Social insurance for sustainable long-term care financing in Malaysia’s ageing population: a KAP model perspective

Mohamad Yusof, Nurul Afidah and Hau, Tan Chi and Na, Seow Ai and Yan, Looi Sing and Mohd Yusoff, Syarah Syahira and Awang, Halimah (2026) Social insurance for sustainable long-term care financing in Malaysia’s ageing population: a KAP model perspective. Journal of Business and Social Development, 14 (2). pp. 403-418. ISSN 2289-2915 E-ISSN 2600-9668

PDF - Published Version Restricted to Repository staff only Download (341kB) | Request a copy

Abstract

The phenomenon of population ageing in Malaysia has raised concerns regarding citizens’ financial preparedness to meet their long-term care financing needs in later life. Drawing on the Knowledge, Attitudes, and Practices (KAP) model, this paper examines the interplay between financial literacy and financial attitude in relation to the acceptance of social insurance as a mechanism for long-term care financing. The choice of this underpinning theory uncovers the potential roles of both cognitive (financial literacy) and psychological (financial attitude) factors in influencing individuals’ behaviour (acceptance of social insurance). A quantitative approach was employed, using primary data collected through a self-administered questionnaire. A total of 450 responses were obtained from individuals aged 18 to 59 residing in Perak, Penang, Kuala Lumpur, Selangor, and Johor. The data analysis was conducted using Partial Least Squares-structural Equation Modelling (PLS-SEM) to test the proposed hypotheses and examine the relationship among the research variables. The results revealed that financial literacy and financial attitude are positively associated with the acceptance of social insurance as a mechanism for long-term care financing. Furthermore, financial attitude serves as a partial mediator in the financial literacy—social insurance acceptance relationship. The findings imply that both the cognitive and psychological aspects are instrumental in preparing the public to support the implementation of social insurance plans for long-term care financing. Policymakers should focus on enhancing financial literacy and nurturing a positive financial attitude when designing effective strategies to promote such initiatives.

Item Type:	Article (Journal)
Uncontrolled Keywords:	social insurance, sustainable, long-term care financing, ageing population, KAP model
Subjects:	BPH Islamic Banking & Finance > BPH Takaful (Islamic Insurance) & Retakaful BPH Islamic Banking & Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	DR Syarah Syahira Mohd Yusoff
Date Deposited:	22 Oct 2026 15:09
Last Update:	22 Oct 2026 15:09
Queue Number:	2026-10-Q5784
URI:	http://irep.iium.edu.my/id/eprint/132186
Indexed In:	MyCite

Actions (login required)

View Item