempunyai keupayaan yang lebih dalam beberapa
aspek seperti keupayaan kognitif atau kesenian berbanding dengan rakan sebaya mereka
(Hamidah Yamat et.al) (2009). Kanak-kanak pintar cerdas dan berbakat juga mempunyai
kemampuan linguistik. Hal ini meliputi pemikiran yang logikal, analitikal dan tersusun. Pelajar
pintar cerdas dan berbakat juga dikatakan berminat kepada permainan bahasa, menulis dan
bercakap. Mereka juga sensitif terhadap susunan serta kehalusan berbahasa, mempunyai
perbendaharaan kata yang banyak, pandai dalam ejaan, boleh menghafal dan mempelajari
bahasa asing. Pusat PERMATApintar® Negara merupakan pusat yang mengumpulkan pelajar
pintar cerdas dan berbakat dari seluruh Malaysia. Pusat PERMATApintar® Negara ini
dinaungi oleh isteri Perdana Menteri YBhg. Dato' Seri Haji Mohammad Najib bin Tun Haji
Abdul Razak iaitu Datin Seri Paduka Rosmah Mansor. Kerja-kerja asas mengumpul maklumat
dan meninjau program pelajar pintar cerdas dan berbakat di luar negara telah dilakukan sendiri
oleh Datin Seri Paduka Rosmah Mansor dan dibantu oleh YBhg. Prof. Tan Sri Dato’ Dr
Sharifah Habsah Syed Shahabuddin (yang merupakan Naib Canselor Universiti Kebangsaan
Malaysia (UKM) pada masa itu. YBhg. Datin Seri Datin Seri Paduka Rosmah Mansor dan
YBhg. Prof. Tan Sri Dato’ Dr Sharifah Habsah Syed Shahabuddin serta beberapa pegawai
UKM telah melawat beberapa tempat untuk mendapatkan gambaran lebih lanjut tentang
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bagaimana pendidikan pelajar pintar cerdas dan berbakat dijalankan di luar negara. Antaranya
ialah Universiti Mahidol di Thailand, High School for Math and Science di National Universiti
Singapore, Beijing Number 8 High School Beijing, Centre for Talented Youth, John Hopkins
University dan beberapa institusi pintar yang lain. Kesinambungan daripada lawatan tersebut,
satu kertas kerja mengenai penubuhan Pusat PERMATApintar® Negara telah ditulis dan
dibentangkan oleh YBhg. Prof. Tan Sri Dato’ Dr Sharifah Habsah Syed Shahabuddin kepada
YAB Dato' Sri Haji Mohammad Najib bin Tun Haji Abdul Razak (yang merupakan Timbalan
Perdana Menteri ketika itu). Pusat PERMATApintar® Negara kini tertubuhnya dengan
beberapa unit di yang mana salah satunya iaitu Kolej PERMATApintar UKM iaitu projek
sekolah PERMATApintar untuk pelajar berusia 13 hingga 17 tahun. (Noriah Mohd Ishak et.al)
(2009). Menurut Noriah lagi, projek Sekolah PERMATApintar UKM
telah bermula pada Januari 2011. Sekolah ini dianggap sebagai satu makmal pengajaran dan
pembelajaran pelajar pintar cerdas dan berbakat di mana kaedah pengajarannya lebih tertumpu
kepada pembelajaran berbentuk ‘differentiated learning‟. Pelajar-pelajar belajar mengikut
kemampuan diri sendiri dengan dibantu oleh guru pakar yang memang mahir dalam setiap
bidang yang diajar. Prof. Datuk Dr. Noriah Mohd Ishak merupakan individu merangkap
Pengarah yang ditugaskan untuk mentadbir Pusat PERMATApintar® Negara ini dari tahun
2011 hingga kini.
2.0 Kajian Tahap Penguasaan Bahasa Sekolah Menengah Kajian mengenai penguasaan pernah
dilakukan oleh beberapa pengkaji yang lepas. Antaranya ialah kajian oleh Nor Hashimah
Jalaluddin et.al (2008) melihat penguasaan bahasa Inggeris pelajar seramai 315 pelajar
tingkatan dua. Dapatan kajian menemui kelemahan ketara yang dilakukan pelajar ialah pada
bahagian tatabahasa, khususnya pada aspek morfologi dan sintaksis. Analisis mendapati
seramai 60 peratus kesilapan yang dilakukan oleh pelajar. Kelemahan ini berlaku kerana
terdapat perbezaan antara struktur tatabahasa dan sintaksis antara bahasa Inggeris dan bahasa
Melayu yang mengakibatkan pelajar keliru. Misalnya, morfologi bahasa Inggeris mempunyai
struktur tatabahasa adverba dan plural yang membuatkan pelajar sukar menguasai konsep
tatabahasa ini. Manakala dari sudut sintaksis, perbezaan dapat dilihat dari konteks kata ganti
nama, subjek dan kata kerja yang berbeza dan sebagainya. Selain faktor linguistik, yang
menjadikan penguasaan bahasa persekitaran sosial seperti sikap terhadap bahasa dan
persekitaran yang tidak menggalakkan mereka untuk berkomunikasi dalam bahasa Inggeris
telah memburukkan lagi usaha untuk menguasai bahasa Inggeris. Manakala Norsimah Mat
Awal et. al (2010) telah melihat penguasaan bahasa Melayu dari segi analisis pengungkapan
idea dalam penulisan karangan dalam kalangan 300 pelajar sekolah menengah biasa
berdasarkan lima kawasan iaitu Kedah, Kelantan, Negeri Sembilan, Sabah dan Sarawak.
Pengungkapan idea yang dilihat adalah merangkumi peribahasa, pantun, cogan kata, frasa
menarik, petikan ucapan, kata-kata hikmat, petikan hadis, kosa kata yang menarik, maksud ayat
Al-Quran dan sebagainya. Norsimah dalam kajiannya, mendapati pencapaian pelajar atau
penggunaan ungkapan indah dalam kalangan pelajar ialah sebanyak 62 peratus. Norsimah juga
membuat kesimpulan bahawa pencapaian pelajar sekolah menengah bagi kawasan yang dikaji
adalah di bawah tahap sederhana. Seterusnya, kajian mengenai penguasaan bahasa telah
dilakukan oleh Nor Hashimah Jalaluddin dan Julaina Nopiah (2011). Kajian yang dilakukan
oleh mereka adalah mengenai penguasaan tatabahasa remaja Malaysia dan menganalisis dari
kerangka pragmatik. Kajian mereka melihat pelajar sekolah menengah berdasarkan empat zon
iaitu zon tengah (Negeri Sembilan), zon timur (Kelantan) dan zon utara (Kedah). Responden
dikehendaki menjawab soal selidik dan menjawab ujian bertulis yang disediakan. Nor
Hashimah dan Julaina Nopiah (2011) melihat tatabahasa responden yang mana responden perlu
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membuat ayat daripada perkataan ‘bermuka-muka’, ‘terkemukakan’, serta mengaplikasi

peribahasa ‘berat mata memandang, berat lagi bahu memikul’. Kajian ini menemukan analisis
bahawa responden hanya mempunyai tahap penguasaan pragmatik sebanyak 50 ke 69 peratus
sahaja. Kajian ini juga membuktikan bahawa penguasaan pragmatik pelajar sekolah menengah
masih berada di tahap yang kurang memuaskan. Kajian ini bagaimanapun melihat analisis tahap
penguasaan bahasa pelajar sekolah menengah yang diklasifikasikan sebagai pelajar pintar
cerdas. Secara kesuluruhanya, penulisan kertas kerja ini melihat penguasaan ungkapan indah
pelajar dalam karangan. Namun, sasaran pelajar ialah pelajar yang diklasifikasikan sebagai
pelajar pintar cerdas dan berbakat
3.0 Responden Dan Metodologi Kajian Kajian ini melibatkan seramai 60 pelajar tingkatan lima
daripada Kolej PERMATApintar, Pusat PERMATApintar® Negara. Sampel jawapan para
responden diambil daripada soalan peperiksaan pelajar yang lepas. Kajian ini walau
bagaimanapun menumpukan kepada Kertas 1 iaitu Bahagian B iaitu pada bahagian komponen
karangan respon terbuka. Antara yang akan dilihat dalam kertas jawapan pelajar ialah
penggunaan gaya bahasa merangkumi keindahan, ungkapan indah dan peribahasa dalam
penulisan pelajar. Soalan karangan respons terbuka ini telah ditanda oleh guru bahasa Melayu
mengikut skema jawapan berdasarkan piawan Kementerian Pelajaran Malaysia (KPM).
Penandaan kertas jawapan penulisan ditanda secara holistik oleh guru-guru mengikut skema
jawapan yang dibincangkan.
3.1 Komponen Peperiksaan Sijil Pelajaran Malaysia (SPM) untuk Mata Pelajaran Bahasa
Malaysia untuk Kertas 1 Kehendak soalan bagi subjek Bahasa Malaysia untuk Sijil Pelajaran
Malaysia (SPM), terdiri daripada tiga kertas, iaitu Kertas 1 (1103/1), Kertas 2 (1103/2) dan
Pentaksiran Lisan Berasaskan Sekolah (PLBS) (1103/3). Kertas 1 menumpukan kepada kaedah
penulisan karangan pelajar iaitu Bahagian A merangkumi Soalan Karangan Bahan Rangsangan
dan Soalan Bahagian B pula Karangan Umum. Bahagian A ialah karangan berdasarkan bahan
rangsangan, yakni pelajar diminta menulis karangan yang jumlahnya 200 hingga 250 patah
perkataan berdasarkan bahan rangsangan yang diberikan. Manakala, bentuk karangan pada
Bahagian B terdiri daripada karangan berformat, karangan penghuraian dan pendapat, dan
karangan berunsur sastera/cereka. Pada bahagian B ini, pelajar diminta memilih satu soalan
karangan dan menulis sebuah karangan umum yang melebihi 350 patah perkataan.
Dapatan Perbincangan dan Ungkapan Menarik Dalam Karangan Analisis kajian mendapati
sebanyak 60 manuskrip pelajar untuk bahagian Kertas 1 iaitu bahagian B mendapati pelajar
menguasai sebanyak 80 peratus. Dalam bahagian paparan data ini, penelitian akan dibuat
berdasarkan kaum yang berbeza iaitu kaum Melayu, Cina, India dan Bumiputera
Sabah/Sarawak dan pelajar Orang Asli (OA). Pencapaian penulisan karangan seseorang pelajar
dilihat dari aspek a) kesalahan ejaan b) struktur ayat dalam esei c) penggunaan dialek d)
kejelasan idea e) kematangan idea f) kerelevenan idea dan g) ungkapan menarik. Mengikut
skema permarkahan, penggunaan ungkapanungkapan menarik dalam karangan adalah salah
satu penanda yang menunjukkan karangan tersebut dikategorikan sebagai karangan yang
cemerlang. (Norsimah Mat Awal et al, 2010). Oleh itu, kertas kerja ini akan memfokus dan
meneliti aspek ungkapan menarik pelajar dalam karangan. Jadual 4.1 di bawah menunjukkan
jumlah peratusan pelajar dalam menggunakan ungkapan indah dalam karangan mereka.
Bil Kaum
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Peratus Ungkapan Indah Dalam Karangan 1 Melayu 76.68 2 Cina 15 3 India 3.33 4
Bumiputera Sabah/Sarawak 3.33 5 Orang Asli 1.66 Jumlah 100
Jadual 4.1 Jadual peratusan ungkapan menarik pelajar dalam karangan dalam kalangan pintar
cerdas dan berbakat
Manakala, Rajah 4.1 di bawah memaparkan peratusan ungkapan menarik pelajar dalam
karangan dalam kalangan pintar cerdas dan berbakat. Keputusan mencatatkan seramai 100%
pelajar menyertakan ungkapan indah dalam penulisan karangan mereka.
Setelah diteliti, berikut merupakan senarai ungkapan menarik yang digunakan pelajar pintar
cerdas dalam karangan mereka. Ungkapan menarik boleh dikategorikan sebagai peribahasa,
cogan kata, hadis, pantun dan sebagainya. Antara sampel jawapan ungkapan menarik yang
ditemui bagi kategori peribahasa dan cogankata ialah: .... Melentur Buluh Biarlah dari
Rebungnya… …Membaca Jambatan Ilmu... ...Kalau Tidak Dipecahkan Ruyung Manakan
Dapat Sagunya... ...Pemuda Harapan Bangsa, Pemudi Tiang Negara... ...Jika Tidak dipecahkan
Ruyung, Manakan Dapat Sagunya...
Manakala ungkapan indah dalam bentuk petikan hadis yang ditemui dalam penulisan karangan
pelajar ialah: “Tidak beriman seorang daripada kamu sehingga kamu mengasihi saudaranya
sepertimana kamu mengasihi diri kamu sendiri” “Tangan yang menghayun buaian, mampu
menggoncang dunia” “Anak ibarat kain putih, ibu bapa yang mencorakkanya”
Manakala ungkapan indah dalam bentuk kosa kata menarik yang ditemui dalam
penulisan karangan pelajar ialah: “... Tidak beriman seorang daripada kamu sehingga kamu
mengasihi saudaranya sepertimana kamu mengasihi diri kamu sendiri” “Tangan yang
menghayun buaian, mampu menggoncang dunia” “Anak ibarat kain putih, ibu bapa yang
mencorakkanya”
Rajah 4.1 Ungkapan menarik pelajar dalam karangan dalam kalangan pintar cerdas dan
berbakat
Kesimpulan
Kesimpulannya, berdasarkan analisis yang dilakukan, dapat disimpulkan bahawa pelajar pintar
dan cerdas berupaya menggunakan ungkapan indah dalam penulisan karangan mereka. Hal ini
dalam setiap manuskrip pelajar penggunaan ungkapan indah yang dapat dikenalpasti.
Kebolehan penulisan karangan dalam kalangan pelajar pintar dan cerdas di Malaysia ini
mempunyai faktor-faktor yang tertentu. Antaranya sikap gemar membaca, mempunyai
pengetahuan yang luas dalam kosa kata, dan sebagainya. Hal ini demikian merujuk kepada
definisi pelajar pintar cerdas dan berbakat itu sendiri yang mana mereka mempunyai asas yang
tinggi dalam kemahiran linguistik dan penguasaan bahasa. (Hamidah Yamat et al, 2009).
Kemahiran dalam penguasaan bahasa pelajar ini menjadi satu titik pemula kepada guru-guru
bahasa Melayu kepada golongan pelajar pintar cerdas dan berbakat ini agar dapat menggunakan
satu kaedah pengajaran dan pembelajaran yang lebih menarik dan beraras tinggi supaya dapat
mencapai tahap intektual dan kognitif pelajar pintar cerdas dan berbakat ini. Pelajar akan lebih
seronok dalam mempelajari subjek yang mencabar pengetahuan dan aras mereka. Selari dengan
definisi Hamidah Mamat et al (2010) pelajar pintar cerdas dan berbakat ini adalah golongan
yang suka mencabar diri dalam mempelajari sesuatu bahasa. Keupayaan pelajar dalam kelas
perlu dikembangkan melalui aktiviti-aktiviti pembelajaran bahasa yang lebih mencabar. Antara
prakrasa yang boleh dijalankan oleh guru-guru ialah mengunakkan pendekatan kepelbagaian
pengajaran (diffrentiated instruction) di dalam kelas.
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Rujukan
Rujukan Adenan Ayob. (2009). Bahasa Kebangsaan. Shah Alam: Oxford Fajar. Aliza Alias dan
Hamidah Yamat. (2009). Ciri Kanak-Kanak Pintar Cerdas. Dlm. Noriah Mohd Ishak et. al
(pnyt). PERMATApintar: Pengalaman UKM, hlm. 33-44. Bangi: Penerbit Universiti
Kebangsaan Malaysia. Anon. (2009). BM juga bakal diwajibkan lulus peringkat kredit. Utusan
Online.
http://ww1.utusan.com.my/utusan/info.asp?y=2009&dt=0620&pub=Utusan_Malaysia&sec=
Dalam_Negeri&pg=dn_02.htm. [9 September 2017].
Kamus Dewan. (2007). Ed. Ke- 4. Kuala Lumpur: Dewan Bahasa dan Pustaka.
Hamidah Yamat, Aliza Alias & Azlina Abd Aziz. (2009). Bahasa dan Pengajaran Bahasa bagi
Kanak- Kanak Pintar Cerdas. Dlm. Noriah Mohd Ishak et. al (pnyt). PERMATApintar:
Pengalaman UKM, hlm. 145-154. Bangi: Penerbit Universiti Kebangsaan Malaysia.
Nik Safiah Karim, Farid M. Onn, Hashim Haji Musa & Abdul Hamid Mahmood. (2012).
Tatabahasa Dewan. Edisi Ketiga. Kuala Lumpur: Penerbit Dewan Bahasa dan Pustaka.
Noriah Mohd Ishak, Rosadah Abd Majid & Siti Rahayah Ariffin. (2009). Sejarah dan Konsep
PERMATApintar. Dlm. Noriah Mohd Ishak et. al (pnyt). PERMATApintar: Pengalaman
UKM, hlm. 1-18. Bangi: Penerbit Universiti Kebangsaan Malaysia. Nor Hashimah Jalaluddin
& Julaina Nopiah. (2011). Penguasaan Tatabahasa Remaja Malaysia: Analisis Pragmatik.
Jurnal Bahasa. 11 (1): 63-82. http://www.myjurnal.my/public/articleview.php?id=70535 [10
September 2017]
Nor Hashimah Jalaluddin. Norsimah Mat Awal & Kesumawati Abd Bakar. (2008). The
Mastery of English Language among Lower Secondary School Students in Malaysia: A
Linguistic Analysis. European Journal of Social Sciences. 7 (2): 106-119.
http://www.teoeducation.com/teophotos/albums/userpics/ejss_7_2_09.pd. [10 September
2017]
Norsimah Mat Awal, Nadzrah Abu Bakar & Nor Hashimah Jalaluddin. (2010). Penguasaan
Bahasa Melayu Pelajar Sekolah Menengah: Analisis Pengungkapan Idea dalam Penulisan
Karangan. Jurnal Linguistik. 10 (Edisi Khas): 83-95.
http://www.myjurnal.my/filebank/published_article/25096/6.pdf. [10 September 2017]
Rosadah Abd Majid, Noriah Mohd Ishak & Melor Md Yunus. (2009). Kepintaran dan Pintar
Berbakat: Definisi dan Makna. Dlm. Noriah Mohd Ishak et. al (pnyt). PERMATApintar:
Pengalaman UKM, hlm. 19-32. Bangi: Penerbit Universiti Kebangsaan Malaysia. Zulkifley
Hamid. (pnyt). (2015). Linguistik Melayu. Edisi Ketiga. Bangi: Penerbit Universiti Kebangsaan
Malaysia.
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KEBERKESANAN MODUL ENAM RODA PENGURUSAN TERHADAP

BISNES KECIL 2016-2017; KAJIAN TEMATIK HADITH
KEUSAHAWANAN TUMPUAN KEPADA HADITH DALAM AL-
SAHIHAYN
Abdul Basit Abdur Rahim Nasution1

Aminuddin Hehsan1
Mohd Khairul Nizam Zainan Nazri 2
1
Fakulti Tamadun Islam, Universiti Teknologi Malaysia, Malaysia
2
Fakulti Pengajian Quran dan Sunnah, Universiti Sains Islam Malaysia, Malaysia
___________________________________________________________________________
Abstrak: Objektif kertas kerja konseptual ini adalah untuk memperkenalkan dan
mengetengahkan modul enam roda pengurusan bisnes yang telah memberi manfaat kepada
11,000 orang pemilik bisnes dari tahun 2016-2017. Kebanyakkan pengusaha bisnes hari ini
gagal mengembangkan bisnes mereka ke tahap yang lebih tinggi. Hal ini kerana mereka gagal
untuk memahami dengan baik tentang sistem pengurusan perniagaan atau syarikat. Jenis
perniagaan besar atau kecil bukan suatu isu yang wajar diperdebatkan. Tetapi ia satu usaha
untuk memajukan perniagaan yang bermula dengan ilmu. Dapatan kajian mendapati 80%
daripada pengusaha bisnes yang telah mengamalkan modul enam roda pengurusan ini berjaya
memperkemas sistem syarikat dan berjaya mencapai jualan yang tinggi dalam tempoh kurang
dua tahun. Selain itu, kertas kerja ini juga mencadangkan satu kerangka kajian yang boleh
digunapakai oleh penyelidik pada masa depan dalam mengkaji kesan-kesan modul enam roda
ini terhadap perkembangan ekonomi terutamanya di Malaysia.
Kata Kunci: Syarikat, Sistem, Busnes, 6 Roda, Hadith, Keusahawanan.

