TAKAFUL AWARENESS IN MALAYSIA: AN EMPIRICAL STUDY ON THE INFLUENCE OF KNOWLEDGE, FINANCIAL STATUS, AND SOCIAL FACTORS

Abstract

This paper examines the factors influencing Takaful awareness among Malaysian residents, with a focus on knowledge, financial status, and social influences. Using a quantitative survey method, data were collected from 384 respondents and analyzed through regression and correlation techniques to assess the impact of these variables on Takaful awareness. The findings indicate that both knowledge and social factors significantly affect awareness, highlighting the role of education and social dynamics in shaping consumer perceptions. Additionally, financial status emerged as a critical determinant, showing that individuals’ economic conditions greatly influence their awareness and engagement with Takaful products. The results suggest that Takaful awareness extends beyond financial literacy, emphasizing the importance of social networks and communal knowledge exchange. The study also underscores the need to improve financial conditions, particularly in lower-income regions, to enhance participation in Takaful schemes. This analysis contributes to existing literature by exploring the combined effects of knowledge, financial status, and social factors on Takaful awareness. The findings provide actionable insights for Takaful managers and marketers, suggesting that strategies focused on public knowledge enhancement and community outreach could increase Takaful penetration. Educational campaigns and efforts to mitigate financial barriers are recommended to boost consumer engagement. Overall, this study offers a comprehensive framework for understanding the key drivers of Takaful awareness and provides practical recommendations for improving its adoption across Malaysia.