Economic Shifts Research Articles

Impact of the chips act on the GVC participation of China's electronics industry

PurposeIn this paper, we evaluated the impact of the US “Chip Act” on the participation of the Chinese electronics industry in the global value chain based on the dynamic CGE model. This is a meaningful attempt to use the GTAP-VA model to analyze the electronics industry in China.Design/methodology/approachWe employ a Dynamic GTAP-VA Model to quantitatively evaluate the economic repercussions of the “Chip Act” on the Chinese electronic industries' GVC participation from 2023 to 2040.FindingsThe findings depict a discernible contraction in China’s electronic sector by 2040, marked by a −2.95% change in output, a −3.50% alteration in exports and a 0.45% increment in imports. Concurrently, the U.S., EU and certain Asian economies exhibit expansions within the electronic sector, indicating a GVC realignment. The “Chip Act” implementation precipitates a significant divergence in GVC participation across different countries and industries, notably impacting the electronics sector.Research limitations/implicationsThrough a meticulous temporal analysis, this manuscript unveils the nuanced economic shifts within the GVC, substantially bridging the empirical void in existing literature. This narrative accentuates the profound implications of policy regulations on global trade dynamics, contributing to the discourse on international economic policy and industry evolution.Practical implicationsWe evaluated the impact of the US “Chip Act” on the participation of the Chinese electronics industry in the global value chain based on the dynamic CGE model. This is a meaningful attempt to use the GTAP-VA model to analyze the electronics industry in China.Social implicationsThe interaction between policy regulations and global value chain (GVC) dynamics is pivotal in understanding the contemporary global trade framework, especially within technology-driven sectors. The US “Chips Act” represents a significant regulatory milestone with potential ramifications on the Chinese electronic industries' engagement in the GVC.Originality/valueThe significance of this paper is that it quantifies for the first time the impact of the US Chip Act on the GVC participation index of East Asian countries in the context of US-China decoupling. With careful consideration of strategic aspects, this paper substantially fills the empirical gap in the existing literature by presenting subtle economic changes within GVCs, highlighting the profound implications of policy regulation on global trade dynamics.

The liability of emergingness and country-of-origin effect on South African wine

Purpose: The study explores the country-of-origin effect on the product evaluation of wine offerings from South Africa in European markets. We examine whether a liability of emergingness manifests and its characteristics from an African context.Design/methodology/approach: Using a qualitative approach, we examine the country-of-origin effect building on the existing theories and gaining insights from multiple perspectives and participants who are involved in the South African and European wine supply chains.Findings/results: We reveal country-product category interaction and show that the wine category has certain dynamics (complexity, vastness of choice, and limited consumer knowledge) that leads consumers to rely more on extrinsic properties in their product evaluations. We show that a liability of foreignness and emergingness, and particularly Africanness, is at work in terms of the product evaluation of South African wine in European markets.Practical implications: We integrate the country-of-origin effect with the liability of foreignness (specifically emergingness and Africanness) research and demonstrate its manifestation in an African context. We contribute towards emerging market country-of-origin effect research, highlighting the liability of emergingness, and unpack its multidimensionality and connections between product category and country engagement dynamics, and how these are affected by consumer involvement, the retail environment, and engagement with expertise.Originality/value: Understanding how country-of-origin effects manifest with products from emerging markets is of increasing importance given the continued economic shifts towards that part of the world. We examine avenues for South African producers to mitigate country-of-origin effects.

From data to decisions: enhancing financial forecasts with LSTM for AI token prices

PurposeThis study aims to endeavour to decode artificial intelligence (AI)-based tokens' complex dynamics and predictability using a comprehensive multivariate framework that integrates technical and macroeconomic indicators.Design/methodology/approachIn this study we used advance machine learning techniques, such as gradient boosting regression (GBR), random forest (RF) and notably long short-term memory (LSTM) networks, this research provides a nuanced understanding of the factors driving the performance of AI tokens. The study’s comparative analysis highlights the superior predictive capabilities of LSTM models, as evidenced by their performance across various AI digital tokens such as AGIX-singularity-NET, Cortex and numeraire NMR.FindingsThis study finding shows that through an intricate exploration of feature importance and the impact of speculative behaviour, the research elucidates the long-term patterns and resilience of AI-based tokens against economic shifts. The SHapley Additive exPlanations (SHAP) analysis results show that technical and some macroeconomic factors play a dominant role in price production. It also examines the potential of these models for strategic investment and hedging, underscoring their relevance in an increasingly digital economy.Originality/valueAccording to our knowledge, the absence of AI research frameworks for forecasting and modelling current aria-leading AI tokens is apparent. Due to a lack of study on understanding the relationship between the AI token market and other factors, forecasting is outstandingly demanding. This study provides a robust predictive framework to accurately identify the changing trends of AI tokens within a multivariate context and fill the gaps in existing research. We can investigate detailed predictive analytics with the help of modern AI algorithms and correct model interpretation to elaborate on the behaviour patterns of developing decentralised digital AI-based token prices.