___________________________________________________________________________
Pengenalan
Jurang persaingan dan cabaran pengusaha bisnes pada hari ini bukan merupakan satu
fenomena yang baru. Cabaran sentiasa ada pada setiap masa. Bahkan didalam al-Quran sejak
dari awal Allah s.w.t telah memberikan peringatan berkenaan persaingan dalam menguruskan
bisnes boleh membawa kepada mengambil harta secara bathil:
“Dan janganlah sebahagian kamu memakan harta sebahagian yang lain di antara kamu
dengan jalan yang bathil dan (janganlah) kamu membawa (urusan) harta itu kepada hakim,
supaya kamu dapat memakan sebahagian daripada harta benda orang lain itu dengan (jalan
berbuat) dosa, padahal kamu mengetahui.” (al-Baqarah: 188)
Memakan harta secara bathil tersebut dapat dielakkan jika para usahawan mengambil langkah
untuk menguruskan harta mereka secara profesional. Islam sangat menggalakkan aktiviti
perniagaan. Banyak ayat dan hadis yang mengalakkan dan menyokong aktiviti perniagaan.
Perniagaan juga dianggap sebagai punca rezeki yang paling banyak. Didalam ayat yang lain
Allah s.w.t menegaskan:
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“Wahai orang-orang yang beriman! Janganlah kamu saling memakan harta sesamamu
dengan jalan yang batil (tidak benar), kecuali dengan jalan perdagangan yang berlaku atas dasar
suka sama-suka di antara kamu. Dan janganlah kamu membunuh dirimu. Sesungguhnya Allah
Maha Penyayang kepadamu.” (an-Nisa: 29)
Pemahaman ini dapat dilihat dari penjelasan Abdul Muhaimin Mahmood (2017) iaitu
perniagaan merupakan mekanisma untuk manusia mendapatkan harta dan barangan yang
diingini. Manusia adalah makhluk yang lemah dan saling memerlukan yang lain. Pensyariatan
perniagaan ini adalah bagi memenuhi fitrah semulajadi manusia. Melalui perniagaan ini,
manusia boleh memenuhi keperluan dan tuntutan individu, masyarakat dan negara. Dalam
Islam perniagaan dianggap sebagai satu aktiviti yang sangat mulia. Ia merupakan ibadah dan
juga sunnah rasul SAW. Bagi mereka yang melaksanakan aktiviti peniaga dengan amanah,
mereka turut dijanjikan balasan syurga bersama para nabi, orang soleh dan syuhada’. Namun
demikian, sekiranya ia dilakukan luar dari batasan syariat Islam maka ianya tidak lagi dianggap
ibadat tetapi tetapi aktiviti yang boleh mendatangkan padah kebinasaan baik di dunia dan
akhirat.
Setelah itu terlibatnya Rasulullah s.a.w. dalam arena perniagaan adalah bukan secara
kebetulan atau terpaksa, jauh sekali kerana kerana kepuasan nafsu dan kerana keinginan kepada
kuasa dunia yang sementara. Sebaliknya ia merupakan tanggungjawab seorang Rasul akhir
zaman yang perlu memberikan contoh sewajarnya berkenaan urusan perniagaan buat dicontohi.
Salah satu aktiviti keduniaan yang Nabi terlibat adalah didalam bidang perniagaan. Malah Nabi
s.a.w merupakan seorang peniaga yang baik sebelum baginda menerima wahyu lagi. Nabi
bersabda:
“Bahwa pedagang yang jujur dalam melaksakan jual beli, di akhirat kelak akan ditempatkan
di tempat yang mulia. Suatu ketika akan bersama- sama para Nabi dan para Syahid. Suatu ketika
di bawah Arsy, dan ketika lain akan berada di suatu tempat yang tidak terhalang baginya masuk
ke dalam syurga.” (Ibnu Majah, No hadith: 2139, Sahih)
Perbezaanya adalah pada skala persaingan yang yang di hadapi pengusaha adalah berbeza
mengikut zaman dan masa. Jika pengusaha bersaiz besar menghadapi cabaran luarbiasa dunia
perniagaan apalagi pengusaha kecil. Cabaran besar yang sentiasa ada dalam dunia perniagaan
membuatkan pengusaha besar atau kecil akan dihinggapi kegagalan. Sehubungan dengan ini
Syed Zamberi Ahmad (2014) menyatakan bahawa Perusahaan Kecil dan Sederhana (PKS)
menghadapi risiko kegagalan perniagaan yang lebih besar dengan statistik masa lalu yang
menunjukkan bahawa separuh daripada semua usaha baru tidak akan menikmati kejayaan
jangka panjang. Mereka menghadapi pelbagai jenis masalah dan cabaran perniagaan. Dalam
bahasa ringkasnya para pengusaha kecil tidak boleh menghalang cabaran didalam perniagaan.
Sebaliknya para pengusaha kecil perlu menguruskan perniagaan masing-masing dengan ilmu
pengurusan secara profesional sebagaimana yang telah diguna pakai oleh syarikat-syarikat
besar dan terbukti mampu mengurangkan risiko kegagalan. Ilmu yang dimaksudkan adalah
semangat kepimpinan entrepenur. Ini kerana hanya mereka yang mempunyai ilmu sahaja akan
terus mengemudi revolusi ekonomi pada zamannya. Ini jelas sebagaimana yang dinyatakan
oleh W. Zimmerer (2008), mereka yang memiliki semangat kepemimpinan keusahawanan ini
akan terus memimpin revolusi ekonomi yang telah membuktikan kebolehannya untuk
meningkatkan taraf hidup rakyat di mana-mana.
Literatur berkaitan dengan kajian-kajian jatuh bangun usahawan menjelaskan sebahagian
daripada faktor yang meyumbang kepada keberkesanan pengurusan sesebuah organisasi ialah
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persekitaran dalamannya sebagai mana yang dinyatakan oleh Suhaila Nadzri dan rakan-rakan
(2014), terdapat dua faktor utama iaitu faktor dalaman dan faktor luaran yang mempengaruhi
kejayaan atau kegagalan PKS di Malaysia. Faktor dalaman ini meliputi ciri-ciri keusahawanan
dan orientasi keusahawanan, serta pegangan atau ketaatan kepada agama. Manakala faktor-
faktor luaran pula meliputi kemahiran pengurusan, pengalaman pengurusan dan industri,
perancangan dan keadaan ekonomi, hubungan sosial, jaringan dan pemasaran serta bantuan dan
sokongan kerajaan.
Sorotan kajian
Pengurusan Perniagaan
Pengurusan merupakan faktor utama dalam membantu perkembangan perniagaan kecil.
Pengurusan yang baik merupakan kunci utama dalam usaha untuk melebarkan sayap
perniagaan dengan lebih luas. Menurut Muhd Rashid Rajuddin dan Fazlee Alias (2004),
pengurusan yang tidak sistematik merupakan salah satu masalah dalam operasi industri
kecil. Faktor utama dalam perkembangan perniagaan terutama bagi industri kecil ialah
mempunyai satu sistem pengurusan yang teratur dan sistematik. Pengurusan yang bersistem
akan dapat mengenal pasti keperluan-keperluan utama dalam sesebuah perniagaan untuk
terus maju dan berkembang. Menurrut kajian, 90% daripada kegagalan dalam perniagaan
ialah berpunca daripada sistem pengurusan yang lemah dan kegagalan dalam
mengkategorikn sistem (Dun dan Bradstreet Corporation, 1981).
Pengurus atau pengusaha yang mempunyai pemikiran yang sempit dan tidak jelas akan
memdorong kepada kegagalan, dan pengurus yang mempunyai cita-cita dan impian yang
jelas dilihat lebih stabil dan kukuh dalam memacu sesebuah perniagaan (Duchesneau &
Gartner, 1990). Dunia pengurusan perniagaan juga memerlukan orang yang tepat bagi
membangunkan sistem pengurusan yang tersusun. Implimentasi enam roda pengurusan
dilihat mampu membantu para pengusaha perniagaan untuk menentukan hala tuju syarikat.
Enam Roda Pengurusan

Enam roda pengurusan merupakan satu sistem yang disusun khusus untuk memudahkan
para pengusaha bisnes mengatur perniagaan mereka supaya lebih sistematik. Dengan sistem
yang teratur maka secara tak langsung perniagaan akan mula berkembang. Teori enam roda
pengurusan ini mengetengahkan enam bahagian penting yang menjadi tunjang utama kepada
pengurusan perniagaan.
Keperluan untuk mendelegasi tugas dan mempunyai kapasiti pengurusan yang baru dilihat
penting dalam perkembangan perniagaan dan ia mungkin mampu untuk membolehkan
eksploitasi peluang baru yang memerlukan kemahiran (Forbes et al., 2006). Kepentingan
mendelegasi tugas dan mewujudkan satu kapasiti pengurusan yang seimbang adalah penting
untuk perkembangn perniagaan terutamanya bagi pengusaha bisnes kecil. Enam roda
pengurusan menggariskan enam bahagian penting dalam pengurusan sesebuah perniagaan iaitu:
a. Admin (Pentadbiran)
b. Human Resources (Sumber Manusia)
c. Finance (Kewangan)
d. Operation (Operasi)
e. Markerting (Pemasaran)
f. Sales (Jualan)
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Rajah 1.0: Modul Enam Roda Pengurusan
Pembangunan enam roda pengurusan ini didalam sesebuah perniagaan dilihat mampu menjana
pelbagai peluang baru dalam perniagaan. Syarikat berupaya beropreasi separa-auto dan para
usahawan dapat menumpukan perhatian meraka untuk mencari dan menjana idea baru dalam
usaha untuk mengembangkan perniagaan (Rosa, 1998). Bahagian pentadbiran (Admin) dalam
perniagaan berperanan dalam menyusun Rajah dan menyimpan segala Roda
1.0: Modul Enam rekod-rekod
Pengurusanperniagaan
termasuklah mendokumentasi segala butiran sulit yang berkaitan serta menguruskan sistem
inventori. Dato Dr. Haron Din di dalam bukunya yang bertajuk Agama, Bisnes dan Pengurusan
(2007) menyatakan bahawa menjadi satu kesalahan sekiranya pedangan menyembunyikan
barang di stor untuk tempoh tertentu denganRajah
tujuan akan
1.0: menjualnya
Modul Enam RodapadaPengurusan
harga yang tinggi.
Ini merupakan satu contoh perniagaan tanpa system inventori yang telus.
Bahagian sumber manusia (Human Resources) dilihat sebagai satu cabang penting
kerana ia bertanggungjawab untuk membangunkan manusia dari segenap aspek termasuk
budaya persekitaran kerja serta potensi dan skill pekerja. Kadar efisiensi gerak kerja seseorang
staf bergantung kepada bagaimana perasaan dan persekitaran tempat kerja (Ford & Heaton,
2001). Bahagian kewangan (Finance) pula merupakan sektor utama yang mengawal pergerakan
wang dalam pernigaaan dan syarikat. Pengaturan strategi kewangan syarikat juga dilakukan
oleh bahagian ini samaada melibatkan jual-beli mahupun perlaburan.
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Bahagian operasi (Operation) boleh dianggap sebagai nadi syarikat dan perniagaan.
Segala penghasilan dan pergerakan produk adalah dibawah kelolaan bahagian operasi.
Bahagian operasi bertanggungjawab dalam menghasilkan prosedur-prosedur tertentu dalam
proses penghasilan sesuatu produk perniagaan atau syarikat. Bahagian pemasaran (Marketing)
bertanggungjawab memperkenalkan syarikat atau perniagaan kepada umum dan segala strategi
pemasaran dicatur dan dirangka oleh bahagian ini. Bahagian yang terakhir adalah jualan (Sales).
Sektor ini bertanggungjawab terhadap penjualan produk atau perkhidmatan yang dijalankan
oleh sesebuah perniagaan. Sektor ini seringkali berkait rapat dengan pemasaran dan menjadi
kayu ukur bagi kestabilan dan keutuhan sesebuah syarikat atau perniagaan untuk melihat sejauh
mana sesuatu perniagaan itu mampu kekal dalam industri.
Perniagaan Dalam Islam

Firman Allah:
Maksudnya: “Pada hari ini, Aku telah sempurnakan bagi kamu agama kamu dan Aku telah
cukupkan nikmatKu kepada kamu dan Aku telah redhakan Islam itu menjadi agama untuk
kamu. Maka, sesiapa yang terpaksa kerana kelaparan (memakan benda-benda yang
diharamkan) sedang ia tidak cenderung hendak melakukan dosa (maka bolehlah ia
memakannya), kerana sesungguhnya Allah Maha Pengampun lagi Maha Mengasihani”.
(Al-Maidah, 5:
3)
Kesyumulan Islam pada dasarnya merangkumi hal-hal ukhrawi dan duniawi malah meliputi
tatacara penghidupan yang baik sebagaimana yang telah digariskan oleh Allah. Al-Quran dan
al-Sunnah merupakan sumber rujukan dan panduan yang terbaik dalam membantu manusia
menjalani kehidupan yang lebih baik. Allah juga mengurniakan akal fikiran kepada setiap
manusia untuk digunakan untuk mengatur kehidupan yang bertamadun di bumi Tuhan ini dan
dapat membezakan baik dan buruk sesuatu.
Tujuan hidup pula telah ditetapkan oleh Allah dalam firman-Nya:
Maksudnya: “Dan (ingatlah) Aku tidak menciptakan jin dan manusia melainkan untuk
mereka menyembah dan beribadat kepadaKu. Aku tidak sekali-kali menghendaki sebarang
rezeki pemberian daripada mereka dan Aku tidak menghendaki supaya mereka memberi makan
kepadaKu. Sesungguhnya Allah sahaja yang memberi rezeki (kepada sekalian makhlukNya dan
Dialah sahaja) yang mempunyai kekuasaan yang tidak terhingga, lagi yang Maha kuat kukuh
kekuasaanNya”.
(Az-Dzariyaat, 51: 56-
58)
Islam juga menekankan pengabdian kepada Ilahi secara menyeluruh dalam segenap aspek
termasuklah aspek keduniaan. Islam tidak pernah melarang umatnya untuk mengejar dunia akan
tetapi Islam menganjurkan agar wujud kesimbangan antara dunia dan akhirat. Stereotaip
masyarakat barat sering memandang enteng terhadap negara-negara Islam. Kebanyakkan
mereka menganggap bahawa negara yang bernaung di bawah panji Islam ini sebagai sebuah
negara yang mundur dalam segenap aspek terutamanya bidang ekonomi. Secara amnya, banyak
negara-negara Islam yang kaya dengan pelbagai sumber galian dan tanaman seperti biji timah,
emas, petroleum, getah, kelapa sawit dan sebagainya. Malangnya, kadar eksploitasi tempatan
agak lemah dan menyebabkan kadar pertumbuhan dan perkembangan negara terutama dari segi
ekonomi agak ketinggalan dibelakang berbanding negara-negara maju yang lain.
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Antara salah satu penyumbang terbesar kepada pertumbuhan ekonomi negara ialah
perniagaan. Usahawan merupakan penggerak utama dalam membangunkan ekonomi sesebuah
negara. Tanpanya, negara kita akan mengalami kemunduran bukan sahaja dari segi ekonomi
malah rakyatnya akan hidup dalam serba kekurangan walaupun kaya dengan sumber khazanah
dan alam (Mohd Nasir dan Nurul Huda, 2008).
Pandangan masyarakat secara amnya terutama di Malaysia berpendapat bahawa perniagaan
yang dijalankan tidak kira apa sahaja jenis perniagaan asalkan menjanjikan pulangan yang
lumayan kepada mereka dibolehkan tanpa mengira halal dan haram di sisi syarak. Amat sedikit
masyarakat yang menceburi bidang perniaagan ini berhasrat untuk membantu perkembangan
ekonomi negara. Kebanyakkan pengusaha perniagaan hanya fokus kepada kekayaan diri dan
keluarga hingga sangup melakukan pelbagai kesalahan yang dilarang dalam Islam. Perbuatan
ini dilakukan kerana kurangnya pendedahan dan didikan agama berkenaan ilmu perniagaan
yang betul. Baginya, kehidupan di muka bumi ini hanyalah sementara sahaja dan cukuplah
setakat apa yang ada walaupun mempunyai kesihatan yang baik.
Perbincangan Implikasi Kajian

Berdasarkan sorotan kajian, penyelidik mendapati penerapan modul enam roda pengurusan
dalam pengurusan syarikat mampu memberi impak kepada para pengusaha perniagaan
terutama bagi pengusaha kecil. Sebagaimana yang dinyatakan oleh Azfar Hamdi (2017) modul
6 roda pengurusan lebih mudah difahami ia amat berguna bagi menguruskan dan
mengembangkan syarikat dengan menggunakan modul enam roda pengurusan ini. Modul ini
berkesan dalam membantu mengenalpasti bahagian-bahagian penting dalam syarikat yang
perlu dibangunkan dengan segera bagi mengukuhkan lagi kedudukan syarikat. Enam pecahan
utama dalam roda ini diwujudkan bagi memudahkan sistem pengurusan sesebuah syarikat agar
lebih spesifik dan lebih teratur. Segala gerak kerja dan perjalanan aktiviti syarikat akan lebih
mudah dipantau dari masa ke semasa. Menurut kajian yang dilakukan oleh Buerah Tunggak,
Hussin Salamon dan Baharin (2011), mereka mendapati aspek pengetahuan dan kemahiran
dalam bidang pengurusan keusahawanan merupakan kelemahan utama para usahawab
terutamnya pengusaha kecil khususnya di Malaysia. Kajian ini juga selari dengan penerapan
sistem keusahawanan dan agama islam berdasarkan sirah dan hadith. Abdur Rahman Bin Auf
meriwayatkan:
Saya mendapat perjanjian yang ditulis antara saya dan Umaiya bin Khalaf bahawa
Umaiya akan menjaga harta saya (atau keluarga) di Mekah dan saya akan menjaga di Madinah.
Apabila saya menyebut perkataan 'Ar-Rahman' dalam dokumen, Umaiya berkata, "Saya tidak
tahu 'Ar-Rahman.' Tuliskan kepada saya nama anda, (yang anda namakan diri anda sendiri)
dalam Tempoh Kehamilan Pra-lslam. " Jadi saya menulis nama saya 'Abdu' Amr '.
(Sahih Bukhari Jilid 3, Tajuk 38, Hadith ke
498)
Hadith diatas menjadi sanadaran dan bukti bahawa pada zaman sahabat, segala pelaksanaan
dan sistem dokumentasi (admin) telah pun wujud. Wujud sistem perjanjian bertulis diantara
Umaiya Bin Khalaf dan Abdur Rahman Bin Auf. Modul enam roda pengurusan turut
menekankan segala rekod dokumentasi termasuk perjanjian haruslah disimpan dan direkod
secara bertulis dan mempunyai salinan.
Diriwayatkan oleh Ibrahim bin Sad dari bapanya dari datuknya:
Abdur Rahman bin Auf berkata, "Apabila kami datang ke Madinah sebagai pendatang,
Rasulullah telah menubuhkan ikatan persaudaraan antara saya dan Sad bin Ar-Rabi '. Sad bin
Ar-Rabi berkata,' Saya adalah orang terkaya di antara Ansar, jadi saya akan memberikan
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setengah dari kekayaan saya dan kamu boleh melihat kedua-dua isteri saya dan mana-mana dua
yang kamu pilih saya akan menceraikannya, dan apabila dia telah menyelesaikan tempoh yang
ditetapkan (sebelum berkahwin), anda boleh berkahwin dengannya. ' Abdur Rahman berkata,
"Saya tidak memerlukan semua itu. Adakah terdapat pasaran di mana perdagangan
dipraktikkan? ' Dia menjawab, "Pasar Qainuqa." Abdur-Rahman pergi ke pasar pada hari
berikutnya dan membawa beberapa mentega kering (yogurt) dan mentega, dan kemudian dia
terus pergi ke sana kerap.
(Sahih Bukhari Jilid 3, Tajuk 34, Hadith ke 264)
Hadith diatas merujuk kepada sistem jualan dan pemassaran dimana Abdur Rahman meninjau
kawasan pasar yang menjadi tumpuan di Madinah pada ketika itu. Abdur Rahman melakukan
tinjauan dan validasi pasaran sebanyak beberapa kali sebelum beliau mulakan perniagaan. Ini
juga merupakan satu kaedah yang diterapkan dan diajar didalam Modul Enam Roda pengurusan
di bawah segmen Marketing atau pemasaran. Segala strategi pemasaran syarikat termasuk
market validation dan customer behavior telah lama dilaksanas dizaman selepas hijrah
Rasullulah SAW.
Diriwayatkan daripada Hudhaifa:
Saya mendengar Nabi berkata, "Apabila seorang lelaki meninggal dan ditanya, 'Apa yang anda
gunakan untuk mengatakan (atau lakukan) (dalam masa hidup anda)?' Dia menjawab, 'Saya
seorang lelaki perniagaan dan digunakan untuk memberi masa kepada orang kaya untuk
membayar hutangnya dan (pernah digunakan) untuk mengurangkan hutang orang miskin.'
Maka dia telah diampunkan (dosa-dosanya). "Abu Masud berkata," Saya mendengar yang sama
(Hadis) dari Nabi. "
(Sahih Bukhari Jilid 3, Tajuk 41, Hadith ke 576)
Sistem pengurusan hutang turut wujud dan telah lama diajarkan oleh junjungan besar Nabi
Muhammad SAW. Di bawah segmen finance atau kewangan mengikut Modul Enam Roda
Pengurusan turut menjelaskan standard operating procedure (SOP) pengurusan hutang dimana
kebanyakkan pemilik bisnes gagal untuk menguruskan hutang dengan baik lantas
mengakibatkan bankrapsi berlaku.
Pendedeahan modul ini kepada umum secara asasnya mampu membantu pengusaha
perniagaan jika diaplikasi dengan baik. Lantaran daripada itu, penyelidik yakin dan percaya
bahawa Modul Enam Roda Pengurusan ini boleh digunakan pakai dan ianya disusun selari
dengan Syariah Islam dan bertepatan dengan Hadith
Kesimpulan
Kertas kerja konseptual ini diharapkan dapat membantu para pengusaha bisnes kecil
terutama di Malasyia bagi memperkemas dan memperkukuh sistem pengurusan syarikat agar
lebih sistematik dan tersusun. Pengurusan yang baik mampu melonjak dan menaikkan nama
syarikat ke peringkat yang lebih tinggi selain dapat menjana pendapatan syarikat. Penyelidik
yakin bahawa modul ini boleh digunapakai dan amat praktikal untuk dilaksanakan samaada di
Malaysia mahupun di luar negara. Kajian lanjut mengenai Enam Roda Pengurusan ini akan
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dilakukan secara terperinci bagi memberi penjelasan lanjut tentang pelaksaannya dalam
syarikat.
References
Abu Yusuf Ya’qub Ibn Ibrahim, Kitab al-Kharaj, Kairo: Al-Matba’ah Salafiyyah.
Dato Dr. Haron Din (2007). Agama, Bisnes dan Pengurusan. Malaysia
Duchesneau, D. A., & Gartner, W. B. (1990). A profile of new venture success and failure in
anemerging industry. Journal of Business Venturing, 5(5), 297–312
Dun & Bradstreet Corporation. (1994). Business Failure Record, 1992 Final, 1993
Preliminary.New York: Author.
Forbes, D.P., Borchert, P.S., Zellmer-Bruhn, M.E., & Sapienza, H.J. (2006). Entrepreneurial
team formation: An exploration of new member addition. Entrepreneurship Theory and
Practice, 30, 225–248
Mansur, N. H. (2008). Keusahawanan menurut perspektif Al-Quran (Doctoral dissertation,
Universiti Teknologi Malaysia).
Muhd Rashid Bin Rajuddin & Fazlee Bin Alias (2004), “Tahap Pengurusan Perniagaan Dalam
Industri Kecil Dan Sederhana (IKS) Pengusaha Batik Di Daerah Kota Bharu”, Kajian
Ilmiah. Malaysia: Fakulti Pendidikan, Universiti Teknologi Malaysia
Rosa, P. (1998). Entrepreneurial processes of business cluster formation and growth by
“habitual” entrepre-neurs. Entrepreneurship Theory and Practice, 22, 43–62.
Syed Zamberi Ahmad, Nazatul Shima Abdul Rani, (2010). Business challenges and strategies
for development of Small- and Medium-sized Enterprises (SMEs) in Malaysia.
VL Lewis, NC Churchill (1983).The five stages of small business growth.
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IDEOLOGI TERORISME DIKALANGAN PELAJAR UNIVERSITI :ISU

