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Information Management and Business Review (ISSN 2220-3796)
Vol. 17, No. 1, pp. 80-89, 2025
80
Breaking Barriers: Customer Acceptance and Challenges of Waqf-Takaful Death Compensation
Products in Malaysia
Sukriah Ismail1, *Marina Abu Bakar2, Hanizan Shaker Hussain3, Mohamad Saufee Anuar4, Md Nasri Ali5
1Kulliyyah of Shariah & Law, Universiti Islam Antarabangsa Sultan Abdul Halim Mu’adzam Shah, Kedah,
Malaysia
2Academy of Contemporary Islamic Studies, Universiti Teknologi MARA Perlis, Malaysia
3School of Computing, Quest International University, Perak, Malaysia
4Ranhill SAJ Sdn. Bhd, Johor, Malaysia
5Takaful Ikhlas Family Berhad, Pulau Pinang, Malaysia
sukriahismail@unishams.edu.my, *marinaab@uitm.edu.my, hanizanshaker.hussain@qiu.edu.my,
mohamadsaufee7588@yahoo.com, mdnasriali@gmail.com
Corresponding Author: Dr Marina Abu Bakar
Abstract: This study aims to analyze the acceptance and challenges of waqf-takaful death compensation
products in Malaysia, focusing on factors such as product knowledge, education, marketing, customer attitude,
and long-term benefits. A quantitative approach using a descriptive cross-sectional survey method was
employed, with data collected via a structured questionnaire. The findings revealed that product knowledge,
customer attitude, and marketing strategies significantly influence acceptance. However, challenges such as
limited awareness, inadequate promotion, and accessibility issues were also identified. The study highlights
the importance of improving customer education and refining marketing strategies to enhance the adoption of
waqf-takaful products.
Keywords: Waqf-Takaful, Death Compensation Products, Takaful Products, Customer Acceptance, Challenges
1. Introduction
In recent years, the takaful industry in Malaysia has grown significantly, offering Sharia-compliant alternatives
to conventional insurance. Takaful, based on mutual assistance and shared responsibility principles, provides
financial protection and risk-sharing among participants, avoiding elements like uncertainty, usury, and
gambling (Abu Bakar et al., 2023a). Among the various takaful products available, death compensation
products play a crucial role in ensuring financial security for the beneficiaries of the deceased, aligning with
the Islamic principles of social welfare and community support (Rahman & Ahmad, 2011). Waqf, another
essential Islamic financial instrument, involves the donation of assets or funds for religious or charitable
purposes. Traditionally, waqf has been used to fund mosques, schools, and other community services. In
modern financial systems, waqf has been integrated into takaful products, adding a philanthropic dimension
that enhances their social impact (Ahmad et al., 2022). This integration is particularly relevant in Malaysia,
where the Muslim population seeks financial products that align with their religious beliefs while contributing
to the greater good (Che Mohd Salleh et al., 2020).
Despite the growth of takaful products, the integration of waqf in takaful death compensation remains
underdeveloped due to challenges such as lack of customer awareness, limited promotion, and accessibility of
waqf-takaful products. Existing literature suggests that the implementation of waqf within takaful products
varies widely among providers, leading to inconsistencies in product standards and customer experiences
(Ahmad et al., 2024). Furthermore, many takaful customers are not fully aware of the waqf component or its
benefits, which may hinder their acceptance and trust in these products (Abu Bakar et al., 2023b). Additionally,
challenges such as the lack of standardized guidelines for waqf management, limited customer education, and
inadequate marketing strategies have been identified as barriers to the successful adoption of waqf-takaful
products (Ahmad et al., 2022; Muhamat et al., 2019). These issues underscore the need for a comprehensive
analysis of customer insights to better understand the factors influencing the acceptance of waqf-takaful death
compensation products in Malaysia.
