02 Nov 2017
Islamic banking is based on Islamic law (shariah). It comply the shariah, called fiqh muamalat (Islamic rules on transaction). The rules and practices of fiqh muamalat came from the holy Quran and sunnah, and the other secondary sources of Islamic law such as opinions collectively agreed among Shariah scholars (ijma’), analogy (qiyas) and personal reasoning (ijtihad). In malaysia, there are 16 islamic banks which 6 from it are foreign bank and 10 from it are local bank. The ï¬rst Islamic bank was established in Malaysia in 1983 namely Bank Islam Malaysia Berhad (BIMB). In 1993, commercial banks, merchant banks and ï¬nance companies begun to offer Islamic banking products and services under the Islamic Banking Scheme (IBS banks).
All Islamic banks and IBS banks have set up Shariah Committees to guide them on Shariah matters and to make sure that they function in a manner that is in line with the Shariah. The common shariah concepts used are Wadiah (safe keeping), Mudharabah (profit sharing), Bai Bithaman Aji (BBA) (deffered payment sale), Murabahah (cost plus), Musyarakah (joint venture), Wakalah (agency), Qard (interest fee loan), and Hibah (gift). The focus of the research is BBA. The most popular type of financing in Malaysia is Al-Bai’ Biyhaman Ajil (BBA). Most Islamic banks in Malaysia is employ this financing concept for their customers for all kind of consumers financing purposes such as: houses, shop houses, land, motor vehicle, consumers goods, shares, overdraft facilities, education financing package and personal financing. However, not all financing provided by the bank run smoothly in re-payment process, some customers may have some difficulties to fulfill their obligations towards Islamic bank.
This study is to specifically identify the factors lead to misconception of BBA concept, the problem arise regarding BBA concept as well as to suggest possible recommendation to the problem arise regarding BBA concept.
Bai’ Bithaman Ajil (BBA) or deferred payment sale, also called Buy’ Bit Taqsit (Sale with installment) and Bai’ Muajjal (deferred payment sale) is essentially to sell something with a prompt delivery of sold items to the purchaser while the payment is postponed until a specified date in the future or through instalment (Taqsit).
First is to provide financing for potential buyers who could not afford to pay cash in advance and enable them to perform their daily responsibilities and obligations without any financial hardship or difficulties. Second is to facilitate and support the smooth flow of transaction in the business society by providing flexible modes of payment especially through credit payment
There are four pillars of contracts required by the Shariah in a BBA home financing facility, namely the buyer (customer), seller (bank), good (house), price (profit rate) and aqad (agreement).
The payment under BBA could be made in several forms such as:
Instalment spread over a certain period
One lump sum in the future
Combination of both provided that it is clearly stated in the contract and both parties agreed on the terms and conditions stated in the contract.
BBA is used in Islamic banking operations as a product to finance their customers’ educational loan, shares and stocks purchase, housing, vehicles, machinery and others.
Bank Islam Malaysia Berhad (BIMB) offers the Naqad Overdraft facility under this concept. The operation of Naqad overdraft contains two separate contracts. The first contract is the contract where BIMB purchases assets from their customers on a cash basis. BIMB will then debit the proceeds from the sale into the customer’s Current Account (Designated) (ASM/D). BIMB will monitor and control the usage of the balance in the ASM/D account with the customer’s consent. Hence, the money utilized by the customer in the overdraft facility is actually their own money and not money lend to them by BIMB. The 2nd contract is a contract where BIMB resell the purchased asset back on BBA basis
In terms of the banking product, BBA is normally structured and combined with the concept of Buy’ Al-Murabahah under two different aspects. First aspect is sale of asset will use the concept of Buy Murabahah where BIMB for example will first purchase the required asset from the original producer with a cash payment, and then resell the asset back to their customers at a profit rate agreed upon by both parties. However, if the profit rate is not specified, it will only involve BBA and not Murabahah. Second is the payment of purchase will be made by their customers using the BBA concept where the settlement will be delayed and made either through instalment or a lump sum in the future.
