Malaysian Market Research Articles

Macroeconomic Forces Affecting Islamic Performance Indices

This study aims to investigate the macroeconomic factors that impact the performance of Malaysia's Islamic stock market. This study looks at six independent variables that affect the performance of the Islamic stock market in Malaysia: the world oil price, inflation rate, Islamic interbank rate, money supply (M2), industrial activity index, inflation rate, Islamic interbank rate, exchange rate, and world oil price. The Department of Statistics Malaysia (DOSM), Bursa Malaysia, Bank Negara Malaysia, and Eikon Thomson Reuters were among the secondary data sources used in this study's quantitative data gathering methodology. The research was carried out over four years (2019–2023) using monthly data. A theoretical model was created to investigate the suggested relationship after it was analyzed using the E-views software. The success of the Islamic stock market was found to be significantly correlated with the inflation rate, money supply, Islamic interbank rate, and exchange rate. These determinants are exerting a direct influence on the Islamic stock market in Malaysia, particularly in its macroeconomic aspects. The present study aims to enhance comprehension regarding the possible effects of different elements on how well the Islamic stock market performs. Different results could come from more research into the various elements affecting the Islamic stock market's performance.

FORECASTING THE REALIZED VOLATILITY OF ISLAMIC EQUITIES USING MULTIVARIATE HAR-TYPE MODELS

This study proposes nine multivariate intraday models using various realized variation measures with the aim to improve volatility forecasting in the Islamic stock market in Malaysia using a dataset from 1st April 2008 to 31st March 2018. The findings show that considering independently the jump-robust realized volatility, additional daily jump realized volatility, and continuous and discontinuous jump sample path variations improved the in-sample predictive regressions compared to using the standard realized volatility. For the out-of-sample volatility forecasts evaluation, it is observed that the volatility models that disentangled the realized volatility into its continuous and discontinuous jump components have outperformed the rest of the proposed models. This is because both the continuous and discontinuous variation of returns exhibit distinctive substantial information in yielding the final volatility dynamic and thus should be modeled disjointedly. However, the empirical results suggest that the simple autoregressive specification using the standard realized volatility is often performing better or as well as the new extension models. Lastly, this study may provide useful insight in portfolio management, risk assessment, and asset pricing, particularly in the Shariah-compliant equities.

Multivariate Regression Analysis of the Impact of Open Market Share Repurchase Activity on the Malaysian Market

This research thesis revolves around the need to understand the relationship between share repurchases and the share price behavior of companies listed on Bursa Malaysia on a more recent basis given the economic stability in Malaysia and throughout the world from 2017 to 2021. It started in the West and reached maturity in the 1980s in the United States, but it only began in Malaysia in the 1990s. The studies of share repurchase are still considered an infant in Malaysia as in other countries throughout the world, companies pursue share repurchases for several reasons mainly to signal undervaluation, reward shareholders, defend against the takeover, utilize financial resources efficiently, and many more motives that are interesting for researchers to look at. Unlike other studies that look at announcement dates, since an announcement does not mean the companies will implement the transactions, this research is important since it looks at and analyzes the actual effective repurchase day done by established firms which is are most crucial aspect in analyzing the consequences and the results are that it shows positive abnormal mean returns for most of the companies. Event study methodology was used since this is the best empirical research method and as empirical evidence to analyze abnormal returns from all the other studies. The days observed are 120 days before and after the announcement. Returns for the estimation window, event window (repurchase day), and post-event window were analyzed to see the effects of price movement on repurchase activities at Bursa Malaysia (BSKL).

Evaluating the Efficacy of Cosmetic Product Safety Regulations in Malaysia: The Role of the National Pharmaceutical Regulatory Agency (NPRA) and Industry Compliance