The acceptance of waqf-takaful products is essential for ensuring the long-term sustainability of the takaful
industry in Malaysia. Therefore, this study aims to examine the factors influencing customer acceptance,
including product knowledge, education, and marketing, and to identify the challenges hindering wider
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adoption. The variables include product knowledge, which encompasses the awareness and understanding of
the product among potential customers, and education and experience, which reflect the respondents’ level of
education and their familiarity with takaful products. Marketing and incentives are also critical, as they capture
the respondents’ exposure to promotional campaigns and their views on the incentives offered by takaful
providers. Additionally, customer attitude is measured through trust, satisfaction, and overall disposition
towards takaful products, while long-term customer benefits focus on the perceived advantages of maintaining
participation in the waqf-takaful scheme over time. On the challenges side, this study explores the effectiveness
of promotional strategies and accessibility, as well as institutional and policy issues, such as institutional
support and regulatory frameworks. Lastly, customer perception is examined to identify general attitudes and
potential misconceptions about waqf-takaful products. By systematically analyzing these factors, this study
aims to provide comprehensive insights into the acceptance and challenges of waqf-takaful death
compensation products in Malaysia, offering valuable implications for stakeholders in the takaful industry.
2. Literature Review
Takaful and Waqf Concepts
Takaful and waqf have been combined to create innovative financial products in Muslim-majority countries.
Takaful operates on principles of mutual assistance and risk-sharing, avoiding prohibited elements like
uncertainty, usury, and gambling (Abu Bakar et al., 2023a). Waqf-based takaful models have been implemented
in Malaysia, offering death compensation and savings plans (Rahman & Ahmad, 2011; Abu Bakar et al., 2023a).
These models aim to benefit socio-economic development and assist flood victims (Che Mohd Salleh et al., 2020;
Ahmad et al., 2022). However, challenges exist in managing waqf assets, standardizing frameworks, and
increasing awareness among potential participants (Abu Bakar et al., 2023a; Che Mohd Salleh et al., 2020). The
integration of waqf and takaful must comply with both Shariah principles and modern regulatory requirements
(Rodríguez-Moreno, 2018). Abu Bakar et al. (2023b) reveal that the Sustainable Development Goals (SDGs),
established by the United Nations, provide a comprehensive framework for global development and human
welfare, which can be significantly advanced through the integration of waqf and takaful. In Malaysia, these
Islamic social financial mechanisms have begun to be incorporated into death compensation products by some
takaful companies. Despite all of these challenges, the takaful industry has experienced rapid growth,
influenced by increased petroleum prices and the emergence of re-takaful companies (Alhabshi & Razak, 2009).
The integration of waqf into takaful products, particularly death compensation schemes, offers potential
benefits for socio-economic development in Malaysia (Abu Bakar et al., 2023a; Ahmad et al., 2022). While only
a few takaful companies currently offer waqf-based death compensation products, these align with Maqasid
Shariah principles (Abu Bakar et al., 2023a). The combination of waqf and takaful can provide both worldly and
spiritual benefits to policyholders (Habibi & Yudha, 2017). However, challenges exist in implementing and
managing waqf-takaful products, including inconsistent standards and governance issues (Ahmad et al., 2024;
Muhamat et al., 2019). The success of waqf-takaful integration depends on factors such as formalized
development processes, well-trained agents, and compliance with Shariah and regulatory requirements
(Ahmad et al., 2024; Rodríguez-Moreno, 2018). Integrating waqf and Islamic finance can create synergies that
promote social welfare and financial inclusion (Ahmed, 2021).
Importance of Death Compensation Products
Death compensation products play a significant role in personal financial planning and risk management. Life
insurance and annuities provide financial security for dependents and retirees, addressing mortality risks and
longevity concerns (Drinkwater et al., 2003; Stevens et al., 2011). These products are increasingly financialized,
intertwining moral considerations with financial rationalities in intimate relationships (Langenohl, 2020).
Government-sponsored death benefit programs can also offer psychological security to low-income families
(Syaipudin, 2021). The value of life and implicit discount rates influence wage compensations for risky jobs,
with workers trading off ex-ante and ex-post risk compensation (Moore & Viscusi, 1988). However, investment
risk significantly affects longevity risk in insurance portfolios and the effectiveness of natural hedging
strategies (Stevens et al., 2011). Despite their importance, there is a need for greater awareness and
understanding of life insurance products among consumers, highlighting the necessity for insurance literacy
programs (Biradar, 2021).
