Microtakaful: A Lesson from Malaysian Low-Income Women Entrepreneurs

Syarah Syahira Mohd Yusoff; Muh Zul Hazmi Rapi; Siti Nursyawani Misman; Romzie Rosman; Rusni Hassan

doi:10.33102/jmifr.653

Authors

Syarah Syahira Mohd Yusoff Institute of Islamic Banking and Finance, International Islamic University Malaysia, Jalan Gombak, 53100 Kuala Lumpur, Selangor, Malaysia. https://orcid.org/0000-0002-1787-2249
Muh Zul Hazmi Rapi School of Business and Economics, Universiti Brunei Darussalam, Bandar Seri Begawan, Jalan Tungku Link, Gadong BE1410, Brunei. https://orcid.org/0000-0002-1742-9300
Siti Nursyawani Misman Institute of Islamic Banking and Finance, International Islamic University Malaysia, Jalan Gombak, 53100 Kuala Lumpur, Selangor, Malaysia. https://orcid.org/0000-0001-8961-4591
Romzie Rosman Institute of Islamic Banking and Finance, International Islamic University Malaysia, Jalan Gombak, 53100 Kuala Lumpur, Selangor, Malaysia. https://orcid.org/0000-0003-2066-5897
Rusni Hassan Institute of Islamic Banking and Finance, International Islamic University Malaysia, Jalan Gombak, 53100 Kuala Lumpur, Selangor, Malaysia.

DOI:

https://doi.org/10.33102/jmifr.653

Keywords:

Microtakaful, community development, financial inclusion, women entrepreneurship, B40, Malaysia

Abstract

Women entrepreneurs possess a pivotal role in accelerating social and economic growth, creating significant contributions on a national and global scale. However, their accomplishments and significance are sometimes ignored. This study investigates the need for microtakaful products among Malaysian Low-income women entrepreneurs (B40 Women Entrepreneurs), as well as the ways in which these products might assist these women’s ventures. Using a qualitative approach, the study employs semi-structured interviews, analysed using Nvivo software to identify recurring themes within the collected data. The study reveals a strong perceived demand for microtakaful among low-income Malaysian women entrepreneurs, where the women both acknowledge the significance of having takaful and show positive intention to engage in the products. Nonetheless, the study highlights three factors: affordable pricing, Takaful benefit coverage and Takaful agents that can influence their attitude and intention toward takaful products. These results indicate that the Takaful sector holds substantial potential for growth and for supporting women small-business owners. The findings suggest the need to develop customised microtakaful products with features and framework tailored to the specific needs identified in this study. This presents policymakers and regulators with a significant opportunity to promote financial inclusion by facilitating the development and distribution of microtakaful products specifically designed for women-led microenterprises.

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