DAN CABARAN
Mohd Hefzan Azmi1

hefzan@yahoo.com
Azmi Aziz (PhD)
abaz@ukm.edu.my1
Ishak Abdul Rahman2
haq@ukm.edu.my
1
Pusat Pengajian Sosial, Pembangunan dan Persekitaran, Fakulti Sains Sosial dan Kemanusiaan, Universiti
Kebangsaan Malaysia, Bangi, Selangor.
2
Fakulti Ekonomi dan Pengurusan, Universiti Kebangsaan Malaysia, Bangi, Selangor.
___________________________________________________________________________________________
Abstrak: Ideologi terorisme kini giat diperkatakan sehingga setiap hari muncul di media arus
perdana juga media cetak dan telah mensasarkan golongan remaja dalam usaha merekrut ahli
baru memandangkan golongan ini begitu terdedah dengan penggunaan internet dan kerap
mengakses media sosial. Penggunaan media sosial tanpa kawalan mampu mempengaruhi
minda remaja terhadap ideologi terorisme dan kini ianya telah mempengaruhi segelintir
pelajar di IPT. Laporan tangkapan dan pendakwaan dari PDRM telah memberi satu gambaran
awal bahawa ideologi terorisme telah pun menular dikalangan mereka. Justeru itu, kajian ini
bertujuan untuk mengkaji sejauh mana penularan ideologi terorisme terhadap pelajar
prasiswazah UKM. Seramai 346 responden telah terlibat dimana soal selidik telah di edar
secara atas talian melalui emel. Data yang diperolehi telah dianalisis dengan menggunakan
program SPSS (statistical package for social sciences). Dapatan kajian dipersembahkan dalam
bentuk kekerapan (f), peratusan (%) dan min. Hasil kajian mendedahkan hanya sebilangan
kecil pelajar sahaja yang cenderung ke arah ideologi terorisme. Oleh yang demikian tindakan
yang drastik dan langkah-langkah pencegahan awal hendaklah diambil agar gejala ini dapat
dibendung dari peringkat akar umbi
Keyword: Ideologi Terorisme, Penularan, Media Sosial, Merekrut, Internet

___________________________________________________________________________
PengenalanTerorisme adalah suatu isu yang begitu hebat diperkatakan dan menarik perhatian
dunia masa kini, se hingga ianya di angkat sebagai isu antarabangsa yang mampu
mempengaruhi corak perjalanan politik di seluruh dunia. Kini isu terorisme telah merentas
sempadan tamadun manusia. Bermulanya era baru terorisme adalah rentetan dari peristiwa
serangan terhadap World Trade Center pada 11 September 2001 yang telah diangkat sebagai
isu keganasan antarabangsa dan telah menjadi perhatian dunia. Sejak meletusnya serangan
tersebut, kuasa besar Barat telah melabelkan Islam sebagai dalang dan pengganas dalam insiden
tersebut. Kesan dari peristiwa itu juga umat Islam terus diberi tanggapan dengan pelbagai
tohmahan dan tuduhan yang mencemarkan imej kesucian agama Islam itu sendiri. Selepas isu
serangan tersebut, siri-siri keganasan yang lain juga turut dikaitkan dengan Islam, semua
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elemen-elemen berkait dengan Islam akan dipandang negatif terutamanya oleh negara-negara
Barat.Penularan ideologi terorisme terus merebak dan mempengaruhi golongan pelajar di IPT
dengan menggunakan media sosial seperti facebook, skype, twitter, youtube, telegram dan blog
sebagai medium utama dalam menghasut dan menerap nilai-nilai fahaman yang salah dari
sudut jihad. Risikan pihak polis di laman sosial membuktikan kebanyakan pengikut yang
mudah terpengaruh dengan propaganda Daesh ialah dalam kalangan belia bermasalah dari segi
keluarga, sosial dan peribadi pelajar itu sendiri. Perkara ini dapat dilihat melalui status akaun
Facebook mereka yang membuat perkongsian dan menekan butang Like atau Share terhadap
maklumat berkaitan kumpulan militan berkenaan (Utusan Malaysia 21 Ogos 2016). Penularan
gejala ini membimbangkan pihak Kementerian Pendidikan Tinggi (KPT) sehinggalah KPT
mengeluar kenyataan media ‟ Larangan Penglibatan Pelajar IPT Dalam Kegiatan Daesh″.
Sehubungan itu, kajian ini bertujuan untuk mengenalpasti tahap kefahaman dan kecenderungan
pelajar-pelajar terhadap ideologi terorism
Tinjauan Literatur
Istilah terorisme adalah sesuatu yang terlalu subjektif untuk diperkatakan, tiada satu istilah yang
khusus untuk dihurai dan diterima secara universal. Secara umumnya terorisme adalah merujuk
kepada suatu perbuatan yang ganas dan mengakibatkan kerosakan dari pelbagai sudut
kemanusiaan. Mark Juergensmeyer (2000) dalam kajiannya menyatakan, terorisme berasal dari
bahasa Latin, ‘terrere’ iaitu ‘ terror’ yang bererti menimbulkan rasa gementar dan rasa cemas.
Jika diterjemah dari bahasa Inggeris ‘to terrorize’ perkataan ini bermaksud ‘menakut-
nakutkan’. ‘Terrorist’ bermaksud teroris atau pelaku keganasan. ‘Terrorism’ pula bermaksud
menimbulkan ketakutan atau membuat rasa gentar. Dalam bahasa Arab, ia dipanggil
‘irhabiyyah’. Secara umum, istilah terorisme diertikan sebagai satu bentuk serangan
(fahaman/ideologi) yang dilancarkan oleh kelompok tertentu dengan maksud untuk
membangkitkan perasaan takut di kalangan masyarakat. Terorisme adalah merupakan satu
kaedah yang mempunyai tujuan untuk membuat orang lain merasa ketakutan, sehingga dapat
menarik perhatian masyarakat yang lebih luas.
Menurut Lisa Blaker (2015) peranan media sosial telah terbukti menjadi peranan utama
bagi organisasi pengganas dan ini bagi mereka satu pendekatan yang amat sesuai untuk
mempengaruhi mangsa dan sasaran terhadap bakal pengganas. Data dari Penyelidikan Pew
Lembaran Fakta Rangkaian Sosial, hasil menunjukkan 89% daripada golongan dewasa yang
berumur antara 18-29 tahun kerap dalam penggunaan media sosial. Penggunaan platforms
seperti Facebook, Twitter dan juga YouTube, membolehkan organisasi keganasan
berpropaganda untuk mencapai agendanya ke seluruh dunia.
Metodologi
Kajian ini dilakukan terhadap pelajar-pelajar prasiswazah Fakulti Pengajian Islam (FPI) dan
Fakulti Sains Sosial dan Kemanusiaan (FSSK) yang terdiri daripada 3633 populasi pelajar bagi
sesi 2016/2017.
Reka bentuk kajian ini menggunakan data primer dan data sekunder. Data primer adalah
data yang diperolehi daripada kaedah edaran borang soal selidik secara atas talian melalui emel
para pelajar. Manakala data sekunder pula adalah dari sumber seperti menganalisis bahan
bacaan berkenaan terorisme, artikel ilmiah, akhbar dan laman sesawang. Pengkaji telah memilih
kesemua populasi pelajar prasiswazah di FPI dan FSSK dengan sasaran responden seramai 400
orang, target pelajar yang lebih adalah kerana mungkin ada responden yang tidak mampu
memberikan respon yang lengkap dalam soal selidik yang dijalankan.
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Jadual 1 : Bilangan Pelajar Prasiswazah FPI dan FSSK

Jantina/Fakulti Fakulti Pengajian Islam Fakulti Sains Sosial dan
Kemanusiaan
Lelaki 346 578
Perempuan 782 1,927
Jumlah 1,128 2,505

Jumlah Keseluruhan 3,633
Sumber: Pusat Akademik UKM 2017
Instrumen kajian yang digunakan adalah berbentuk borang soal selidik dan mempunyai tiga
bahagian. Bahagian A soalan berkaitan demografi responden, bahagian B soalan berbentuk
aneka pilihan yang mempunyai sehingga tiga pilihan jawapan yang berkait dengan tahap
kefahaman pelajar terhadap isu terorisme dan bahagian C menggunakan skala likert yang
mempunyai 5 pilihan jawapan yang berkait dengan kecenderungan pelajar terhadap ideologi
terorisme. Secara keseluruhannya data yang telah dikumpul melalui borang soal selidik atas
talian telah di analisis menggunakan program perisian SPSS Statistics Package for the Social
Science. Analisis data ini dibincangkan dalam bentuk statistik deskriptif. Analisis statistik
deskriptif lebih tertumpu kepada teknik statistik untuk tujuan memperihalkan data primer atau
dikenali juga sebagai data mentah dalam bentuk nombor atau angka yang lebih bermakna bagi
memudahkan pemahaman melalui penyusunan yang lebih baik. Berdasarkan statistik deskriptif,
data yang diperolehi dan dikumpul dari sampel dianalisis dalam bentuk kekerapan, peratus dan
min.Teknik ini memudahkan pengkaji mempersembahkan hasil yang telah diperolehi dalam
bentuk yang lebih mudah untuk difahami dan dibincangkan.
Penggunaan dan pengiraan min bagi item-item merupakan penilaian setiap
pembolehubah yang sangat penting dalam kajian ini. Min adalah purata dengan mencampurkan
semua skor dibahagi dengan jumlah responden atau item. Nilai ini menerangkan kecenderungan
setiap pembolehubah secara purata. Menurut Muhammad Najib (1999), analisis skor min boleh
digunakan untuk menentukan setiap tahap kecenderungan respon dalam penilaian setiap
persoalan kajian. Jadual 2 menunjukkan penggunaan min untuk menilai tahap kefahaman dan
kecenderungan.
Jadual 2: Julat Skor Min
Min Pemeringkatan
1. – 2.33 Tahap Rendah
2.34 – 3.66 Tahap Sederhana
3.67 – 5.00 Tahap Tinggi
Sumber : Diubah suai daripada Mohamad Tahir Mustapha (1997)
Dapatan dan Perbincangan

Bahagian ini membincangkan profil responden yang seramai 346 orang terdiri dari pelajar
prasiswazah Fakulti Pengajian Islam (FPI) dan Fakulti Sains Sosial dan Kemanusiaan (FSSK).
Dari segi agihan gender, responden wanita melebihi responden lelaki iaitu seramai 252 orang
(72.8%) responden wanita manakala responden lelaki seramai 94 orang (27.2%). Keseluruhan
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responden ini mewakili sebanyak 51% dari Fakulti Pengajian Islam dan sebanyak 49%
responden dari Fakulti Sains Sosial dan Kemanusiaan.
Jadual 3: Analisis Deskriptif Tahap Kefahaman, Taburan Kekerapan, Peratusan dan Min
Pernyataan Ya Tidak Tidak Min
f(%) f(%) pasti
f(%)
Mati dalam Daseh/ISIS adalah syahid 23 224 99 2.2

(7%) (65%) (29%)
Kumpulan militan Daesh (ISIS) berasal dari 48 181 117 2.19
gerakan jihad fisabilillah. (14%) (52%) (34%)
Perjuangan militan Islamic State sebagai jihad 23 244 79 2.16
(7%) (71%) (23%)
Saya sering mengikuti berita tentang terorisme 145 201 - 1.58
(40.7%) (59.3%)
Min Keseluruhan 1.63
n=346, *Skor min 1.00-2.33 (Rendah); 2.34-3.66 (Sederhana); 3.67-5.00 (Tinggi)
Jadual 3 menunjukkan analisis deskriptif taburan kekerapan, peratus dan min bagi menunjukan
tahap kefahaman pelajar berkenaan isu terorisme. Hasil kajian ini menunjukkan bahawa tahap
kefahaman pelajar secara umumnya berada ditahap yang rendah berdasarkan purata
keseluruhan nilai min iaitu 1.63. Pernyataan ‘Mati dalam Daseh/ISIS adalah syahid’
menunjukkan majoriti pelajar iaitu sebanyak 65% mengakui bahawa mati dalam perjuangan
bersama Daesh adalah bukan mati syahid iaitu bersamaan 224 orang dari 346 pelajar, namun
begitu ada juga pelajar yang menyatakan tidak pasti iaitu sebanyak 29% manakala hanya 7%
menyatakan perjuangan bersama Daesh adalah jalan menuju syahid. Ini jelas menunjukan tahap
kefahaman pelajar agak rendah dalam pernyataan ini. Mereka masih tidak memahami apakah
agenda disebalik perjuangan Daesh dalam membentuk Negara Islam berkhalifah. Jika para
pelajar faham apakah tujuan sebenar organisasi Daesh/Islamic State, maka pelajar tidak akan
memilih untuk tidak pasti.
Seterusnya pernyataan ‘Kumpulan militan Daesh (ISIS) berasal dari gerakan jihad
fisabilillah’ mendapati sebanyak 14.1% pelajar yang menyatakan militan Daesh adalah dari
gerakan jihad fisabilillah. Sebanyak 34% pelajar tidak pasti, ini menunjukkan para pelajar tidak
tahu perkembangan dan tidak faham apakah perjuangan militan tersebut dipihak yang benar
atau tidak. Manakala 52% pelajar yang tidak setuju bahawa militan Daesh (ISIS) bukan dari
gerakan jihad yang sebenar. Berkenaan isu jihad dan syahid dalam perjuangan militan ini, masih
ada para pelajar yang tidak tahu dan tidak faham asas gerakan militan Daesh ini. Salah faham
konsep syahid dan jihad adalah suatu yang merbahaya, kerana kebanyakan mereka yang
menyertai militan pengganas ini adalah kerana inginkan syahid, bagi mereka syahid menjamin
ke syurga, tapi malangnya ianya hanyalah perjuangan yang sia-sia. Ideologi kumpulan militan
hanya menghasut untuk melakukan pembunuhan yang ekstrem dan ianya adalah haram serta
bertentangan dengan pegangan Ahli Sunnah Wal Jamaah.
Bagi pernyataan ‘Perjuangan militan Islamic State sebagai jihad’ mempunyai seramai
20 orang (6.7%) menyatakan ya, manakala seramai 213 orang (71%) menyatakan tidak dan
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seramai 67 orang (22.3%) menyatakan tidak pasti. Jihad adalah suatu yang dituntut dalam Islam
seandainya kena pada tempatnya, mengikut pandangan Islam ianya adalah merupakan pilihan
yang terakhir dalam menyelesaikan masalah atau konflik dan tertakluk kepada syarat-syarat
yang tertentu. Salah satu sebab kenapa Daesh/Islamic State bukan dikatakan sebagai perjuangan
jihad dan bukan mati syahid adalah kerana mereka menganjurkan serta menggalakkan
pengikutnya untuk mencapai mati syahid dengan cara pengeboman berani mati yakni bunuh
diri demi untuk membunuh sekumpulan golongan tertentu yang disasarkan termasuk mereka
yang tidak berdosa. Rendahnya pemahaman pelajar terhadap ideologi terorisme ini kerana
ramai dikalangan pelajar tidak mengikuti isu semasa atau berita berkenaan militan berpaksikan
terorisme ini, ia disokong oleh pernyataan bahawa ‘Saya sering mengikuti berita tentang
terorisme’ yang mana sebanyak 59.3% pelajar tidak mengikuti berita berkenaan keganasan
yang telah dilakukan oleh militan Daesh / Islamic State. Dengan peratusan ini, tidak hairanlah
kenapa segelintir pelajar tidak memahami apakah agenda disebalik pejuangan militan Daesh /
Islamic State.
Jadual 4: Analisis Deskriptif Kecenderungan, Taburan Kekerapan, Peratusan dan Min

Pernyataan STS TS TP S SS Min
f(%) f(%) f(%) f(%) f(%)
Wajar berlakunya serangan

11/9/2001 di World Trade 89 40 111 50 56 2.84
Center. (26%) (12%) (32%) (15%) (16%)
Saya kagum melihat kaum
wanita Malaysia 77 76 87 59 47 2.77
sama-sama berjuang ke Syria (22.3%) (22%) (25.1%) (17%) (14%)
dan Iraq
Perlu menderma terhadap 195 67 63 11 10 1.77
perjuangan Daesh/ IS. (56%) (19%) (18%) (3.2%) (2.9%)
Saya share dan like di Facebook 1.72
sebagai tanda setuju 201 68 59 10 8
dengan ideologi Daesh. (58%) (20%) (17%) (2.9%) (2.3%)
Saya berminat ke Syria dan Iraq

bagi mengikuti siri latihan 215 65 61 10 9 1.66
bersama Daesh (62.1%) (17.6%) (14.7%) (2.9%) (2.6%)
jika mendapat tajaan
Min Keseluruhan 1.97
n=346, *Skor min 1.00-2.33 (Rendah); 2.34-3.66 (Sederhana); 3.67-5.00 (Tinggi)
*STS=Sangat Tidak Setuju TS=Tidak Setuju TP=Tidak Pasti S=Setuju SS=Sangat Setuju
Jadual 4 menunjukkan analisis deskriptif tahap kecenderungan, taburan kekerapan, peratus dan
min bagi menunjukan kecenderungan pelajar terhadap isu terorisme. Dapatan kajian
menunjukkan analisis deskriptif taburan min dalam menganalisis kecenderungan pelajar-
pelajar sama ada menolak atau menerima ideologi terorisme. Melihat kepada nilai min
keseluruhan 1.97, penerimaan pelajar-pelajar prasiswazah di FPI dan FSSK terhadap ideologi
terorisme berada ditahap rendah
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Pernyataan ‘Wajar berlakunya serangan 11 September 2001 di World Trade Center’

mendapati majoriti pelajar cenderung kepada penolakan, namun begitu ada juga segelintir
pelajar yang menunjukkan respon ke arah menerima ideologi terorisme, iaitu sebanyak 15%
setuju dan 16% sangat setuju dengan serangan udara di World Trade Center, New York yang
telah mengorbankan ribuan nyawa yang tidak bersalah. Peratusan tersebut menunjukkan ada
dikalangan pelajar yang menerima unsur keganasan yang dilakukan dalam peristiwa 11/9.
Menurut Qhardhawi (2004), siapapun pelaku serangan tersebut, muslim atau bukan muslim,
Arab atau bukan Arab, agama apa pun dia, apa pun rasnya, dari manapun asal negaranya, maka
pelakunya telah berbuat dosa kerana melakukan serangan keji yang tidak pernah dibenarkan
dalam Islam dan agama apa pun di dunia.
Dapatan kajian ‘Saya kagum melihat kaum wanita Malaysia sama-sama berjuang ke
Syria dan Iraq’ menunjukkan ada pelajar yang setuju iaitu sebanyak 17% dan sangat setuju
sebanyak 14% dengan situasi tersebut atau boleh dikatakan 121 orang dari 346 pelajar yang
menyokong. Pernyataan tersebut jelas maksudnya, namun begitu masih ada segelintir pelajar
memilih untuk bersetuju, sewajarnya pelajar tidak memilih langsung jawapan yang
menunjukkan mereka setuju dengan aktiviti keganasan lebih-lebih lagi melibatkan kaum wanita
sebagai pelakunya. Isyarat ini jelas menggambarkan masih ada pelajar belum mempunyai
kesedaran sepenuhnya tentang bahayanya ideologi terorisme ini.
Seterusnya melihat pada pernyataan ‘Perlu menderma terhadap perjuangan Daesh /
Islamic State’, majoriti pelajar memilih sangat tidak setuju iaitu sebanyak 56%, sebanyak 19%
tidak setuju manakala hanya 3.2% yang setuju dan 2.9% pelajar yang sangat setuju. Dapatan
kajian ini jelas menunjukkan majoriti pelajar menolak untuk menderma terhadap militan
terorisme, hanya sebilangan kecil sahaja yang menunjukkan respon setuju. Dapatan ini
menunjukkan bahawa kebanyakkan pelajar menolak sikap yang menjurus kepada terorisme ini.
Pernyataan ‘Saya share dan like di Facebook sebagai tanda setuju dengan ideologi
Daesh’ menunjukkan peratusan majoriti pelajar sangat tidak setuju iaitu sebanyak 58%,
peringkat tidak setuju pula sebanyak 20%. Penggunaan media sosial dikalangan pelajar
sememangnya tidak asing lagi, namun begitu hasil dapatan kajian ini mendapati pelajar
cenderung ke arah tidak menyokong ideologi Daesh, hanya sebilangan kecil sahaja yang setuju
iaitu sebanyak 2.9% dan sangat setuju 2.3%.
Berdasarkan pernyataan ‘Saya berminat ke Syria dan Iraq bagi mengikuti siri latihan
bersama Daesh jika mendapat tajaan’ mendapati majoriti pelajar sangat tidak setuju untuk
terlibat dengan aktiviti tersebut iaitu sebanyak 62.1% manakala sebanyak 17.6%.yang
bersetuju. Namun begitu masih ada pelajar yang berada di situasi yang tidak pasti iaitu sebanyak
17%. Hasil dapatan kajian juga menunjukkan hanya kira-kira 2.9% sahaja pelajar yang setuju
dan 2.3% pelajar sangat setuju dengan mengikuti siri latihan bersama militan Daesh jika
berpeluang. Jika diteliti bilangan pelajar yang menyatakan setuju adalah jumlah bilangan yang
kecil sahaja, hanya lebih kurang 19 orang dari 346 pelajar yang berniat untuk mengikuti siri
latihan bersama Daesh jika mendapat tajaan. Walaupun bilangan ini kecil, namun begitu jika
mereka berpeluang mengikuti siri latihan militan di Iraq dan Syria, ianya mampu memberi
kesan kesengsaraan yang tinggi terhadap masyarakat seperti berlakunya serangan pengeboman
berani mati, rompakan senjata dan pembunuhan.
Rumusan
Hasil kajian ini mendapati bahawa para pelajar mempunyai tahap kefahaman yang rendah iaitu
berdasarkan nilai min keseluruhan iaitu 1.63. Berdasarkan maklum balas yang telah dijawab
oleh responden menunjukkan peratusan yang tidak memberangsangkan terhadap persoalan
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berbentuk kefahaman. Ini dapat membantu pengkaji memperoleh gambaran awal tentang tahap
kefahaman pelajar iaitu pelajar-pelajar tidak begitu memahami modus operandi kumpulan
militan, justeru itu jika tahap kefahaman responden rendah maka kesedaran para pelajar juga
berada di tahap yang kurang memuaskan. Secara keseluruhannya majoriti pelajar cenderung
untuk menolak ideologi terorisme ini berdasarkan peratusan yang kebanyakkan memilih untuk
tidak menyokong tindakan berunsurkan terorisme.
Rujukan
Abdul Rahman Rukaini. 2004. Antara Pengganas & Mujahidin Tulen. Semenyih: Synergymate
Sdn. Bhd
Akhrun Musa. 2016. Militan IS: Terrorisme Atas Nama Islam. Jabatan Kemajuan Islam
Malaysia.
Idris Zakaria .2003. “Islam dan Amalan Tolenrasi di Nusantara”, dalam Jaringan Dakwah
Malaysia Indonesia, Bangi: Jabatan Pengajian Dakwah dan Kepimpinan, UKM dan
Universitas Muhammadiyah Sumatera Utara (UMSU), 150-164.
Lisa Blaker.2015. "The Islamic State’s Use of Online Social Media," Military Cyber Affairs:
Vol.1: Iss. 1 , Article 4. https://www.rsis.edu.sg/wp-
content/uploads/2016/06/CO16163.pdf. ( 3 April 2017)
Mark Juergensmeyer. 2000. “Understanding the New Terrorism,” Current History, Vol. 99,
No. 636, pp. 158-163. See also, Mark Juergensmeyer, Terror in the Mind of God.
Mohamad Najib Abdul Ghafar (1999). Reka bentuk tinjauan soal selidik pendidikan. Skudai :
UTM
Mohd Hizam Hanafiah dan Zamihan Mat Zin. 2016. Siri Kajian Ilmiah: Bahaya ISIS (Daesh).
Bangi. AlHimna Enterprise.
Shahrom TM Sulaiman. 2002. Terorisme Global dan Pengganas Agama. Cabaran Hidup
Beragama pada Alaf Baru. Kuala Lumpur: Utusan Publications & Distributors Sdn
Bhd.
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ISBN: 978-967-14841-4-2
ADAKAH PEMINDAHAN PENGETAHUAN MENJADI MODERATOR

