Vol 24, 2020

Regular Articles

Cover Page Vol 24
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The Relationship Between Population Ageing and Private Savings in Vietnam
Nguyen Thi Thu Ha, Lam Ba Hoa, The University of Danang
Page 1-32   |      Download PDF   |   ABSTRACT PREVIEW


Population ageing is recognised as a significant issue, following which many studies have emerged and indicate the presence of a significant relationship between this element with private savings in developed and developing countries both. However, the direction of causality linking these variables has continued to generate numerous debates among researchers; to date, there is no empirical study available and conducted regarding this linkage in the context of Vietnam. Accordingly, the study aimed to investigate the relationships between population ageing and private savings in Vietnam within the Life Cycle Hypothesis framework. The findings revealed four negative long-run relationships and three negative short-run associations of the youth and elderly dependency ratios and social insurance funds with private savings. The policy implications suggest that the government can promote savings by mobilising its resources, facilitating financial institutions to initiate insurance schemes, and carefully investing in projects to generate higher benefits for the elderly population. Moreover, the governing entity should limit the effects of dependency ratio by offering attractively beneficial programmes, reforming the pension system, and providing opportunities for the elderly to increase their income. Finally, establishing a sound regulatory framework is necessary to encourage the population’s participation and stimulate the voluntary insurance scheme. 

Dependency ratio, Life cycle hypothesis, Life expectancy, Social insurance funds, Private savings

An Assessment of the Behavioural Intention for Using Ride-Sharing Services: Empirical Evidence from a Developing Country
Dewan Mehrab Ashrafi, Wardha Habiba, Ismail Alam, East Delta University
Page 33-62   |      Download PDF   |   ABSTRACT PREVIEW


In today’s age, it is essential for ride-sharing service providers and policymakers to explore and understand the components affecting both the actual and potential user willingness to use such services in developing countries. Therefore, the purpose of this paper was to explore the critical components of an individual’s intention to use ride-sharing services, wherein an extended Technology Acceptance Model (TAM) was employed as the conceptual framework. Here, the extension was made by considering three constructs, namely environmental awareness, perceived risk, and personal innovativeness. Overall, 683 respondents participated in the study in which a quantitative approach was adopted and the responses were collected through a structured questionnaire using a five-point Likert-scale. Structural Equation Modelling (SEM) was performed to assess whether the data fit the conceptual framework and test the hypotheses accordingly. The results showed that environmental awareness, perceived ease of use, personal innovativeness, and perceived usefulness positively impacted consumer behavioural intention of using ride-sharing services. The study also found that perceived risk was negatively associated with perceived usefulness and the intention of using ride-sharing services, whereas personal innovativeness was negatively associated with perceived risk while positively influenced the perceived ease of use and perceived usefulness. Based on the study findings, practical implications and future research recommendations were discussed. Hence, this paper on the sharing economy, specifically of the transportation sector could assist policymakers and business operators in promoting sustainable transportation through ride-sharing services. 

Ride-sharing services, Sharing economy, Technology Acceptance Model

Halal Consumption Determinants: The Mediating Role of Risk Perception and Muslim Lifestyle
Nik Kamariah Nik Mat, Maliani Mohamad, Universiti Utara Malaysia
Noor Hasmini AbdGhani, Universiti Malaysia Kelantan