Various legislative measures, such as the Sale of Drugs Act 1952, Control of Drugs and Cosmetics Regulations 1984, Poison Act 1952, Guidelines for Control of Cosmetic Products 2022, and other directives introduced by the NPRA in Malaysia, are intended to control the safety of cosmetic products. Despite these existing laws and directives, cosmetic products containing hazardous ingredients persist in the Malaysian market. NPRA reportedly received 1,041 complaints about cosmetic products in 2022, while its website also displays an annual increase in cases involving cosmetic products that contain hazardous ingredients. The persistent presence of harmful cosmetic products in the market highlights significant gaps in efforts to control hazardous cosmetic products. This study examined the efficacy of cosmetic product safety regulations in Malaysia, focusing on the role of the National Pharmaceutical Regulatory Agency (NPRA) and industry compliance. This qualitative study gathered data from library databases and conducted semi-structured interviews with NPRA officers, cosmetic manufacturers, and cosmetic industry experts. Findings suggest that despite the extensive nature of the regulatory framework, its implementation, which heavily relies on self-regulation and post-market surveillance, requires serious improvement. While some cosmetic producers adhere to Good Manufacturing Practice (GMP) standards, there are still persistent issues related to product notification, misuse of self-regulation, and inadequate penalties for non-compliance. Therefore, an intensive awareness campaign aimed at cosmetic manufacturers is necessary to ensure the production of safe cosmetic products. Consumers must play their role in helping the NPRA control the sale of hazardous cosmetic products by performing safety checks before purchasing them.

An observational study of female body shape characteristics in multiracial Malaysia

Abstract The current study aims to explore the representative and typical female body shapes through in-depth observation and analysis of the diversity in Malaysian female body shape characteristics across different ethnic and age groups, which assists in facilitating the establishment of accurate apparel size standards. This study was conducted in Selangor, which is the most populous and developed Malaysian state. The data were collected via a highly systematic approach. The K-mean clustering method was applied to synthesise and analyse the collected data, which classified the body types into five major clusters. The results not only revealed significant differences in the distribution of body shapes across ethnic and age groups but also highlighted the limitations of the various sizing systems currently employed by the Malaysian apparel industry to fulfil the requirements of the diverse Malaysian market. The findings provided practical implications for apparel manufacturers and retailers with concrete evidence to support improved product design and enhance customer satisfaction. A deeper understanding and categorisation of Malaysian females’ body types could also assist the apparel industry in developing more tailored sizing systems. Resultantly, an improved system minimises return rates, optimises inventory management, and supports environmental and sustainability goals by reducing overproduction.

Modelling the Predictors of Social Media Marketing on Consumer Buying Behavior in Malaysia

Despite the rapid increase in internet and mobile users in Malaysia, the growth of online purchases through social media platforms has not kept pace with this broader digital trend. This study investigates the key predictors that influence consumer buying behavior through social media marketing, with a specific focus on the roles of Perceived Ease of Use (PEOU) and Perceived Usefulness (PU) of these platforms. Employing a quantitative cross-sectional research design, data were collected from 115 respondents in Malaysia who have experience making online purchases via mobile applications. The study also examines variations in consumer experiences based on demographic factors, including age, gender, education level, and geographic region. The findings indicate that both PEOU and PU are significant predictors that shape consumer buying behavior on social media platforms. This research provides valuable insights for marketers seeking to enhance the effectiveness of their social media marketing strategies. By better understanding the factors driving consumer behavior in the Malaysian market, businesses can design more targeted and personalized campaigns for specific consumer segments, ultimately improving their competitive advantage in this digital landscape.

Market survey of food product indicators and their credibility as a healthy food product in Klang Valley, Malaysia

IntroductionThe presence of food product indicators may facilitate consumers in making informed healthy choices. However, it may also mislead consumers. This study aims to determine the prevalence of food products...

Navigating the Road to Acceptance: Unveiling Psychological and Socio-Demographic Influences on Autonomous Vehicle Adoption in Malaysia

Although the autonomous vehicles market is still in its infancy, many people have switched from conventional vehicles to autonomous vehicles due to the numerous benefits and environmental advantages of owning them. Autonomous vehicles which promise to eliminate traffic crashes due to human errors are expected to penetrate the Malaysian market by 2025. However, past research has shown that psychological factors rather than technological aspects could deter the successful diffusion of autonomous vehicles in the market. By integrating the Technology Acceptance Model and the Theory of Planned Behaviour, this study investigates the influencing factors of the Malaysian public towards acceptance of autonomous vehicles and the moderating effects of socio demographic variables. A total of 306 respondents completed the online survey. The results show that the proposed integrated model can explain 82.9% of the variance in acceptance of autonomous vehicles. Among the variables, attitude and perceived behavioural control are significant contributors. In terms of moderating variables, income level, education level, and ethnicity moderated the effects of attitude, perceived usefulness, perceived ease of use, and acceptance. Insights drawn from this study could assist policy makers in devising strategic plans for promoting autonomous vehicles in the country.