TERHADAP PELAKSANAAN PENGURUSAN LEAN DAN PRESTASI
ORGANISASI?
Mohd Norhasni Mohd Asaad1

mnorhasni@uum.com.my
Noraini Nordin2
rani@uum.com.my
Fadhilah Mohd Zahari3
mfadhilah@uum.edu.my
1
Pusat Pengajian Pengurusan Teknologi dan Logistik, Kolej Perniagaan UUM
2
Pusat Pengajian Pengurusan Teknologi dan Logistik, Kolej Perniagaan UUM
3Pusat Pengajian Pengurusan Teknologi dan LogistiK, Kolej Perniagaan UUM
___________________________________________________________________________
Abstrak: Globalisasi pasaran, tahap persaingan antara syarikat-syarikat pengeluar produk

dan perkhidmatan, serta pelbagai krisis ekonomi adalah beberapa faktor yang paling kritikal
pada masa kini. Keadaan tersebut telah mendorong pengurus-pengurus syarikat untuk
melaksanakan pelbagai strategi yang berkesan seperti pelaksanaan sistem pengurusan lean
dalam organisasi mereka. Namun, konsep yang diadaptasi dari negara luar yang mempunyai
latar belakang yang berbeza, ada kalanya sukar untuk berjaya. Kebanyakan syarikat yang
gagal melaksanakan pengurusan lean bermula dengan kekurangan kefahaman dan
pengetahuan serta kesedaran pekerja tentang pengetahuan lean. Walaupun terdapat banyak
kajian yang telah dilakukan terhadap pelaksanaan sistem pengurusan lean, namun tidak
banyak kajian yang dilakukan terhadap peranan pemindahan pengetahuan lean dalam
organisasi bagi meningkatkan prestasi organisasi. Oleh sebab itu kajian ini mencadangkan
pemindahan pengetahuan sebagai moderator terhadap hubungan pengurusan lean dan
prestasi organisasi. Selain itu, kajian ini juga akan membangunkan sebuah model pemindahan
pengetahuan lean bagi membantu organisasi melaksanakan pengetahuan lean dalam
organisasi mereka. Data yang di kumpul menerusi kaedah kuantitatif melalui soal-selidik akan
dihantar kepada syarikat-syarikat pembuatan yang melaksanakan pengurusan lean. Kajian ini
dapat mengenal pasti pendekatan yang perlu diambil oleh semua pihak terutama pihak
pengurusan organisasi dalam membentuk program pelaksanaan pengurusan lean yang lebih
efektif.
Kata kunci : Pengurusan Lean, Pemindahan Pengetahuan, Prestasi Organisasi

___________________________________________________________________________
Pengenalan
Sektor perindustrian memainkan peranan yang penting dalam pembangunan ekonomi.
Banyak syarikat perniagaan telah berusaha mencapai status sebagai pengeluar bertahap dunia
supaya ia dapat bersaing dan kekal di dalam pasaran yang kompetitif pada masa kini (Dubey,
Gunasekaran, & Chakrabarty, 2015). Menurut Holweg (2007), Pengurusan lean telah diterima
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ISBN: 978-967-14841-4-2
pakai sebagai suatu amalan pengurusan terbaik di dalam pelbagai industri. Sejak kebelakangan
ini, pengurusan lean telah dilaksanakan secara meluas dalam pelbagai industri dan sektor
(Ezzeddine, 2006; Hamid & Ismail, 2016; Kaltenbrunner, Bengtsson, Mathiassen, & Engström,
2017). Pelaksanaan pengurusan lean ini juga turut menarik minat sektor lain untuk menerima
manfaat daripada pelaksanaannya seperti sektor perkhidmatan (Hamid & Ismail, 2016), sektor
kesihatan (Gomes, Senna, Monteiro, & Pinha, 2016; Kaltenbrunner et al., 2017; Simon &
Canacari, 2012) dan sektor pembinaan (Kim, 2002; Sarhan, Xia, Fawzia, & Karim, 2017).
Berdasarkan Chaplin dan rakan-rakan (2016), pengurusan lean menjadi satu mekanisme
untuk mengurangkan kos dan sekiranya dilaksanakan dengan betul, ia boleh menjadi garis
panduan untuk menjadi sebuah organisasi yang bertaraf dunia. Namun, konsep yang diadaptasi
dari negara luar yang mempunyai latar belakang yang berbeza, apakalanya sukar untuk berjaya.
Kebanyakan syarikat yang gagal melaksanakan pengurusan lean bermula dengan salah faham
bagaimana untuk mengambil alih pengurusan lean (Abolhassani, Layfield, & Gopalakrishnan,
2016; Ballé, 2005). Penyataan ini turut disokong oleh (Kumar & Kumar, 2014; Nordin dan
rakan-rakan, 2010; Rahman dan rakan-rakan, 2013) di mana, kekurangan kefahaman dan
pengetahuan serta kesedaran pekerja juga menjadi salah satu faktor mengapa syarikat gagal
melaksanakan lean dalam organisasi mereka. Oleh itu, adalah penting bagi setiap pekerja dalam
sesebuah organisasi benar-benar memahami konsep pengurusan 14 lean dari pelbagai aspek
sehingga amalan pengurusan lean dapat dilaksanakan di dalam organisasi dengan berkesan.
Pengetahuan merupakan salah satu aspek yang penting dalam menangani sesuatu masalah
terutama dalam sistem operasi. Semua pekerja dalam organisasi perlu mempunyai pengetahuan
dan pemahaman yang baik tentang pelaksanaan pengurusan lean bagi memastikan konsep
pelaksanaan lean dapat diaplikasikan secara berkesan (Tortorella & Fogliatto, 2014).
Pengetahuan lean merujuk kepada pengetahuan menyeluruh tentang pengurusan lean
termasuklah konsep lean, prinsip-prinsip lean, cara pelaksanaan lean dan pemilihan teknik dan
alat-alat pengurusan lean yang sesuai yang boleh digunakan semasa pelaksanaannya dalam
organisasi (Lindlöf, Söderberg, & Persson, 2013).
Ulasan Karya
Pengurusan Lean
Pengurusan lean dahulunya dikenali sebagai Pembuatan Lean (Lean Manufacturing) atau
Sistem Pengeluaran Toyota (Toyota Production System - TPS). Sejarah lean bermula dengan
Kiichiro Toyoda yang memulakan syarikat pembuatan kereta di Toyota (Lander & Liker, 2007).
Womack dan Jones (1991), menghuraikan lima prinsip utama dalam organisasi bagi
melaksanakan lean dengan efektif.
Antara prinsip tersebut ialah, menentukan nilai, (specify value) mengenal pasti aliran
(identify the value stream), membentuk aliran (create flow), memperkukuh tarik (establish
pull), dan mencari kesempurnaan (pursue perfection). Prinsip yang pertama ialah menentukan
nilai. Prinsip pertama ini memberi maksud menentukan perspektif yang betul kepada
pelanggan akhir dari segi produk tertentu dengan masa yang tertentu dan pada keupayaan harga
yang bersesuaian yang ditawarkan. Ia boleh membantu syarikat untuk menyediakan produk
atau perkhidmatan pada masa yang tepat dengan harga yang sesuai dan memenuhi kepuasan
pelanggan. Keadaan ini menunjukkan bahawa, nilai ditentukan oleh pelanggan walaupun pada
dasarnya produk tersebut dihasilkan oleh syarikat. Oleh itu, kegagalan untuk menentukan nilai
dengan betul semasa melaksanakan lean memberikan impak yang tidak cekap atau
menghasilkan produk yang salah semasa proses pengeluaran(Womack, Jones, & Roos, 2007)
Prinsip kedua pengurusan lean adalah mengenal pasti aliran keseluruhan nilai bagi setiap
produk dan menghapuskan bahan buangan. Ia merupakan proses yang memberikan nilai.
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ISBN: 978-967-14841-4-2
Prinsip kedua ini diperlukan untuk mengenal pasti dan mencipta tindakan penting dan yang
tidak penting yang dianggap merugikan untuk membantu perjalanan aliran kerja semasa
pembuatan produk atau perkhidmatan agar lebih cekap atau efisien. Prinsip ini sangat penting
untuk mengoptimumkan aliran kerja semasa menghasilkan produk. Prinsip ketiga pengurusan
lean yang dibincangkan oleh Womack dan Jones (1996), ialah membentuk nilai. Prinsip ini
bertujuan untuk menyusun atur proses aliran nilai secara berterusan. Apabila nilai telah dikenal
pasti secara tepat dan aliran nilai untuk produk atau perkhidmatan telah lengkap dirancang,
peringkat seterusnya ialah meminimumkan waktu menunggu dan tiada pembuatan semula
(rework) atau pemberhentian (stoppages) di dalam aliran kerja secara berterusan. Dalam erti
kata lain, aliran adalah merujuk kepada peningkatan atau kemajuan yang dicapai dalam sesuatu
proses. Di mana, tindakan yang berpotensi untuk menyebabkan gangguan, kelewatan
kelemahan atau kecacatan dapat disingkirkan. Berdasarkan Womack dan Jones (1996)
berpendapat bahawa aliran adalah sesuatu yang boleh dicapai menerusi penambahbaikan
berterusan atau Kaizen dalam sesebuah organisasi. Prinsip keempat pengurusan lean ialah
memperkukuhkan tarik. Prinsip ini memberi penekanan terhadap tindak balas kepada
permintaan pelanggan. Selepas proses yang tidak menambah nilai dikeluarkan, proses
pengeluaran hanya fokus kepada apa yang pelanggan perlukan dan bila ia diperlukan. Keadaan
ini akan memberikan kemudahan kepada kemampuan syarikat untuk memberi tindak balas
kepada kehendak pelanggan. Tarik (Pull) bermaksud suatu proses atau sistem yang melibatkan
pembuatan sesuatu produk di mana sesuatu proses pembuatan itu tidak akan dimulakan selagi
tidak menerima arahan keperluan daripada pihak pelanggan. Prinsip yang terakhir yang
dibincangkan oleh Womack dan Jones (1996) ialah mencari kesempurnaan. Ia merupakan
proses pembaikan berterusan atau tanpa henti. Kesempurnaan wujud setelah semua aktiviti
pembaziran disingkirkan secara keseluruhan daripada aliran proses pembuatan produk atau
aliran perkhidmatan selaras dengan permintaan dan kehendak pelanggan. Kesempurnaan dapat
dicapai apabila sesebuah syarikat mampu membawa proses mereka melalui 4 prinsip yang telah
dinyatakan iaitu mengenal pasti nilai, mengenal pasti aliran nilai, mencipta aliran dan
mewujudkan tarik dengan sempurna
Menurut Nordin dan rakan-rakan (2010), perlaksanaan sistem pengurusan lean bukanlah
satu tugas yang mudah. Untuk melakukan sebarang perubahan, sesebuah organisasi perlu
mengenal pasti dan memahami halangan-halangan yang wujud semasa melaksanakan sistem
pengurusan lean. Kegagalan dalam mencapai kesediaan terhadap perubahan ke arah
pengurusan lean menyebabkan organisasi tidak dapat mencapai tahap kejayaan yang berkesan
untuk terus berdaya saing dengan syarikat lain.
Berdasarkan kepada Jadual di bawah, halangan utama dalam pelaksanaan pengurusan lean
adalah disebabkan oleh kekurangan pengetahuan dan kefahaman tentang lean menyebabkan
pelaksanaan pengurusan lean dalam syarikat sering mencapai kegagalan. Halangan kepada
kekurangan pengetahuan termasuk kekurangan latihan, kekurangan pengetahuan melaksanakan
pengurusan lean dan kekurangan kefahaman tentang lean. Kefahaman tentang konsep dan
prinsip lean (Roslin dan rakan-rakan 2013) dan kekurangan kefahaman tentang teknik dan alat
lean yang betul menjadi penghalang untuk mereka berjaya dalam pelaksanaannya (Rahman dan
rakan-rakan, 2012; Sahwan dan rakan-rakan, 2012).
Jadual 1: Halangan-halangan Pelaksanaan Lean

Halangan-halangan Pelaksanaan lean Penulis
Kurang pengetahuan/kefahaman Zhou, (2016); Misiurek dan Koch, (2014);
Sahwan dan rakan-rakan. (2012); Nordin dan
rakan-rakan (2012); Bhasin (2012); Rose dan
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rakan-rakan (2013a); Kumar (2014); (Roslin

dan rakan-rakan, 2013).
Kekurangan penglibatan pekerja Zhang, Narkhede, dan Chaple, (2017); Al-
Najem dan rakan-rakan (2012); Rose dan
rakan-rakan (2013b); Rose dan rakan-rakan
(2013b), Alagaraja (2014).
Kekurangan sumber (Masa, Kemahiran, Belhadi, Touriki, dan El fezazi, (2017);
Kewangan) Sahwan at al. (2012); Nordin dan rakan-rakan
(2012); Mosadeghrad (2013); Manzouri dan
rakan-rakan (2013), Al-Najem dan rakan-
rakan (2013); Čiarnienė dan Vienažindienė
(2014).
Kurang sokongan pengurusan (Atasan, Belhadi, Touriki, dan El fezazi, (2017);
Pertengahan) Losonci dan rakan-rakan (2011); Langstrand
dan Elg (2012); Bhasin (2012), Manzouri dan
rakan-rakan (2013); Kumar dan Kumar
(2014)
Kekurangan strategi Abolhassani, Layfield, dan Gopalakrishnan,
(2016); Bhasin dan Burcher (2006);
Muslimen dan rakan-rakan (2011); Karim
dan Arif-Uz-Zaman (2013)
Rintangan Perubahan Bhasin (2012); Nordin dan rakan-rakan
(2012); Roslin dan rakan-rakan (2014);
Pourrajab dan rakan-rakan (2015)
Budaya syarikat Bhasin (2012); Sahwan dan rakan-rakan
(2012); AlNajem dan rakan-rakan (2012);
Pourrajab dan rakan-rakan (2015); Mohd
Norhasni Mohd Asaad & Rushami Zien
Yusoff, (2013).
Kekurangan komunikasi yang jelas Angelis dan rakan-rakan (2011); Antony dan
rakan-rakan (2012); Nordin dan rakan-rakan
(2012); Sim dan Chiang (2013); Pourrajab
dan rakan-rakan (2015)
Menurut Roslin dan rakan-rakan (2013), mereka perlu pengetahuan baru dan penyelesaian
perubahan budaya semasa proses pelaksanaan lean dan peralihan dalam organisasi (Nordin dan
rakan-rakan 2010). Roslin dan rakan rakan (2013) turut berpendapat, untuk melaksanakan
pengurusan lean, pengetahuan berkaitan lean perlu diberi perhatian oleh semua pekerja untuk
mewujudkan asas pengetahuan, dan mewujudkan satu laluan yang mudah untuk melaksanakan
pengurusan lean dalam organisasi.
Prestasi Organisasi
Prestasi organisasi merupakan faktor penting dalam kehidupan seharian setiap organisasi
kerana kejayaan sesuatu organisasi adalah kunci utama untuk kejayaan pembangunan sesuatu
negara (Gavrea, Ilies, & Stegerean, 2011). Menurut Protopappa-Sieke dan Seifert (2010)
kejayaan sesuatu organisasi itu akan dapat dinilai melalui petunjuk kewangan organisasi dan
petunjuk bukan kewangan organisasi. Prestasi operasi adalah terletak di bawah petunjuk bukan
kewangan yang mana ia ditafsirkan melalui pengukuran aspek-aspek pengeluaran organisasi
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yang terjadi daripada proses-proses organisasi (Voss, Ahlstrom, & Blackmon, 1997). Bagi
Venkatraman dan Ramanujam (1986), hanya merujuk kepada tiga aspek prestasi iaitu prestasi
kewangan, prestasi perniagaan dan keberkesanan organisasi yang juga dimaksudkan sebagai
prestasi organisasi.
Menurut Georgios dan Prodromos (2008) prestasi organisasi boleh dibahagikan kepada dua
bahagian iaitu prestasi kewangan (financial performance) dan prestasi bukan kewangan (non
financial performance). Prestasi kewangan ialah peningkatan jualan, penambahan nisbah jualan
terhadap aset syarikat, penambahan pendapatan operasi dan penambahan nisbah pendapatan
operasi terhadap jumlah aset syarikat (Emeka & Michael, 2008). Manakala, prestasi bukan
kewangan merangkumi kepuasan pengguna (customer satisfaction), produktiviti (productivity),
moral pekerja (employee morale), kualiti pengeluaran (quality of output) dan prestasi
penghantaran (delivery performance) (Samson & Terziovski, 1999).
Prestasi operasi merupakan sebahagian daripada prestasi bukan kewangan dan didefinisikan
sebagai pengukuran aspek-aspek keluaran (output) organisasi yang terhasil daripada proses-
proses organisasi (Voss, Ahlstrom, & Blackmon, 1997) manakala merujuk Naveh (2004),
Prestasi operasi didefinisikan sebagai pengukuran aspek-aspek keluaran merangkumi kadar
kecacatan, kos kualiti, produktiviti, masa penghantaran yang tepat dan kepuasan pelanggan
terhadap produk. Seterusnya, menurut Voss dan rakan-rakan (1997) proses-proses organisasi
juga merujuk kepada amalan yang mana telah menjelaskan maksud amalan sebagai proses-
proses yang dilaksanakan oleh sesebuah organisasi yang menyasarkan peningkatan cara
organisasi tersebut menjalankan perniagaan. Jadual 2 menunjukkan sebahagian contoh-contoh
kajian terdahulu terhadap prestasi kewangan dan prestasi bukan kewangan.
Jadual 2: Kajian-kajian Terdahulu terhadap Prestasi Organisasi

Pengarang / Tahun Prestasi Organisasi
Prestasi kewangan Prestasi bukan kewangan

Powell (1995) Prestasi kewangan Prestasi program TQM (TQM
(Financial performance), program performance)
Pertumbuhan jualan (sales
growth), Pertumbuhan
hasil (revenue growth)
Samson dan Terziovski Kepuasan pengguna
(1999) (Customer satisfaction),
Produktiviti (productivity),
Moral pekerja (employee
morale), Kualiti pengeluaran
(quality of output) dan Prestasi
penghantaran (delivery
performance)
Shrivastava, Mohanty dan Prestasi kualiti (Quality
Lakhe (2006) performance), Keputusan
perniagaan (Business result),
Kepuasan pelanggan
(Customer satisfaction),
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Dimensi masa (Time

dimension), dan Sumber
manusia (Human resource)
Hutchinson (2007) Pendapatan bersih operasi Kadar memenuhi permintaan

(Net Operating Income- (Demand Fulfillment Rate
NOI) DFR), kitaran masa (Cycle-
Time CT)
Michael, James dan Kos operasi (Operating Inovasi (Innovation),Kualiti