Navigating Risks: How External Environments Shape Non-Performing Loans in Vietnam's Commercial Banks

Objectives: The primary objective of this study is to analyze the factors influencing Non-Performing Loans (NPLs) in Vietnam's banking sector. It aims to shift the focus from traditional perspectives centered on macroeconomic indicators towards considering external environmental factors, such as global economic shifts, digital transformation, and industry-specific changes. Moreover, it seeks to examine the impact of the COVID-19 pandemic on NPL dynamics in Vietnamese commercial banks. Methods: The study employs empirical data collected from various Vietnamese commercial banks. Robust statistical methods are applied to analyze the data and explore the relationships between external environmental factors and NPLs. The research challenges conventional risk assessment models by advocating for a more comprehensive approach that integrates a broader spectrum of external influences beyond internal and macroeconomic variables. Results: The findings of the study suggest that external environmental factors, including global economic shifts, digital transformation, and industry-specific changes, significantly affect NPLs in Vietnam's banking sector. The analysis reveals the intricate dynamics of NPLs, especially under the influence of the COVID-19 pandemic. Contrary to traditional perspectives, the research underscores the importance of considering a wider range of factors in assessing and managing NPL risk. Conclusion: In conclusion, this study contributes significantly to the understanding of NPL dynamics in Vietnam's banking sector. The research highlights the need for banking executives and policymakers to adopt dynamic risk management strategies that account for external environmental factors. By recognizing the influence of global economic shifts, digital transformation, and industry-specific changes, stakeholders can enhance banking resilience and stability in emerging markets like Vietnam. The study underscores the importance of embracing a holistic approach to risk management in an era characterized by rapid global changes and uncertainties.

Chinese Outbound Tourists and the Changing Political Economies of Cambodia, Malaysia, and Singapore

ABSTRACT The global tourism industry was severely affected by the COVID-19 pandemic. New economic, social and political realities have emerged, and destinations are facing the changes. This research compares three popular destinations among Chinese tourists (i.e. Cambodia, Malaysia and Singapore) to illuminate key political economic shifts of tourism in Southeast Asia in relation to China amid of the unfolding ‘new normal.’ By conducting a qualitative review and content analysis on publicly available data (e.g. media stories and public documents), the article contributes to a burgeoning body of knowledge on the impact of the pandemic wipe-out of the tourism industry and the context-dependent responses across destinations. The study reveals that established attitudes toward tourism have been challenged, as China and its major host countries learn to live with a weakened tourism industry. Whilst the three countries attempt to diversify their tourism economy, their dependency on the Chinese in their tourism and economic development will possibly deepen even though the post-Covid Chinese economy has slowed down. The comparison illustrates the different types of China-driven forces affecting these countries, highlighting the nuances and shades of understanding tourism political economies in these Southeast Asian countries.

The Covid-19 Pandemic and The Future of Work.

The "future of work" refers to workplace modifications projected to occur following large scale events impacting workforce health and safety such as pandemics, technological advancements, or economic shifts. This paper examines the influence of the COVID-19 pandemic on the future of work. The electronic databases PubMed, Google Scholar, and Scopus were explored using search terms such as "post-pandemic," "working force," and "future of work" to retrieve papers published between 2000 and 2023. The main characteristics of the future of work modification revealed are blurring of work-home boundaries, increase in telework and the gig economy, demand for artificial intelligence, smart working, quiet hiring, diversity and inclusion, and algocratic governance. Needed skills include virtual collaboration capability, cross-cultural competency, computational thinking, news media literacy, transdisciplinarity, sense making, and focusing on mental health and well-being. Organizations are remodeling workforces to meet employee, employer, regulatory, and market expectations to adapt to future workplace needs.