An insight into the signaling role of Sharia status: a case from an emerging IPO market

Purpose This study aims to examine the potential of Sharia status as ex ante information to signal the quality of an issuing firm by improving the decision-making process of potential investors when assessing initial public offerings (IPOs) in an environment where information asymmetry is pronounced. Potential investors face challenges in evaluating and determining the true value of IPO issues, which inherently influences their decision-making. Consequently, this results in pronounced price fluctuations in IPO shares, leading to higher underpricing. Design/methodology/approach This study uses a sample of 350 IPOs listed on the Kuala Lumpur Stock Exchange (KLSE) between 2004 and 2021 to examine the signaling role of Sharia-compliance status. A three-model approach is used to ensure that the study's objectives are met. The first model investigates the effect of Sharia status on underpricing to determine whether the main beneficiary of such a signal is the investor or the issuer. The second model examines the effect of Sharia status on investor demand to determine if such a signal influences prospective investors' investment decision-making processes. The third model inspects the effect of Sharia status on investor divergence of beliefs to measure the signal's ability to reduce information asymmetry within the Malaysian IPO market. Findings The Malaysian IPO market relies heavily on the fixed-price mechanism, which exacerbates high information asymmetry, affecting potential investors' behavior, asset price formation and return generation on the first day of listing. The study results indicate that Sharia status does not have any signaling role in the Malaysian IPO market. This is because investors in the Malaysian market are driven by ex ante information that helps unveil relevant information that leads to capital gains. Furthermore, most new issues in the Malaysian IPO market fall under Sharia status, diluting the relevance of such information for prospective investors in determining profitable investments. Practical implications The findings highlight the challenges faced by issuing firms in estimating market demand due to limited premarket insights and the difficulties prospective investors face in identifying the quality of issuing firms. Efforts to provide more information on investor demand can reduce uncertainty and facilitate more informed decision-making. Originality/value This research stands as one of the pioneering efforts to provide an empirical explanation of the potential signaling influence of Sharia status in an emerging IPO market.

Determinants of Purchase Intention in Plant-Based Seafood Products among Generation Z in Malaysia

The increasing apprehensions regarding the depletion of marine life and exploitation in Malaysia have prompted the proposal of plant-based aquaculture as a prospective resolution. In order to successfully penetrate the Malaysian market with plant-based seafood, it is imperative to conduct an in-depth examination of the factors that influence consumers' purchasing intentions. The aim of this research endeavour is to examine the factors that influence the intention of Generation Z consumers in Malaysia to buy plant-based seafood. By employing the theory of planned behaviour (TPB) as a conceptual framework, this research achieved its objective and examined the impacts of five discrete independent variables namely, attitude, subjective norms, perceived behavioural control, food safety, and environmental concern on one another. In Malaysia, 384 online surveys completed by members of Generation Z were compiled for this investigation. The Statistical Package for the Social Sciences (SPSS) was utilised in this investigation. The findings suggest that purchase intent is significantly influenced by factors such as attitude, perceived behavioural control, food safety, and environmental concern, as opposed to subjective norms. The findings of the multiple regression analysis indicate that purchase intent cannot be predicted by every single one of the independent variables examined in this article.

ESG practices disclosure and initial performance of Malaysian IPOS

Companies’ decision to go public is risky because of the high uncertainty level from the companies’ unknown history prior to their listing. Recent studies in the Malaysian market reported the declining trend of companies’ initial performance, relating it to investors’ current demand for higher information transparency that can reflect companies’ sustainable evolution as a means to attract their demand in subscribing newly issued shares. Thus, this study aims to investigate the impact of disclosing ESG practices on companies’ initial performance. Using a linear regression with maximum likelihood (ML) estimation, this study examines 171 initial public offerings (IPOs) issued in the Malaysian market from 2015 to 2023. By using two ways of measuring companies’ initial performance (offer-to-open and offer-to-close), the findings show that higher information disclosure on ESG practices will only be reflective and positively affect companies’ performance by the end of the day. Further examination of individual ESG pillars indicates that environmental disclosures negatively influence companies’ initial performance, while social and governance disclosures positively influence companies’ initial performance. A large investment in maintaining a high level of environmental practice can be costly, negatively influencing companies’ performances. Higher social and governance disclosure attracts socially conscious investors and reflects good internal governance, increasing demand for the companies’ shares during the IPO and positively influencing companies’ performances. This study contributes to the growing literature concerning ESG and post-IPO performances specific to the Malaysian market and proposes recommendations on the importance of disclosing ESG practices prior to their IPO. AcknowledgmentsThe authors would like to acknowledge that this article is part of a research project funded by Universiti Teknologi MARA (UiTM) for the MyRA Grant Scheme, file no: 600-RMC 5/3/GPM (118/2022).

