Labuan e-Journal of Muamalat and Society (LJMS)

ANALISIS PROFIL RESPONDEN BAGI KAJIAN IMPAK AGIHAN ZAKAT DI KUCHING, SARAWAK

Hadenan Towpek — 2026-06-05

The article investigates the demographic profile of zakat recipients in the Kuching District, Sarawak, and analyses the impact of zakat distribution on their lives. Based on various demographic factors such as age, gender, marital status, occupation type, and housing type, the study successfully identifies key aspects influencing the impact of zakat distribution among the asnaf. The findings indicate that zakat implementation in Sarawak has generally had a positive impact on poverty alleviation and improving the welfare of the asnaf. However, the study also identifies several challenges that need to be addressed to ensure zakat distribution achieves its goals more comprehensively and effectively. Among these are the needs to enhance the efficiency of data collection on the asnaf, improve zakat distribution mechanisms, and ensure that zakat aid truly reaches the neediest. Additionally, the study highlights the importance of skill development and education programs for the asnaf. Such programs are crucial in helping the asnaf break free from the cycle of poverty and achieve a more stable and prosperous life. By enhancing their skills and education, the asnaf can increase their capacity to generate their own income, thereby reducing long-term dependence on zakat assistance. Furthermore, the findings of this study provide valuable insights for zakat authorities in Sarawak in formulating more effective zakat distribution strategies in the future. It is hoped that zakat authorities will strengthen the zakat system in Sarawak, ensuring that it continues to function as an effective tool in eradicating poverty and enhancing the welfare of the asnaf.

PENEROKAAN KONSEP KADAR SEWAAN SEMASA KE ATAS HARTA WAKAF MENURUT PANDANGAN FUQAHA

Hydzulkifli Hashim — 2026-06-05

The State Islamic Religious Councils (MAIN) functions as the sole trustees responsible for the administration of waqf assets in Malaysia. Statistics issued by JAWHAR indicate that a wide range of waqf lands have been developed, including religious properties such as mosques, cemeteries and tahfiz centers, as well as commercial assets such as commercial buildings, rental houses, agricultural land and parking lots. Nevertheless, the rental income generated from these waqf properties often falls short of the expenses required for administrative obligations, including assessment tax, land tax and other operational costs. In certain cases, occupants reside on waqf land without paying any rent, based on the misconception that waqf property should not be subject to rental charges. This conceptual study aims to examine the juristic views (fuqaha’) regarding appropriate rental rates and rental durations for waqf properties. Adopting qualitative research design, the study employs library-based methods supported by inductive, deductive and comparative analyses. The findings reveal that the fuqaha’ generally agrees with the imposition of rental rates that align with prevailing market conditions. However, several jurists permit flexibility in determining such rates under specific circumstances. With respect to rental duration, when no specific term has been stipulated by the waqf donor (waqif), the fuqaha’ propose a standard rental period of one year while recognising certain concessions (rukhsah) that may apply based on contextual considerations.

COMPARATIVE ANALYSIS OF PUBLIC SECTOR EMPLOYMENT POLICIES FOR PERSONS WITH DISABILITIES IN MALAYSIA AND SWEDEN

Nur Azlina Mohamad Zahari — 2026-06-05

This article presents a comparative analysis of public sector employment policies for persons with disabilities in Malaysia and Sweden, with the objective of identifying key differences, challenges and best practices that influence inclusive employment outcomes. Using a qualitative comparative methodology, the article examines policy documents, legislation and statistical reports from both countries to assess how legal frameworks and implementation strategies impact the inclusion of persons with disabilities in public employment. The findings reveal that while Malaysia has established legal provisions such as employment quotas and accessibility standards, significant barriers remain due to limited enforcement, negative societal attitudes and insufficient support services. In contrast, Sweden demonstrates a more comprehensive and proactive approach, supported by strong anti-discrimination laws, accessibility measures and employer incentives, resulting in higher employment rates for persons with disabilities. The analysis highlights the role of cultural perceptions, legal structures and social support systems in shaping policy effectiveness. The article concludes that Malaysia can enhance its public sector inclusion by adopting stronger enforcement mechanisms, fostering attitudinal change and drawing on Sweden’s integrated policy approach. Promoting meaningful employment for persons with disabilities is essential for achieving equitable societies and strengthening public sector diversity.