Satyendra (2009) costs), ROA/ROE dan (Quality), Kepuasan
Keuntungan (Profitability) pelanggan (Customer
satisfaction), Pengekalan
pelanggan (Customer
retention),
Protopappa-Sieke dan Tahap perkhidmatan
Seifert (2010) (service level), pulangan
pelaburan (Return On
Investment ROI), margin
keuntungan (profit margin)
dan tahap inventori
(inventory level.)
Ortega Jiménez, Produktiviti (productivity),
Domínguez Machuca, & Kualiti pengeluaran (quality of
Vega, (2014) output) dan Prestasi
penghantaran (delivery
performance)
Fawcett, Jin, Hofer, ROA/ROE dan
Waller, & Brazhkin, Keuntungan (Profitability)
(2016)
Pemindahan Pengetahuan
Pengetahuan adalah satu proses untuk mendapatkan pemahaman, pembelajaran dan
pengalaman untuk menyelesaikan masalah antara individu atau kumpulan dalam organisasi.
Menurut Alvesson dan Kärreman (2001), pengetahuan adalah satu fenomena yang tidak jelas,
tidak spesifik dan gambaran dinamik, intrinsik yang berkaitan dengan makna, pemahaman dan
proses dan ia sukar untuk diurus. Pengetahuan dilihat sebagai aspek yang penting dalam
mewujudkan kelebihan persaingan (Gjurovikj, 2013).
Sohrabi dan Naghavi (2014) mengenal pasti dua jenis pengetahuan yang wujud iaitu
pengetahuan tersurat dan pengetahuan tersirat. Pengetahuan tersurat boleh dinyatakan dalam
perkataan dan nombor serta berkongsi dalam bentuk data, formula saintifik, spesifikasi, manual
dan sebagainya. Pengetahuan tersirat pula merupakan pandangan subjektif, intuisi dan
mengikut gerak hati. Ia juga sangat peribadi dan sukar untuk tafsirkan, dan menjadikan ia sukar
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untuk berkongsi dengan orang lain. Pengetahuan tersirat dan pengetahuan tersurat ditunjukkan
seperti dalam jadual 3 yang mana menunjukkan ciri-ciri pengetahuan tersirat dan pengetahuan
tersurat secara terperinci yang telah dikenal pasti berdasarkan kajian karya.
Jadual 3: Ciri-ciri Pengetahuan Tersirat dan Pengetahuan Tersurat

Pengetahuan tersirat Pengetahuan tersurat
Sukar dinyatakan dengan jelas Lebih mudah dan sistematik
Wujud dalam pemikiran manusia Belajar melalui pengajaran, bacaan,

pengulangan
Lebih kepada individu dan bersifat peribadi Berstruktur dan didokumenkan
Belajar melalui pengalaman, kemahiran, Mudah disampaikan, dikodkan, disimpan,

pemerhatian, nilai dan kepercayaan, berkongsi, berkomunikasi dengan orang lai
perasaan
Tidak berstruktur, sukar untuk dilihat, tidak Terdapat dalam buku, jurnal, pangkalan data
dikod, perolehan melalui komunikasi dan sebagainya.
Pengetahuan bersandarkan kepada diri Boleh dicapai
Dipindahkan berdasarkan perbualan, Pengetahuan akademik

perbincangan, bercerita dan lain-lain.
Tahu-Bagaimana Tahu-Apa
Sumber: (Dhanaraj dan rakan-rakan, 2004; Dinur, 2011; Lee dan rakan-rakan, 2006; Nonaka,
2007, 2009; Smith, 2001; Suppiah & Singh Sandhu, 2011; Sohrabi dan Naghavi,2014).
Pengetahuan merupakan salah satu elemen yang terpenting kepada organisasi dalam
melaksanakan pengurusan lean dengan berjaya. Namun, masalah ini menjadi faktor utama
terjadinya kegagalan dalam melaksanakan pengurusan lean dalam organisasi mereka (Nordin
dan rakan-rakan 2010; Rose dan rakan-rakan 2013a; Roslin dan rakan-rakan 2013; Rose dan
rakan-rakan 2013b). Oleh sebab itu kajian ini cuba mengenal pasti peranan pemindahan
pengetahuan dalam organisasi yang mengamalkan pengurusan lean bagi meningkatkan prestasi
organisasi.
Cadangan Kerangka Kajian

Kerangka kajian merupakan perkara terpenting dalam mengenal pasti konsep, hubungan
antara pemboleh ubah dan arah perhubungan. Daripada kerangka kajian ini, hipotesis kajian
dapat dibangunkan untuk menilai sama ada teori yang dirumuskan adalah betul ataupun salah
(Sekaran, 2003). Kerangka kajian yang dicadangkan adalah bagi mengkaji peranan pemindahan
pengetahuan terhadap hubungan pengurusan lean dengan prestasi organisasi di mana
pengurusan lean bertindak sebagai pemboleh ubah tak bersandar dan prestasi organisasi sebagai
pemboleh ubah bersandar manakala pemindahan pengetahuan sebagai pemboleh ubah
moderator. Berdasarkan Xu dan rakan-rakan (2006) penggunaan pemboleh ubah ketiga seperti
moderator atau mediator sering kali berlaku apabila terhasil kesan dari satu pemboleh ubah
kepada pemboleh ubah yang lain. Kajian yang dijalankan oleh Nawanir, Teong, dan Othman
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(2013) dalam syarikat pembuatan mendapati terdapat hubungan yang positif di antara amalan
lean dan prestasi operasi. Manakala kajian yang dijalankan oleh Gjurovikj (2013) tentang
terhadap hubungan strategi dan kelebihan kompetitif mendapati pemindahan pengetahuan
berperanan sebagai moderator di antaranya.
Berdasarkan justifikasi yang dinyatakan di atas, penyelidik mencadangkan kerangka kajian
seperti gamba rajah 1.
Pemboleh ubah Tak Bersandar Pemboleh ubah

Bersandar
Prestasi
Pengurusa
Organisasi
n Lean
Pemindaha
n
Pengetahu
Pemboleh ubah Moderator
Gambarajah 1: Kerangka kajian

Berdasarkan kerangka konseptual di atas, suatu hipotesis kajian dibina bagi menunjukkan
perhubungan antara pemboleh ubah yang dikaji;
H1: Pengurusan lean yang mempunyai hubungan positif dengan prestasi organisasi
H2: Pengurusan lean yang mempunyai pengaruh secara signifikan terhadap prestasi
organisasi
H3: Pemindahan pengetahuan menjadi pemboleh ubah moderator kepada hubungan
pengurusan lean terhadap prestasi organisasi.
Teori Asas
Pendekatan pengurusan lean dalam perniagaan ialah dengan meminimumkan penggunaan
sumber bahan yang mana berkait rapat dengan teori Resource Based View (RBV). Ia
menekankan kepada keupayaan dalaman sesebuah organisasi dalam membentuk strategi bagi
mencapai daya saing dalam pasaran (Lozano, Carpenter, & Huisingh, 2015). Menurut Parry
dan Turner (2005) terdapat empat ciri-ciri utama dalam Resource Based View iaitu; sasaran
pencapaian pulangan lebih tinggi dari saingan; sebuah firma yang mempunyai satu set sumber-
sumber yang digabungkan untuk membentuk satu kecekapan unik; kecekapan dan keupayaan
bertahan bagi mencapai pulangan yang lebih baik sehingga ia sukar ditiru atau diganti;
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gabungan-gabungan sumber baru yang mana sebahagian besarnya menyumbang untuk

pulangan yang lebih baik dan mampan.
Dalam teori Resource Based View (RBV) sumber kemasukan adalah terdiri daripada sumber
berasaskan pengetahuan ataupun sumber berasaskan bahan. Sumber berasaskan pengetahuan
merupakan sumber terpenting dalam mencipta kelebihan daya saing kerana ia sukar ditiru.
Seperti yang disarankan dalam teori, firma yang mempunyai sumber yang luar biasa, berharga,
tersendiri dan tidak boleh ditukar ganti akan mencapai prestasi unggul (Eisenhardt & Martin,
2000). Manakala, Hoopes, Hadsen dan Walker (2003) menyatakan bagi menjadi sumber
berdaya saing, ia hendaklah terdiri dari tiga ciri-ciri utama iaitu berharga, luar biasa, dan
terhindar daripada peniruan. RBV menganggap firma-firma mestilah memiliki aset tertentu dan
mengembangnya dengan baik bagi mencapai satu kelebihan yang tetap (Dickinson, 2009)
Cadangan Kaedah Kajian

Kajian ini adalah kajian tinjauan yang melibatkan kaedah kuantitatif untuk memeriksa dan
memperoleh jawapan mengenai hubungan pemboleh ubah-pemboleh ubah yang diandaikan
seperti yang terdapat dalam kerangka konsep kajian. Ke semua pemboleh ubah tak bersandar
diyakini mempunyai hubungan positif dan mempengaruhi secara signifikan terhadap pemboleh
ubah bersandar kajian ini.
Kajian ini melibatkan pengumpulan data empirikal daripada organisasi pembuatan di
Malaysia yang mengamalkan pengurusan lean dalam pengeluaran melalui penggunaan soal
selidik. Soal selidik yang dibangunkan adalah bersifat berstruktur. Soal selidik ini dibangunkan
bagi mendapatkan data-data yang diperlukan bagi tujuan penganalisisan pemboleh ubah-
pemboleh ubah seperti mana yang dicadangkan dalam kerangka kerja kajian. Populasi kajian
adalah bilangan organisasi pembuatan di Malaysia dan sampel kajian adalah berdasarkan
Krejcie dan Morgan (1970). Data-data yang diperoleh akan dianalisis menggunakan perisian
PLS SEM kerana keupayaan menganalisis hubungan di antara pemboleh ubah tak bersandar,
pemboleh ubah bersandar dan pemboleh ubah moderator.
Kesimpulan
Kertas kerja ini mencadangkan pemindahan pengetahuan adalah sebagai pemboleh ubah
moderator di antara hubungan pengurusan lean dengan prestasi organisasi. Dapatan kajian ini
akan membantu pihak industri dan akademik memahami peranan pemindahan pengetahuan
dalam pelaksanaan pengurusan lean.
Dari sudut praktikal, kajian ini dapat mengenal pasti pendekatan yang perlu diambil oleh
semua pihak terutama pihak pengurusan organisasi dalam membentuk program-program
latihan yang lebih berkesan untuk pekerja. Program latihan ini dapat menambah pengetahuan
dan pengalaman di kalangan pekerja di samping dapat menyuntik pembelajaran tentang kaedah
baru untuk peningkatan keberkesanan kerja. Kejayaan bina insan melalui pemindahan
pengetahuan berdasarkan pengurusan lean akan meningkatkan prestasi organisasi dan lebih
kompetitif di era dunia tanpa sempadan.
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UNDERSTANDING A CONTEXTUAL PERSPECTIVES OF

MACROPRUDENTIAL POLICY FRAMEWORK
Sutina Junos1
Masturah Ma’in2
Siti Ayu Jalil3
1Faculty of Business and Management, Universiti Teknologi MARA Kedah Campus, 08400, Merbok, Kedah
2
Faculty of Business and Management, Universiti Teknologi MARA Selangor, 42300 Bandar Puncak Alam,
Selangor
3
Faculty of Business and Management, Universiti Teknologi MARA Selangor, 42300 Bandar Puncak Alam,
Selangor
___________________________________________________________________________
Abstract: Global financial crisis (GFC) of 2008 to 2009 has played a significant role in the
collapse of the financial institutions, failure of key business, decline in consumer wealth and
slump of the economy activity not only in United States (US) but in most countries in the world.
A key lesson of this crisis was the importance of mitigating systemic financial risk and the need
for a macroprudential approach to surveillance and regulation that can identify system-wide
risks and take appropriate actions to maintain financial stability. This paper discusses the key
elements of macroprudential policy framework that are implemented in many countries in order
to maintain financial stability and mitigate the systemic financial risk. The discussion is based
on the elements of early warning system indicators, a set of macroprudential policy instruments
and an effective macroprudential institutional framework.
Keywords: Global Financial Crisis, Financial Stability, Macroprudential Policy, Systemic

Risk and Macroprudential Institutional Framework.
___________________________________________________________________________
Introduction
It began in USA and spread to the rest of the world, the global financial crisis (GFC) of 2008
to 2009 has brought a huge impact on the world economy. What started as an asset bubble
caused by an array of financial derivatives that drove the sub-prime mortgage boom, exploded
into housing and banking crisis with a cascading effect on consumer and investment demand
(Zainal Abidin & Rasiah, 2009). Krugman (2009) stated that from a housing crisis, it quickly
grew into a global banking crisis with the investment and merchant banks first absorbing the
impact before it spread to the commercial banks and Islamic banks. In other words, this crisis
played a significant role in the collapse of the financial institutions, failure of key business,
declines in consumer wealth and downturn in economy activity not only in USA but in most
countries in the world.
According to Arvai, Prasad and Katayama (2014), the global financial crisis triggered
major changes in the approach that countries take in financial regulation, with the recognition
that to ensure macroeconomic stability, economic policy has to include financial stability as an
additional objective. A key lesson of this crisis was the importance of containing systemic
financial risk and the need for a macroprudential approach to surveillance and regulation that
can identify system-wide risks and take appropriate actions to maintain financial stability
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(Kawai and Morgan, 2012). Central banks of each country should play an important role in
monitoring and regulating financial stability. Selialia, Mbeleki and Matlapeng (2003) reported
that financial stability is crucial for sustained economic growth. Financial stability is “a
condition in which the financial system comprising of financial intermediaries, markets and
market infrastructures is capable of withstanding shocks, thereby reducing the likelihood of
disruptions in the financial intermediation process which are severe enough to significantly
impair the allocation of savings to profitable investment opportunities” (ECB, 2012). Economic
growth cannot be achieved without strong financial systems. Even with sound macroeconomic
fundamentals, weak financial systems can destabilize the economy, making it more vulnerable
to external shocks.
In order to maintain financial stability, Siregar (2011) found that it requires more
flexible and adaptive macroprudential policies. This study, therefore, discusses on key elements
of a macroprudential policy framework that consists of a system of early warning indicators, a
set of macroprudential policy instruments and an effective macroprudential institutional
framework.
Literature Review
According to Balogh (2012), it is necessary to clarify some of the structural aspects or key
elements of the implementation of macroprudential policies in the country and the authority in
charge of macroprudential supervision in order to develop an effective institutional framework
of macroprudential policy. Adequate institutional foundation for macroprudential policy
frameworks need to suit with country-specific circumstances and institutional backgrounds
(BIS, 2011; CGFS, 2012; IMF 2013). There is no “one size fits all” because different models
of institutional framework might be effective depending on the country specifics such as
historical background and events, legal traditions, availability of resources and the size and
complexity of the financial market (Zulkhibri & Naiya, 2016). The International Monetary Fund
(IMF, 2011) has identified five relevant elements that play key roles in effective institutional
framework for macroprudential policy. There are the mandate, the power and instruments,
accountability and transparency mechanism, the composition of the decision-making body and
the mechanism for domestic cooperation and the coordination of internal policies.
In the study of Borio (2010), Vinal (2011) and Lim et al. (2011), they have given a lot
of concentration on the system analysis of macroprudential authorities/ institutional framework
of macroprudential policy. In their studies, the authors have verified certain aspects that are
more important to ensure effective institutional framework of macroprudential policy in a
country. The aspects include a clear definition of macroprudential authorities and mandates,
outlined principle for their work and different configuration of the mandates distribution
between organizations need to be considered with or without interagency financial stability
board.
Other than that, Claessens et al. (2014), Akinci and Olmstead-Rumsey (2015) have studied
on macroprudential instruments and the application which is one of the important elements in
an effective institutional macroprudential framework. It contains some recommendations on
possible sets of macroprudential instruments, condition and objectives for application of each
instrument. Many researchers from IMF tend to view the macroprudential policy mandate as a
right for macroprudential policy for ensuring financial stability.
Macroprudential Policy Framework

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To achieve more flexible and adaptive macroprudential policies, a macroprudential policy

framework should ideally encompass a system of early warning indicators that signal increased
vulnerabilities in financial stability, a set of policy instruments that can help mitigate risks
beforehand and address the increased vulnerabilities at an early stage. It should also help build
buffers to absorb shocks after the fact and an institutional framework that ensures the effective
implementation of macroprudential policies.
Early Warning Systems/ Indicators
According to Jahn and Kick (2012), early warning systems are functional, data – driven
approaches that draw attention to variables associated with past crises in order to alert policy
makers of potential future crises. Macroprudential indicator or financial soundness indicators
(FSIs) are used as the early signal for detecting imbalances that affect financial system. Based
on the previous studies, there are three main approaches that are used to identify
macroprudential indicators (financial soundness indicators). First, it is based on international
best practices. Second, based on the underlying economic theories of financial instability and
last but not least, it is based on the linkages or relationship between the sectors in an economy.
In all the approaches discussed above, the indicators should be analytically and empirically
relevant, that is, there should be a sensible basis for expecting a relationship between the
indicator and financial instability, and indicators should have predictive power or be classified
as leading indicators in the sense that changes in one variable precede changes in another
(Selilia et. al, 2013).
Macroprudential Policy Instruments

There are 10 types of macroprudential policy instruments that have been most frequently
applied to achieve macroprudential objectives based on the three types of measures. First,
macroprudential policy instruments that are used for credit related are loan to value ratio (LTV),
debt to income ratio (DTI), caps on foreign currency lending and ceilings on credit or credit
growth. Second, macroprudential policy instruments that are used for liquidity related are limits
on net open currency positions/currency mismatch, limits on maturity mismatch, reserve
requirements and countercyclical/time-varying capital requirements. Last but not least,
macroprudential policy instruments that are used for capital related are timevarying/dynamic
provisioning and restrictions on profit distribution.
Under the credit measure, the LTV is a lending risk assessment ratio that financial
institutions and other lenders examine before approving a mortgage. Other than that, The DTI
is the percentage of a consumer's monthly gross income that goes toward paying debts, while
caps on foreign currency lending is a credit agreement where the credit is denominated in a
currency in which the consumer receives the income or holds the assets from which the credit
is to be repaid. A ceiling on credit or credit growth is the maximum amount that a person,
company or entity can borrow (Lim, Bhattacharya, Columba, Costa, Otani & Wu, 2011).
For the liquidity measure, NOP is the difference between balance assets and liabilities
in foreign currency plus the forward (conditional and unconditional) forex purchased and sales.
Limits on maturity mismatch is the tendency of a business to mismatch its balance sheet by
possessing more short-term liabilities than short-term assets and having more assets than
liabilities for medium and long-term obligations, while reserve requirements are requirements
regarding the amount of cash a bank must hold in reserve against deposits made by customers.
Countercyclical capital requirement is calculated as the weighted average of the buffers in effect
in the jurisdictions to which banks have a credit exposure (Lim et al, 2011).
Last but not least, tools that are used for capital related are time-varying or dynamic
provisioning is the adjustment of banks provisions for defaults on loans for the effects of the
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economic cycle and restrictions on profit distribution where it is the accumulated net income
retained for reinvestment in a business, rather than being paid out in dividends to stockholders.
(Lim et al. 2011).
An Institutional Framework of Macroprudential Policy

In order to develop an institutional framework of macroprudential policy efficiently and secure
the soundness of the banking system, it is essential to clarify some of the structural aspects of
the implementation of macroprudential policies in the country and the authority in charge of
macroprudential supervision (Balogh, 2012). The International Monetary Fund (IMF, 2011) has
identified five relevant aspects that require clarification. They are the mandate, the
competencies and instruments, accountability and transparency mechanism, the composition of
the decision-making body and the mechanism for the coordination of internal policies.
Conclusion
The global financial crisis (GFC) of 2008 to 2009 has highlighted the need to go beyond a
purely micro – based approach to financial regulation and supervision in order to achieve
financial stability. With increasing complexity in banking industry, coupled with growing
severity of the crises, the focus of regulators has shifted to the adoption of a more structured
macroprudential framework to address systemic risks and account for the interconnectedness
of financial and non-financial institutions in the economic system. To maintain financial
stability, there are three key elements of an effective macroprudential policy framework. First,
an early warning indicators system that signals increased vulnerabilities to financial stability.
Second, a set of macroprudential policy instruments that can help contain risks ex ante and
address the increased vulnerabilities at an early stage, as well as help build buffers to absorb
shocks ex post. Lastly, an institutional framework that ensures the effective identification of
systemic risks and implementation of macroprudential policies.
References
Allen, W., & Wood, G (2006). Defining and achieving financial stability. Journal of Financial
Stability, 2(2),
72-152.
Arvai, Z., Prasad, A & Katayama, K. (2014). Macroprudential policy in the GCC countries.
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Balogh, P. (2012). Macroprudential supervision tools in the European banking system.
International Conference
Emerging Markets Queries in Finance and Business, Petru Maior University of Tîrgu-
Mures, ROMANIA,
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Paper.
Bartram, S. M., Brown, G. W., & Hund, J. E. (2005). Estimating systemic risk in the
international financial
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Borio, C. (2003). Toward a macroprudential for financial supervision and regulation. BIS
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measurement and its consequences. BIS Working Paper 284 (Basel: Bank for International
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Shanghai.
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frameworks. CGFS
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macroprudential
policy?. IMES Discussion Paper Series 2015-E-3.
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Hanson, S., Kashyap, A. & Stein, J. (2011). A macroprudential approach to financial regulation.
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macroprudential
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Krugman, P. (2009). The Return of Depression Economics and the Crisis of 2008, New York:
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of Financial Regulation”; Banque de France and Toulouse School of Economics (TSE),
Paris.
Lim, C. H., Bhattacharya, R., Columba, F., Costa, A., Otani, A., & Wu, X. (2011).
Macroprudential policy: An
organizing framework. International Monetary Fund Background Paper.
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Selialia, F., Mbeleki, T., & Matlapeng, K. (2003). Macroprudential analysis of the financial
system: the case of
South Africa. IFC Bulletin, 33, 110-133.
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Zainal Abidin, M., & Rasiah, R. (2009). The global financial crisis and the Malaysian economy:
Impact and
responses. A Joint Report by the Institute of Strategic and International Studies (ISIS) and
Universiti Malaya
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SPREADSHEET AS LEARNING AID IN FINANCIAL ANALYSIS