Islamic securitizations, what they are and their developmental role, a study in the experiences of selected countries.

The research aims to present perspective of Islamic securitizations (instruments), their characteristics, and how they can contribute to achieving economic development, by shedding light on the applying experience in leading Islamic countries, namely Malaysia, Saudi Arabia, and the Emirates. This research has applied the descriptive and analytical approach by addressing the nature of Islamic instruments, their characteristics and their developmental role. The research has concluded a number of results, the most important results are as follows: that Islamic securitization is one of the means that contribute to achieving economic development as an effective financing tool by linking the financial sector with the real economy, and it contributes to achieving economic development by financing investment projects and eliminating the problem of unemployment. Islamic securitization has achieved remarkable development in Malaysia, as the local securitization market in Malaysia is an important platform for government agencies and investment companies in securitizations. The ratio of Islamic securitizations to GDP in the Kingdom of Saudi Arabia increased from 24.7% in 2012 to 39.34% in 2020. The United Arab Emirates ranked first among the Gulf Cooperation Council countries in issuing Islamic securitization with an amount of $63.644 billion.

Unveiling the digital desire: UTAUT analysis of NFT investment intentions in Malaysia

PurposeThis study pioneers the investigation into the determinants influencing Malaysian investors' intentions towards Non-Fungible Token (NFT) investments, utilizing an extended Unified Theory of Acceptance and Use of Technology (UTAUT) framework. It explores the burgeoning interest in NFTs within the Malaysian market, an emerging economy, and identifies the behavioral adoption determinants critical for NFT investment decisions.Design/methodology/approachAdopting a quantitative methodology, the research engaged 183 experienced Malaysian investors through a structured online questionnaire survey. The study employed regression analysis to assess the impact of Performance Expectancy, Effort Expectancy, Social Influence, Facilitating Conditions, Perceived Usefulness, Social Support and Perceived Trust on NFT investment intentions.FindingsThe findings reveal that Performance Expectancy and Social Support significantly predict the intention to invest in NFTs, accounting for 47% of the variance in investment intentions. The study highlights the crucial role of perceived benefits and community support in shaping Malaysian investors' engagement with NFTs, amidst the complexities of the digital asset landscape.Research limitations/implicationsThe study acknowledges the limitation posed by its sampling method and size, suggesting the need for broader investigations that include a more diverse demographic to enhance the generalizability of the findings. Future research could further delve into the specific behaviors, motivations and challenges of NFT investors and creators.Practical implicationsThe significant predictive power of Performance Expectancy indicates a primary financial motivation among Malaysian NFT investors, suggesting policymakers consider regulations that foster innovation and growth in the NFT sector while safeguarding investors. The study also underscores the importance of community support, pointing towards the development of platforms that facilitate knowledge sharing among NFT enthusiasts.Social implicationsBy demonstrating the pivotal role of social support in the NFT investment decision-making process, the research implies a powerful sense of community among investors in the digital asset space. It suggests the potential of NFTs to foster a more inclusive and accessible market for creative industry entrepreneurs, facilitating direct engagement and profit realization.Originality/valueThis research marks a significant departure from existing studies by tailoring the UTAUT model specifically to the NFT investment context in Malaysia. It unveils the nuanced dynamics influencing NFT investment intentions, emphasizing the unique contributions of Performance Expectancy and Social Support, thus providing a fresh perspective on NFT adoption in emerging markets.