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Takaful offers significant social and economic benefits while adhering to Shariah principles. It contributes to
social welfare by providing financial protection and promoting cooperation (Abu Bakar et al., 2023a; Ahmad et
al., 2022). Takaful products, particularly family takaful, serve as savings and investment instruments, positively
impacting socio-economic development (Rahman, 2008). The industry’s growth has been shown to contribute
to economic development, employment, and GDP (Ahmad & Hasan, 2020; Shahid, 2018). Takaful also fulfills
religious duties and spiritual needs while influencing socio-economic behavior (Rahman et al., 2019). In
Nigeria, takaful has the potential to support economic reforms and growth (Yusuf, 2012). The industry’s
expansion globally, including in non-Muslim countries, demonstrates its increasing acceptance and potential
for further growth (Kwon, 2001).
Previous Studies on Waqf-Takaful Products
Research on waqf-takaful products reveals diverse applications and challenges across different countries. In
Malaysia, several takaful companies offer waqf-based death compensation products, adhering to Maqasid
Shariah principles but facing implementation challenges (Abu Bakar et al., 2023a). The integration of waqf in
takaful policies has shown potential, with some companies experimenting with innovative products (Rahman
& Ahmad, 2011). However, takaful operators’ readiness to adopt waqf features varies, with formalized
development processes being a significant factor (Muhamat et al., 2019). Waqf management practices differ
among Muslim countries, with Gulf countries showing more advanced development in areas like women’s
empowerment and healthcare (Hariri, 2023; Harun et al., 2012). Despite its potential for socio-economic
development, waqf-takaful faces challenges in standardization and regulatory frameworks (Ahmad et al., 2022;
Rosele & Johari, 2016). Nonetheless, waqf remains a powerful tool for mobilizing resources and meeting
societal needs (Abdul Aziz et al., 2019).
In Malaysia, the integration of waqf into takaful models is seen as a potential solution to address issues in
traditional takaful practices (Rosele & Johari, 2016). Investment-linked family takaful products have emerged
as an innovative offering, combining investment and protection benefits (Parveen et al., 2020). However, the
implementation of waqf-takaful models lacks consistency and standardization across companies (Ahmad et al.,
2022). Key determinants of family takaful demand include agency systems, operator reputation, product
offerings, and marketing strategies (Arifin et al., 2013; Shaifuddin, 2020). Despite growth in the takaful
industry, penetration remains low compared to the Muslim population in Malaysia (Shaifuddin, 2020).
Challenges in waqf practices include legal issues, lack of awareness, fund shortages, and management
inefficiencies (Jalil, 2020). The takaful research field has seen significant growth, with Malaysia being a major
contributor (Alam et al., 2023).
Acceptance and Challenges in Takaful Products
The acceptance of takaful products is influenced by various factors. Product knowledge, awareness, and
education play crucial roles in consumer adoption (Ali, 2016; Swartz & Coetzer, 2010). Attitudes, perceptions,
and religiosity significantly impact acceptance (Razak et al., 2013; Ali et al., 2019; Hassan & Abbas, 2019).
Marketing strategies, product features, and relative advantage are also important determinants (Hassan et al.,
2018; Qian & Darman, 2023). Social and religious factors, as well as compatibility with Islamic principles,
contribute to consumer preferences (Mansor et al., 2015; Ali et al., 2019). However, challenges persist,
including misconceptions about takaful being exclusively for Muslims and a lack of awareness among potential
customers (Swartz & Coetzer, 2010). To enhance acceptance, takaful operators should focus on educating the
public, improving marketing strategies, and developing innovative products that cater to both Muslim and non-
Muslim consumers (Hassan et al., 2018; Qian & Darman, 2023).
The takaful industry faces numerous challenges globally, including regulatory issues, lack of awareness, and
product design complexities. A key obstacle is the absence of a sophisticated regulatory framework and talent
pool (Lubaba et al., 2022). Limited public awareness and education about takaful products hinder market
penetration (Swartz & Coetzer, 2010; Ichsan, 2016). The industry struggles with misconceptions that it’s
exclusively for Muslims, impacting its growth potential (Swartz & Coetzer, 2010). Product innovation and
alignment with Shariah principles remain ongoing challenges (Billah et al., 2019; Cheikh, 2013). Corporate
governance, financial reporting, and rating issues also pose significant hurdles (Archer et al., 2011).
