Malaysian Journal of Business and Economics (MJBE)

BANGLADESH’S DIGITAL EVOLUTION: DRIVERS, IMPACTS AND FUTURE OPPORTUNITIES

Sanjib Sutra Dhar, Md. Ashiqur Rahman, Rawnaq Ara Parvin — Mon, 30 Jun 2025 00:00:00 +0800

The Digital Bangladesh initiative is a comprehensive strategy aimed at transforming Bangladesh into a digitally advanced, economically competitive, and socially inclusive nation. Launched as part of the country's Vision 2021 agenda, the initiative seeks to integrate digital technologies across various sectors, including education, healthcare, agriculture, finance, and governance. This term paper explores the multifaceted causes and effects of the initiative, analyzing the roles of government policies, economic imperatives, social factors, and technological advancements that drive its progress. The initiative leverages emerging technologies such as artificial intelligence, blockchain, big data, and the Internet of Things (IoT) to drive innovation, improve public service delivery, and enhance the overall quality of life. Key outcomes include economic growth, improved governance, enhanced social inclusion, and environmental sustainability. Moreover, initiatives like the Digital Centre network and e-Government platforms aim to bridge the gap between rural and urban populations by facilitating access to essential services. To gain deeper insights, this paper adopts an exploratory study methodology, relying on secondary data sources such as government reports, academic publications, and industry analyses. This approach helps identify the initiative's successes, challenges, and future opportunities. While the prospects remain promising, challenges such as cybersecurity threats, the digital divide, and infrastructural constraints must be addressed through strategic policymaking, robust public-private partnerships, and sustainable digital practices to achieve the vision of a truly inclusive Digital Bangladesh.

DETERMINING CULTURAL VALUE ORIENTATIONS WITHIN A MULTICULTURAL ACADEMIC ENVIRONMENT: A STUDY IN THAILAND

Alexander Franco, Scott S. Roach — Mon, 30 Jun 2025 00:00:00 +0800

Kluckhohn-Strodtbeck’s Value Orientation Method (VOM) is a micro-dimensional tool used to determine cultural orientations within and between groups with a multicultural composition. This study examined five orientations of VOM: Relationship to Others, Relationship to Nature, Time (temporal focus of human life), Activity (modality of human activity), and Human Nature (what constitutes human nature).The study sample consisted of 215 students enrolled in an English-medium language program at an international university in Bangkok, Thailand. The variables tested included ethnicity (non-Chinese Thais, Chinese Thais, and foreign students), gender, age, and prior enrolment in an international high school or college with a diverse student body and faculty. The results revealed significant differences between non-Chinese Thais and foreign students, as well as between non-Chinese Thais and Chinese Thais. Non-Chinese Thais displayed a stronger inclination toward a lineal or hierarchical structure in organizational behaviour and preferred harmony with nature rather than mastery or subjugation over it. They also exhibited a present-oriented temporal focus rather than emphasizing the future or past and leaned toward "Being" (living in the moment) rather than achievement or development. Finally, non-Chinese Thais perceived human nature as a mixture of good and evil, rather than inherently good or evil. This study is a pioneering effort, as VOM had never been applied in Thailand or any other Southeast Asian nation. Given that VOM is designed for micro-level analysis within or between specific groups, its findings have been used in various multicultural settings to inform pedagogical strategies, student counselling, and management training.

THE IMPACT OF GOLD AND OIL PRICES ON ASEAN’S FINANCIAL SUSTAINABILITY BEFORE AND DURING COVID-19 PANDEMIC

Kok Sook Ching , Caroline Geetha — Mon, 30 Jun 2025 00:00:00 +0800

This study investigates the impacts of gold and oil prices on ASEAN’s financial sustainability before and during the COVID-19 pandemic. The financial sustainability of the ASEAN economics was measured using the performance in the stock market. Among the ASEAN countries, 8 countries produce oil meanwhile 5 countries produce gold. The study used panel data analysis to measure the impact of gold and oil prices on stock market performance. Since there are 3 countries in ASEAN that neither produces gold nor oil but only consumes them, other macroeconomic variables like gross domestic product, exchange rate and inflation rate were added in the analysis as the independent variables together with oil and gold prices. The study was also further distinguished into before the pandemic (2012 – 2019) and during the pandemic (2020 – 2021). The analysis revealed from the random effect regression that oil price and inflation rate influenced the stock performance before and during the pandemic. Both the variables moved in the same direction with stock performance. All other variables were found to be insignificant.