The Impact of Islamic Securities Issuances on Domestic Investment: A Case Study of Malaysia

This study aims to analyze the impact of Islamic securities issuance on domestic investment in Malaysia during the period 2005-2019. Malaysia is considered a model, since it is the world's first country in issuing Islamic securities, the most important of which is Islamic Sukuk. This study investigates the efficiency of the Sukuk issuance market in Malaysia and its impact on the investment growth rate in the issuing economic sectors. Finally, it estimates the relationship between Islamic Sukuk issuance and domestic investment using the Cointegration Test and the Vector Error Correction Model (VECM). The results show a high performance of the Islamic Sukuk-market indicators in Malaysia, as well as a long-run equilibrium relationship between the estimated variables. In addition, Sukuk issuance has a significant positive impact on domestic investment in Malaysia.

Modelling the Synergy of Digital Marketing and Advertising in Real Estate

Digital marketing in real estate companies is a prominent trend due to superior network infrastructure and rising smartphone usage in Malaysia. Digital marketing increased during the Coronavirus Disease (COVID-19) pandemic because it decreased health hazards and improved public reach. This study examines real estate agency digital marketing components and their performance. Data was acquired using self-administered questionnaire delivered to Klang Valley real estate agents and negotiators. Frequency and PLS-SEM were used to identify relevant factors. The results indicate that Customer Engagement (C) and Value and Cost (V) components significantly affected real estate agency marketing. In contrast, Segmentation (S) and Longevity (L) were insignificant. The study introduces a relationship model for real estate agency digital marketing in Malaysia, which will improve its utilisation.

AN EXTENDED THEORY OF PLANNED BEHAVIOUR MODEL TO PREDICT MALAYSIAN CONSUMERS’ INTENTION TO PURCHASE ORGANIC FOOD: A CONCEPTUAL STUDY

In response to the growing awareness of health and environmental concerns, there has been a noticeable increase in the acceptance and consumption of organic food globally. Despite governmental initiatives to boost the organic food market in Malaysia, the country's organic sector still represents a small portion of the global agricultural land. Furthermore, the adoption of organic food among Malaysian consumers is lower than in neighbouring countries, likely due to issues related to scepticism and affordability. Subsequently, understanding the factors that influence consumer behaviour becomes essential as the organic food market continues to develop in response to global and local changes. This conceptual study aims to understand potential propositions and their relation to consumer behaviour by integrating the Theory of Planned Behaviour and the Knowledge Attitude-Behaviour model to explore possible predictors related to the intention to purchase organic food. The finding will provide a clear understanding of the potential factors influencing organic food purchase intention and bridge a concrete argument of literature for better preparation for future study. It is expected that this conceptual study will serve as a foundation for further empirical research, guiding policymakers, industry stakeholders, and researchers in developing targeted strategies to accelerate the adoption of organic food consumption in Malaysia.

The Use of Retrocession by Retakaful operators: An Analysis from Shariah Perspective

In Malaysia, the insurance and takaful sector is under the purview of the Central Bank of Malaysia, and the same goes for reinsurance and retakaful operations. However, due to the country's dual financial system i.e. the conventional and Islamic financial system, conventional reinsurance and retakaful, fall under different laws. The conventional reinsurance is regulated under the Financial Services Act (2013) while the takaful and retakaful by the Islamic Financial Services Act (2013). Undoubtedly, the takaful industry is expanding in the Malaysian market today by leaps and bounds. Retakaful acts in the same way as takaful, providing (re)takaful arrangement for their policyholders. The survival of the takaful operator is heavily influenced by the retakaful operators. The takaful operator will distribute some portion of their risks that they cannot bear to a retakaful operators. However, the retakaful operators are currently unable to cover the entire risk that were ceded by the takaful operators due to lack of retakaful operators in the market, as well as very limited capital, inadequate accumulated funds, and regulatory solvency issues. At the same time, retakaful operators also face challenges in meeting their commercial goals. They, in turn, use tools such as retrocession to overcome their impending challenges. This paper aims to analyse the importance of retrocession to the retakaful company from a Shariah perspective. The research is timely as not much research has been carried out on Retakaful operations in Malaysia. There is also limited discussion related to the business models of retakaful, as well as no specific guidelines focusing on retakaful itself. Therefore, a qualitative approach is suitable for the purpose of exploring such new areas. Besides, Retakaful industry is considered relatively new compared to reinsurance.