Yaty Sulaiman
Page 63-78   |      Download PDF   |   ABSTRACT PREVIEW


Malaysia has been known as one of the top five leading countries in centralising the halal market globally. Although the government has actively promoted the halal food market, it is found that only 4% of SMEs (Small and Medium Enterprises) in Malaysia possess the Halal Certification Food from JAKIM (MITI, 2016). This points to several factors that can implicate the consumption of halal food, such as Muslim lifestyle, green consumerism, and government policy. Hence, the objective of this paper was to examine the factors that might influence halal food consumption, as well as the mediating effects of risk perception and Muslim lifestyle on the proposed relationships. This quantitative study consisted of five variables and measured by a total of 41 items using a seven-point Likert scale. For this study, data were obtained from 350 Muslim household consumers and analysed through the Partial Least Square, SEM (Smart PLS 3.0). The empirical result showed that green halal consumerism, government policy, and Muslim lifestyle posed significant impacts on halal consumption patterns. Muslim lifestyle was thus proven to be a mediator for the relationship between green halal consumerism and halal consumption pattern. The finding also suggested that food producers must abide in good manufacturing practices, especially in halal labelling to reduce consumer concerns and ensure the sustainability of halal food businesses. It is henceforth recommended that Muslim consumers may never sit on their laurel in combating non-halal food issues. From the consumer market perspective, such non-halal issues may be endless and contributed by various industry players. Hence, a monitoring committee should be formed, consisting of government agencies, halal industry representatives, and nongovernment organisations. This committee should meet regularly to solve contemporary halal issues, wherein improvements of the halal food product quality can promote the Malaysian economy to be the global halal hub, namely by ensuring quality halal products for exports. 

Halal consumption pattern, Muslim lifestyle, Government policy, Green halal consumerism, Risk perception

Factors Influencing Behavioural Intention for Mobile Banking Adoption Among Students of Universiti Putra Malaysia
Syuhaily Osman, Tan Pik Leng, Universiti Putra Malaysia
Page 79-100   |      Download PDF   |   ABSTRACT PREVIEW


Along with the increasing sophistication of the banking industry and the era of smartphones and tablets, banking services and technology are showing tremendous growth. However, the numerous benefits brought by the use of mobile banking do not indicate that the consumers will be eager to adopt the new mobile banking services offered in Malaysia. Therefore, the main purpose of this study was to determine the factors influencing the behavioural intention to adopt mobile banking among Universiti Putra Malaysia students. The data were collected from 200 respondents through a set of self-administered questionnaires, where descriptive analysis, Pearson’s correlation analysis, and multiple regression analysis were employed to analyse them. The findings then showed that performance expectancy, habit, and perceived credibility were significant predictors for behavioural intention among students, whereby performance expectancy was underl ined as the most significant predictor. The findings of the study have thus offered several implications that would be beneficial to service developers, banks, and future researchers alike. 

Behavioural intention, Effort expectancy, Habit, Hedonic motivation, Mobile banking, Perceived credibility, Performance expectancy, Social influence

Prudent Financial Management Practices Among Youth Consumers
Mohd Zamri Abu Bakar, Saridan Abu Bakar, Universiti Teknologi MARA
Page 101-123   |      Download PDF   |   ABSTRACT PREVIEW


The study aimed to investigate the roles of financial attitude (FA), parental financial socialisation (PFS), financial literacy (FL), and financial education (FE) to ensure successful implementation of prudent financial management practices (PFMP) among Malaysian youth. Designed to use a quantitative approach, the study data were collected using self-administered questionnaires adopted from previous studies and distributed among university students. They were next analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) to address the hypotheses of the study. The results showed that only FA, PFS, and FL had a significant and positive relationship with PFMP, whereas FE yielded no significant influence. The results also highlighted severe concerns regarding the effectiveness of FE towards improving youth’s capability to manage their financial affairs prudently. This proved that mandated FE prior to graduation posed less effect and would not lead to behavioural changes among Malaysian youth. Therefore, the country’s stakeholders need to strengthen the FE and enhance its effectiveness encompassing the right FE elements to ensure the current youth population would be able to apply the skills and knowledge they learned in the classroom into practice in the real life. Nevertheless, the findings may help one to understand how and why the Malaysian youths need to improve their current financial practices. 

Attitude, Socialisation, Education, Literacy, Prudent

Effects of Gender and Income on Malaysian’s Financial Capability
Mohamad Fazli Sabri, Nuradibah Mokhtar, Rusitha Wijekoon, Universiti Putra Malaysia
Catherine S F Ho, Mervin Anthony, Universiti Teknologi MARA

Page 124-152 |      Download PDF   |   ABSTRACT PREVIEW


The rapidly changing world and financial landscape have resulted in the availability of newer and more attractive financing alternatives, thus attracting the attention of households and resulting in the increasing debt levels in developed and emerging countries alike. This is a worrying trend and nations are scrambling to ensure that their consumers are well-equipped with the knowledge and practice of financial capability to prevent the problem of overreliance on debt and welfare, as well as to enhance financial health sustainability. Therefore, this study aimed to reveal the impact of sociodemographic characteristics on the four domains of financial capability, namely planning ahead, managing money, choosing products, and staying informed. A self-administered questionnaire was distributed to a sample of 2000 respondents across Malaysia, whereby data analysis revealed that gender posed a significant effect on the domains of planning ahead and staying informed. In contrast, income did not affect financial capability. Thus, it is recommended that greater attention should be placed on research and professional training towards building one’s financial capability. Furthermore, both the government and non-governmental organisations should develop an inclusive approach to increase the financial capability and upgrade the living standards of especially-financially-vulnerable households. 

