Challenge Factors in Preparing Wasiyyah Services in Malaysia  

Challenge Factors in Preparing Wasiyyah Services in Malaysia.

PRESENTATION OUTLINE. The 10 th Islamic Banking, Accounting and Finance International Conference 2022 ( i BAF 2022).

INTRODUCTION. . Figure 1.1: Process of Diluting Assets between Intestacy and Testacy.

CONT…. Alma’amun (2012a); Aflah Isa et al. (2017); Haque (2020a).

Muslims rely on the traditional method ( faraid ) to manage and distribution of assets after death ( Bouteraa , 2019). Many studies in wasiyyah that were done previously had focused on the quantitative method, and only a few studies were found to have utilized the qualitative method. Therefore, the purpose of this study is to examine factors that hinders Malaysian Muslims from patronizing wasiyyah services..

Due to limited past research, the present study is designed to be exploratory in nature . Therefore, to accomplish the objective of the study, the interview method has been applied. A semi-structured interview is particularly useful to conduct in this study as it allows the researcher to understand the actual situation directly related to the study. Although conducting a face-to-face interview can be very time-consuming, nevertheless, it produces rich and in-depth responses that will be able to meet the purpose of the study . Semi-structured, in-depth interviews were employed to enable a detailed exploration of factors influencing consumer motivation in patronizing wasiyyah services using a responsive and flexible approach (Jane & Ritchie, 2003)..

The interviews had involved five experts from different wasiyyah institutions. Participants were asked about their understanding of the wasiyyah concept and also their opinions on the main reasons of why Malaysian Muslims are reluctant to participate in wasiyyah services. All the interviews were audiotaped and transcribed and then followed by a short discussion with open-ended questions..

DATA ANALYSIS. The 10 th Islamic Banking, Accounting and Finance International Conference 2022 ( i BAF 2022).

From the five participants’ narratives, a thematic analysis segmentation had produced 39 excerpts that were reflected in the study to be analysed. Findings have revealed that all the elements were represented to varying scopes. Four themes were identified which are; Lack of knowledge; Lack of awareness; Fees charged; and No comprehensive marketing..

Consumers who have patronised wasiyyah services have clear knowledge of the wasiyyah services (Mursidi, 2021). Ghul et al. (2015) and Nyambegera and Gicheru (2016) have delineated knowledge as the main problem in the issue of increasing number of frozen assets. Due to that, the participants described a lack of knowledge on the differences between wasiyyah and faraid as the main reason that hinders people in writing wasiyyah . “..many people are not aware of wasiyyah. They think that when someone dies, faraid will settle their wealth distribution. Even so, many people misunderstand the difference between wasiyyah and faraid .” (Respondent 1).

The respondents also highlighted that most people lack the understanding of wasiyyah services and they don’t know with whom they should discuss. An example of excerpts from the respondents that relate to this; “…that’s what I think. Most people have a misunderstanding in terms of the need for a wasiyyah. He thinks, if they have wealth, they have to make a wasiyyah, but if I don’t have wealth, why I should make a wasiyyah?” (Respondent 3).

Islamic estate planning is totally neglected by Malaysian Muslims especially in wasiyyah services ( Jamalurus , Mokhtar, & Rahim, 2019). This is because their awareness towards wasiyyah remains low. “..awareness is very important. But as you can see, awareness is very low. I am the one who studied in wasiyyah, so when it comes to wasiyyah services, the awareness is very low. Why? Because they thought that when they died, everything will be taken care of under faraid law.” (Respondent 1) The participants have also shared that they have never experienced death among close family members, so they were less aware towards the importance of wasiyyah services. “..some people, they are not aware because they have not gone through the process yet. Maybe they don’t have family members who died, that is why they have no awareness toward wasiyyah.” (Respondent 4).

Fees is also another factor that hinders people in preparing wasiyyah . The participants agreed the cost is reasonable and they can get the service from various institutions. The misunderstanding among Malaysian Muslims towards the fees charged for wasiyyah services have lead them not to patronize wasiyyah services. “..if you want to do that, it’s only RM300. It’s cheap. But to replace the trustee, its expensive. There are a lot of institutions that offering this service, such as Amanah Raya Berhad , Wasiyyah Shoppe, As- salihin Trustee. But majority of them are private organizations.” (Respondent 3).

A well-planned strategy is important for every company to stay longer in the industry. Take advertising as an example; it is not only aims to persuade, but also to enlighten. It provides information about the product, including its pricing, packaging, and other aspects, and whoever sees an advertisement proclaiming a discount price on a product, it would attract them to buy the product (Brown, 1950). Due to that, the respondent also explained that the marketing from the institutions is somehow not effective. “The marketing from agent and institutions are not comprehensive. ” (Respondent 1).

CONCLUSION. The 10 th Islamic Banking, Accounting and Finance International Conference 2022 ( i BAF 2022).