A Single-Buyer Model of Imbalance Cost Pass-Through Pricing Forecasting in the Malaysian Electricity Supply Industry

The imbalance cost pass-through (ICPT) is a flexible component of the incentive-based regulation (IBR) that empowers power producers to adjust tariffs in response to variable fuel prices, thereby enhancing the economic resilience of electricity generation. In Malaysia, the Energy Commission has conducted biannual reviews of fuel and other generation costs. Any cost savings or increases identified during these reviews will be passed on to customers in the form of rebates or surcharges. Meanwhile, if an increment in the ICPT price signal can be provided to electricity providers and consumers, early preparation for operation budgeting can be realised, and energy management program development can be properly prepared. Due to this reason, this study proposes ICPT price forecasting for the electricity market in Peninsular Malaysia that will benefit the stakeholders. The study aims to construct an ICPT-related baseline model for the peninsular generation data by employing three forecasting methods. The forecasting performance is analysed using the mean absolute percentage error (MAPE). In light of our findings, the ARIMA method is one of the most accurate forecasting methods for fuel prices compared to the moving average (MA) and LSSVM methods. The observed price differences between the ARIMA and LSSVM models for ICPT are minimal. The ICPT price for July–December 2022 and January–June 2023 is MYR 0.21/kWh for the ARIMA and MYR 0.18/kWh for LSSVM, which are close to the actual TNB’s ICPT tariff. As for forecasting, the ICPT price is expected to drop in the next announcement. The findings of this study may have a positive impact on the sustainability of the energy sector in Malaysia.

Unveiling the link between female directors’ attributes, ownership concentration, and integrated reporting strategy in Malaysia

In response to the reform in the Malaysian market that requires all publicly listed companies (PLCs) to have at least one female director on the board, this study examines how female directors’ attributes (FDAs) shape integrated reporting quality (IRQ) and assesses the potential influence of substantial shareholders on the FDA–IRQ nexus. Using all Malaysian PLCs implementing the integrated reporting from 2017 to 2021, our analysis yields four key findings. First, a positive relationship exists between the presence of a Muslim female director and IRQ. Second, female directors with financial expertise and those with higher education positively impact IRQ. Third, the holding of multiple directorships by female directors is negatively linked to IRQ, and the length of their tenure shows no significant effect. Fourth, the relationship between FDAs and IRQ is more pronounced in contexts with a greater ownership concentration. These results remain robust after rigorous analysis and mitigating for potential biases. Our findings offer valuable insights for policymakers, practitioners, and researchers interested in understanding the implications of gender diversity and IRQ in emerging markets.

Occurrence, exposure estimation, and dietary risk assessment of biogenic amines in tea samples marketed in Malaysia

Biogenic amines (BAs) are one of the most studied food contaminants due to their widespread distribution in food matrices. However, the occurrence and dietary risks of BAs in tea, particularly in Malaysia, have not been comprehensively investigated. This study evaluates the occurrence of BAs in selected tea samples from Malaysia's market, and the estimation of the dietary exposure to assess the risk of their dietary intake. The targeted BAs (tyramine, histamine, tryptamine, spermine, spermidine, putrescine, and cadaverine) were extracted with 0.1 M HCl using ultrasound, followed by derivatization using dansyl chloride prior to high performance liquid chromatographic separation. The validated method was applied to analyzing BAs in various tea samples of different origins. Results showed that the occurrence of histamine (14.3–69.5 μg g−1) in fully fermented tea, semi-fermented tea, non-fermented tea, post-fermented tea, and tisanes was 8, 0, 63, 17, and 0%, respectively. Spermidine was found in all samples (except 2 tisanes) with concentrations ranging from 17.6 to 105.4 μg g−1. Tyramine was identified as the most prevalent BA (7.2–1271.7 μg g−1), with a detection frequency of 90.2%. Overall, the average total BAs content in fully fermented tea (284.2 μg g−1), semi-fermented tea (677.0 μg g−1), non-fermented tea (783.8 μg g−1), post-fermented tea (204.6 μg g−1), and tisanes (134.2 μg g−1) were below the recommended level of 1000 μg g−1. Dietary exposure was determined by estimated daily intake, whereas risk assessment was evaluated using the hazard quotient (HQ) and hazard index (HI) approaches. Based on the obtained HQ (≤0.017322) and HI (≤0.033437), the dietary exposure to BAs through the consumption of tea in Malaysia does not pose potential health risks to consumers.