A Longitudinal Analysis of the Ar-Rahn's Customer Profile in Malaysia

Azila  Abdul Razak; Fidlizan  Muhammad; Mohd Yahya  Mohd Hussin; Fatimah Salwa  Abd Hadi; Nurhanie  Mahjom

Authors

Azila Abdul Razak Department of Economics, Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, 35900 Tanjong Malim, Perak, Malaysia
Fidlizan Muhammad Department of Economics, Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, 35900 Tanjong Malim, Perak, Malaysia
Mohd Yahya Mohd Hussin Department of Economics, Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, 35900 Tanjong Malim, Perak, Malaysia
Fatimah Salwa Abd Hadi Department of Economics, Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, 35900 Tanjong Malim, Perak, Malaysia
Nurhanie Mahjom Department of Economics, Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, 35900 Tanjong Malim, Perak, Malaysia

Keywords:

Ar-rahn, customer profile, longitudinal

Abstract

Though much research has revealed on the significance of ar-rahn as an effective financial instrument to curb poverty and financial exclusion problems, little is known about the changing trends in the profile of the ar-rahn consumers that can be used by the operators as to provide competitive ar-rahn schemes. Thus, this study attempts to analyse the changes in customer profile of ar-rahn financing in Malaysia using a longitudinal analysis over a six-year period with two sets of observations. The findings show that there are changes in terms of region, level of education, and income throughout the six-year period. Importantly, the usage of ar-rahn financing for production purpose, such as economic activity is claimed to be vital in enhancing the customers' well-being and hence, improving the financial and socioeconomic development of the society.