Additionally, the industry grapples with operational inefficiencies, human capital shortages, and technological
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limitations (Saeed, 2019). Addressing these challenges is crucial for the sustainable development of the takaful
sector and its ability to provide ethical insurance solutions to a broader market.
The literature on waqf-takaful products reveals key trends, gaps, and areas of consensus. A major trend is the
integration of waqf into takaful, which has been successfully implemented in Malaysia to offer death
compensation and savings plans, aligning with Maqasid Shariah principles (Abu Bakar et al., 2023a; Ahmad et
al., 2022). This integration is seen as a way to advance socio-economic development, particularly in Muslim-
majority countries, by providing both financial and spiritual benefits (Habibi & Yudha, 2017). However, the
literature also highlights significant challenges in this integration. These include inconsistent standards,
governance issues, and a lack of public awareness, which hinder the widespread adoption of waqf-takaful
products (Ahmad et al., 2022; Muhamat et al., 2019). The need for standardized frameworks and the
formalization of development processes are emphasized as critical to the success of these products (Ahmad et
al., 2024). Moreover, the literature points out a gap in the readiness of takaful operators to adopt waqf features
and the varying management practices across different countries (Hariri, 2023; Harun et al., 2012). Another
consensus in the literature is the role of takaful in promoting social welfare and financial inclusion while
adhering to Shariah principles (Rahman, 2008; Ahmad & Hasan, 2020). Despite the growing acceptance of
takaful globally, particularly in Muslim-majority countries, the industry faces challenges in regulatory
frameworks, public awareness, and product innovation (Swartz & Coetzer, 2010; Billah et al., 2019).
Misconceptions about takaful being exclusively for Muslims and operational inefficiencies also pose significant
obstacles to its broader adoption (Swartz & Coetzer, 2010; Saeed, 2019).
The reviewed literature highlights that while waqf-takaful products offer potential benefits for socio-economic
development, their implementation is fraught with challenges related to standardization, governance, and
public awareness (Ahmad et al., 2022; Rodríguez-Moreno, 2018). These findings are relevant to the study as
they provide a framework for understanding the factors that influence the acceptance of waqf-takaful products
in Malaysia. The literature also underscores the importance of formalized development processes and the role
of well-trained agents in the successful implementation of waqf-takaful products (Ahmad et al., 2024; Muhamat
et al., 2019). This insight is crucial for the study as it examines the challenges faced by takaful operators in
Malaysia and the factors that contribute to consumer acceptance. Additionally, the literature’s emphasis on the
need for greater public awareness and education about takaful products highlights a significant area of focus
for the study, which seeks to assess how these factors impact the acceptance of waqf-takaful death
compensation products among Malaysian consumers (Ali, 2016; Swartz & Coetzer, 2010).
Studies on waqf-takaful products have highlighted innovative trends such as the adoption of digital platforms
for waqf collection and management. For instance, Razak et al (2013) discuss how mobile applications have
facilitated the integration of waqf in takaful products, enabling wider access to underserved populations.
Furthermore, recent works, such as those by Muhamat et al. (2019), have focused on how environmental waqf
initiatives can be integrated into takaful offerings to support sustainable development. This represents a shift
towards not only providing financial protection but also contributing to global sustainability goals. These
trends underscore the importance of aligning waqf-takaful products with modern technology and global socio-
economic challenges.
3. Research Methodology
Research Design
This study adopts a quantitative research design to investigate the acceptance and challenges associated with
the waqf-takaful death compensation product in Malaysia. The research utilizes a descriptive cross-sectional
survey method, which is particularly well-suited for capturing the relationship between the independent
variables (IVs) and dependent variables (DVs) within a specific population at a single point in time. The study
focuses on examining the impact of factors such as product knowledge, education, marketing, customer
attitude, and long-term customer benefits on the acceptance of the waqf-takaful product, as well as identifying
challenges related to promotion, accessibility, institutional issues, and customer perception.
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Data Collection and Sampling Method
Primary data for this research was collected using a structured questionnaire designed to assess the acceptance
and challenges of the waqf-takaful death compensation product among potential takaful customers in Malaysia.
