Promoting Housing Affordability in Malaysia: Can Islamic Finance Play a Role?

Volume: 6 Number: 8 October 1, 2016
  • Norazlina Abd. Wahab
  • Hanissah Hamzah
  • Rosylin Mohd Yusof
EN

Promoting Housing Affordability in Malaysia: Can Islamic Finance Play a Role?

Abstract

This study seeks to investigate the relationship between affordability of home ownership in Malaysia and the role played by Islamic banks in promoting affordable financing. By establishing the link between affordability (measured by Median House price/ GDP per capita) and total home financing by Islamic Banks, the study seeks to decipher the issues of homeownership affordability. At the same time, it attempts to shed some light on the role of Islamic finance in providing a syariah based and syariah compliant alternative of a fair-priced home loan in promoting homeownership affordability in Malaysia. The study employs Auto Regressive Distributed Lag (ARDL) Model on quarterly data from 2007 until 2014 to investigate the link between affordability and selected banking variables such as total home financing by Islamic banks and OPR. Data were extracted from the National Property Information Centre (NAPIC) and BNM Monthly Statistical Bulletin. Our findings suggest that Islamic banking plays a bigger role in promoting affordability by offering a fair and sustainable financing. The study highlights that Islamic banking to a certain extent has managed to live up to its ideals in achieving the maqasid al-shariah.

Keywords

Details

Primary Language

English

Subjects

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Journal Section

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Authors

Norazlina Abd. Wahab This is me

Hanissah Hamzah This is me

Rosylin Mohd Yusof This is me

Publication Date

October 1, 2016

Submission Date

October 1, 2016

Acceptance Date

-

Published in Issue

Year 2016 Volume: 6 Number: 8

APA
Wahab, N. A., Hamzah, H., & Yusof, R. M. (2016). Promoting Housing Affordability in Malaysia: Can Islamic Finance Play a Role? International Review of Management and Marketing, 6(8), 88-102. https://izlik.org/JA27KL95BN
AMA
1.Wahab NA, Hamzah H, Yusof RM. Promoting Housing Affordability in Malaysia: Can Islamic Finance Play a Role? IRMM. 2016;6(8):88-102. https://izlik.org/JA27KL95BN
Chicago
Wahab, Norazlina Abd., Hanissah Hamzah, and Rosylin Mohd Yusof. 2016. “Promoting Housing Affordability in Malaysia: Can Islamic Finance Play a Role?”. International Review of Management and Marketing 6 (8): 88-102. https://izlik.org/JA27KL95BN.
EndNote
Wahab NA, Hamzah H, Yusof RM (October 1, 2016) Promoting Housing Affordability in Malaysia: Can Islamic Finance Play a Role? International Review of Management and Marketing 6 8 88–102.
IEEE
[1]N. A. Wahab, H. Hamzah, and R. M. Yusof, “Promoting Housing Affordability in Malaysia: Can Islamic Finance Play a Role?”, IRMM, vol. 6, no. 8, pp. 88–102, Oct. 2016, [Online]. Available: https://izlik.org/JA27KL95BN
ISNAD
Wahab, Norazlina Abd. - Hamzah, Hanissah - Yusof, Rosylin Mohd. “Promoting Housing Affordability in Malaysia: Can Islamic Finance Play a Role?”. International Review of Management and Marketing 6/8 (October 1, 2016): 88-102. https://izlik.org/JA27KL95BN.
JAMA
1.Wahab NA, Hamzah H, Yusof RM. Promoting Housing Affordability in Malaysia: Can Islamic Finance Play a Role? IRMM. 2016;6:88–102.
MLA
Wahab, Norazlina Abd., et al. “Promoting Housing Affordability in Malaysia: Can Islamic Finance Play a Role?”. International Review of Management and Marketing, vol. 6, no. 8, Oct. 2016, pp. 88-102, https://izlik.org/JA27KL95BN.
Vancouver
1.Norazlina Abd. Wahab, Hanissah Hamzah, Rosylin Mohd Yusof. Promoting Housing Affordability in Malaysia: Can Islamic Finance Play a Role? IRMM [Internet]. 2016 Oct. 1;6(8):88-102. Available from: https://izlik.org/JA27KL95BN