Islamic Cooperative Finance and Economic Empowerment: Evidence from Malaysia

Authors

  • Mohd Yaziz Mohd Isa INCEIF University Author
  • Muhamad Shukri Othman Universiti Tun Abdul Razak Author
  • Abdul Aziz Yahya Saoqi Institut Ilmu Al-Quran, Jakarta, Indonesia Author

DOI:

https://doi.org/10.63740/8egvh960

Keywords:

Cooperative financing, Islamic financing, financial literacy

Abstract

This study examines determinants of Islamic economic empowerments among Islamic cooperative members in Malaysia, focusing on KOPSYA (Koperasi Pembiayaan Syariah Angkasa Berhad). Using survey data from 127 the study examined the effect of "financial literacy", "social capital and trust", "governance and transparency", and "regulatory and policy support" on economic empowerment, and the study included to examine the mediating effect of "cooperative economy". The study revealed all four factors predict Islamic economic empowerment but "regulatory and policy support" showing the strongest effect. The findings provided practical implications for policy makers, Islamic bankers, economist and cooperative managers seeking to enhance financial inclusion through shariah-compliant financing in capital markets.

Author Biography

  • Muhamad Shukri Othman, Universiti Tun Abdul Razak

    na

Downloads

Published

14-07-2026

Issue

Volume 2, Issue 2 – June 2026

Section

Research Articles

License

Copyright (c) 2026 Mohd Yaziz Mohd Isa, Muhamad Shukri Othman, Abdul Aziz Yahya Saoqi (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

All published content in the Journal of Islamic Banking, Economics and Policy (JIBEP) is licensed under the Creative Commons Attribution 4.0 International License (CC BY 4.0).

This license allows anyone to:

  • Copy and redistribute the material in any medium or format.

  • Remix, transform, and build upon the material for any purpose, including commercial use.

The following conditions must be met:

  1. Attribution – Proper credit must be given to the original author(s), a link to the license must be provided, and any changes made must be clearly indicated.

  2. No Endorsement – Users may not imply endorsement by the author(s) or by JIBEP without explicit written permission.

The full license details are available at: https://creativecommons.org/licenses/by/4.0/.

Authors retain the copyright of their articles without restrictions.