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BBa is a type of sales contract, to makes provision for an immediate delivery of goods while postponing of the price to a later date.
Step 1: the client approaches the housing developer and identifies the house he wishes to buy. He signs a Sale & Purchase Agreement with the housing developer.
Step 2: The bank determines the requirements of the customer in relation to the financing period and nature of repayment. The bank the purchase the house at a purchase price and sign the Property Purchase Agreement with the customer. The banks pays the money to the housing developer or the bank will pays the money to the customer then the customer pays to the developer.
Step 3: The bank subsequently, sells the relevant asset/property to the customer and signs a Property Sale Agreement at an agreed price, which consists of the actual cost of the asset to the bank. The house cost including the profit margin.
Step 4: The customer is to settle the payment by equal or staggered instalment payments throughout the financing period.
There are many earlier studies conducted in various Islamic concepts that look into the challenge facing Islamic banking. (Khan, 2010, Hasan, 2008, Munawar Iqbal, 1998, Hamim S. Ahmad Mokhtar, 2006). Many of the studies mainly focus broadly on problem arise in islamic concept in general. (Khan, 2010, Hamim S. Ahmad Mokhtar, 2006, Munawar Iqbal, 1998). Some other studies focus on a much narrower and more specific attributes in bai bithaman ajil concept. (Ibra’ In Variable Rate Bai` Bithaman Ajil Product, 2011, Bank Negara Malaysia, 2013, Ahamed, 2008, Mahmood, 2007, Pakistan, 1977).
Many people argue that bai bithaman ajil early settlement higher than conventional bank. (Ahamed, 2008, Pakistan, 1977) other than that issue on bai bithaman ajil contain iwad and ibra in variable rate bai bithaman ajil not comply with the shariah also arise. (Bank Negara Malaysia, 2013, Mahmood, 2007, Manan, 2008). Hence the main focus of this study is to identify the factors leading to the misconception of bai bithaman ajil concept, the problem arise regarding bai bithaman ajil concept as well as to suggest possible recommendation to the problem arise regarding bai bithaman ajil concept. Therefore, a comprehensive analysis of the factors leading to the misconception of bai bithaman ajil concept and the problem arise are using regression analysis and correlation studies should be addressed in order to have a better understanding of the issues faced by Islamic banking before coming up with the possible solution for the problems.
1.2.1) To examine the factors lead to misconception of BBA in Malaysia.
1.2.2) To analyze the level of customers’ acceptance towards BBA concept.
1.2.3) To suggest possible recommendation to the problem arise regarding BBA concept.
1.3.1) Why Islamic banking early settlement is higher than the conventional bank?
1.3.2) Do profit in Bai’ Bithaman Ajil contain iwad (riba)?
1.3.3) Does Ibra’ (rebate) in variable rate bai-bithamal ajil product comply with shariah?
Early settlement is the transfer of a security or cash on a date prior to the usual settlement date. A Traditional Term Loan requires borrower to pay a fixed amount each month for a set period of time (e.g. 30 years). This predictable payment each month allows you to better control your cash flow. A buyer of house may prefer an early settlement in order to reduce the loan duration and eventually to cut of the monthly interest payment.
‘Iwad (equal counter value or compensation) is the condition for an unlawful sale. On the spot or cash basis transaction, there is no problem of lawful or unlawful gain because no time element involved .The legitimacy of the profit make is irrelevant, seems that the profit made on the basis of time alone. The extra profit in BBA cannot consider as risk of default because it is not about "iwad.
In other word, in any sale an equivalent counter value or ‘iwad shall consist of three main elements, namely:
cost of input
market risk and liability
effort or value added.
According to Ibn al-‘Arabi
"Every increase, which is without ‘iwad or an equal counter value is riba".