THE SYNERGISTIC ROLE OF DIVERSITY, EQUITY, AND INCLUSION (DEI) IN ADVANCING ORGANIZATIONAL SUSTAINABILITY: A STRUCTURED REVIEW

Ki Yen Ping — Mon, 30 Jun 2025 00:00:00 +0800

Diversity, equity, and inclusion (DEI) are essential for long-term organizational success, yet their direct impact on sustainability remains unclear. This systematic review examines DEI’s role in sustainable business practices by analysing 31 peer-reviewed articles published within 2022–2024 through qualitative analysis. Findings reveal that companies with strong DEI policies achieve more significant innovation, higher employee satisfaction, and improved financial performance, enhancing sustainability. Notably, 75% of studies report a strong positive link between DEI and sustainable outcomes. The review underscores DEI as a core driver of business success and encourages organizations to integrate DEI into their strategies. It also provides insights and recommendations for future research and practical implementation.

BUILDING ENTREPRENUERS IN ACADEMIA: HOW EDUCATION, SOCIAL SUPPORT AND SELF-EFFICACY SHAPE INTENTIONS AMONG MALAYSIAN STUDENTS?

Hemavathi Gunasegaran, Ang Sze Ming, Loo Hui Rong — Mon, 30 Jun 2025 00:00:00 +0800

This study aims to investigate the influence of entrepreneurship education, social support, and self-efficacy on entrepreneurial intentions among students in Malaysian government universities. The study focuses on understanding the role of educational initiatives in fostering student-led start-ups and their potential for contributing to Malaysia's entrepreneurial ecosystem. A quantitative, cross-sectional research design was employed, with data collected via self-administered questionnaires from 219 students enrolled in entrepreneurship programs at a Malaysian government university. The analysis was conducted using SPSS version 20. The results revealed that entrepreneurship education and self-efficacy significantly influence students’ entrepreneurial intentions. However, social support, while positively associated, did not show a statistically significant impact. These findings suggest that enhancing students’ entrepreneurial self-efficacy and exposure to entrepreneurship education can play a critical role in fostering entrepreneurial intentions. The findings offer valuable insights for educators and policymakers looking to improve entrepreneurship education programs. By focusing on enhancing self-efficacy and providing practical entrepreneurial training, universities can better equip students to meet the challenges of starting new ventures, aligning with national objectives to foster innovation and economic growth. This study adds to the growing body of knowledge on entrepreneurship education within Malaysian higher education. It highlights the crucial role of educational interventions in shaping entrepreneurial intentions and underscores the importance of focusing on self-efficacy development.

FROM CHALLENGES TO OPPORTUNITIES: LEGAL REFORMS FOR SMALLHOLDERS IN MALAYSIA’S PALM OIL MARKET

Arif Husaini Mohammad Rohimi, Haniff Ahamat — Mon, 30 Jun 2025 00:00:00 +0800

The Malaysian palm oil industry serves as a critical economic driver, particularly with smallholders contributing significantly to the upstream sector. However, these smallholders encounter numerous challenges, including limited resource access, fluctuating market prices, and stringent regulatory standards. This study conducts a legal analysis of the regulatory framework governing Malaysia's upstream palm oil sector, focusing on smallholders' interests. Utilizing a doctrinal legal research methodology, the study examines relevant laws, regulations, case law, and scholarly literature to identify key challenges and assess regulatory effectiveness. Findings reveal significant issues related to land ownership, market instability, environmental concerns, and the financial burden of certification, impacting smallholders’ market access and competitiveness against larger plantation companies. To promote sustainability and equitable development, the study proposes legal reforms, including a dynamic pricing mechanism for fair compensation, a centralized platform for transparent market information, strengthened smallholder cooperatives, and streamlined MSPO certification processes. Addressing these reforms will empower smallholders and foster a more resilient palm oil sector in Malaysia.

THE IMPACT OF INTERNALLY GENERATED REVENUE ON INFRASTRUCTURAL DEVELOPMENT: A CASE STUDY OF KWARA STATE

Mon, 30 Jun 2025 00:00:00 +0800

The purpose of this study is to empirically investigate the impact of internally generated revenue (IGR) on infrastructural development in Kwara state. The IGR is decomposed into two variables – tax and non-tax revenue – with the inclusion of internal and external loans sum as the control variable. All data were sourced and extracted from Kwara state financial statement report, which spanned between 1999 – 2023. Auto-Regressive Distributed Lag (ARDL) estimation technique was employed to conduct the regression analysis of the short and long run relationship between IGR and infrastructural development in Kwara state. This study finds that IGR and loan has a significant positive influence on infrastructural development, both in the short and long run. However, tax revenue influence can only be felt in the short run and the previous year’s loan exhibit a negative effect on infrastructural development in the current year. The study suggests that the Kwara state government should increase its tax base and rate in a form that would not yield negative consequences on the state economy, diversify its non-tax revenue sources to cushion unexpected economic shocks, and reduce reliance on loans for capital expenditures to mitigate debt servicing and enhance fiscal balance.

