YOUNG EXECUTIVES’ VIEWS ON ISLAMIC FINANCIAL SUSTAINABILITY IN MALAYSIA’S HALAL INDUSTRY: A PILOT STUDY ON CURRENT PRACTICES AND FUTURE OUTLOOK

Abstract

This study explores the perceptions of young executives in Malaysia’s halal industry regarding Islamic financial sustainability, focusing on their understanding, current practices, and future outlook. The objective is to assess the level of awareness and implementation of Islamic financial principles, identify challenges, and evaluate drivers for future adoption. Using a quantitative approach, data was collected through structured surveys from 86 respondents in the Klang Valley region, selected via convenient sampling. Results indicate that while respondents demonstrate a strong theoretical understanding of Islamic financial principles, practical implementation remains limited, particularly for complex mechanisms like profit-sharing models. Key challenges include limited understanding of Islamic finance, regulatory complexities, and difficulties in accessing Shariah-compliant financing. However, increased consumer demand and government regulations are identified as primary drivers for future adoption. The study highlights the need for targeted education, regulatory support, and innovative financial products to enhance the integration of Islamic financial sustainability practices in the halal industry, contributing to its ethical and sustainable growth.