Indebtedness among young Muslims in Malaysia: review of the extant literature

Md. Shariff, Anita and Ariffin, Muhammad Irwan and Mohammed, Mustafa Omar (2018) Indebtedness among young Muslims in Malaysia: review of the extant literature. In: 3rd International Social Science Conference, Islamic Thought and Understanding (ISSCITU) 2018, 1st-3rd May 2018, Langkawi, Kedah. (Unpublished)

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Abstract

Evidences show rising trend of household debt especially among young Muslims in Malaysia. The literature has cited several reasons for this which covers macroeconomic, socioeconomic, cultural, psychological and demographic factors. Among all determinants, materialism and religiosity deficit seem to be the least researched factors. Studies argue that the chase for growth and higher living standard has invariably breed materialism in the society which in turn leads to indebtedness. At the same time, young Muslims are struggling to preserve their Islamic religiosity, which discourage indebtedness. Both materialism and Islamic religiosity have opposite impacts on debt. The role of Islamic banking in extending credit to Muslims is another dimension to be considered. On one hand, it claims to pursue a religious objective and on the other hand it offers debt-based products that encourage indebtedness. While Islam discourages indebtedness, more Muslims choose to borrow from Islamic banking for religious reason. There is dearth of literature that has critically examined these three issues: materialism, religiosity deficit and Islamic banking in relation to indebtedness. The present paper adopts a literature survey method to critically review the related works on factors that influence household debt behavior, focusing on these three issues. The paper expects to provide a new direction in the study of indebtedness among young Muslim households in Malaysia.

Item Type:	Conference or Workshop Item (Invited Papers)
Additional Information:	4788/71457
Uncontrolled Keywords:	Indebtedness, young households, Malaysia, Muslims, religiosity, materialism, Islamic banking.
Subjects:	BPH Islamic Economics BPH Islamic Economics > BPH186.4 Bay' Al-Dayn - Debt Financing BPH Islamic Economics > BPH589.2 Riba - Interest H Social Sciences > HB Economic Theory > HB126.4 Islamic Economics H Social Sciences > HB Economic Theory > HB801 Consumption. Demand
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User:	Muhammad Irwan Ariffin
Date Deposited:	16 Nov 2020 10:11
Last Modified:	16 Nov 2020 10:11
URI:	http://irep.iium.edu.my/id/eprint/71457

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