DETERMINANTS OF CONSUMER PREFERENCE FOR GOLD-I INVESTMENT: A MALAYSIAN CASE STUDY

Umi Naswah Athirah Rahmat, Haneffa Muchlis Gazali, Mohd Zulkifli Muhammad — Mon, 30 Jun 2025 00:00:00 +0800

This study examines the application of the extended Theory of Planned Behaviour (TPB) in influencing consumer decisions to invest in Gold-i, a Shariah-compliant product that enables participation in the metals market, with returns generated from capital appreciation. Employing a quantitative research methodology, data were gathered through an online survey of 216 Malaysian consumers using convenience sampling. The analysis was conducted using multiple regression techniques with SPSS version 28. Results indicate a significant correlation between the intention to invest in Gold-i and factors such as attitude and knowledge, while subjective norm, perceived behavioural control, and religiosity were not significant predictors. The study, limited to a cross-sectional design and focused on Malaysian consumers, offers valuable insights for policymakers, financial institutions, and investors. The findings provide a foundational understanding for Islamic financial institutions seeking to enhance their interventions and strategies. Moreover, this research contributes to the sparse literature on Gold-i investment in Malaysia, serving as a reference for future studies. As one of the first empirical investigations in this domain, this study is anticipated to encourage further research into the determinants of Gold-i investment behaviour among Malaysian consumers.

INDIVIDUALIZED YEARLY WAGE INCREMENT RATE BASED ON PERSONAL CONSUMPTION WITH ITEMIZED CPI

Kok-Leong, Soo, Chai-Thing, Tan, You-How, Go, Hui-Wen, Cheah, Teh Hong Piow — Mon, 30 Jun 2025 00:00:00 +0800

The public often perceives a higher inflation rate than the one announced by authorities. As a result, individuals tend to seek larger increases in their annual wages compared to the reported inflation rate. However, comparing these two rates is often meaningless, as people primarily focus on the absolute prices of goods in their daily purchases. A more practical measure of inflation would account for individual consumption patterns through the consumer price index. This approach could serve as a more reliable reference for assessing living costs and guiding annual wage increases to maintain financial stability. The main findings indicate that the generally perceived inflation rate is typically 2 to 3 times higher than the officially announced rate. Most wage increases fall below RM1,000, with some ranging from RM1,500 to RM2,000. The average wage increase is RM473, with a standard deviation of RM402. Notably, the actual yearly wage increases (in RM) exceed the individualized wage increments. This suggests that the wage increases currently being provided to most employees are sufficient to cover their expenses, based on the inflation rate reported by authorities.

THE INFLUENCE OF MENU DIVERSITY, PRICE PERCEPTION, SOCIAL MEDIA ON REPURCHASE INTEREST THROUGH CUSTOMER SATISFACTION OF MSMES IN GADO-GADO, KETOPRAK, KAREDOK TRADITIONAL FOODS IN SOUTH TANGERANG, INDONESIA

Rahayu Lestari, Rosle Mohidin, Suddin Lada — Mon, 30 Jun 2025 00:00:00 +0800

This study examines the influence of menu diversity, price perception, and social media on repurchase interest, mediated by customer satisfaction, among traditional food MSMEs specializing in Gado-Gado, Ketoprak, and Karedok in South Tangerang. Primary data were collected through questionnaires distributed to 85 respondents, selected using purposive sampling based on their frequency of purchasing from these MSMEs. The data were analyzed using Partial Least Squares (PLS) with the SmartPLS 3.0 application. The results indicated that, partially, menu diversity and customer satisfaction significantly affect repurchase interest. Social media positively and significantly influences both customer satisfaction and repurchase interest. However, price perception insignificantly impacts customer satisfaction, though it does affect repurchase interest. Interestingly, while menu diversity enhances customer satisfaction, it does not directly influence repurchase interest. These findings highlight the complex interplay of factors driving repurchase behavior and provide valuable insights for MSMEs aiming to enhance customer retention and satisfaction through strategic menu offerings, social media engagement, and competitive pricing.