COURSES
Roseziahazni Abdul Ghani 1, A’tiqah Rashidah Abu Samah2 , Zaleha Khamis3 & Wan
Dorishah Wan Abd Manan4
1,2,3
Faculty of Business and Management, Universiti Teknologi MARA, 23000 Dungun, Terengganu
4
Faculty of Computer and Mathematical Sciences, Universiti Teknologi MARA, 23000 Dungun,
Terengganu
__________________________________________________________________________________
Abstract: Over the years, the spreadsheet role as teaching and learning aids to enhance student
learning of various discipline - content knowledge and skills among university students is
increasingly recognized. It is also accepted as a tool to equip students with skills that will be
beneficial in their future careers. Therefore, this study was conducted to investigate the
effectiveness of using FES ComP spreadsheets to assist the students in course work projects and
assignments in performing relevant analysis on the financial performance of the company. To
examine this approach, a study involving 105 Business students enrolled in a financial statement
analysis and final year project paper courses in UiTM Terengganu was conducted. Results from
this survey indicate that there is a preference among students to use the FES ComP spreadsheets
in this course as learning aids.
Keywords: Financial analysis, spreadsheet, finance and accounting, students’ skill, teaching
and learning tool.
Introduction
Spreadsheets have been inaugurated in many diverse teaching settings, regardless of

educational level or subject (Serra, Bikfalvi, Masó, Carrasco, & Garcia, 2017). The
spreadsheets application in teaching ever since it was introduced in 1979 has shown that the use
of spreadsheet in teaching mathematics has resulted better results in the course work (Baker &
Sugden, 2007). A study utilizing spreadsheets in business mathematics in teaching business
math course found significant correlation between the spreadsheet assignments and actual
world applications and that the students find significance in completing coursework materials
(Mays, 2015).
In the corporate world, spreadsheet plays and important functions and broadly used in
business modeling, financial analysis, and decision support making (Leong and Cheong (2008).
Feedback from employers and internship students from business, accountancy and finance
industries reveal that Excel skills is considered as among the most valuable and corporate
recruiters emphasize on spreadsheet skills ability when employing fresh graduates (Kyng,
Tickle, & Wood, 2013; Tickle, Kynga, & Wood, 2014). Besides, data analysis skills using
spreadsheet gradually growing in value to employers (Timothy Kyng & Paul Taylor, 2008;
Read & Baston, 1999). Therefore the development and use of applied spreadsheet assignments
should continue to be emphasized among undergraduates.
Conventionally most university undergraduate programs teach foundational courses in

mathematics and computer programming to equip undergraduates with the ability to analyze
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and solve problems. In UiTM, financial analysis courses specifically Company Analysis at
diploma level and Financial Statement Analysis at degree level required business students to
complete assignments on financial performance of certain companies listed on Bursa Malaysia.
Business students are required to analyze the Annual Reports using several financial analysis
techniques to support the financial decision making and discussion. The undergraduates’
students formulate the calculation manually using financial or scientific calculator since there
are no rubrics stated in the syllabus that required them use any spreadsheet. The dilemma with
the current status is students tend to incorrectly calculate the financial ratios and they spend
plenty of time to complete the comparative and common size financial statement analysis. Even
if the business students are good at using the calculators however they still lack an important
aspect needed in the working environment that is spreadsheet skills ability.
Hence, in order to overcome the miscalculated financial ratios, faster financial analysis
and improve spreadsheet skills ability among the undergraduates’ students, FES ComP
spreadsheet was developed to overcome the said problems. FES ComP spreadsheet is
introduced in teaching and learning of Company Analysis and Financial Statement Analysis in
UiTM Terengganu to meet the expected course and program outcomes; able to apply systematic
approach in solving business problem and able to use appropriate methodologies in gathering
and analyzing information pertinent to decision making. Therefore, it is important to examine
the perceived benefits, perceived disadvantage and the attitude towards FES ComP spreadsheet
in teaching and learning financial analysis in order to structure better coursework to enhance
understanding and improve spreadsheet skills ability among undergraduates.
Literature Review
The introduction of new learning aid into the teaching and learning discipline will
certainly generate discussion as to its effectiveness (Atkinson, Thrasher, & Coleman, 2011).
Several educators will claim that the use of technology in learning process may improves
learning however some will disagree where technology may conflict with students’ thought
processes (Jackson, Gaudet, McDaniel, & Brammer, 2009).
Spreadsheet software are immensely flexible, familiar, and relatively easy to use and are
widely used in various disciplines of education to simulate phenomena in order to solve
problems and enabling students to learn scientific methods (Fauzi, 2016). It also very useful for
modelling business problems and enabling data analysis using what-if, pivot tables, and even
statistical analysis functionality (Mourik, 2006). Previous studies have recommended that
employing the spreadsheet in classroom be able to improve critical thinking abilities (Baker &
Sugden, 2007). In addition, spreadsheet knowledge is imperative for business students in order
to success in the job market since the needs and opportunities for Excel based analytical skills
is prevalent in businesses of all magnitudes and abundant in business (Formby, Medlin, &
Ellington, 2017).
At present, the need for graduates to start jobs with sound functional analytical skills, e.g.
proficiency with Microsoft Excel is becoming more of a prerequisite for employment (Formby
et al., 2017). However, there are a significant proportion of students who are unable to use
spreadsheets when they enroll in their universities; many undergraduates are computer literate,
but a significant number of them do not know how to use spreadsheets as expected in their
undergraduate study (Chong, Puteh, & Goh, 2015). Hence, lack of spreadsheet skills ability
certainly may have impact on graduates’ performance in the working environment in future.
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Research Design
This study was mainly conducted with a quantitative approach using the survey methodology.
The questionnaires for this study was replicated and developed based from previous studies done by
(Dania & Posey, 2012), (Timothy Kyng & Paul Taylor, 2008) and (Kyng et al., 2013). The data were
collected using a modified questionnaire based on the above study. A total of 105 students comprising
investment analysis diploma students and financial undergraduate students at an institute of higher
learning in Dungun Terengganu were involved for this study. All the students involved are final year
students who take Project Paper (Company Analysis) courses i.e. FIN382 at Diploma level or Financial
Statement Analysis (FIN 658). Questionnaires and instructions have been submitted to students during
their scheduled classes. Five point scales ranging from "Strongly agree" to "highly disagreeable" is used
to document student responses questions concerning the use of FES Comp spreadsheets in both courses.
After the student returns their answer, the questionnaire is analyzed for missing data and responses.
Result
This study is conducted for three semesters starting from the semester of the academic
year 2012 until the semester 2017 at Universiti Teknologi MARA Terengganu branch of the
Dungun Campus. Data analysis was conducted to address the research questionnaire. Data
obtained from questionnaire was entered into the computer and analyzed using SPSS (Statistical
Packages for Social Science), a comprehensive computer program used to help researchers
conduct statistical analysis fast and accurate.
Frequency Analysis for Respondents’ Profile

Table 1.0: Demographics and Descriptive Statistics
Factor Description Frequency (n) Percentage (%)
Gender Male 24 22.9
Female 81 77.1
Age 18 - 20 Years 16 15.2
21 - 23 Years 78 74.3
24 - 26 Years 11 10.5
Programme Diploma in Investment
42 35.3
Analysis
BBA(Finance) 66 55.5
Previous experience using Yes 86 81.9
spreadsheet No 19 18.1
The important of Not important 1 1.0
spreadsheet in respondents’ Somewhat important 11 10.5
discipline Moderately important 31 29.5
Very important 45 42.9
Essential 17 16.2
Respondents’ training Not training at all 34 32.4
experience using Learnt from
spreadsheet 51 48.6
colleagues/friends
Learnt from previous
10 9.5
school
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Learnt from internet 2 1.9

University 8 7.6
Respondents’ ability to No ability 10 9.5
work with spreadsheet Novice user 20 19.0
Moderate user 65 61.9
Experienced user 9 8.6
Expert user 1 1.0
The demographic factors of the respondents consist of gender, race, age, programme,
previous experience using spreadsheet, the important of spreadsheet in students’ discipline,
students’ training experience using spreadsheet, and students’ ability to work with spreadsheet.
The summary of the demographic factors is shown in Table 1.
The result shows there are more female students than male students with a total number
of 81 and 24 respondents respectively. This means that the female students have the highest
percentage with 77.1% while the percentage for male students is 22.9% only. Next factor is the
respondents’ age. Majority of the respondents’ age between 21 to 23 years old which carry a
percentage of 74.3% with the total number of 78 respondents. This followed by 15.2% of
respondent who age between 18 to 20 years old which about 16 respondents. The minority of
respondents is grouped between 24 to 26 years old which about 11 respondents represent 11.5%
of the total sample. Next factor is the respondents’ programme. The majority of the respondents
are from Bachelor of Business Administration (Honor’s) Finance compromised of 55.5% or 66
respondents. The remainder are from Diploma in Investment Analysis consist of 42 respondents
or 35.3%. This means that more respondents are at degree level.
The result shows there are more respondents with a total number of 86 or 81.9% have
previous experience using spreadsheet and 90 respondents or 85.7% agree that spreadsheet is
used in their discipline. Majority of the respondents agree that spreadsheet is very important in
their discipline which carry a percentage of 42.9% with the total number of 45 respondents. On
top that 17 respondents or 16.2% stress out that spreadsheet is essential for their discipline.
However, the analysis shows majority of these respondents comprised of 48.6% or 51
respondents only learnt the use of spreadsheet from their colleagues or friends. Astonishingly,
32.4% or 34 respondents do not have any proper training experience using spreadsheet at all.
Due to the lack of exposure to spreadsheet only 8.6% or 9 respondents are experienced user and
only 1.0% or one respondent an expert user out of 105 respondents. The majority of the
respondents comprised of 61.9% or 65 respondents are moderate user which means they have
less ability to work with spreadsheet. The remainder 19.0% or 20 peoples are novice user and
surprisingly 10 respondents or 9.5% has no ability at all to work with spreadsheet. These poor
findings on spreadsheet skills ability certainly will have impact on graduates’ performance in
the working environment. Currently, the need for graduates to start jobs with sound functional
analytical skills, e.g. proficiency with Microsoft Excel is becoming more of a prerequisite for
employment(Formby et al., 2017).
Means Score
Means score are computed by equally weighing the means score of all items. All the
items were measured on five point likert scale. Table 2.0 till table 2.2 illustrate the means score
for all the constructs in this study. The overall means score for perceived benefits was 4.12. The
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means score for perceived benefits items were on the ranged of 4.00 to 4.20, while the standard
deviations ranged from 7.39 to 8.52. This score means can be classified as high indicating that
overall the students perceived that FES ComP spreadsheet gave benefits to them.
Table 2.0: Means of Perceived Benefits

Mean Std. Deviation
FES ComP spreadsheet is a helpful learning tool in this course (PB1) 4.13 .844
FES ComP spreadsheet can be technically easier construct the tables and graphs
4.10 .766
based on the calculations and built in functions of the spreadsheet (PB2)
Overall I find FES ComP Spreadsheet is very useful and helpful (PB3) 4.13 .821
FES ComP spreadsheet helps me to improve my computer skills (PB4) 4.08 .817
Using an FES ComP spreadsheet saves time and the project/assignment given
4.15 .852
moves smoothly (PB5)
FES ComP spreadsheet help me to prepare the financial statement of the
4.15 .769
company (income statement and balance sheet) easier and quickly (PB6)
FES ComP spreadsheet significantly improved The quality of my
4.10 .815
assignment/[projects given by the lecturers (PB7)
FES ComP spreadsheet ensure my work accurately (PB8) 4.12 .805
FES ComP spreadsheet able to solve tedious and repetitive calculations using
4.00 .772
FES ComP Spreadsheet (PB9)
FES ComP spreadsheet help me to evaluate the financial performance of the
company based on ratio, common size and year to year change analysis very fast 4.20 .739
(PB10)
Table 2.1 shows the means score for perceived disadvantages. The means score for perceived
disadvantages items ranged from 2.89 to 3.20., giving an overall means score of 3.23. This
suggests that the student less agrees that FES ComP do not provides advantages to them in
solving their assignment. The mean score for the attitude constructs is shown in Table 2.2. The
means score attitude were range from 3.79 and 3.88 with the overall means score of 3.84. This
score indicates as the attitudes of the students to use the FES ComP in doing their assignment
was relatively high.
Table 2.1: Means of Perceived Disadvantages

Mean Std. Deviation
There is no difference in completing financial analysis assignment using FES
2.89 1.022
ComP Spreadsheet or manual calculator (PD1)
FES ComP Spreadsheet is difficult to modify to suit the case situation (PD2) 3.36 .982
Financial Statements items in FES ComP Spreadsheet is limited to general
3.22 .980
financial industry hence cannot accommodate to certain types of industry (PD3)
FES ComP Spreadsheet procedure is difficult to understand and to follow (PD4) 3.20 1.078
FES ComP Spreadsheet are time consuming the students in completing the
3.39 1.079
assignment/[projects given by the lecturers (PD5)
I think there is not much difference the lecturer use a normal whiteboard and FES
3.35 .990
ComP Spreadsheets to explain the Financial Analysis project/assignment (PD6)
Table 2.2: Means of Attitude

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Mean Std. Deviation

I recommend that FES ComP Spreadsheets to be compulsory use in my
3.88 .756
programme.(A1)
I agree that Fes ComP spreadsheet is important for graduates to be learn in my
3.79 .756
discipline for my future employment (A2)
Validity and Reliability of Research Instruments
A reliability test was conducted to determine the internal consistency of the measures
used. Overall scores for alpha obtained in the study are in the range from 0.854 to 0,953 as
indicated in Table 1 below. The results revealed that the reliability of perceived benefits
dimensions, perceived disadvantages and attitude are proven to be reliable as the reliability tests
as shown by Cronbach’s alpha (α) which exceeded 0.7 lower limit of acceptability (Hair, Black,
Babin, & Anderson, 2010; Pallant, 2010).
Table 3.0: Reliability scores for constructs
No. Variables No. of Items Alpha Value
1. Perceived Benefits 10 0.953
2. Perceived Disadvantages 6 0.854
3. Attitude 2 0.936
Beside reliability tests, the factor analysis was used to determine the inter-correlations
among a set of variables. The fitness of the data was measured through two test; Kaiser-Meyer-
Olkin (KMO) measure of sampling adequacy, and Bartlett’s Test of Sphericity prior examined
the factor analysis. According to (Hair et al., 2010) and (Osborne, 2015) the KMO has to be
more than 0.50 and Bartlett’s Test of Sphericity has to be significant. For factor analysis,
principle component analysis and direct oblique rotation were performed. Costello and Osborne
(2005) stated that oblique rotation allows factors to correlate Factors that had loadings above
0.6 with the Eigen value above 1.0 will be accepted for further investigation (Hair et al., 2010).
Eigenvalues are important for observing the total number of components,
Table 4.0: KMO, Bartlett’s Test & Eigen Value
Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy . .820

Bartlett's Test of Sphericity Approx. Chi-Square 1.490E3
df 153
Sig. .000
Eigen value 1.909
Percentage of variance explained 70.073%
As depicted in Table 4.0 above, 18 items of the instrument items were subjected to principal
components analysis and obligue rotation. Both the KMO value is .820 exceeding the value of
0.5 and Bartlett’s test of sphericity at p<0.001 reached statistical significant indicated as the
data is factorable. Using the Eigenvalue cut-off 1.0, there were three factors that explain a
cumulative variance of 70.073% which also confirmed by scree plot findings of retaining 3
factors. Following suggestion by Hair et al. (2010); Tabachnick and Fidell (2007) and Pallant
(2010) items will be deleted if the items are double loaded or the loading factors less than 0.6.
In this study no items were dropped as they meet all the above requirements. Table 5.0 below
shows the factor loading after second rotations.
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Table 5.0: Rotated Factored Matrix
Perceived Perceived Attitude

Benefits Disadvantages
1 2 3
PB1 .871
PB2 .851
PB3 .845
PB4 .844
PB5 .837
PB6 .836
PB7 .832
PB8 .820
PB9 .818
PB10 .814
PD1 .797
PD2 .793
PD3 .764
PD4 .758
PD5 .718
PD6 .664
A1 .923
A2 .902
Eigenvalues 7.116 3.588 1.909
% of Variance 39.533 19.935 10.606
Eighteen items loaded well on three components. The items that cluster on the same
components suggest that component 1 represent perceived benefits, component 2 perceived
disadvantages and component 3 for attitude.
Conclusion
The purpose of this study is to analyze whether the use of spreadsheet FES Comp in
finance courses can help students complete their course work. The results of our study show
that students agree that FES Comp is a good teaching tool that allows them to complete the
finance course work for a short period of time. Incorporated class over a finance class based on
traditional lecture techniques in the future. The perceived benefits of the use of FES Comp
spreadsheet include improvement of student learning, and enriching students with skills that
will be required in the employment and in related industry. Statistical analysis of our study also
suggests that sampled students indicate preference for FES Comp spreadsheets in Finance
courses and is likely to be welcomed by students.
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software in quantitative and financial disciplines. International Journal of Mathematical Education in
Science and Technology, 44(2), 214-231.
Kyng, Timothy, & Taylor, Paul (2008). Graduates’ use of spreadsheet tools in learning and applying Financial
Mathematics Asian Social Journal, 4(3), 66-77.
Leong, T.Y., & Cheong, M L.F. (2008). Teaching business modeling using spreadsheets. INFORMS Transactions
on Education, 9(1), 20–34. doi: doi 10.1287/ited.1080.0015
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Technology, 45(2), 200–213. doi: dx.doi.org/10.1080/0020739X.2013.790518
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DIVIDEND PAYOUT DECISION: DOES OWNERSHIP STRUCTURE

MATTER?
Noorhayati Yusof Ali1, Zuraida Mohamad2, Nurul Syuhada Baharuddin3
Universiti Teknologi MARA Cawangan Terengganu, Sura Hujung 23000 Dungun, Terengganu, Malaysia.
1
Corresponding Author e-mail: noorhayatiy@tganu.uitm.edu.my
2
e-mail: zurai5312@tganu.uitm.edu.my
3
e-mail: nurul574@tganu.uitm.edu.my
Abstract: Drawing on the evidence indicating that ownership structure is predominantly concentrated and
controlled by families in emerging market, this study attempts to investigate the effect of ownership structure on
dividend payout decision of Malaysian listed firms. The study employs a panel data analysis of 141 firms listed on
Bursa Malaysia for the financial year from 2009 to 2013. Multiple regression analysis is used to estimate the
association proposed in the hypotheses. The results support the hypothesis that ownership is positively and
significantly related to dividend payout decision. This finding is consistent with the view that dividend policy can
be used as a tool in reducing agency conflict between controlling and minority shareholders. The findings also
reveal that profitability is positively and significantly related to dividend payout. This finding supports the assertion
that highly profitable firms distribute higher dividend to their shareholders. Finally, firm size and leverage are
found to be negatively related to dividend payout at very strong and relatively weak level of significance
respectively.
Keywords: Dividend policy, ownership structure, controlling shareholders, minority shareholders.
Introduction
Literature on dividend policy has evolved since the influential work by Modigliani and
Miller (1961). Drawing on the evidence of the dividend irrelevance theory in the perfect market
occupied with rational investors, many researchers over the world have sought to identify the
determinants of dividend policy (Modigliani & Miller, 1961). These determinants include
investment opportunities (Abor & Bokpin, 2010; Pruitt & Gitman, 1991), firm size (Fama
&French, 2002; Abor & Bokpin, 2010), profitability (Amidu & Abor, 2006; Abor & Bokpin,
2010) and capital structure (Al-Kuwari, 2009; Allen & Michaely 1995). A more recent
constituent of literature has focused on the effect of ownership structure on dividend policy
(Harada & Nguyen, 2011; Mehrani, Moradi & Eskandar, 2011).
While empirical evidence on the determinants of dividend policy has largely focused on
developed economies with mixed results (Abor & Bokpin, 2010), the impact of ownership
landscape, in particular, concentrated ownership on firms’ dividend policy in emerging markets
such as Malaysia remains largely unexplored. More than 60 percent of listed firms in emerging
market particularly in Malaysia are very much concentrated and these firms predominantly
owned by family (Claessen, Djankov & Lang, 1999). Previous study reveals that concentrated
ownerships are strongly associated with pyramidal structures that are likely to increase the risk
of expropriation (Claessens, Djankov and Lang, 2000). Thus, dividend distribution is found to
be a proficient resolution to prevent self-interest activities by the controlling shareholders (La
Porta et. al. 2000).
Other firm-specific characteristics such as firm size, risk level, investment opportunity,
profitability and leverage have also been found to be related to dividend payout policy (Abor
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& Bokpin, 2010; Amidu & Abor, 2006; Al-Kuwari, 2009). Since it has been a universal
consensus that there is no single driven explanation for dividend policy (Abor & Bokpin, 2010),
this study incorporates some other variables such as firm size, profitability and leverage to
empirically test the effect of these variables on dividend policy in different contexts of corporate
landscape, specifically in Malaysia.
Literature Review
Dividend Payout Policy

Principally dividend is the distribution of profits to shareholders due to their ownership of
shares in a company. The main purpose of distributing dividends to shareholders is to reduce
the free cash flow that can reduce conflicts of interest between managers and shareholders, thus
preventing managers from engaging in value-destroying activities that may harm the
shareholders’ wealth (Jensen, 1986). Prior literature also reveals that dividend payout policy
has been used to convey management private information as well as to signal the company’s
future prospects, hence enable the investors to make appropriate decision for their future
investment (Abor & Bokpin, 2010). Furthermore, researchers in the field have agreed with
universal consensus where there is no absolute explanation for the dividend policy, thus it
becomes an important corporate issue that interacts in parallel with the financial and investment
decisions made by a firm.
Ownership and Dividend Payout Policy

Ownership structure can be described as the stock owned by the companies and distributed
among the investors (Nendi et. al. 2013). In widely held corporation ownership measured by
cash flow right, none of the owners has significant control rights whereas in controlling owner
that is measured by voting rights, the owners have absolute control and majority of the
companies’ shares (La Porta et. al. 2000).
Dividend policy manages the potential corporate governance conflicts by avoiding the
managerial habits of reducing available cash flows when investing in risky projects (Lace et.
al. 2013). Claessens, Djankov and Lang (2000), agreeing with Mehrani, Moradi and Eskandar
(2011) revealed that corporate governance enables owners to determine the dividend
distribution. La Porta, Lopez, Shleifer and Vishny (2000) also suggest that the country’s level
of corporate governance’s characteristics such as development of the stock market, the nature
of state intervention and the government regulation effect the dividend distribution. However,
Naceur, Goaied and Belanes, (2006) argued that concentration ownership does not affect
dividend policy in Tunisia, suggesting that economic condition of certain country may inverse
the relationship between ownership and dividend distribution. Harada & Nguyen (2011) stated
that as the concentration ownership increases, the rate of dividend paid decreases due to the
private interest among the controlling shareholders.
Different countries with the same economic and institutional development have not shown a
significant difference in dividend payout despite incorporating different ownership such as, a
higher level of ownership concentration in East Asian corporations (La Porta et. al., 2000),
widely held corporation ownership for UK and Ireland’s financial and large firms (Faccio &
Lang, 2002), state control in Malaysia, Indonesia, Singapore and Thailand whereas most
Japanese and Koreans corporations have widely dispersed ownership (Claessens et. al., 1999).
Thus, this hypothesis was developed;
H1: There is significant association between ownership structure and dividend payout policy.
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Firm Size and Dividend Payout Policy