NAVIGATING CLEAN WATER CHALLENGES: ASSESSING STRATEGIES AND OUTCOMES IN BALI'S PAMSIMAS PROGRAM

Objective: This study investigates the impact of the Community-Based Drinking Water and Sanitation Provision Program (Pamsimas Program), implemented in Bali from 2017 to 2021, on improving access to clean drinking water and sanitation in rural communities. Theoretical framework: It draws on the S-shape and Inverted L-shape curves to emphasize planned interventions and incentives, while the Theory of Change guides program evaluation by explaining how interventions lead to outcomes. Employing a five-stage results chain, the program focuses on inputs, activities, outputs, outcomes, and long-term impacts. Method: Through a comprehensive analysis of the program's effectiveness, we employ a natural experiment approach using Propensity Score Matching (PSM) and Multinomial Ordered Logit/Probit regression. The study compares villages receiving Pamsimas interventions in 2019, 2020, and 2021 with non-intervention villages, employing data from the 2014, 2018, and 2021 Village Potential Census (Podes). Results and conclusion: The findings reveal that Pamsimas significantly influences the choice of water sources and sanitation practices in beneficiary villages. The estimated marginal effects demonstrate a substantial improvement in water quality and sanitation in program-receiving villages compared to control villages. The paper concludes that the Pamsimas Program, by targeting easily achievable improvements, aligns with the pragmatic trend in development economics and provides valuable insights for future water and sanitation interventions. Originality/value: The analysis, guided by the paradigm shift in development economics towards pragmatic and low-hanging fruit solutions, positions Pamsimas as an effective strategy despite not being as cost-effective as certain health programs.

Economic structural transformation: The Vietnamese case for developing nations in a globalization context

Vietnam’s economic evolution presents a compelling case of transformative growth driven by its distinctive historical, cultural, and policy landscapes. Since the watershed Đổi Mới reforms of 1986, the country has navigated the complexities of market liberalization, socialist principles, and international integration, achieving remarkable development while preserving its economic sovereignty. Through a mixed-methods approach, this study delves into the impacts of Đổi Mới, assessing the successes and ongoing challenges in Vietnam’s economic restructuring. Results indicate a remarkable shift in GDP contribution from agriculture to industry and services, with a burgeoning private sector and enhanced international trade and investment. However, challenges in achieving equitable growth, inclusive development, and environmental sustainability remain salient amid global economic shifts. Vietnam’s experience underscores the critical need for targeted reforms in workforce development, economic diversity, infrastructural enhancement, environmental stewardship, and regulatory and financial governance. Vietnam’s proactive stance on economic autonomy and global participation highlights the importance of a nuanced approach in navigating the changing international landscape. In summary, Vietnam’s journey through economic structural reform provides a unique perspective on navigating development within a socialist-oriented market framework, serving as a distinctive exemplar for similar emerging economies contending with the vibrant currents of globalization.

New evidence on the real role of digital economy in influencing public health efficiency

In recent years, the rapid advancement of digital technology has supported the growth of the digital economy. The transformation towards digitization in the public health sector serves as a key indicator of this economic shift. Understanding how the digital economy continuously improves the efficiency of public health services and its various pathways of influence has become increasingly important. It is essential to clarify the impact mechanism of the digital economy on public health services to optimize health expenditures and advance digital economic construction. This study investigates the impact of digital economic development on the efficiency of public health services from a novel perspective, considering social media usage and urban–rural healthcare disparities while constructing a comprehensive index of digital economic development. The findings indicate that the digital economy reduces the efficiency of public health services primarily through two transmission mechanisms: the promotion of social media usage and the widening urban–rural healthcare gap. Moreover, these impacts and transmission pathways exhibit spatial heterogeneity. This study unveils the intrinsic connection and mechanisms of interaction between digital economic development and the efficiency of public health services, providing a theoretical basis and reference for government policy formulation. However, it also prompts further considerations on achieving synergy and interaction between the digital economy and public health services.

Dr. B. R. Ambedkar's Economic Philosophy: A Special Focus on the Indian Economy

Bharat Ratna Dr. B. R. Ambedkar was a significant figure in Indian history. He made contributions in the domains of economics, sociology, law, education, journalism, editing, social revolution, and human rights, among other things. India's mixed economy reflects the effects of social, political, and economic shifts that occurred both before and after independence. He used his movements to highlight the problem of the rural poor being exploited both physically and financially. Indian economics now have a new sociopolitical viewpoint thanks to Dr. Ambedkar. "Changeover from economics to law and politics" was the decision made by Dr. Ambedkar. He was in favour of keeping the currency's gold standard steady. He claims that a depreciating currency boosts exports and drives up local prices. Furthermore, he promoted "Industrialization" as a useful and workable solution for the Indian economy and agriculture. The goal of the current study is to clarify Dr. B. R. Ambedkar's economic views in light of the Indian economy.

