Relationship Between Islamic Financial Literacy and Halal Literacy

Abstract

<p class="ql-align-justify">Islamic financial literacy has been recognized as an important tool to increase inclusiveness. However, to date, structures for Islamic financial literacy have not been sufficiently studied, although such an attempt has been made in the literature. Therefore, it aims to develop structures for Islamic financial literacy and its determinants. Halal business is not just about halal ingredients and production. Besides focusing on halal production, the right Halal business operators should also concentrate on adopting Halal financing that is called Islamic financing. However, the assessment of the level of awareness, knowledge and skills of Halal and Islamic financing among business operators should be prepared. However, prior to assessing the awareness, knowledge and skill levels of Halal and Islamic finance among business users should be prepared. This paper aims to bridge the Halal Literacy and Islamic Financial Literacy on the attitude of Halal business producers towards Islamic financing adoption. This study proposes the measurement and validity approach for Halal Literacy and Islamic Financial Literacy. Halal Literacy and Islamic Financial Literacy are two crucial concepts where it can lead to the behavior of person towards its decisions especially in adopting Islamic financing. This study is attempted to contribute towards new theoretical knowledge especially in proposing the measurement items for Halal Literacy and Islamic Financial Literacy. This study also expected to help the policymaker to understand the level of literacy among consumers, especially from Halal business producer’s perspective. In addition, this article provides a validated framework for assessing the level of Islamic financial literacy, which also enables the community and researchers to expand their knowledge of Islamic financial literacy.&nbsp;