THE ROLE OF FINANCIAL LITERACY AND AWARENESS ON THE TAKAFUL ACCEPTANCE AMONG NON-MUSLIM STUDENTS IN PRIVATE UNIVERSITY IN MALAYSIA
DOI:
https://doi.org/10.37231/mjis.2025.9.2.298Abstract
The Takaful industry has experienced significant growth in recent years, emerging as a strong competitor to conventional insurance. Its introduction in Malaysia initially captured the attention of individuals seeking protection. Takaful, as an Islamic alternative to conventional insurance, gained popularity as it aligned with Shariah principles. This concept of universal protection through Takaful schemes appealed to a broader audience, resulting in a substantial increase in demand from 2014 to 2024, particularly among Muslims who prioritize financial products that adhere to Islamic rules. In Malaysia, where most of the population is Muslim, takaful products are commonly marketed to Muslims. However, these products are also available to non-Muslims, and they have gained popularity among this demographic. Thus, it's important to note that this study aims to explore how non-Muslims perceive Takaful in comparison to conventional insurance. Several factors may contribute to this demand among non-Muslims, with religion being less of a driving factor. Instead, the study focuses on financial literacy and awareness as potential factors influencing the preference for Takaful products among non-Muslims. This paper employs a quantitative approach to comprehensively analyse existing literature on the topic, ultimately concluding on the key factors influencing the acceptance of Takaful among non-Muslims. In addition, it offers readers valuable insights by presenting a robust theoretical framework. The findings indicate that financial literacy components such as financial knowledge, financial attitude, and financial behavior play a role in influencing Takaful acceptance, although their impact varies in strength.
Downloads
Published
Issue
Section
License
Submission of an article implies that the work described has not been published previously (except in the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, in English or in any other language, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.
Copyrights for articles published in MJIS journals are retained by the authors, with first publication rights granted to the journal. The journal/publisher is not responsible for subsequent uses of the work. It is the author's responsibility to bring an infringement action if so desired by the author.