The Role of Employment Flexibility in the Professional Education of Individuals at Risk of Social Exclusion

This paper offers an in-depth analysis of the pivotal outcomes derived from the author's extensive research spanning a decade (2005-2015), focusing on the concept of employment flexibility. It systematically outlines the fundamental theories and practical applications associated with flexible employment models, aiming to shed light on their significance in the modern workforce. A significant portion of the study is dedicated to examining the impact of flexible employment on individuals who are at a heightened risk of social exclusion. The research encompasses an evaluative study of 489 participants, whose career developments were meticulously tracked following their engagement in vocational programs financed by the European Social Fund. The findings illustrate that the provision of specialized education for marginalized groups is crucial for their effective integration and participation in the workforce. Such education needs to be adaptive and responsive to the dynamic nature of the labor market and ongoing economic shifts. This study reinforces the assertion that strategic educational interventions can significantly enhance the vocational outcomes for individuals facing social exclusion, thereby facilitating a more inclusive and diverse professional landscape.

ANALISIS PERBANDINGAN METODE ARIMA DAN LEAST SQUARE UNTUK PREDIKSI HARGA EMAS : PENDEKATAN PROBABILISTIK DAN STATISTIK

Gold, a precious metal renowned for its value in various sectors, including investment and jewelry, is often considered a secure asset within investment portfolios. However, its prices exhibit high volatility influenced by economic, geopolitical, and global financial factors. Previous research has focused on predictive methods to anticipate gold price movements. In recent years, heightened complexity and uncertainty, exacerbated by global factors such as economic shifts and the Covid-19 pandemic, emphasizes the urgency of accurate gold price predictions. This study comprehensively analyzes and compares the performance of Autoregressive Integrated Moving Average (ARIMA) and Ordinary Least Squares (OLS) in forecasting gold prices, utilizing statistical and probabilistic approaches. ARIMA excels in handling time series data, identifying complex patterns, and forecasting price changes based on historical trends. Conversely, OLS, a probabilistic method, stands out in adjusting linear models to gold price data, providing detailed insights into influencing factors. The research employs a 5-year gold price dataset (2018-2023) and evaluates the models' performance using Mean Squared Error (MSE) and Mean Absolute Percentage Error (MAPE). Results indicate OLS outperforms ARIMA, with lower MSE (45.79 vs. 284.83) and MAPE (0.0026 vs. 0.0066). This study contributes nuanced insights for market participants, investors, and researchers to comprehend commodity market behaviour, particularly in gold, emphasizing the importance of accurate prediction methods in strategic decision-making.

Technology and the Evolution of Civil Law: Implications of Cryptocurrency Transaction Regulation

<span lang="EN-US">This research investigates the regulatory implications of cryptocurrency transactions in the context of the evolution of civil law, including consumer protection, prevention of illegal activities, and maintenance of financial market integrity. The background of the research refers to the economic paradigm shift towards digital assets such as cryptocurrencies, which has changed the global financial transaction landscape. This research method involves a combined approach between civil law analysis, a literature study on blockchain technology, and a review of the latest regulations related to cryptocurrencies in Indonesia. The results show that the evolution of technology in cryptocurrencies has presented new challenges to conventional civil law. The unclear legal status of cryptocurrencies, security risks, and potential illegal use are significant concerns. The regulatory implications on cryptocurrency transactions in Indonesia illustrate the government's efforts to accommodate innovation while protecting the public interest. Some recommendations include a more collaborative approach between the government, the industry sector, and legal institutions to develop a regulatory framework that fits the characteristics of these technologies.</span>

Enhancing Business Competitiveness: Strategic Adaptation and Business Model Canvas Application in PT Maritim Maju