Choosing products, Gender, Income, Managing money, Planning ahead, Staying informed

Islamic Financial Products/Services and the Intention to Use
Nelson Lajuni, Universiti Malaysia Sabah
Jati Kasuma, Noor Hafizah Azali, Winnie Emang, Universiti Teknologi MARA
Yusman Yacob, Cooperative Institute of Malaysia
Mohammad Bin Ismail, Universiti Malaysia Kelantan

Page 153-172   |      Download PDF   |   ABSTRACT PREVIEW


Muslims and non-Muslims alike have displayed a definite trend towards accepting Islamic financial products/services, thereby rendering it crucial to examine the determinants driving individuals to the intention to accept Islamic financial products/services. This study aimed to investigate the predictive power of Islamic financial literacy on the modified Theory of Planned Behaviour, which eventually translated into individual behaviour towards the intention to use Islamic financial products/services. Four hundred copies of questionnaires were distributed, out of which 300 usable copies were subsequently collected. The data obtained were then analysed using PLSSEM. The findings showed that all exogenous variables implemented, namely attitude, social value, perceived behavioural control, and Islamic financial literacy yielded explanatory and predictive power to predict individual intention to implement Islamic financial products/services. As financial services are humanised and localised to serve the customers better, this study extends the available literature by providing pertinent insights into the subject matter in the context of emerging markets. 

Islamic financial products/services, intention, Islamic financial literacy

Investigating the Influence of Asian Cultural Value and Financial Knowledge on Investment Behaviours
Joyce K.H. Nga, Sunway University
Page 173- 206   |      Download PDF   |   ABSTRACT PREVIEW


This study showed the combination of composite Asian cultural value (ACV), kiasuism (“fear of loss”), and the often-associated self-esteem, social intelligence, and achievement orientation exerted an impact on investment decision-making. It further explored the mediating influence of financial knowledge on investing behaviours (namely rational, risk aversion, herding and diversification). This research is novel as it addresses a gap in behavioural research particularly on the influence on ACVs and investing decision-making.In terms of research design, this study employed a purposive sampling method engaging with 463 respondents within the Klang Valley, Malaysia. A voluntary and anonymous quantitative questionnaire utilising a 7-point Likert-like scale was employed to measure the constructs. Due to the exploratory nature and formative constructs used in this study, the PLS-SEM method was implemented to assess the model validity and test the hypotheses. The findings thus showed that kiasu values promoted herding behaviour among investors. Besides, financial knowledge acquisition was a mediator between kiasu positive behaviours and rational investing, risk aversion, and diversification. Accordingly, the study offers suggestions of importance for financial planners, especially in Malaysia and Asian countries, in better understanding their clients. Besides, it also has implications on how more culturally relevant financial education content could further enhance the effectiveness of financial decision-making in general. 

Behavioural Finance, Investing Behaviour, Financial Decisionmaking, Financial Planning

Eating with a Purpose: Development and Motivators for Consumption of Superfood
Phuah Kit Teng, Khoong Tai Wai, Ow Mun Waei, Tunku Abdul Rahman University College
Siti Intan Nurdiana Wong Abdullah, INTI International University
Kelly Wong Kai Sheng, Universiti Putra Malaysi

Page 207-242   |      Download PDF   |   ABSTRACT PREVIEW


This research aimed to examine an integrated and modified Health Belief Model by encapsulating the factors influencing consumer likelihood to consume superfoods as adjusted to the Malaysian population. It was conducted in Peninsular Malaysia from May 2019 until October 2019 using a sample size of 1,000 individuals obtained via purposive sampling, whereby the data were analysed by using structural equation modelling. The result showed that consumer likelihood to consume superfoods was positively influenced by perceived benefits and perceived susceptibility, while negatively influenced by perceived barrier. The cue to action had a direct influence on perceived susceptibility, perceived seriousness, and perceived benefits. Surprisingly, the cue to action was not too influential on perceived barrier and likelihood to consume superfoods. Nevertheless, the proposed modified Health Belief Model fitted the data better than the original model. This implied that it is important to focus on the cue to action especially in the superfood-buying context as opposed to the original Health Belief Model which neglected the cue to action. 