Eriotis (2005) agreeing with Pandey (2001) advocating that high dividend payout companies
are typically ten times bigger in size than those who do not pay out dividend to their investors.
Similarly, Farrelly et. al. (1985) revealed that most Canadian firms that pay higher dividend are
remarkably larger in size. Commonsensically, since larger firms have wider opportunities to
enter capital market and consequently able to raise fund at much lower cost without utilizing
internal funding, they have bigger cash flow coupled with greater ownership structure, thus able
to generate larger profit, and therefore able to pay higher dividend to their shareholders.
Conversely, Mehdi, Mahdi & Shahnaz (2010) debated that firm size does not affect dividend
distribution and was agreed by Afza and Mirza (2010) who discovered that only ownership
structure and cash flow to be significant with dividend payout. Besides that, Demsetz and Lehn
(1985) learned that firm size is negatively correlated with ownership structure. Thus, this
hypothesis was developed;
H2: There is significant association between firm size and dividend payout policy.
Profitability and Dividend Payout Policy

Many studies show that an increase in profitability causes the dividend payout to appreciate
(Amidu & Abor, 2006; Gill et. al., 2010; DeAngelo et. al., 2006). The logical reason behind
this is because dividends are usually paid from annual profits, profitable firms are willing to
pay higher amounts of dividends, and hence a positive relationship is expected between these
two variables. Profitability is constantly described in many studies as the main indicator of
dividend payout (Glen & Singh, 2004; Anil & Kapoor 2008). Therefore, this hypothesis was
developed;
H3: There is a significant association between profitability and dividend payout policy.
Leverage and Dividend Payout Policy

Financial leverage is the financial activities which involve rising of funds from outsource and
bear the cost to fix it (Muhammad Usman, 2012). Zeng (2003) indicated that if financial
leverage is used as an indicator of the future default and positively related to the cost of
financial, paying dividends may increase the financial distress for a firm with high leverage
ratio. The result of this study show there is inversely related between the said variables. Similar
results reported by Fenn and Liang (2001) showing an inverse association between these two
variables. Nash et. al. (2003) also support the argument due to the inclusion of debt covenants
to minimize dividend payments by the bond holders. In addition, Ozdagli (2009) shows, there
is significant relationship between dividend offers by the companies with regards to financial
leverage. In fact, the leverage level of the companies will reflect to the changes in return to their
investor. The higher the leverage level of the companies the lower the return to the shareholders
because the companies have to bear the cost of financing. However, Al-Kuwari (2009),
demonstrate a link between financial leverage and dividend payout of the companies. He also
asserted this link is positive when the optimum capital structure is able to pay higher dividends
to the shareholders. Thus, this hypothesis was developed;
H4: There is a significant association between financial leverage and dividend payout policy.
Data and Method
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Sample and Data Collection

The sample comprises the Bursa Malaysia listed companies excluding financial related
companies. Financial and corporate data are obtained from Bloomberg’s database and annual
report of the companies. This study utilizes panel data of 141 companies for five-year windows
period from the year 2009 to 2013. Sample represents 4 major sectors classified by the Bursa
Malaysia namely, industrial product (37%), followed by trade and service (26%), and consumer
product sector (21.3%) while property sector contributes 15.7%. Although there is some
concentration in certain sectors, this study does not control the effect of this concentration.
Measurement of Variables and Model Specifications

Prior research on dividend has examined association between several variables and dividend
payment. For instance, dividend is found to be associated with firm size, profitability, efficiency
and leverage (Nendi et. al., 2013; Harada & Nguyen 2011; Lace et. al., 2013). This study
employs a panel data analysis of 705 firms-year observations for the year 2009 to 2013. Pools
ordinary least square regression (POLS) is used to test the hypotheses developed in the study.
Following existing literature, this study uses dividend model employed by Harada &Nguyen
(2011) with some modifications of the variables. In addition to firm ownership, this study also
includes several other hypothesized variables such as firm size, profitability and leverage.
Therefore, the following is the model employed to test the hypotheses developed in the study.
DPR = β0 + β1 Ownership + β2 Firm Size+ β3 ROA +β4 DR + ɛ
Where:
β0 = intercept of the equation
β = a regression coefficient
DPR = a fraction of dividend to net income
Ownership = percentage of equity hold by top 5 substantial shareholders
Firm Size = log of total assets
ROA = return on assets
DR = long term debt to total assets
ɛ = error term

Table 4.1 provides descriptive statistics for the variables used in the study. Descriptive analysis shows
that the sample firms encompass a wide range of firms’ dividend payout ratio ranging from 6.3
percent to 201.36 percent. The average dividend ratio is reaching almost 50 percent. With
respect to ownership structure, following the table 4.1 the study finds that, on average the percentage
equity holdings by top five substantial shareholders for all firm is 33.47 percent. The result also
indicates the ownership structure of the companies is widely dispersed at 4.35 percent and highly
concentrated at 99.89 percent shareholdings. With regard to firm size, the sample firms also cover
a wide range of firms, some moderately small and some relatively larger ranging from RM 35.85
million to RM 71495.5 million. In average, the total asset is worth RM2612.23 million. Return on
assets (ROA) ranging from -12.21 percent to 38.67 percent with a mean of 7.86 percent. On
average, firms employ slightly less debt in their capital structure (22.30 percent) relative to
equity. This finding provides evidence that closely held firms are less levered because the
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managers cum owners of these firms are more risk-averse since debt increases the probability
of bankruptcy.
Table 4.1: Descriptive statistics
Variables All Firms
Min Max Mean CV Std. Dev
DPR 0.0063 2.0136 0.4949 0.49498 0.3368
Ownership 0.0435 0.9989 0.3347 0.33476 0.1787
Firm Size 35.85 71495.5 2612.23 2612.23 6940.1
ROA -0.1221 0.3867 0.0786 0.07857 0.0666
DR 0 3.5509 0.2230 0.22303 0.2769
Correlation Matrix
Table 4.2 presents the correlation matrix of the variables employed in this study. The higher
value correlations of coefficient show the stronger relationship between variables. Based on
table 4.2, it shows the dividend payout ratio is negatively correlated with ownership structure,
firm size and ROA. However, debt ratio is found to have positive relationship with dividend
payout ratio which is resulted at 0.0402. Correlation matrix shows that independent variables
are not highly correlated. For this reason there is no multicollinearity problem found in the
study.
Table 4.2: Correlation matrix of the independent variables

Variable DPR Ownersh Firm ROA DR
s ip Size
DPR 1.0000
Ownersh -0.0351 1.0000
ip
Firm -0.0231 0.0699 1.0000
Size
ROA -0.0037 0.0371 -0.1198 1.0000
DR 0.0402 -0.0717 -0.0440 -0.0144 1.0000
Empirical Regression Results

The primary results of the study are presented in Table 4.3. The regression analysis is used to
test the hypotheses developed in the study. Recall that Hypothesis 1 predicts a significant
association between ownership and dividend payout policy. The results reported in Table 4.3
show the association between dividend payout and the hypothesized variables derived from the
extant literature. The adjusted R- square is about 14.02 percent which implies that the
hypothesized variable and other firm-specific variables explain about 14.02 percent variation
in dividend payout ratio of the sample firms.
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Table 4.3: Pools Ordinary Least Squared (POLS)

DPR Coef . Std. Dev T P> l t l 95% Interval
Coef.
Ownership .4175043 .0675729 6.18 0.000 .2848335 .5501752
Firm Size -.0370131 .0086304 -4.29 0.000 -.0539579 -
.0200684
ROA .5251304 .1865639 2.81 0.005 .1588359 .8914249
DR -.0718528 .04292 -1.67 0.095 -.1561208 .0124151
As shown in Table 4.3, dividend is positively and significantly related to ownership (coefficient
= 0.417; p<0.01). The result supports Hypothesis 1 which predicts that dividend payout is
significantly related to firms’ ownership. The finding of this study is consistent to the widely-
held view in the dividend and corporate ownership literature that shows closely held firms is
associated with high agency problem, hence they pay higher dividend to shareholders to reduce
conflict of interest between managers and shareholders (Jensen, 1986). The regression result in
Table 4.3 also shows that dividend payout is negatively and significantly associated with firm
size (coefficient =-0.037; p<0.01). The finding suggests that larger and diversified firms are
more likely to have better knowledge of market and thus they are more likely to have better
investment opportunities. Therefore, larger firms pay low dividend, since dividend and
investment denote competing possible uses of firm’s free cash flow (Abor & Bokpin, 2010).
Another variable that is found to have strong positive association with dividend payout is return
on assets (ROA), a proxy for profitability (coefficient = 0.525; ρ<0.01), suggesting that highly
profitable firms pay higher dividend. The strong positive association between dividend payout
and profitability is also consistent with findings previously reported elsewhere. Intuitively,
Amidu and Abor (2006) and Anil and kapoor (2008) argue that firms with higher profitability
have higher internal resources available to pay high dividend to their stockholders. Leverage is
found to be negatively and significantly associated with leverage (coefficient = -0.071; p<0.1).
The result is consistent with those found in the literature which majority argues that firms which
employ larger portion of debt in their capital structure have high tendency to pay lower dividend
due to the needs to serve debt obligation (Rozelf & Michael, 1982)
Conclusion
Despite the prominent form of business organization in emerging economies, many studies have
examined the influence of ownership structure and other features of corporate landscape on
dividend payout decision. Drawing on the prevalence of closely held firms coupled with a
unique corporate landscape in which ownership is dominated by families, this study attempts
to investigate the influence of ownership on the dividend payout decisions of Malaysian listed
firms. The findings contribute to the growing literature on dividend decisions in different
contextual setting specifically found in developing economies. Overall, the study finds that
dividend is positively and significantly related to ownership structure. Agency theory suggests
that when managers are also the controlling shareholders, their interest may not be aligned with
minority shareholders. As a result, these firms are likely to pay higher dividend in order to
dampen agency conflict. The findings also reveal that profitability is positively and
significantly related to dividend payout. This finding supports the assertion that highly
profitable firms distribute higher dividend to their shareholders. Finally, firm size and leverage
are found to be negatively related to dividend payout at very strong and relatively weak level
of significance respectively. This finding suggests that larger firms are more likely to have
better market knowledge and therefore are more likely to have better investment opportunities
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than other firms. Therefore the excess cash flow will be more focused on these needs, thereby
causing a low dividend payout.
References
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Mehrani, S.: Moradi, M.;Eskandar, H.(2011). Ownership structure and dividend policy: Evidence from
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ISU SOSIAL DI KEDAH BERDASARKAN SURAT RAJA-RAJA DAN

SURAT-MENYURAT SULTAN ABDUL HAMID (1882-1919)
Mohd Kasturi Nor Abd Aziz 1
Haslindawati Saari2
Makmur Haji Harun Ph.D3
1
Pusat Pengajian Pembangunan Insan & Teknokomunikasi Universiti Malaysia Perlis (UniMAP)
kasturi@unimap.edu.my
2
Institut Pendidikan Guru Kampus Sultan Abdul Halim (IPSAH) Sungai Petani, Kedah
haslindawati@ipsah.edu.my
3
Jabatan Bahasa Fakulti Bahasa dan Komunikasi, Universiti Pendidikan Sultan Idris (UPSI)
makmur@fbk.upsi.my
___________________________________________________________________________
Pengenalan
Koleksi Surat Raja-Raja (SRR) dan Surat Menyurat Sultan Abdul Hamid (SMSAH) merupakan
dokumen kerajaan negeri Kedah pada sekitar akhir kurun ke-19 sehingga awal kurun ke-20
yang ditemui, ditranskripsi dan disimpan oleh Arkib Negara Malaysia Cawangan Kedah/ Perlis.
Kedua-dua koleksi ini merupakan manuskrip mengenai Kesultanan Melayu Kedah yang pernah
berada di bawah dua kuasa asing iaitu Siam dan kemudiannya, British. Maklumat yang
terkandung dalam SRR dan SMSAH tentang perkembangan Kedah pada zaman Sultan Abdul
Hamid Halim Shah. SRR ditemui dalam tahun tertentu sahaja iaitu tahun 1882, 1888-1889,
1895-1897, 1903-1904 dan 1899-1911 (Haslindawati Saari, 2015: 31). Surat-Menyurat Sultan
Abdul Hamid Halim Shah (SMSAH) pula salinan surat asal yang bertulisan tangan dengan
tulisan jawi dalam 14-16 buah buku meliputi sekitar tahun 1300–1139H/1882–1920 Masihi
dan terdapat kira-kira 2,951 halaman naskah dalam koleksi SMSAH (Mohd Kasturi Nor Abd
Aziz, 2011: 46; Wan Shamsuddin Mohd Yusuf, 2001). Koleksi SMSAH telah diiktiraf sebaris
dengan koleksi warisan dunia yang terdapat di Malaysia seperti Hikayat Hang Tuah dan
Sulalatus Salatin (Sejarah Melayu). Kehadiran SRR yang dijilidkan dalam tiga buah buku dan
SMSAH dalam 14-16 buah buku ini mampu memaparkan dengan lebih jelas tentang
perkembangan politik negeri Kedah semasa pemerintahan Sultan Abdul Hamid Shah sebagai
sebuah kerajaan yang berdaulat.
Berdasarkan penelitian terhadap kedua-dua koleksi ini, pelbagai isu dan konflik yang melanda
Kedah dari aspek politik, social dan ekonomi untuk tempoh 1882 hingga 1919 ditemui. Antara
isu sosial yang dicatat dalam koleksi ini seperti gejala jenayah, agama dan kebajikan. Namun
di sebalik isu sosial, koleksi SRR dan SMSAH jelas mendedahkan kegigihan sultan dan para
pembesar negeri mengurus tadbir kerajaan dan mewujudkan kompromi dengan pihak Siam dan
British agar kedudukan mereka terus kukuh dan juga dapat mengekalkan negeri Kedah sebagai
negeri Melayu yang berdaulat. Keadaan inilah yang diperlukan oleh Sultan Abdul Hamid dan
pembesar Kedah yang lain agar kedaulatan Kedah terus terpelihara dan negeri Kedah terus
membangun mengikut acuan tempatan. Meskipun tidak semua hal dilaporkan atau terkandung
dalam koleksi SRRdan SMSAH, dapatan kajian ini mendapati kedua-dua koleksi merupakan
dokumen tempatan yang dapat memberi keseimbangan atau maklumat-maklumat baru yang
tidak terkandung dalam laporan-laporan rasmi yang dikeluarkan oleh pihak British.
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Isu Sosial di Kedah

Kebanyakan isu sosial dalam koleksi SRR dan SMSAH adalah berkisar kepada beberapa
kejadian jenayah yang berlaku ke atas rakyat Kedah bersempadan dengan Pulau Pinang, selatan
Siam, Perak. Salah satu kejadian jenayah yang kerap berlaku di Kedah ialah perbuatan
menyamun(merompak).. Kesalahan jenayah ini tercatat dalam SMSAH No. 2 dan 3.
Kandungan SMSAH No. 11-13 pula menyentuh tentang beberapa rang undang-undang yang
telah diluluskan oleh Majlis Mesyuarat Negeri Kedah bagi membanteras kegiatan jenayah
berkenaan. Usaha membanteras jenayah ini yang dilakukan oleh kerajaan Kedah turut dibantu
oleh pihak Siam, Inggeris dan Perak di wilayah masing-masing.
Terdapat beberapa catatan dalam SMSAH seperti sepucuk surat Sultan Kedah kepada
pihak yang berkenaan mengenai kegiatan samun yang telah dilakukan oleh beberapa orang Cina
di Sungai Upeh, wilayah Setul. Isi kandungan surat itu juga menyentuh tentang tindakan pihak
Kedah membuat siasatan lanjut mengenai perbuatan jenayah berkenaan dan perkara ini telah
dilaporkan kepada pihak Siam (SMSAH, 5 Jamadilawal 1305H/19 Januari 1888M: 58). Selain
itu, kegiatan menyamun yang dilakukan oleh orang-orang Cina di Pulau Ipoh turut dicatat dan
satu siasat terperinci telah dibuat. Pihak Kedah telah memberi kerjasama kepada pihak Siam
untuk menangkap penjenayah berkenaan (SMSAH, 21 Muharam 1308H/6 September 1890M:
366).
Satu laporan mengenai kegiatan menyamun yang dilakukan oleh sekumpulan penjenayah
berbangsa Melayu di Sungai Kerian telah dihantar kepada Konsul Siam di Pulau Pinang bagi
tindakan selanjutnya susulan selepas baginda Sultan menerima surat aduan daripada Residen
Inggeris di Perak (SMSAH, 24 November & 3 Januari 1883M: 22- 23 & 28-29). Pihak Kedah
juga turut memberi kerjasama kepada pihak Perak dalam usaha menangkap ahli kumpulan
perompak berkenaan tetapi gagal. Kumpulan berkenaan dipercayai telah melarikan diri ke
Betong wilayah Pattani. Baginda juga turut memohon bantuan Raja Reman yang memerintah
wilayah berkenaan bagi menangkap ahli kumpulan berkenaan. Berpandukan siasatan yang
dijalankan oleh Haji Ali (wakil Kedah yang ditugaskan menjaga kawasan Kerian), pihak Kedah
berjaya menjejaki kesan yang ditinggalkan oleh penyamun berkenaan yang berupa beberapa
helai pakaian. Walaupun gagal menangkap ahli kumpulan samun berkenaan, pihak Kedah telah
bertindak menahan isteri-isteri mereka untuk disoal siasat. Malah, Sultan Kedah turut meminta
bantuan daripada pihak Singgora bagi menangkap penjenayah yang menyamun di Kedah
kemudiannya melarikan diri ke wilayah berkenaan. Di dalam surat berkenaan, baginda telah
menyenaraikan barang yang disamun daripada Ah See (SMSAH, 21 Rabiulakhir 1306H/25
Disember 1888M & 27 Rejab 1307H/19 Mac 1890M: 142-143, 248-249 & 251.
Selain daripada kes berkenaan, pihak Kedah juga turut meminta bantuan daripada kerajaan
Singgora untuk menangkap kumpulan penyamun yang memecah masuk dan melarikan harta
milik Lebai Hasan dan Ismail di Mukim Pedu ke Chani yang disertakan dengan lampiran nama-
nama penyamun berkenaan. Pihak Singgora juga turut meminta bantuan daripada kerajaan
Kedah bagi menangkap penyamun yang berjaya memecah masuk rumah Alang Lubuk dan Mat
Salleh Gendang yang menyebabkan pemiliknya menanggung kerugian yang agak besar
(SMSAH, 11 Rabiulawal 1312H/11 September 1894M: 506-512). Sering kali, pesalah yang
dijatuhkan hukuman membuat rayuan terhadap mahkamah dengan meminta diringankan
hukuman atau diampunkan. Sebagai contoh, seorang individu bernama Mohammad bin Haji
Bakar telah dijatuhkan hukuman penjara 8 tahun kerana terlibat dalam kegiatan menyamun
pada tahun 1926 telah merayu agar diampunkan dari kesalahan berkenaan (SUK/K,
1767/1344).
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Malah kegiatan menyamun turut melibatkan bekas anggota polis yang melakukannya di salah
satu kelab candu yang terdapat di Kedah (SUK/K, 473/1345). Perbuatan menyamun ini begitu
berleluasa dan membimbangkan ramai pihak kerana ia cepat merebak ke seluruh negeri Kedah.
Malah kegiatan menyamun ini turut dikaitkan dengan kegiatan kongsi gelap (Mahani Musa,
2003: 141-144). Perkara ini turut diberi perhatian serius oleh Sultan Abdul Hamid. Baginda
telah mengesa satu tindakan dan hukuman yang tegas perlu diambil dan kerjasama antara Kedah
dengan Siam dan Inggeris juga harus diperkukuhkan dalam usaha menangani kegiatan
menyamun secara serius.
Bagi mewujudkan keamanan dan pencegahan jenayah di Kedah, Sultan Abdul Hamid telah
meminta batuan Frank Swettenham bagi mengemas kini pasukan polis dengan pengambilan
pegawai Eropah dan anggota polis berbangsa Sikh (F.O. 422/30, 6 November 1899). Pada
peringkat awal, mereka telah ditempatkan di Kulim seterusnya Alor Setar Dan Kuala Muda.
Pasukan anggota polis Sikh berjumlah 50 orang kemudiannya bertambah kepada 154 orang
pada tahun 1905 di bawah pimpinan W.H. Mitchell manakala polis Melayu berjumlah 311
orang di bawah seliaan Wan Ismail Wan Hassan. Jawatan Inspektor Jeneral Polis Kedah
dipegang oleh Tunku Bahadur Syah Tunku Dhiauddin pada tahun 1899 (Ahmad Tajuddin
Yahya, 1976: 32-33). Pasukan polis Kedah turut dibantu oleh penghulu dan panglima mukim
bagi menegakkan undang-undang seterusnya menjamin kuasa pemerintah ke atas rakyat.
Institusi Mahkamah Dalam Menangani Isu Sosial di Kedah