In this detailed analysis, we explore the strategic repositioning of PT Maritim Maju within the context of the global maritime industry’s ongoing transformation, influenced by technological advancements and economic shifts. This study meticulously applies the Business Model Canvas framework, incorporating Resource-Based View, VRIO, and SWOT analyses, to diagnose and propose necessary strategic enhancements for PT Maritim Maju. It underscores the imperative for the company to diversify its services beyond traditional maritime activities, suggesting an expansion into maritime consulting and logistics technology. Additionally, the research advocates for the integration of advanced technologies such as AI in fleet management, aiming to optimize route planning and implement predictive maintenance, thereby achieving cost efficiencies, enhanced service reliability, and superior customer satisfaction. Strategic partnerships are highlighted as crucial for leveraging technological innovation and expanding service capabilities. The study also recommends a reevaluation of marketing strategies, emphasizing the adoption of digital marketing techniques to better position PT Maritim Maju on the global stage, highlighting its commitment to safety, reliability, and customer service excellence. Furthermore, it stresses the importance of continuous staff development in leadership and maritime technology to foster a culture of innovation and strategic agility. Compliance with international regulations and a proactive risk management approach are advised to mitigate operational risks. This comprehensive strategic plan aims to guide PT Maritim Maju through the intricacies of the modern maritime landscape, capitalizing on new opportunities for growth and establishing a foundation for enduring competitiveness and resilience.

Category construction and knowledge production in childhood studies: rethinking ‘left-behind children’ through the case of ‘liushou children’ in China

ABSTRACT Narratives about children whose parents have migrated exhibit a common global trend, with these children and their families being widely pathologised, creating a stereotyped image of this group. Hence, it is timely and necessary to interrogate the category construction of left-behind children and the politics surrounding the knowledge produced. This article explores the global construction and widespread stigmatisation of left-behind children through the lens of a postcolonial critique and criticises the hegemonic notion of childhood promoted primarily by the Global North. It then explores the indigenous category of ‘liushou children’ for left-behind children in China – revealing its cultural expectations and Indigenous construction. Although the pathologisation of such children occurs in both global and indigenous dimensions, the understanding and causation of such pathologisation differs since diverse actors often present different understandings of this phenomenon, which refract different expectations, moral and value judgements, or political motivations. Therefore, this article calls for research on the lives of these children in the context of global economic and social structural shifts and how these are reshaped in local and national dimensions. In so doing, it provides insights into ongoing debates on the politics and ethics of knowledge production in childhood studies.

An unfinished suffrage reform. Voting rights in Sweden after the ‘democratic breakthrough’

ABSTRACT This article examines the complex and non-linear process of democratization in Sweden after the introduction of so-called universal suffrage in 1921. The research questions address the excluded groups post-1921, the reasons for their exclusion, and the historical processes that led to further expansions of suffrage rights. The study shows that the expansion of suffrage rights in Sweden after 1921 was not guided primarily by a desire to broaden voter inclusion and/or rectify the limitations of the 1921 legislation. Instead, the motivations were embedded in a more intricate and multifaceted tapestry of political aims and alliances as well as situational factors that included various social, economic, and cultural shifts. The article concludes that the history of suffrage in Sweden after 1921 has been one of continuous negotiations, transformations, and adaptations, and that this provides valuable insights for addressing challenges of political inclusion and representation in the present and future.

Renewable energy penetration in Nordic and Baltic countries of the EU

The low carbon transition of the energy sector towards a greater penetration of renewable energy sources (RES) is one of the most impressive examples of political and economic change in the European Union. For nearly two decades, the European Union was rightly considered to be a frontrunner in RES development and deployment around the world. This culminated in March 2007 when the 20-20-20-targets were agreed under the European Council Conclusions. They aimed at creating a carbon neutral society by 2050 and replacing fossil fuels with renewables. This target requires huge transformations of energy systems and transformative shifts in economics and society. Even as renewables can provide numerous environmental, social, and economic benefits, their fast penetration may cause various societal challenges and encounter many barriers. Therefore, this paper aims to analyse the achievements of select EU countries in renewable energy development. For this purpose, an indicators framework is applied to monitor the RES drivers and achievements, RES penetration, and attained benefits of low carbon transformations. The case study focuses on Nordic and Baltic countries that are EU member states.