Healthy lifestyle, Functional food, Nutritious, Superfoods

Fostering Digital Entrepreneurship Capabilities at Rural Schools: A Malaysian Case Study
Syukrina Alini Mat Ali, Erne Suzila Kassim, Melissa Shahrom, Norshima Humaidi, Norol Hamiza
Zamzuri, Universiti Teknologi MARA

Page 243-260
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Malaysia is gearing towards becoming a digital nation. As such, many aspects have been transformed to implement digitisation, including entrepreneurship. However, studies on digital entrepreneurship are limited, especially in rural areas in which a promising potential can be seen to market local products and services. Entrepreneurship is a common activity in Malaysian secondary schools through cooperatives (co-op) and it serves as a starting point of nurturing the younger generation’s knowledge in business; therefore, it would be meaningful to understand how information technology (IT) is accepted as part of the driver to digital entrepreneurship and cooperative competence. To explore the state of readiness in accepting digital entrepreneurship and the potential barriers, the study was conducted in the setting of rural school. Qualitative research was then conducted to answer the question of how digital entrepreneurship could be nurtured at rural schools. The corresponding results were drawn from semi-structured interviews with the school administration, co-op advisor, and co-op members, in addition to observations made on the co-op shop and the school surroundings. Therefore, the findings suggested four main themes playing important roles in nurturing the innovative digital entrepreneurship capabilities, namely school administration, technology capabilities, environment, and student factor. It is recommended that schools should be more innovative in simplifying the internal co-op policy while working together with other systems, as well as work on motivating the school children for their involvement in the entrepreneurship and digital business. 

Digital entrepreneurship, Entrepreneurship, Teaching entrepreneurship, Entrepreneurship in Malaysia, Innovation and information technology, Industrial Revolution (IR) 4.0, Digital divide

How Do Food Safety Knowledge and Trust Affect Individual’s Green Considerations During The COVID-19 Pandemic in Malaysia?
Muhammad Safuan Abdul Latip, Siti AisyahTumin, Ismayaza Noh, Universiti Teknologi MARA
Farhana Tahmida Newaz, Ravindran Ramasamy, Universiti Tun Abdul Razak

Page 261- 285
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Coronavirus disease 2019, henceforth abbreviated as COVID-19, was declared as a global pandemic by the World Health Organisation (WHO) on 11th March 2020, leading to the emergence of a ‘new normal’ life throughout the society and business practices alike. However, a full understanding of consumer preferences and purchasing decisions of products and services remains untouched till date Therefore, this study aimed to address consumer purchase intentions of organic food in the ‘new normal’ practice, wherein a total of 320 valid surveys were received for further analysis. It was conducted in Malaysia using an online questionnaire approach due to the current social distancing practices and concerns. The finding subsequently revealed that food safety knowledge influenced the elements of personal attitude, perceived social pressure, perceived autonomy, and perceived green trust embedded in study respondents. Meanwhile, personal attitude, perceived social pressure, and perceived autonomy were specifically found to correspondingly impact customer purchase intention of organic food. However, perceived green trust did not mediate the relationship between personal attitude, perceived social pressure, and perceived autonomy with organic food purchase intention during the pandemic and ‘new normal’ life. Accordingly, the study is notably useful for market players in understanding the ‘new normal’ of one’s life post-COVID-19. Thus, it is hoped that much more efforts to disseminate knowledge on food safety among consumers will be encouraged in promoting consumer’s purchase intention of organic food, besides opening up more opportunities for related research to be conducted in the future. 

COVID-19, Food safety, Individual’s green consideration, New normal, Green trust