EXPLORING RISK IN BNPL ADOPTION AMONG MILLENNIALS IN SABAH, MALAYSIA: A CONCEPTUAL STUDY

Shariff Abu Bakar Shariff Abd Kadir — 2026-06-05

This study investigates the role of perceived risk in the adoption of Buy Now Pay Later (BNPL) services by conceptualising perceived risk as a hierarchical construct composed of multiple dimensions. Despite the rapid growth of BNPL usage in Malaysia, particularly following accelerated digitalisation during the COVID-19 pandemic, the influence of perceived risk on adoption remains underexplored, largely because prior studies have treated perceived risk as a single-dimensional concept and focused primarily on users in Peninsular Malaysia, leaving millennials in Sabah understudied. Guided by perceived risk theory, this study proposes a multidimensional framework comprising financial, performance, psychological, privacy, security, time, social, and delivery risks as first-order constructs that together form a second-order perceived risk construct. The framework highlights the relative importance of different risk dimensions and offers theoretical insights into hierarchical risk perceptions. By focusing on millennials in Sabah, the study contributes to theory and provides practical guidance for BNPL providers and policymakers in designing strategies to mitigate risk and support a well-being-oriented digital financial ecosystem in emerging markets.

IDENTIFYING KEY DIMENSIONS IN THE MOSQUE'S CONTRIBUTION TO MUSLIM SOCIETY AND UMMAH DEVELOPMENT: A QUALITATIVE APPROACH

Rafikul Islam — 2026-06-05

The purpose of this study is to identify the major dimensions of a mosque’s roles that can be the used as benchmark in promoting Muslim society and Ummah growth, particularly their responsibilities at the level beyond the traditional worship function. A qualitative methodology was employed, involving experts’ interviews and thematic analysis using VOSviewer. Purposive sampling technique selected ten experts that represented a variety of nationalities, educational backgrounds, positions, and experiences. Seven critical dimensions have been identified for this study: Spiritual Excellence, Community Engagement, Design and Facilities, Social Welfare and Support, Education and Knowledge Dissemination, Management and Transparency, and Economic Aspect. The identified dimensions reflect multifaceted roles of mosque that have potential scope of making spiritual, social, educational, and economic contributions significantly. A limitation of the study is dependency on qualitative data from a limited number of regions, resulting in a possibility that not all regional or cultural aspects are captured. Future research can adopt the dimensions backed by quantitative methodology to develop an excellence model. The findings offer important guidance to mosque administrators, policymakers, and scholars regarding the areas to improve the functions of mosques. The study is unique to provide comprehensive framework for the multi-dimensional roles of mosques and handling the gaps in the literature related to their engagement in community and Ummah development. Theoretical and practical implications arise for increasing the mosque's utilisation to contribute to Muslim society and mankind.

PERANAN ZAKAT DALAM MENGURANGKAN HUTANG PENDIDIKAN KEWANGAN DALAM KALANGAN PELAJAR PENGAJIAN TINGGI

Anwar Allah Pitchay — 2026-06-05

This paper introduces an alternative model perspective for the National Higher Education Fund (NEFC) financing system. The main objective of this alternative model, known as the Zakat model, is to alleviate and exempt NEFC loan repayments for Asnaf students through the use of Zakat funds, in line with the broader goal of poverty eradication. A large proportion of borrowers, over half a million, have yet to repay any portion of their student loans, with nearly 97 per cent belonging to the B40 student demographic. Given the potential impact of debt on individuals and their families, it is important to explore avenues for debt relief. This paper focuses on conceptual development of a Zakat model, using a qualitative content analysis methodology. This study draws on existing research on the effectiveness of Zakat as an important form of assistance in the education sector, thereby establishing the Zakat model as an innovative financing paradigm. The proposed approach is highly relevant to addressing the issue of rising student debt, especially among B40 students who are heavily reliant on loans to finance their education. The Zakat model proposes a mechanism whereby Zakat funds contribute by deducting tuition and accommodation fees financed by NEFC loans. This intervention aims to ease the financial burden on students and their families, allowing them to focus on academic pursuits and achieve their educational aspirations. In essence, this new approach to zakat distribution has the potential to create a more sustainable and impactful form of charitable giving. In doing so, it can effectively contribute to addressing critical social challenges, including poverty, inequality, and access to education.