Market Sentiment and High-Rise Housing Prices in Hong Kong

Classical finance theories fall short of explaining volatile housing prices in Hong Kong. Employing principal component analysis (PCA) and factor analysis, this study constructs a unique Sentiment Index that integrates 11 market variables tailored to Hong Kong’s high-rise residential properties. Covering 2002Q1 to 2021Q2, including pivotal events such as the SARS epidemic, the Global Financial Crisis, stock downturns, political instability, and Covid-19, our analysis reveals the significant predictive capability of the Sentiment Index for property prices. A discernible relationship exists between housing prices and the Sentiment Index. While policies addressing smaller-sized flats (HPI40) should focus on demand-supply imbalances, those for larger apartments (HPI100 and HPI160) must consider speculative investments. An adaptive policy response with periodic assessments and measures responsive to market conditions, economic shifts, and geopolitical events is imperative for the robust and stable development of Hong Kong's housing market.

CONCENTRATION OF INVESTMENT CAPITAL IN MERGERS AND ACQUISITIONS: PREREQUISIGTES FOR A TECHNOLOGICAL BREAKTHROUGH

Purpose. The purpose of the article is to substantiate the prerequisites for systemic economic shifts based on the analysis of the structure of capital investments and mergers and acquisitions. Methodology of research. General scientific and special methods were used in the course of the study, in particular, analysis, synthesis, and generalization were applied while working with statistical data on the mergers and acquisitions market, and the monographic method was used when studying literary sources on issues related to the research topic. Financial analysis techniques (specifically, ratio and horizontal anal-ysis) were used in assessing the structure of capital investments in various sectors of the economy over the past twelve years (up to 2022). Additionally, the analysis of structural changes and shifts, as well as meth-ods of comparison and graphical analysis, were employed to study the dynamics of structural shifts in the economy under the influence of investment capital movement. Findings. The study of the preconditions for structural economic transformations was conducted through the assessment of the dynamics of investment capital concentration in economic sectors and the analysis of the dynamics of the number and value of mergers and acquisitions in pre-war and wartime peri-ods, as well as a review of the motives behind these transactions. The preconditions for structural changes in the economy, which are being laid at this stage through the investment decisions of investors and the political decisions of government representatives, were analyzed. The conducted research indicates the need to maintain a high share of industrial capital concentration alongside the decline in the share of indus-try in GDP due to the substantiated necessity for significant modernization of certain sectors. Originality. The study for the first time highlighted the role of investment capital by analysing the dominance of progressive industries with high added value in the structure of mergers and acquisitions, which can become the beginning of the structural transformation of the Ukrainian economy with the concen-tration of investment capital in high-income sectors. The use of analysis of the structure of capital invest-ments by economic sectors has further developed as a tool for determining the investment attractiveness of individual sectors and the dynamics of changes in the investment preferences of entities. Practical value. The results of the study can be used by government bodies in the development and refinement of the country's investment strategy, the formulation of the principles of the state's investment policy, and the adjustment of existing plans for post-war recovery; by private companies and investors (both local and foreign) for developing plans for the analysis and investment in Ukrainian economic assets, adjusting their expectations and priorities; by members of the scientific community who are interested in further development of this research topic; and by experts in related disciplines to expand their understand-ing of the issue, which may be relevant to their area of expertise, among others. Key words: investments, capital investments, capital concentration, capital market, mergers and ac-quisitions.

Transforming homeownership: an innovative financing model with a future value approach

Purpose This study aims to address the critical need for innovative financing solutions in the global housing sector, focusing specifically on Malaysia’s distinct housing finance system encompassing both conventional and Islamic loans. The primary objective is to develop a transformative housing finance model that addresses affordability challenges and reshapes the Malaysian housing landscape. Design/methodology/approach The study presents an alternate housing finance model for Malaysia, integrating lower monthly payments and reduced household debt. Key variables include house price appreciation rates, interest rates, initial guarantee fees and loan-to-value ratios. Inspired by the Help to Buy (HTB) scheme, the model aligns with proven global initiatives for enhanced affordability, balancing payment amounts, loan interest rates and acceptable price thresholds. Findings The study’s findings promise to address affordability disparities and reshape Malaysia’s housing finance landscape. The emphasis is on introducing a structured repayment plan that offers a sustainable path to homeownership, particularly for low-income families. Incorporating the future value adaptation concept, inspired by reverse mortgages and Islamic finance, enhances adaptability, ensuring long-term sustainability despite economic shifts. Practical implications The proposed model promotes widespread access to homeownership, offering practical solutions for policymakers to improve affordability, prompting adaptable risk management strategies for financial institutions and empowering potential homebuyers with increased flexibility. Originality/value The study introduces a transformative housing finance model for Malaysia, merging elements from reverse mortgages, Islamic finance and the HTB scheme, offering potential applicability to similar systems globally.