Towards the development of financial inclusion index using Islamic finance approach: Malaysia’s setting
List of Authors
  • Junaidah Abu Seman , Nurul Nazlia Jamil

Keyword
  • Islamic finance, financial inclusion, index, zakat, waqf, wealth distribution

Abstract
  • The aims of the study are to examine data availability and develop a conceptual framework for the computation of an integrated Islamic finance-based index of financial inclusion in Malaysia. In determining the level of financial inclusion, systematic indicators are inconclusive particularly on its measurement based on Islamic finance. This study employs a self-administered questionnaire and secondary data from two important institutions in Malaysia which administer zakat and waqf. It is found that, although the wealth distribution indicators i.e., zakat and waqf are available for the index’s data source, the data that could be used to rate financial inclusion using Islamic finance approach are still incomplete and limited. It is hoped that the findings on data availability and suggested conceptual framework would be useful for the development of Islamic finance-based index of financial inclusion.

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