THE EFFECT OF MANAGERIAL OWNERSHIP AND AUDIT COMMITTEE ON EARNINGS MANAGEMENT WITH FIRM SIZE AS A MODERATING VARIABLE IN PRIVATE BANKS LISTED ON THE INDONESIA STOCK EXCHANGE

Anggie Dwitantiningrum — 2026-06-05

This study is aimed at testing and analysing the influence of managerial ownership and the audit committee on earnings management with firm size as a moderation variable in private banks listed on the Indonesia Stock Exchange during the 2018-2022 period. Sample selection was carried out using the purposive sampling method. The data used is secondary data obtained from www.idx.co.id website. Data analysis was carried out by calculating the PLS Algorithm using SmartPLS and then hypothesis testing was carried out. The results show that company size is able to moderate the influence of managerial ownership on profit management, while managerial ownership and the audit committee have no effect on profit management, and company size is not able to moderate the influence of the audit committee on profit management. This study contributes to the corporate governance literature by providing empirical evidence regarding the role of firm size as a significant moderating variable, specifically strengthening the influence of managerial ownership on earnings management—a finding that challenges the conventional view in agency theory.

INTERNAL CAPABILITIES AND ORGANISATIONAL PERFORMANCE OF TRADITIONAL WEAVING MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMEs): EVIDENCE FROM INDONESIA

Nike Larasati — 2026-06-05

This study investigates the effects of internal organisational capabilities on organisational performance among traditional Lurik weaving micro, small, and medium enterprises (MSMEs) in Indonesia, drawing on the dynamic capabilities perspective. A quantitative, cross-sectional design was employed using survey data collected from 30 owners or managers of Lurik weaving MSMEs in Klaten, Central Java. Data were analysed using Partial Least Squares Structural Equation Modeling (PLS-SEM), which is suitable for exploratory research with relatively small sample sizes. The findings reveal that financial literacy has a positive and statistically significant effect on organisational performance, indicating that effective financial management plays a crucial role in improving business outcomes. In contrast, however, human resource readiness and innovation capability do not show significant direct effects on organisational performance, suggesting that these capabilities may not immediately translate into measurable performance improvements in traditional cultural MSMEs. From a theoretical perspective, this study extends the application of dynamic capabilities theory to a culturally embedded MSMEs context and demonstrates that internal capabilities do not uniformly influence performance outcomes across different organisational settings. Practically, the findings highlight the importance of prioritising financial management capabilities to enhance performance in micro-scale traditional enterprises. This study is limited by its cross-sectional design, small sample size, and reliance on perceptual performance measures within a single regional context. Despite these limitations, the study offers original insights by focusing on traditional weaving MSMEs and identifying financial literacy as a dominant driver of organisational performance.

TURNING POPULATION PRESSURE INTO PRODUCTIVITY THROUGH DIGITALISATION AND URBAN DENSITY IN ASEAN

Areta Nur Fatimah Azalia — 2026-06-05

This study examines the impact of digitalisation on the economic performance of ASEAN countries from 2015 to 2024, focusing on GNI per capita as a measure of welfare and income. It highlights the growing role of digital platforms, online labor markets, and demographic changes in shaping ASEAN's economy. Using panel data and Two-Stage Least Squares (TSLS), the study addresses endogeneity by instrumenting variables like urban population, growth rates, and youth unemployment for population density, while controlling for demographic and labor factors. Findings indicate that higher population density and increased service-sector employment significantly boost GNI per capita. Internet access further raises income levels, emphasizing the importance of digital infrastructure. In contrast, mobile phone penetration correlates negatively with income, potentially because basic access supports low-wage gig work and informal competition. Inflation reduces welfare, whereas HDI has a positive impact. Overall, digitalisation plays a vital role in increasing income across ASEAN.

CONCEPTUALISING STATE BENEVOLENCE FROM AN ISLAMIC PERSPECTIVE

Mohammed Yaw Broni — 2026-06-05

The advent of COVID-19 pandemic brought in its wake, the need for the state to show benevolence towards the vulnerable during crises. However, the term ‘state benevolence’ appears ambiguous in literature, and could either be referring to activities of the welfare state, or foreign aid donations by governments. This paper intends to resolve the ambiguity by propounding a state benevolence concept from an Islamic perspective. Based on content analysis of extant literature, the findings indicate the Islamic worldview considers government environmental protection endeavours, together with the activities of the welfare state and foreign aid donations by the government, as three main ways in which the state can exhibit benevolence to all creations of Allah. The inadequacy of literature on state benevolence, the lack of clarity from the Islamic worldview about the role of the state in providing benevolence, and the lack of information on the type of rewards expected to accrue to a benevolent state, are three main limitations of this study. By providing a holistic description of state benevolence using both conventional and Islamic economics literature, this paper is novel in the political economy literature. If adopted, the Islamic state benevolence concept will avail a country’s government in reducing poverty among its citizenry, contribute to reducing income inequality existing between rich and poor countries, and enhance the sustainable management of the environment.