The questionnaire employed a Likert scale to measure respondents’ levels of agreement with various
statements related to the study’s independent and dependent variables. To ensure a representative sample, a
stratified random sampling technique was applied, stratifying the population based on key demographic
factors such as age, gender, education level, and geographical location. The sample size of 107 respondents was
determined using statistical power analysis to ensure reliability. The questionnaire’s validity and reliability
were tested through expert reviews and a pre-test survey.
The final sample consisted of 107 respondents selected from four takaful companies in Malaysia: Takaful Ikhlas
Family Berhad, Etiqa Takaful Berhad, Zurich Takaful Malaysia Berhad, and Hong Leong MSIG Takaful Berhad.
This selection provided a comprehensive understanding of the factors influencing acceptance and the
challenges faced by customers in different demographic groups. The sample targeted takaful participants from
the northern region (Perlis, Penang, Kedah, Perak) and the eastern region (Kelantan, Terengganu, Pahang) of
Malaysia. This geographical focus ensured a broad representation of the acceptance and challenges of the waqf-
takaful death compensation product, thereby enhancing the generalizability of the findings.
A purposive sampling technique was used to select respondents with prior knowledge or experience with
takaful products, ensuring the sample was relevant to the research objectives. The cities in the northern and
eastern regions were chosen for their diverse demographic profiles and varying levels of takaful penetration,
representing both urban and rural populations. This diversity provides a comprehensive view of the factors
influencing acceptance and challenges in different contexts. Additionally, these regions have seen increasing
interest in Islamic financial products, including takaful, making them ideal for examining the integration of
waqf-takaful products.
The questionnaire was adapted from previous research on customer acceptance of takaful products (Ali et al.,
2019) and tailored to address the specific aspects of waqf-takaful death compensation products. The
instrument was reviewed by experts in Islamic finance and takaful to ensure its relevance and validity. A pilot
test was conducted with a small sample to ensure the clarity of the questions and assess the reliability of the
instrument before the full survey was administered.
Measures
The study’s variables were operationalized to align with the research objectives. Product knowledge was
assessed through questions measuring the respondents’ awareness and understanding of the waqf-takaful
death compensation product. Education and experience were gauged by collecting data on the respondents’
highest level of education and their experience with takaful products. Marketing and incentives were evaluated
by inquiring about the respondents’ exposure to marketing campaigns and their perceptions of the incentives
offered by takaful providers. Customer attitude was measured through questions related to the respondents’
trust, satisfaction, and overall disposition towards takaful products, while long-term customer benefits were
assessed by evaluating the perceived long-term advantages of participating in the waqf-takaful scheme. On the
challenges side, promotion and accessibility were measured by examining the effectiveness of promotional
strategies and the ease of access to the product. Institutional and policy Issues were explored through questions
on institutional support and the regulatory environment, while customer perception focused on identifying
general attitudes and potential misconceptions about waqf-takaful products. Figure 1 illustrates the conceptual
framework of this research, including the relationship between the independent and dependent variables.
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Figure 1: Conceptual Framework: Relationship Between Independent and Dependent Variables
Data Analysis Techniques
Data collected from the surveys were analyzed using SPSS (Statistical Package for Social Sciences). The analysis
began with descriptive statistics to summarize the characteristics of the sample and the key variables. Multiple
regression analysis was conducted to explore the relationships between the independent variables (IVs) and
dependent variables (DVs), such as the acceptance rate, challenges faced, effectiveness of marketing, and
institutional barriers. Additionally, factor analysis was employed to identify underlying dimensions within the
acceptance and challenges variables, while ANOVA tests were used to compare acceptance levels across
different demographic groups.
Ethical Considerations
The study adhered to strict ethical guidelines, receiving approval from four takaful companies in Malaysia,
namely Takaful Ikhlas Family Berhad, Etiqa Takaful Berhad, Zurich Takaful Malaysia Berhad, and Hong Leong
MSIG Takaful Berhad. Participants were fully informed about the purpose of the research and provided their
consent before participating. Confidentiality and anonymity of the respondents were maintained throughout
the study, with all data securely stored and only accessible to the research team. The ethical considerations
were carefully followed to protect the rights and privacy of the participants, ensuring that the research was
conducted in a manner that respects the dignity and well-being of all involved.
