A Study on the Opportunities toward Ar Rahnu Scheme in Malaysia

Abstract

This paper aims to identify the level of public awareness towards Islamic pawn broking Ar Rahnu Scheme and the main factors that influence public to pursue Islamic pawn broking in Pulau Langkwi, Kedah. Questionnaires were used to collect the data and were analyzed via cross tabulation, mean score analysis and multiple regressions. The findings indicate Pulau langkawi community is aware of the term Islamic pawn broking but the awareness is at a different level among the races. The majority of Chinese and Malays were aware of this scheme. However the Indians were not aware of the scheme. The findings also indicate that the majority of Islamic pawn broking consumers are in a lower income group, mainly from the private sector with an income of RM1000 and below. It is also found that the main factor influencing public to pursue Islamic pawn broking was its cheap cost of loan. The other factors that were tested were confidential, customer service, locality and income level.