CAN ESG PERFORMANCE IMPROVE THE ANALYST FORECAST ACCURACY?

Pengwei He, Peng Zhu, Jiaqi Liu — Mon, 30 Jun 2025 00:00:00 +0800

ESG level has become one of the important criteria for evaluating the sustainable development ability of enterprises in the new era. Based on the perspective of analysts, this paper empirically examines the influence of ESG performance on analysts’ forecast accuracy. The study found that the better the ESG performance, the higher the accuracy of analysts’ forecasts. Mechanism testing finds that good ESG performance can improve information transparency and reduce earnings volatility. The heterogeneity analysis shows that ESG performance has a more significant effect on the accuracy of analysts’ forecasts in the samples of corporate governance level and non-state-owned enterprises. The research conclusions reveal the information transmission effect of ESG performance in the capital market and provide policy suggestions for standardizing the ESG information disclosure system.

EMPIRICAL ANALYSIS ON THE IMPACT OF FINANCIAL TECHNOLOGY AT THE FINANCIAL SYSTEM TOWARDS THE PERFORMANCE OF FINANCIAL INSTITUTIONS IN MALAYSIA

Liew Li Ling, Caroline Geetha — Mon, 30 Jun 2025 00:00:00 +0800

This research aimed to identify the impact of financial technology in the financial system towards the performance of financial institutions in Malaysia, in the short run and long run. The performance of financial institutions which refers to the profitability of the financial institution after the utilization of financial technology into the daily transactions. A framework which included return on equity (ROE) as a dependent variable, fintech application, size of financial institutions, age of financial institutions as independent variables while Gross Domestic Product (GDP) and inflation act as controlled variables was designed. Quantitative methods which involved secondary data from eight local banks financial reports that range from 2004 to 2023 were analyzed using the panel data analysis with the help of software like Stata and MS Excel. The highlight of this study is the financial technology application which was represented by the digital innovation index. The analysis begins with unit root test, then followed by diagnostic tests such as autocorrelation, normality, stability, multicollinearity, heteroskedasticity tests will be conducted to ensure the validity and the reliability of the model. The findings revealed that mobile banking, earnings per share, size and GDP had a significantly positive relationship with the institutions performance. All other factors were found to be insignificant.

EXPLORING SUSTAINABLE BRAND EQUITY FORMATION IN TOURIST DESTINATIONS THROUGH FACTOR ANALYSIS

Khairul Anwar Bin Adani, Tini Maizura Mohtar — Mon, 30 Jun 2025 00:00:00 +0800

Recent research highlights the potential of destination branding as a marketing tool, yet few studies have applied the Customer-Based Brand Equity (CBBE) approach to assess destination brand equity, particularly in combining various dimensions. This study addresses this gap by empirically evaluating Sabah's brand equity through a consumer survey targeting Japanese tourists. It examines the causal relationships among nine brand equity dimensions: brand awareness, brand uniqueness, perceived brand quality, perceived brand value, brand image, perceived destination risk, perceived brand reputation, brand satisfaction, and brand loyalty. Data were collected from 100 tourists at Kota Kinabalu International Airport using questionnaire to refine the factor structure and assess concurrent validity. The analysis included exploratory and confirmatory factor analyses, confirming the dimensionality of the constructs and integrating "perceived destination risk" into the existing framework to address security concerns and general risks associated with the destination. This research contributes to understanding Japanese tourists' sentiments toward Sabah as a tourism destination. The findings may offer strategies for policymakers to enhance Sabah’s brand performance. Reliability assessments indicated acceptable to good reliability across most constructs, with improvements observed after item revisions. This study fills a gap in empirical research on destination marketing and brand equity, focusing on a specific target market.

SYSTEMATIC REVIEW ON ARTIFICIAL INTELLIGENCE(AI) ENABLED INSURANCE SECTOR

Yao Di, Bamini KPD Balakrishnan — Mon, 30 Jun 2025 00:00:00 +0800

This study looks into the application of AI technology in the insurance industry, Through a systematic literature review, the study initially sorts out the status and progress of existing studies on the application of AI based on risk assessment, claims processing, customer service, and product personalization. Followed by additional analysis on the relevance of the data in terms of content analysis, the role and potential challenges of AI technology in enhancing operational efficiency, improving customer experience, and strengthening risk management. The results of the review showed that the wide application of AI not only improves the intelligence of insurance but also provides support for the long-term competitiveness of the industry. Eventually the study concludes with the future of AI applications in insurance and suggests solutions in line with data privacy, technical barriers, and algorithmic bias.