4. Findings and Discussion
The mean analysis of the acceptance level toward waqf-takaful products among respondents reveals several
key insights into the factors influencing their adoption, as summarized in Table 1.
Table 1: Descriptive Statistics for Acceptance of Waqf-Takaful Death Compensation Product
Item
N
Mean
Std. Deviation
B1 - Product knowledge is important for acceptance
107
4.79
0.413
B2 - Education is key to acceptance
107
4.65
0.478
B3 - Knowledgeable customers are better
107
4.54
0.587
B4 - Incentives from takaful companies are beneficial
107
4.57
0.585
B5 - Long-term customers have advantages
107
4.52
0.678
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B6 - Knowledge of waqf-takaful products impacts industry growth
107
4.64
0.503
B7 - Customer acceptance influences public attitudes toward takaful
107
4.61
0.545
B8 - A good waqf-takaful product is easy to market
107
4.45
0.662
B9 - Marketing is critical to product acceptance
107
4.50
0.605
B10 - Experience influences the decision to subscribe
107
4.59
0.549
The highest mean score was observed for Product Knowledge (Mean = 4.79, SD = 0.413), indicating that a strong
understanding of the product is fundamental for its acceptance. Education (Mean = 4.65, SD = 0.478) was also
highlighted as crucial in promoting waqf-takaful products, aligning with previous research that emphasizes the
importance of customer education in the success of Islamic financial products (Abu Bakar et al., 2023a). The
study further found that respondents believe individuals with better knowledge are more likely to become
loyal and informed customers (Mean = 4.54, SD = 0.587).
Respondents also showed positive feedback on incentives provided by takaful companies for joining death
compensation products, with a mean score of 4.57 (SD = 0.585). This finding suggests that structured incentives
can significantly increase customer participation, aligning with Che Mohd Salleh et al. (2020), who found that
incentives play a key role in customer engagement in Islamic finance. The analysis also found that long -term
customers (Mean = 4.52, SD = 0.678) have an advantage in subscribing to takaful services, reinforcing the idea
that customer retention strategies can enhance acceptance. Furthermore, marketing was identified as a critical
determinant of product success, with a mean score of 4.50 (SD = 0.605), indicating that effective marketing
strategies play a central role in increasing product adoption.
The mean analysis of the challenges associated with promoting waqf-takaful death compensation products
reveals that respondents generally recognize the difficulties in this area. As shown in Table 2, challenges such
as limited promotion, obstacles in selling, and the need for better accessibility were noted.
Table 2: Descriptive Statistics for Challenges in Promoting Waqf-Takaful Products
Item
N
Mean
Std. Deviation
C1 - Are there challenges in promoting waqf-takaful?
107
4.54
0.587
C2 - Are there obstacles in selling waqf-takaful?
107
4.53
0.604
C3 - Is waqf-takaful accepted more than family takaful?
107
4.40
0.738
C4 - Is the waqf-takaful benefit available in the application?
107
4.50
0.805
C5 - Is there sufficient promotion of waqf-takaful products?
107
4.47
0.744
C6 - Do participants have the right to choose institutions freely?
107
4.50
0.664
C7 - Are participants limited to specific institutions?
107
4.51
0.851
C8 - Satisfaction with waqf-takaful services
107
4.53
0.756
C9 - Are distribution channels accessible in social media/print?
107
4.43
0.814
C10 - Is staff training needed for better promotion?
107
4.63
0.541
The study found significant challenges in promoting waqf-takaful death compensation products, with a high
mean score of 4.54 (SD = 0.587) on the question of challenges in promotion. This was followed by the
recognition of obstacles in selling (Mean = 4.53, SD = 0.604), suggesting that there are structural and marketing
challenges that hinder sales efforts. Respondents indicated a slight preference for family takaful products over
waqf-takaful (Mean = 4.40, SD = 0.738), highlighting that waqf-takaful adoption may still lag behind more
traditional products. The analysis also revealed concerns about the promotion of waqf-takaful products (Mean
= 4.47, SD = 0.744), suggesting that enhanced marketing strategies and broader outreach are necessary. Staff
training (Mean = 4.63, SD = 0.541) was identified as a critical area for improvement to overcome these
challenges and enhance the competence of agents in promoting waqf-takaful products effectively.
