ISSN: 2222-6990
Open access
This research examines three variable components of M40 Muslim behavior comprise of understanding of Islamic debt principles, credit facilities offered and confidence in Islamic banking / financial products towards the purpose of indebtedness for luxury from an Islamic perspective. The M40 Muslim household's attitude towards debt is a mediator to the relationship between the independent and dependent variables. This research uses a quantitative research approach by distributing questionnaires to M40 Muslim debtors in Selangor. Data were collected using samples of 438 respondents from M40 Muslim who were indebted in Selangor based on stratified random sampling techniques and analyzed using Structural Equation Modeling (PLS-SEM). The findings of this research have shown that with the variable of understanding of Islamic debt principles, credit facilities offered are significant to the attitude of Muslim debtors, while Muslim confidence in Islamic banking / financial products is not significant to Muslim’s attitude of debt. In addition, the findings also show that the attitude of Muslims to debt is significant and is capable of being a mediator between the variables of M40 Muslim households with the aim of being indebted to enjoy the luxury. In this research, the understanding of Islamic debt, the credit facilities offered and the attitude of indebtedness have a significant impact towards the motivation among the Muslim households to be indebted for luxurious means.
Abdullah, A. N. (1985). Melayu dan tanah: Tumpuan khusus kepada tanah simpanan Melayu. Kuala Lumpur: Media Intelek Sdn. Bhd
Abidin, A., Sarmidi, T., & Nor, A. S. H. (2013). Jurang pendapatan dan hutang isirumah. “Dasar Awam Dalam Era Transformasi Ekonomi: Cabaran dan Halatuju”. PERKEM VIII Malaysian Economy National Conference Proceeding, (pg. 445-459). Johor Bahru.
Adzis, A., Bakar, J., & Shahar, H. (2017). Factors influencing young adults’ debt in Malaysia. Journal of Business and Retail Management Research (JBRMR), 12 (1)
Ahmat, S. (1984). Kedah-tradition and change in Malay State: A study of the economic and political development. Monograph No. 12. Malayan Branch Royal Asiatic Society, 1778-1923.
Ahn, T., Ryu, S., & Han, I. (2004). The impact of the online and offline features on the user acceptance of internet shopping malls. Electronic Commerce Research and Applications, 3 (405-420).
Akhyar, A. (2008). Hutang seronok yang membawa bencana, Johor Baru: Pustaka Azhar.
Alidaniah, N. A. R., Sanep, A., Ali, M. N., & Rizki, M. (2015). Gelagat hutang isi rumah mengikut kaum di Bandar Baru Bangi, Selangor. Malaysia Journal of Society and Space, 11, 110-119.
Almenberg, J., Save-Soderbergh, J., & Vestman, R. (2016). Attitudes toward debt
Amin, H., Rahman, A. R. A., Razak, D. A., & Rizal, H. (2017). Consumer attitude and preference in the Islamic mortgage sector: A study of Malaysian consumers. Management Research Review, 40 (1):95- 115. https://doi.org/10.1108/MRR-07-2015-0159.
and debt behavior,” Retrieved from https://www.fi.se/contentassets/02ee7430a0524bf2a09ccfbab350099a/attitudes_debtbehavior_20170511.pdf
Badiozaman, R. M. (1975). Malay land reservation and alienation. Intisari, 1(2).
Baqutayan, S. M. S. (2014). The affordable housing stress among middle-income group. IOSR Journal of Humanities and Social Science, 19(7), 82 - 90.
Chen, L. D., & Tan, J. (2004). Technology adaptation in e-commerce: key determinants of virtual stores acceptance. European Management Journal, 22 (1): 74-86.
Chen, L. D., Gillenson, M. L., & Sherrell, D. L. (2004). Consumer acceptance of virtual stores: a theoretical model and critical success factors for virtual stores. ACM SIGMIS Database, 35:2: (8-31).
Cosma, S., & Pattarin, F. (2010). Attitudes, personality factors and household debt decisions: A study of consumer credit. Retrieveded on 27 January, 2011, from http://ssrn.com/abstract=1685765 or http://dx.doi.org/10.2139/ssrn.1685765
Cynamon, B. Z., & Fazzari, S. M. (2008). Household debt in the consumer age: Source growth-risk of collapse. Capitalism and Society, 3(2).
Dar, H. (2002). Islamic house financing in the United Kingdom: Problems, challenges and prospects, Review of Islamic Economics, 12, (47-71).
Davies, E., & Lea, S. E. G. (1995). Student attitudes to student debt. Journal of Economic Psychology 16 (4): 663-679.
Dyck, S., Hansakul, S., & Saxena, R. (2009). Emerging Asia's middle class: A force to be reckoned with. Deutsche Bank Research, Frankfurt, Germany.
Elias, A. A. (n.d.). Daily Hadith Online. Retrieved from 23 August 2020. https://abuaminaelias.com/dailyhadithonline/
from https://e-insolvensi.mdi.gov.my/ on 7th January 2017.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Los Angeles: USA: SAGE.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling. 2nd Edition. Thousand Oaks: SAGE.