Semasa Kedah berada di bawah pemerintahan Sultan Abdul Hamid, didapati Kedah telah
memiliki sistem mahkamah yang agak teratur dan aktif membicarakan kes-kes yang melibatkan
kontrak, pajakan, pinjaman dan urusan-urusan yang melibatkan jenayah (Wan Shamsudin
Mohd Yusof, 1996: 20; CO 716/1, September 1905 to August 1906: 15). Oleh demikian, apa
yang digambarkan oleh J.M. Gullick tentang ketiadaan individu yang memiliki kepakaran
dalam bidang perundangan bagi masyarakat bumiputera di pantai barat Tanah Melayu dan
peranan mereka dalam sistem mahkamah sememangnya benar tetapi kurang tepat. Walaupun
individu yang mengendalikan sistem kehakiman di Kedah tidak memiliki pendidikan tinggi
dalam bidang perundangan seperti mana kelayakan akademik bagi seorang hakim atau peguam
tetapi Kedah memiliki individu yang mempunyai pengalaman luas tentang peraturan dan
undang-undang mengenai politik dan sosioekonomi masyarakat Tanah Melayu, khasnya di
Kedah. Malah, sistem keadilan di Kedah telah mengalami pemodenan dengan memiliki tempat-
tempat khas (mahkamah) untuk proses pengadilan dan penjara untuk menempatkan pesalah-
pesalah dalam negeri Kedah (J.M. Gullick, 1972: 187-188) Dalam Kanun Kedah sendiri
terdapat fasal yang menetapkan tentang keperluan membina penjara bagi memenjarakan
pesalah yang terlibat dengan jenayah seperti mencuri, menyamun, pecah amanah, menyabung
ayam dan membunuh (SSMSAH, 1318-1320 T.M 1900-1902: 94-95). Malah, melalui SRR,
tercatat tentang peranan Ku Baharudin Ku Meh (Ku Din Ku Meh) sebagai Penguasa Penjara
Alor Setar sebelum beliau dihantar ke Setul (SRR, 1312H/1895: 173).
SRR juga banyak menonjolkan peranan yang dimainkan oleh Wan Muhammad Saman dalam
mahkamah dan telah membicarakan pelbagai isu jenayah yang meliputi aspek politik, ekonomi
dan sosial. Wan Muhammad Saman adalah tokoh yang memiliki pelbagai pengalaman dalam
pentadbiran negeri dan kebolehan beliau telah dibincangkan sebelum ini. Di dalam Mahkamah
Besar Alor Setar, beliau berkuasa mengadili pelbagai kes berat termasuk kes-kes luar yang
dirujukkan kepada beliau termasuk kes jenayah berkaitan kecurian gajah melibatkan penduduk
Yala (SRR, 1312H/1895M: 118), kehilangan barangan dalam rumah (SRR, 1312H/ 1895M:
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ISBN: 978-967-14841-4-2
139) , kecurian kerbau, lembu dan lain-lain kes yang merentas sempadan. Dalam rekod-rekod
rasmi pihak British, banyak perihal kegiatan jenayah direkodkan oleh mereka tetapi kurang
menyentuh tentang peranan dan penglibatan yang dimainkan oleh “penguatkuasa undang-
undang” atau “hakim” tempatan di Kedah.
Walau bagaimanapun, adakalanya proses pengadilan di Kedah ketika itu seringkali diganggu
oleh arahan-arahan daripada pihak atasan terutamanya sultan. Wan Muhammad Saman perlu
akur dengan arahan daripada Sultan Abdul Hamid (berkuasa memberi pengampunan) dan
Tunku Abdul Aziz (pemangku raja dan Raja Muda Kedah) untuk memberi kelonggaran
hukuman bagi sesetengah kes atau membebaskan pesalah yang telah dijatuhkan hukuman.
Perkara ini dikesan menerusi surat kiriman bertarikh 2 September 1896M dan 9 September
1896M (SRR, 1312H/1895M: 135 & 142-143). Terdapat juga kes berkaitan Sultan Abdul
Hamid memberi arahan kepada Wan Muhammad Saman supaya melepaskan Haji Hussin yang
terbabit dengan kesalahan membawa lari “hasil beras” (SRR, 1312H/1895M: 55). Perkara ini
bermakna pemerintah negeri boleh campur tangan dalam urusan mahkamah dan hal ini
menunjukkan Sultan Abdul Hamid berkuasa dalam setiap aspek pentadbiran negeri Kedah
ketika itu. Berdasarkan koleksi SRR dan SMSAH, isi kandungannya dikesan membincangkan
hal-hal mahkamah yang membicarakan pesalah-pesalah yang terlibat dengan pelbagai kejadian
jenayah sama ada jenayah berat atau jenayah yang ringan sifatnya. Selain Wan Muhammad
Saman, terdapat beberapa individu lain yang dipercayai mempunyai peranan yang sama dengan
Wan Muhammad Saman di dalam mahkamah. Beberapa surat-menyurat dikesan ada
memaparkan tentang peranan Wan Yunus dan Wan Ishak Hajidalam mengendalikan kes-kes
tertentu di mahkamah (SRR, 1312H/1895M: 55, 310 & 325). Dipercayai mereka juga “hakim”
yang bertindak sebagai pengganti sementara kepada Wan Muhammad Saman semasa ketiadaan
beliau dalam negeri Kedah. Namun demikian, tidak dapat dipastikan dengan tepat tentang jenis
mahkamah yang diwakili oleh mereka berdua.
Mahkamah di Kedah juga sering menerima aduan daripada rakyat berbangsa Cina mengenai
hal-hal tertentu. Misalnya, surat kiriman daripada Tunku Abdul Aziz kepada Wan Muhammad
Saman yang bertarikh 26 Muharam 1314H (6 Julai 1896M) menyebut tentang aduan daripada
Tan Alak dari Karangan tentang pencerorobohan ke atas kawasan atau tanah perlombongan
bijih timah miliknya. Beliau meminta agar kerajaan negeri segera bertindak berdasarkan aduan
yang telah dibuatnya (SRR, 1312H/1895M: 107). Selain kes mahkamah melibatkan rakyat
biasa, terdapat juga kes yang melibatkan golongan pembesar walaupun dianggap bukan
kesalahan besar. Misalnya, terdapat permohonan daripada Wan Muhammad Saman untuk
mengeluarkan waran ke atas Wan Abdullah kerana kesalahan tidak menghadiri perbicaraan di
mahkamah walaupun sebagai saksi ke atas Wan Muhamad Tahir (SRR, 1312H/1895M: 135).
Kenyataan ini menunjukkan bahawa kerajaan negeri Kedah memberi keadilan kepada semua
pihak dan Wan Muhammad Saman dilihat seorang yang bertanggungjawab di atas
pekerjaannya dan beliau seorang yang patuh kepada setiap protokol dengan meminta kebenaran
terlebih dahulu daripada Tunku Abdul Aziz sebelum bertindak.
Berkaitan dengan jenis hukuman, ternyata isi kandungan SRR turut menunjukkan adanya
hukuman berbentuk dendaan, penjara dalam kurungan dan penjara dalam kurungan yang
memakai rantai di kaki (SRR, 1312H/1895M: 141-143). Sukar untuk dipastikan jenisjenis
hukuman lain dan sejauhmana pelaksanaan hukuman yang dijatuhkan oleh mahkamah mampu
mengurangkan kes-kes rumit dalam negeri Kedah. Malah, tidak dapat dijelaskan prosedur-
prosedur yang perlu dilalui oleh seorang hakim, pengadu mahupun seorang pesalah. Walau
bagaimanapun, koleksi SRR dan SMSAH memperlihatkan bahawa pemerintah Kedah dan
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pimpinan negeri yang lain memainkan peranan penting bagi menjaga keamanan negeri melalui
sistem mahkamah yang teratur dalam negeri Kedah.
Selepas tahun 1905, peranan institusi mahkamah lebih jelas. Laporan rasmi daripada pihak
British menunjukkan mahkamah diwujudkan dalam empat kategori iaitu Mahkamah Polis,
Mahkamah Qadhi, Mahkamah Penghulu dan Mahkamah Majlis Mesyuarat Negeri. Keempat-
empat mahkamah ini mempunyai peranan masing-masing (CO 716/1, September 1905 to
August 1906: 12). Kewujudan Majlis Mesyuarat Negeri memantapkan lagi fungsi mahkamah
dan melicinkan urusan setiap kes yang perlu diadili. Walau bagaimanapun, selepas kedatangan
British ke Kedah pada tahun 1909, hal ehwal mahkamah ini tidak banyak berubah. Mahkamah
Qadhi dikenali sebagai Mahkamah Syariah yang masih mengendalikan kes yang sama
manakala Mahkamah Majlis Negeri ditukarkan kepada Mahkamah Tinggi selain kewujudan
Mahkamah Daerah yang kesemuanya di bawah bidang kuasa Enakmen Mahkamah Kedah
(CO716/1, 23rd. January 1909-12 th. January 1910: 30). Menerusi koleksi SRR dan SMSAH,
walaupun tidak disebut tentang kewujudan kepelbagaian mahkamah tetapi surat-menyurat ini
menunjukkan individu yang mengendalikan urusan mahkamah masih lagi dipegang oleh
golongan elit tempatan. Mereka berkuasa memutuskan hukuman yang sewajarnya dengan
diperkenankan oleh sultan. Walau bagaimanapun, sistem mahkamah di Kedah mengalami
perubahan ke arah pemodenan dalam memberi keadilan kepada rakyat.
Agama dan Kebajikan

Dalam kumpulan surat ini juga terdapat beberapa pucuk surat penting yang menyentuh tentang
aspek agama dan kebajikan khususnya tentang Islam dan Buddha. Hubungan antara Kedah
dengan Siam bukan sahaja tertumpu kepada aspek politik semata-mata, malah ia turut
melibatkan hubungan sosial seperti perkembangan agama Buddha di Kedah. Semasa
pemerintahan Sultan Abdul Hamid, kerajaan Kedah pernah membuat bancian terhadap bilangan
sami yang menetap di sini. Bancian terhadap sami ini tertumpu di kawasan mukim Padang
Kerbau, Rambai dan Tekai. Jumlah sami yang berdaftar mencecah 86 orang. Hasil daripada
bancian berkenaan telah dihantar kepada pihak Siam bagi perhatian pihak diraja (SMSAH, 27
Zulhijjah 1308H/3 Ogos 1891M & 23 Syaaban 1310H/12 Mac 1893M: 357-360 & 450-453).
Tujuan bancian itu dibuat untuk membantu pihak kerajaan memantau pergerakan dan
keselamatan para sami serta penyebaran agama Buddha di Kedah seterusnya untuk pengetahuan
pihak Siam.
Walaupun agama Islam adalah agama rasmi kerajaan Kedah, baginda Sultan masih
mengamalkan sikap bertolenrasi terhadap penganut agama lain seperti Buddha, Kristian dan
Hindu. Sepanjang pemerintahan baginda, penganut agama lain tetap dilindungi dan mendapat
layanan yang baik serta hak di sisi undang-undang Kedah. Baginda juga turut mengambil berat
tentang kebajikan penganut agama berkenaan. Menyentuh isu sosial khususnya agama, Sultan
Abdul Hamid pernah memberi kebenaran untuk membina rumah ibadat agama Buddha atas
permintaan daripada seorang sahabat baginda bernama Lim Lin Chak, seorang saudagar Cina
yang terkenal di Kedah dan Pulau Pinang (Sharom Ahmat, 1984: 20). Saudagar ini pernah
membuat permohonan kepada baginda untuk membina sebuah tokong dan rumah kediaman
sami di Batu Lanchang, Pulau Pinang yang ketika itu berada di bawah kuasa Inggeris. Melalui
surat balasannya, baginda bersetuju dan menyokong permohonan dengan syarat sami-sami
yang berkhidmat di tokong itu perlu mendapatkan kebenaran terlebih dahulu serta melaporkan
setiap perkembangan rumah ibadat berkenaan kepada baginda (SMSAH, 25 Syaaban 1310H/14
Mac 1893M).
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Perkembangan agama Islam di Kedah amat dititikberatkan oleh Sultan Abdul Hamid sendiri.
Sekembali dari Siam pada tahun 1885, baginda telah memberi perhatian terhadap usaha
membina dan membesarkan Masjid Zahir berdasarkan contoh masjid di Acheh sebagai salah
satu reka bentuk baru masjid berkenaan. Masjid Zahir telah mula dibina pada 11 Mac 1912
bersamaan 22 Rabiul Awal 1330 dan telah dirasmikan pada hari Jumaat, 15hb Oktober 1915
bersamaan 6 Zulhijjah 1333 oleh baginda sendiri. Pembinaan masjid ini telah mengambil masa
selama tiga tahun. Pada majlis perasmian, Tunku Mahmud (Adinda Al-Sultan) telah membaca
khutbah Jumaat sementara baginda Sultan Abdul Hamid Halim Shah telah berkenan
mengimamkan solat Jumaat (Wan Shamsuddin Mohd Yusof, 2003: 18). Baginda juga turut
memperkenalkan jubah untuk dipakai oleh kakitangan masjid seperti mana yang diamalkan di
Timur Tengah. Malah baginda telah menubuhkan Majlis Ulama yang dianggotai ahli ulama
terkenal Nusantara seperti Tuk Syeikh Jarum, Tuan Husin Kedah dan lain-lain. Sepanjang
pemerintahan baginda, sistem perundangan negeri Kedah adalah merujuk hukum Islam dan
dipraktikkan dalam semua aspek.
Kerajaan Kedah melalui Jabatan Agama Islam juga turut mengambil berat tentang
kebajikan golongan ulama dan para pegawainya. Perkara ini turut dicatatkan dalam SMSAH.
Pembayaran elaun, pencen dan pemberian ampun kurnia daripada kerajaan Kedah diberikan
kepada golongan ulama yang banyak berjasa dan telah berkhidmat. Antara ulamak yang
dicatatkan dalam SMSAH ialah Syeikh Jarum, Syeikh Muhammad Khaiyat, Haji Che’ Dol dan
lain-lain. Sekitar tahun 1912, kerajaan Kedah telah melantik Syeikh Muhammad Khaiyat
sebagai Syeikul Islam dengan kadar gaji sebayak $350.00 dengan kenaikan sebayak $10.00
sehingga mencapai $500.00 dalam, tempoh 3 tahun berserta dengan elaun khas merangkumi
sewa rumah, kenderaan dan tambang. Keisimewaan yang diberikan kepadanya oleh kerajaan
Kedah berikutan beliau berasal dari Mekah (SMSAH, 14 Syawal 1330M/26 September
1912M). Syeikh Jarum pula merupakan seorang ulama yang berasal dari Pattani dan telah
membuka sekolah pondok di Derga dengan keizinan baginda Sultan. Semasa sekolah
pondoknya terbakar pada tahun 1911, kerajaan Kedah ambil mengambil berat dengan
mengadakan kutipan derma (SMSAH, 2 Rabiulakhir 1329H bersamaan 2 April 1911).
Sepanjang perkhidmatan dengan kerajaan Kedah, beliau pernah memegang jawatan Ahli
Mahkamah Rayuan dan Majmuk Ulama(Majlis Fatwa) di samping bertugas di istana sebagai
guru agama. Sering kali, beliau dijemput bersama-sama para pegawai kerajaan untuk
menghadiri Majlis Jamuan Teh sempena Hari Raya di istana (SMSAH, 26 Ramadhan 1324H/13
November 1906M dan 7 Zulhijjah 1324H/22 Januari 1907M). Kedudukan beliau sebagai ahli
Mahkamah Rayuan akhirnyaa telah digantikan oleh Haji Mat Amin, bekas Kadi Kubang Pasu
(SMSAH, 26 Ramadhan 1324H/13 November 1906M dan 7 Zulhijjah 1324H/22 Januari
1907M).
Selain itu, maklumat tentang Haji Wan Sulaiman Wan Sidik yang dilantik sebagai
Syeikhul Islam ada dicatatkan dalam SMSAH. Beliau merupakan Syeikhul Islam ketiga di
Kedah yang menerima gaji daripada kerajaan Kedah sebanyak $370.00 dengan kenaikan gaji
antara $20-50.00 dan elaun kenderaan sebanyak $30.00 sebulan dalam tempoh setahun. Beliau
menyandang jawatan berkenaan hampir 15 tahun sejak tahun 1920 (SMSAH, 1 Zulhijjah
1338H bersamaan 16 Ogos 1920). Sebagai seorang ahli dalam Majlis Mesyuarat Negeri Kedah,
Ketua Kadi (Syeikhul Islam) juga yang mencadangkan beberapa orang ulama atau individu
yang mempunyai pengetahuan yang baik dalam bidang agama untuk dibenarkan mengajar ilmu
berkenaan di negeri ini. Antara nama individu yang pernah dicadangkan ialah Haji Shaari Haji
Mat Taha, Haji Taib Haji Ali dan lain-lain (SMSAH, 6 Zulkaedah 1338H bersamaan 22 Julai
1920M).
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Golongan ulama juga sering diberi peluang memegang jawatan kadi seperti Haji Mohd
Said dan Tuan Haji Hussin. Namun, mereka juga sering berselisih faham sesama sendiri dalam
isu agama ataupun perkara peribadi. Perkara ini turut diberi perhatian serius oleh Majlis
Mesyuarat Negeri yang bertindak sebagai badan kehakiman dan pendamai. Contohnya dalam
isu pergaduhan antara Kadi Yan dengan Syeikhul Islam (SMSAH, 6 Zulkaedah 1338H
bersamaan 22 Julai 1920M). Pihak Majlis telah bertindak dengan memberhentikan Kadi Yan
dari jawatannya dan telah diberi hadiah mengikut peraturan sebagai pampasan. Selain itu juga,
kerajaan Kedah pernah memberi keistimewaan seperti ampun kurnia berbentuk hasil tanah
yang mencecah 22 relung kepada para pegawai masjid yang berhenti kerja disebabkan sakit,
uzur dan sebagainya. Pemberian ini berdasarkan permohonan dan cadangan nama yang dibuat
oleh Kadi Besar semasa Majlis Mesyuarat bersidang. Antara pegawai masjid yang menerima
keistmewaan ini ialah Haji Muhammad Arshad, Siak di masjid Kubang Jejawi dan Haji Said
bin Lebai Saman yang pernah memegang jawatan Imam Besar di masjid Sungai Baru pada
tahun 1919 (SMSAH, 6 Zulkaedah 1338H bersamaan 22 Julai 1920M). Selain daripada para
pegawai agama, Sultan Abdul Hamid turut menganugerahkan ampun kurnia berbentuk tanah
ini kepada sesiapa yang pernah berjasa, bekerja dan mempunyai hubungan yang baik dengan
baginda seperti Orang Nobat, Orang Balai Besar, Jaga Istana Diraja, Gembala Gajah Diraja dan
lain-lain (Mohamad Isa Othman, 1990: 52). Berdasarkan maklumat daripada SMSAH dan SRR,
baginda telah memberi perhatian yang sewajarnya dalam aspek perkembangan agama dan
kebajikan di Kedah.
Kesimpulan
Berdasarkan kepada catatan SMSAH dan SRR dapat dirumuskan bahawa pada zaman
pemerintahan Sultan Abdul Hamid, Kedah sering mengalami isu sosial yang ketara
membabitkan perbuatan jenayah berbanding zaman pemerintahan sebelumnya. Perbuatan ini
seperti samun, penipuan, pembunuhan dan mencederakan Mdividu, melarikan perempuan
tanpa kebenaran, pergaduhan dan pembabitan golongan pentadbir dalam jenayah telah
rnengganggu ketenteraman a wam malah turut membantutkan perkembangan ekonomi dan
kestabilan politik Kedah. Maklumat ini sering dicatat dalam SMSAH dan SRR disokong
dengan KAR. Sultan Abdul Harnid dengan dibantu para pembesar negeri telah berusaha
mengurangkan kadar jenayah ini dengan mengambil tindakan menguatkuasakan undang-
undang, bekerjasama dengan pihak British dan Siam dan membentuk pasukan polis. Perkara
ini membuktikan bahawa institusi kesultanan Melayu yang disokong oleh para pembesar
tempatan telah memainkan peranan penting dalam menyelesaikan permasalahan sosial seperti
perbuatan jenayah. Selain itu, aspek agama dan kebajikan rakyat Kedah turut diberi perhatian
oleh Sultan Abdul Hamid dan para pembesar tempatan. Perkara tersebut jelas tercatat dalam
SMSAH dan SRR. Kenyataan ini membuktikan SMSAH dan SRR adalah manuskrip penting
tentang perkembangan negeri Kedah semasa pemerintahan Sultan Abdul Hamid Halim Shah
dan warisan berharga bangsa Melayu.
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382
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ISU SOSIAL DI KEDAH BERDASARKAN SURAT RAJA-RAJA DAN SURAT-

Conference Paper · December 2017

Haslindawati Saari Makmur Haji Harun

Mohd Kasturi Nor Abd Aziz

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3-4 December 2017

THE ELEMENTS THAT INFLUENCE CUSTOMER ENGAGEMENT

Ima Ilyani Ibrahim 1

Keywords: Customer Engagement, Satisfaction, Trust, Rapport, Commitment.

Consequences of Consumer Engagement

The Dimensions of Customer Engagement

Table 1: Demographic Analysis

Table 2: Reliability Analysis

Customer Engagement 5 .803

Table 3: Pearson’s Correlation Analysis

**. Correlation is significant at the 0.01 level (2-tailed)

Table 4: Multiple Regression Analysis

Satisfaction .105 .084

Discussion and Conclusion

DOES GENDER MATTERS? UNDERSTANDING CORRECTIONAL STAFF

Abstract: Excessive occupational stress is an imperative issue in any organizations because it

Keywords: Correctional Staff, Occupational Stress, Gender.

A Review Of Relevant Literature: Correctional Staff’ Occupational Stress

Women Working In Prison

Hypothesis From Differential Aspect

Instruments Occupational Stress Scale for Correctional staff

Differential Analysis: Occupational Stress according to Male and Female Correctional

Table 1 t-Test on Occupational Stress according to Gender

Discussion & Conclusion

Future Research Direction

AN EVALUATION FOR TRADE PREFERENCE SCHEME – ORGANISATION

Keyword: Trade, OIC, Islamic, Macro Economic

1,000 6.00% share (%)

The Scope of Research

Table 1 Data Sources

Data Analysis Methods

Panel Data Analysis

Goodness of Fit test

Source: World Development Indicator (2017)

General Description of Indonesia Export to OIC Countries

10% export to the

Source: International Trade Center, 2017

TPS OIC Agreements On Islamic Perspective

َّ‫طا َح َّر َم َحالَالً أ َ ْو أ َ َحل‬

The Trade Preference Scheme Impacts Toward Export of Sample Commodities

Animal,vegetable fats and oils

Variable coefficient Prob.

GDPI 1.454701 0.0000*

Note: *significant on α=10%

Factors Predispose Indonesia Palm Export

Table 3 Estimation of paper export using fixed effect model

GDPI 1.060011 0.0000

Note: *significant on α=10%

Factors Predispose Indonesia Paper Export

ONLINE SHOPPING BEHAVIOUR AND LOGISTICS COMPENTENCIES

Emy Ezura A. Jalil 1

Keywords: Online Shopping, Logistics Service Providers, Online Shopping Behaviour,

Figure 1: Theoretical Framework of Millennials’ Online Shopping Behaviour

Table 2: Correlation between independent variables and dependent variable

Table 3: Results of Regression Analysis (Model Summary and ANOVA)

Table 4: Significant Predictors of Structural Model (N=400)

INTERPROFESSIONAL COLLABORATION AMONG HEALTHCARE