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Barriers to Takaful Participation: Socio-Economic Insights from Mosque Committee Members in Peninsular Malaysia

Author

Listed:
  • Noor Aimi Mohamad Puad

    (Universiti Islam Selangor (UIS))

  • Khairul Anuar Ahmad

    (Universiti Islam Selangor (UIS))

  • Ahmad Yani Ismail

    (Universiti Islam Selangor (UIS))

  • Aza Shahnaz Azman

    (Universiti Islam Selangor (UIS))

  • Fadilah Mat Nor

    (Universiti Islam Selangor (UIS))

  • Rubayah Yakob

    (Universiti Kebangsaan Malaysia (UKM))

  • Nurul Hidayah Md. Razali

    (Universiti Kebangsaan Malaysia (UKM))

  • Nur Amalina Shafie

    (Universiti Teknologi MARA (UiTM), Melaka)

Abstract

This study investigates the socio-economic barriers that hinder Takaful participation among mosque committee members in Malaysia. As respected community leaders, mosque committee members play a crucial role in shaping public perceptions of financial practices. Despite the rapid growth of the Takaful industry in Malaysia, penetration rates remain below expectations, particularly among lower-income and rural groups. This research examines the obstacles to subscribing to Takaful, using semi-structured interviews with committee members from selected mosques. The findings reveal five recurring barriers: (1) affordability and income constraints, (2) age-related eligibility issues, (3) reliance on family support, (4) mistrust of agents and digital platforms, and (5) economic instability leading to policy discontinuation. Even though there is religious motivation and knowledge of Shariah compliance, these socio-economic barriers are more important than the perceived benefits of uptake. This study contributes to the existing literature by highlighting the interplay among financial literacy, socioeconomic vulnerability, and religious leadership in promoting financial inclusion. Suggested policy implications include subsidized community-based Takaful programs, enhanced financial literacy initiatives through mosques, and improved consumer protection systems to restore confidence in Takaful operators.

Suggested Citation

  • Noor Aimi Mohamad Puad & Khairul Anuar Ahmad & Ahmad Yani Ismail & Aza Shahnaz Azman & Fadilah Mat Nor & Rubayah Yakob & Nurul Hidayah Md. Razali & Nur Amalina Shafie, 2025. "Barriers to Takaful Participation: Socio-Economic Insights from Mosque Committee Members in Peninsular Malaysia," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(9), pages 717-726, September.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-9:p:717-726
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    References listed on IDEAS

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    1. Anders Lundvig Hansen & Luís Lima Santos, 2025. "The Impact of Geographical Factors on the Banking Sector in El Salvador," IJFS, MDPI, vol. 13(2), pages 1-23, June.
    2. Azhar Alam & Bayu Arie Fianto & Ririn Tri Ratnasari & Aidi Ahmi & Fransiska Putri Handayani, 2023. "History and Development of Takaful Research: A Bibliometric Review," SAGE Open, , vol. 13(3), pages 21582440231, July.
    3. Maizaitulaidawati Md Husin & Asmak Ab Rahman, 2016. "Do Muslims intend to participate in Islamic insurance?," Journal of Islamic Accounting and Business Research, Emerald Group Publishing Limited, vol. 7(1), pages 42-58, February.
    4. Tony Anyangwe & Annabel Vanroose & Ashenafi Fanta, 2022. "Determinants of financial inclusion: does culture matter?," Cogent Economics & Finance, Taylor & Francis Journals, vol. 10(1), pages 2073656-207, December.
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