The Pearson correlation between the level of acceptance and challenges related to waqf-takaful products
showed a statistically significant positive correlation (r = 0.534, p < 0.001), indicating that as acceptance levels
increase, the perceived challenges also tend to rise. This suggests that raising awareness about waqf-takaful
products leads to greater recognition of the challenges involved in their promotion and management.
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The regression analysis further confirmed that the acceptance level is a significant predictor of the challenges
faced, explaining approximately 28.5% of the variance in the challenges faced by takaful companies (R² =
0.285). This highlights the interconnectedness of acceptance and challenges, underscoring the need for
comprehensive strategies that not only boost acceptance but also address the challenges associated with waqf-
takaful products.
Overall, the findings indicate that while there is a generally positive reception toward waqf-takaful products,
there are significant challenges that need to be addressed. Product knowledge, education, incentives, and
effective marketing are crucial in overcoming barriers to adoption. Furthermore, addressing challenges like
promotion, staff training, and product accessibility will be essential for the long-term success of waqf-takaful
products. The study also highlights the importance of aligning marketing efforts with customer education to
enhance the overall adoption of waqf-takaful products in Malaysia.
5. Conclusion
This study provides significant insights into the acceptance and challenges of waqf-takaful death compensation
products in Malaysia. The findings reveal that product knowledge is a critical determinant of customer
acceptance, with respondents placing the highest importance on it. Education, incentives, and effective
marketing also emerged as vital factors influencing acceptance. The study confirms that customers with better
product knowledge are more likely to adopt waqf-takaful products, highlighting the need for educational
initiatives and targeted marketing strategies to enhance product understanding and acceptance. The analysis
of challenges indicates that while there is generally a positive reception towards waqf-takaful products,
significant obstacles remain. These challenges include limited market acceptance, inadequate promotion, and
the need for specialized training for takaful staff and agents. The correlation and regression analyses further
demonstrate that as the acceptance level of waqf-takaful products increases, so does the awareness of the
challenges involved. This suggests that efforts to increase acceptance must also address these challenges to
ensure the successful promotion and adoption of waqf-takaful products in the market.
Despite the valuable insights provided by this study, several limitations should be acknowledged. Firstly, the
study’s sample size is relatively small, consisting of respondents from the Northern and Eastern regions of
Malaysia. This limits the generalizability of the findings to the broader population. Additionally, the study relied
on self-reported data, which may be subject to biases such as social desirability or recall bias. The use of a cross-
sectional survey design also restricts the ability to establish causality between the variables studied.
Furthermore, the study primarily focused on the acceptance and challenges of waqf-takaful products without
considering other potentially influential factors such as regulatory frameworks, economic conditions, or
cultural influences. To build on the findings of this study, several avenues for future research are recommended.
Firstly, future studies should consider expanding the sample size and geographical coverage to include
respondents from different regions of Malaysia, thereby enhancing the generalizability of the results.
Longitudinal studies could be conducted to explore the causal relationships between product knowledge,
education, and acceptance of waqf-takaful products over time. Additionally, further research could investigate
the role of regulatory frameworks, economic conditions, and cultural factors in shaping the acceptance and
challenges of waqf-takaful products. Moreover, comparative studies between waqf-takaful and other Islamic
financial products could provide a deeper understanding of the unique challenges and opportunities associated
with waqf-takaful. Finally, qualitative research methods such as interviews or focus groups could be employed
to gain richer insights into customer perceptions and experiences with waqf-takaful products, offering a more
nuanced understanding of the factors influencing acceptance and the barriers to wider adoption. To sum up,
takaful providers and policymakers should focus on enhancing customer education, refining marketing efforts,
and addressing operational challenges to ensure the successful adoption and sustainability of waqf-takaful
products.
Acknowledgment: This research is part of the output from the UniSHAMS-FWD Takaful Berhad Industry
Research Grant, totalling RM50,000.00, under the title “Acceptance and Challenges of Waqf-Takaful Death
Compensation Product in Malaysia”.
Information Management and Business Review (ISSN 2220-3796)
Vol. 17, No. 1, pp. 80-89, 2025
88
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