THE ROLE OF ISLAMIC BANKING INSTITUTION IN ASSISTING MUSLIM ENTREPRENEURS IN MALAYSIA

Abstract

This paper aims to discuss the role of Islamic banking institutions among Muslim entrepreneurs in Klang Valley, Malaysia. The research problem of this study discussed about the extent of business funding and what can the Islamic banking institutions do in helping Muslim entrepreneurs to develop their business. As we know, in Malaysia, all of the banks have been offered various Islamic financing products including personal financing and business financing. In additional, the existence of Islamic banks such as Bank Islam Malaysia Berhad (BIMB), Bank Mumaalat Malaysia Berhad (BMMB), Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat), and Small Medium Enterprise Bank (SME Bank) that provide Islamic business financing to Malaysian entrepreneurs. Thus, based on this statement, the entrepreneurs have no problem in obtaining the Islamic financial products, theoretically, but not practically. Therefore, this study aims to identify the actual problem that is faced by entrepreneurs and the Islamic banking institutions in Malaysia. This study used in-depth interview method for the data collection process. The finding of this study showed that Islamic banking institutions played an important role in helping the Muslim entrepreneurs. In addition, it was also found that the Muslim entrepreneurs were lack of financial management knowledge. Thus, this study has outlined some recommendations to improve the knowledge in business management among the Muslim entrepreneurs as a strategy to uphold their involvement in Malaysia.