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139–151.
Hodari, A. B., Sarmidi, T., & Salleh, N. H. (2014). Hutang dan golongan muda di Malaysia: Satu kajian awal. Urus tadbir ekonomi yang adil: Ke arah ekonomi berpendapatan tinggi. High Income Economy National Conference Proceeding (pg. 833-844). Kuala Terengganu, Terengganu.
IbnKathir. (2008a). Tafsir al-Qur’an al-‘Azim: Tafsir Ibn Kathir (Jilid 1). In ’Abd alRezzaq Mahdi (Eds.), Beirut: Dau al-Kitab al-‘Arabi.
IbnKathir. (2008b). Tafsir al-Qur’an al-‘Azim: Tafsir Ibn Kathir (Jilid 3). In ’Abd alRezzaq Mahdi (Eds.), Beirut: Dau al-Kitab al-‘Arabi.
IbnKathir. (2008c). Tafsir al-Qur’an al-‘Azim: Tafsir Ibn Kathir (Jilid 4). In ’Abd alRezzaq Mahdi (Eds.). Beirut: Dau al-Kitab al-‘Arabi.
IbnKathir. (2008d). Tafsir al-Qur’an al-‘Azim: Tafsir Ibn Kathir (Jilid 5). In ’Abd alRezzaq Mahdi (Eds.), Beirut: Dau al-Kitab al-‘Arabi. Ibn Kathir. (2008e). Tafsir al-Qur’an al-‘Azim: Tafsir Ibn Kathir (Volume 6). In ’Abd alRezzaq Mahdi (Eds.), Beirut: Dau al-Kitab al-‘Arabi.
Ismail, A. H. (1992). Bank Islam Malaysia Berhad: Principles and operations in Sheikh Ghazali Sheikh Abod et al (eds), An introduction to Islamic Finance. Kuala Lumpur. Quill Publishers.
Jusoh, M. K. A. (2014). Konsep hutang dalam Islam: Satu kajian terhadap kefahaman dan amalan kakitangan UiTM (Unpublished thesis). Universiti Sains Malaysia.
Kamleitner, B., & Kirchler, E. (2007). Consumer credit use: a process model and iterature review. Revue europeenne de psychologic appliquée, 57 (4): 267-283
Khairuldin, W. M. K. F. W., Hassan, S. A., Anas, W. N. I. W. N., Mokhtar, W. K. A. W., & Embong, A. H. (2020). Al-Takyif Al-Fiqhi and its application in Islamic research methodology. Journal of Critical Reviews, 7(7), 462-467.
Lim, K. H., & Ooi, P. Q. (2013). Implementing goods and services tax in Malaysia. Penang Institute.
Lu, L.C., Chang, W. P., & Chang, H. H. (2014). Consumer attitudes toward bloggers’ sponsored recommendations and purchase intention: The effect of sponsorship type, product type and brand awareness. Computers in Human Behavior, 34 (258-266).
Malaysian Insolvency Department. (2017). Peratus Kebankrapan Mengikut Negeri. Retrieved
Rahim, N. M. Z., Suliaman, I., & Razzak, M. (2012). Kesempitan hidup penghutang: Analisis ayat 280 surah al-baqarah. Proceedings: The 2nd Annual International Qur’anic Conference. (pg. 114-126).
Ringle, C. M., Wende, S., & Becker, J. M. (2015). SmartPLS 3. Boenningstedt:SmartPLS GmbH. Retrieved from https://www.smartpls.com.
Sipon, S., Othman, K., Ghani, Z., & Radzi, H. (2014). The impact of religiosity on financial debt and debt stress. Procedia - Social and Behavioral Sciences 140 (2014) 300-306.
Sobian, A., & Rahman, S. F. (2010). Pinjaman peribadi: Hasil kajian terhadap masyarakat Malaysia, Kuala Lumpur: Institut Kefahaman Islam Malaysia (IKIM).
Swettenham, F. A. (1895). Malay sketches (3rd. Ed). London and New York: John Lane The Bodley Head.
Tahir, R., & Yusof, S. (2014). Status Individu Muflis dalam Asnaf Al-Gharimin. International Journal of Business and Technopreneurship, 4 (3): 477-494.
Wang, L., Lu, W., & Malhotra, N. K. (2011). Demographics, attitude, personality and credit card features correlate with credit card debt: A view from China. Journal of Economic Psychology 32 (1): 179-193.
Zakaria, R. H., Kader, R., Jaafar, N. I., & Marican, S. (2012). Burgeoning household debt: An Islamic economics perspective. Middle-East Journal of Scientific Research, 12(9), 1182-1189, doi:10.5829/idosi.mejsr.2012.12.9.267.
In-Text Citation: (Rahim, Yusoff, & Bahari, 2020)
To Cite this Article: Rahim, H. A., Yusoff, M., & Bahari, Z. (2020). M40 Muslim Households Indebtedness for Luxury from Islamic Perspective. International Journal of Academic Research in Business and Social Sciences. 10(10), 323-340.
Copyright: © 2020 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode