Labuan e-Journal of Muamalat and Society (LJMS)

AN IN-DEPTH ANALYSIS OF THE INFLUENCE OF SERVICE QUALITY DIMENSIONS ON CUSTOMER SATISFACTION IN THE TELECOMMUNICATION INDUSTRY: EMPIRICAL EVIDENCE FROM SOUTHWESTERN AFGHANISTAN

Abdullah Ziarmal — 2025-06-01

The goal of this research is to examine the complex relationship between customer satisfaction and service quality parameters in the telecommunications industry in the southwest region of Afghanistan. We examined the impact of service quality dimensions, such as those specified by the SERVQUAL model, in addition to essential factor network quality, on customer satisfaction utilising a methodological approach based on primary data collection employing a convenience sampling technique. This study looks for underlying trends and relationships between the dependent variable, customer satisfaction, and all six independent service quality aspects. Cochran's formula was used to collect data from 271 respondents using questionnaires. The relationship between many factors of service quality and their impact on customer satisfaction is demonstrated by our research. Responsiveness, network quality, and dependability are essential when assessing client satisfaction. Nevertheless, results manifested that assurance and tangibility are insignificant in determining customer satisfaction. Our research accentuates how exponentially quickly these businesses should address and improve these aspects of service quality to satisfy changing consumer expectations and promote long-term success in the southwestern zone of Afghanistan.

NAVIGATING WAQF MANAGEMENT IN NIGERIA: A REVIEW OF COLONIAL LEGACIES, LEGAL REFORMS, AND BENEFICIARY RIGHTS

Alawiye Habeebulah Olawale — 2025-06-01

This article examines the complexities of waqf management in Nigeria, focusing on colonial legacies, legal reforms, and the rights of beneficiaries. Waqf, a religious endowment under Islamic Law, has a rich history in Nigeria dating back to pre-colonial times. Findings show that colonialism has significantly hindered the growth and efficiency of waqf institutions, leaving many in disarray by the time of Nigeria's independence. Despite efforts to revive these institutions post-colonization, issues such as lack of transparency, accountability, and formal structures persist. This trend has contributed to the marginalization of waqf beneficiaries and affected waqf administration in Nigeria, particularly in Western Nigeria, where government support is minimal. This study adopts a qualitative methodology, relying on secondary sources such as historical documents, legal texts, and scholarly articles to explore the legal and administrative system in the Nigerian waqf sector. This article highlights the necessity for a robust legal framework and the establishment of formal waqf bodies to enhance waqf sustainability and beneficiary rights. It advocates for a rights-based approach to waqf governance, emphasising the need for beneficiaries to participate actively in decision-making processes to protect their interests.

ANALYSING MUAMALAT FEATURES FOR A SUSTAINABLE DEVELOPMENT OF ISLAMIC FINANCE IN UGANDA: A SYSTEMATIC LITERATURE REVIEW

Yusuf Kaweesa — 2025-06-01

Islamic banking and finance have gained wide acceptance in different parts of the world with more than 76 jurisdictions already embracing the industry, with industry reaching USD3 trillion in 2022. Besides, lately, Islamic banking has been introduced in Uganda, and in 2023, the first fully-fledged bank was licensed by the Bank of Uganda. However, society needs to be exposed to the underlying principles guiding Islamic finance. This study uses a systematic literature review to analyse different muamalat principles that guide Islamic banking. This study identified the enhancement of financial and social inclusion in society, the collection and distribution of zakat and sadaqah, the establishment of qard hasan, the conservation of societal values and averting of harm, and the promotion of ethical values and exhibition of quality customer service as Muamalat principles that can aid in informing Ugandans about novel concepts that can clarify the operationalisation of Islamic banking.

MODELLING REMEDIES TO WAQF LIQUIDITY CONSTRAINTS: THE CASE OF WAQF UNIT TRUST MODEL (WUTM)

Ahmad Khaliq — 2025-06-01

The history of the waqf institution is rich with impressive achievements that cover each phase of socio-economic life and human development. However, recent initiatives among local waqf institutions indicate that the liquidity limitation contributes as the core concern to cultivating further development undertakings. This research aims to offer a sustainable source of financing through the application of the waqf unit trust model (WUTM) for local waqf institutions in mitigating their liquidity constraint to cultivate waqf undertakings such as land rejuvenation, health sector improvement, educational sector enhancement and other critical necessities. Specifically, this study aims to discover the liquidity constraints needed in waqf institutions in Malaysia, to propose an alternate WUTM in fostering liquidity of waqf assets, and to explore the pertinent stakeholders’ stance on the feasibility of the model proposed. This research employs in-depth interview methods for data collection with the waqf practitioners such as authorities from the State Islamic Religious Council (SIRC), financial consultants linked to capital market development, academicians engaged with waqf-related projects, and regulators of Islamic capital market stationed in Klang Valley (the State of Selangor and Federal Territory of Kuala Lumpur), Penang and Johor state of Malaysia. Findings propose the craft of the WUTM framework could potentially assist in liquidity pooling, cash flow solutions and generate continuous income and wealth. This study contributes to the body of knowledge by offering a potential remedy for the liquidity constraint faced by waqf institutions.

PROFILES OF DIGITAL PAYMENT ADOPTION AMONG AR-RAHNU CO-OPERATIVE CUSTOMERS IN MALAYSIA

Nik Hadiyan Nik Azman — 2025-06-01

The rapid shift towards digital finance, accelerated by the COVID-19 pandemic, has become a key challenge and opportunity for Islamic microfinance institutions, particularly ar-rahnu, to maintain customer engagement and ensure financial accessibility. Ar-rahnu is an institution that offers loans by pawning gold or jewellery as a pledged asset at their physical outlet. Therefore, after the spreading of COVID-19, it is quite difficult for this institution to survive as these institutions must be in contactless with each other which has never happened before. Because that has never happened before, this study is designed to understand the profiles of ar-rahnu users, especially in terms of technology usage. Therefore, understanding the profiles and preferences of ar-rahnu customers is crucial for the optimisation of e-payment platforms. Data analysis was conducted using SPSS 28, where descriptive statistics and correlation analysis were employed to assess the relationship between demographic profiles and digital payment adoption. The results show that the majority of ar-rahnu users are women, Malay, and married, predominantly holding certificate or diploma qualifications, residing in urban areas, and working in the private sector. Social media platforms like Facebook play a crucial role in disseminating information about ar-rahnu, supplemented by personal networks and messaging apps like WhatsApp. By profiling the preferences of ar-rahnu users, this study offers actionable insights for policymakers to design more inclusive digital payment solutions, enhancing financial literacy and digital trust among underserved communities.

ISRAELI-PALESTINIAN CONFLICT, BOYCOTTED PRODUCTS' STOCK SHARES, GEOPOLITICAL RISK, POLICY UNCERTAINTY, AND OIL PRICES NEXUS: EVIDENCE FROM WAVELET-BASED APPROACH

Ganjar Primambudi — 2025-06-01

This paper aims to study the media coverage connectedness and correlations between the Israeli-Palestinian Conflict and some boycotted targeted companies. We utilize monthly data from January 2016 to December 2023 using three groups of variables. For the analysis part, we utilize the Wavelet-Based Approach alongside panel data regression and Granger causality to identify significant correlations and patterns. Demonstration, PolCiv Event, PolCiv Fatalities as the indicator for Israel-Palestinian conflict. Wix.Com Ltd (WIX), Yum! Brands Inc (YUM), Restaurant Brands International Inc (QSR), Papa John's International Inc (PZZA), Domino's Pizza Inc (DPZ), and McDonald's Corporation's Stock (MCD) as boycotted targeted companies and Global Price of WTI Crude (WTI), Economic Policy Uncertainty (EPU) and Geopolitical Risk Index (GPR) as global indicators. We found strong correlations among Demonstration, PolCiv Event, and PolCiv Fatalities, indicating their connectedness. However, only a few share prices, like WIX and YUM, exhibit limited significance in reflecting the humanitarian conditions tied to the conflict. Additionally, boycotted-product stock prices show medium to high correlations with media coverage, and global indicators (WTI, EPU, GPR) significantly correlate with selected boycotted-product share prices. Surprisingly, WTI and GPR exhibit a strong correlation, suggesting that geopolitical tensions globally influence oil price fluctuations. However, direct impacts on targeted companies are challenging due to opposing perspectives on the conflict, but a reduction in consumption is observed. We uncover strong correlations among various factors, including Demonstration, PolCiv Event, and PolCiv Fatalities. These connections highlight their interconnectedness and contribute fresh insights to existing knowledge. Additionally, the study explores the intriguing relationship between boycotted-product stock prices and media coverage, revealing medium to high correlations. Surprisingly, global indicators like WTI (oil prices) and GPR (geopolitical risk index) demonstrate a strong correlation, suggesting that geopolitical tensions globally influence oil price fluctuations. Overall, this research advances our understanding of the multifaceted effects arising from conflict-related events.

RESEARCH TRENDS IN THE FIELD OF ISLAMIC BANKING AND FINANCE: BIBLIOMETRIC ANALYSIS FROM 2000 TO 2024

Muhammad Raihan Abu Bakar — 2025-06-01

This study presents a comprehensive bibliometric analysis of Islamic Banking and Finance (IBF) from 2000 to 2024, aiming to address research gaps, examine publication trends, and propose future research directions. Using a systematic search across five academic databases—Web of Science, ResearchGate, Google Scholar, Connected Papers, and Emerald Insight—150 peer-reviewed studies were selected based on relevance and quality. Analytical tools such as Biblioshiny (RStudio), VOSviewer, and Microsoft Excel were employed to map out the intellectual landscape of IBF. The findings highlight a strong research focus on Islamic banking operations, rate comparisons with conventional banks, and governance structures, while also uncovering patterns in geographical research output, citation networks, and collaboration trends. Importantly, the study identifies critical gaps in the literature, including a scarcity of empirical work on sustainable development, inadequate frameworks for institutional accountability, and limited exploration of digitalisation and fintech in IBF. These insights form the basis for a proposed research agenda to steer future scholarship towards more impactful and globally relevant contributions.

THE IMPACT OF WELFARE STATE ON ECONOMIC GROWTH OF OIC COUNTRIES: THE MODERATING ROLE OF GOVERNMENT EFFECTIVENESS

Broni Mohammed Yaw — 2025-06-01

The advent of the COVID-19 pandemic reinforced the need for the state to exhibit benevolence towards its citizens. Though the welfare state system has long been responsible for protecting the well-being of the poor and vulnerable citizens, especially in capitalists' economies, activities of the welfare state have commonly been viewed as being inimical towards efforts in enhancing economic growth. Being a religious obligation, Islamic countries are required to foster welfare state activities, exposing them to a conflict of interests as they intend to achieve increasing economic growth as well. This paper investigates whether such conflict of interests exists by measuring the impact of welfare state on economic development of OIC countries, and to determine the moderating effect of government effectiveness on the relationship. Data from 23 countries spanning 2005 to 2022 were analysed using the System GMM method. The results indicate that the welfare state possesses a significant negative impact on economic growth. Contrary to expectation, government effectiveness fails to moderate the impact on the relationship between the welfare state and economic growth. A robustness check with the LSDVC method affirms the significant negative impact observed. Islamic countries should consider formulating policies that monitor the activities of the welfare state, without compromising tenets of the Islamic worldview for safeguarding the dignity of the needy and vulnerable among the citizenry.

INISIATIF PERBANKAN BERASASKAN NILAI DI BIMB: KAJIAN KES SADAQA HOUSE

Nurul Hana Sofea Maliki — 2025-06-01

Inisiatif Sadaqa House oleh Bank Islam Malaysia Berhad (BIMB) merupakan contoh pelaksanaan Pengantaraan Berasaskan Nilai (Value-Based Intermediation, VBI) yang diperkenalkan oleh Bank Negara Malaysia (BNM) untuk menyokong pembangunan mampan dalam sektor perbankan Islam. Kajian ini bertujuan untuk meneroka peranan Sadaqa House sebagai inisiatif utama VBI di BIMB serta mengenal pasti cabaran-cabaran yang dihadapi dalam pelaksanaannya. Kajian ini menggunakan pendekatan kualitatif melalui kaedah kajian kes, analisis dokumen dan temu bual separa berstruktur bagi tujuan pengumpulan data. Data primer dianalisis menggunakan analisis kandungan dan bertema. Hasil kajian mendapati Sadaqa House telah memberi sumbangan penting kepada sektor pendidikan, kesihatan, dan pemeliharaan alam sekitar. Namun demikian, Sadaqa House menghadapi cabaran dalam aspek komitmen penerima manfaat dan kekurangan promosi awam bagi tujuan kutipan dana. Kajian ini turut menekankan kepentingan tadbir urus yang kukuh serta strategi pengurusan dana yang lebih berkesan bagi memastikan kesinambungan program Sadaqa House dalam jangka panjang.

EXAMINING THE EFFECTS OF SELF-EFFICACY AND FACILITATING CONDITION ON PERCEIVED BEHAVIOURAL CONTROL TOWARDS FUTURE MUZAKKI

Muhammad Farhan Rasid — 2025-06-01

The paper focuses on understanding the effect of self-efficacy and facilitating condition on the behavioural intentions of civil officers in Malaysia to be the future muzakki. In this study, a theoretical framework extracted from the Theory of Planned Behaviour (TPB) is applied to understand the factors associated with perceived behavioural control and intentions to be future muzakki. The study further believes that the theory will appreciate the factors that determine civil officers' intention to be a muzakki. Hence, though this research is one of the first attempts in this regard, it recognises some limitations in terms of the scope of theories, variables, and geographical coverage that risks or merits further research. The purpose of this study is to examine the governance practices of zakat institutions in Malaysia, especially in fostering trust and strengthening the willingness of civil officers’ to contribute to zakat through formal channels. Finally, this article presents an examination of the effects of self-efficacy and facilitating condition on perceived behavioural control towards future muzakki. It contributes to the development of the existing theoretical framework by applying a novel theoretical synthesis.

ANALYSING THE BEHAVIOUR OF FISCAL POLICY IN MALAYSIA

Shariff Umar Shariff Abd Kadir — 2025-06-01

Malaysia’s fiscal position, as measured by its budget balance, has consistently recorded deficits since the 1997–1998 Asian Financial Crisis. This persistent trend of budgetary shortfalls has contributed to a rising government debt ratio, which has nearly reached the statutory limit. The Fiscal Theory of the Price Level (FTPL) posits that, in the absence of a fiscal policy response to escalating government debt, fiscal policy—rather than monetary policy—can serve as the anchor for price levels. This scenario implies a non-Ricardian fiscal regime. Against this backdrop, this research seeks to examine the behaviour of fiscal policy in Malaysia. The study employs both backward-looking and forward-looking analytical approaches, covering the period from 1980:Q1 to 2023:Q4. The findings indicate that Malaysia’s fiscal policy aligns with a Ricardian regime, wherein an increase in government debt prompts a corresponding rise in the primary surplus. Additionally, the analysis of impulse response functions reveals that a positive shock to the primary surplus results in a reduction in government debt. These outcomes suggest that fiscal policy in Malaysia does indeed respond to changes in government debt, thereby ensuring the sustainability of its fiscal framework.