This can imply that a contractual increase arising from a loan is riba because it does not contain ‘iwad. It follows that an increase (i.e. profit created) from a sale is not riba because it (i.e. the profit) is supposed to contain ‘iwad.
Ibra’ is a mechanism that resembles a discount to be granted to the customer by the bank at the bank’s absolute discretion.
BALANCE FOR EARLY SETTLEMENT HIGH
IWAD IN BBA
IBRA’ IN VARIABLE RATE BBA
MISCONCEPTION OF BBA IN MALAYSIA
LACK OF KNOWLEDGE
Figure 1: THEORETICAL FRAMEWORK
Based on figure 1, we can see that the theoretical framework develop to investigate and to study the misconception of bai bithaman ajil (BBA) in Malaysia. The misconception of bai bithaman ajil (BBA) issue in Malaysia has three issues that will study which are the balance early settlement is high, iwad in BBA and Ibra’ in variable rate BBA.
Lack of knowledge people will influence this study which lead the misconception of bai bithaman ajil (BBA) in Malaysia. The dependent variable is misconception of bai bithaman ajil (BBA) in Malaysia.
Then, we want to investigate the issue that cause the misconception of bai bithaman ajil (BBA) in Malaysia. The independent variables are balance early settlement is high, iwad in BBA and Ibra’ in variable rate BBA.
1.4.1 Early settlement cost
H0: If Islamic banking balance early settlement is lower than conventional bank, then people will not misconception towards Islamic product compliance with shariah.
H1: If Islamic banking balance early settlement is higher than conventional bank, then people will have misconception towards Islamic product compliance with shariah.
1.4.2 Iwad in BBA
H0: There is a positive response on iwad free in BBA towards misconception of BBA in Malaysia.
H1: There is a negative response on iwad in BBA towards misconception of BBA in Malaysia.
1.4.3 Ibra’ in variable rate BBA
H0: There is no relationship between Ibra’ in variable rate BBA and misconception of BBA in Malaysia.
H1: There is a relationship between Ibra’ in variable rate BBA and misconception of BBA in Malaysia.
This research was made to be beneficial to the Muslim people by providing them information and detailed analysis of the Islamic concept attributes and how it relates to the misconception on BBA in Malaysia. The findings can be used as the sources have a clear view on the misconception of BBA in Malaysia.
The research can also be used by Islamic banking manager to take an initiative towards customers to ensure they subscribe the Islamic product confidently without any doubt on its concept or misconception especially in BBA in Malaysia.
Among the limiting factors of the research would be the time constraint. Given the limited time of two months, the data found is restricted to only the specified time period. Ideally the longer the time for data collection the more valuable the data would be. Besides, working and make a research are two different jobs which working needs a full commitment towards the organization but make a research need a plenty of time to make an observation, evaluation and implementation of the data which two or three month actually not enough especially for the beginner researcher.
Bai bithaman ajil define as purchase with differed payment. (Hasan, 2008, Mahmood, 2007, Ahmad, 2010, Manan, 2008) BBA also the most preferred type of financing mode in the Malaysian Islamic banking industry and considering that it is also the most debated type of facility in terms of its validity and Shariah-compliance. (Mahmood, 2007) Throughout the years, from the establishment of the first Islamic bank in Malaysia in 1983 untill today, this method of financing has been widely used especially in providing home financing to customers. (Mahmood, 2007, Hasan, 2008, Munawar Iqbal, 1998).
This contract of Bai’ Bithamin Ajil (BBA) has issue to discuss. One of the issues that were highlighted is highly balance of early settlement. (Ahamed, 2008) On this issue, customer argues why Islamic banking rate is higher than conventional bank sometime the cost is double from the loan cost. Even though some Shari’ah councils have agreed on its permissibility, a guideline from the Council of Islamic Ideology (Pakistan, 1977) in its report on the elimination of interest states that:
"However, although this mode of financing is understood to be permissible under the Shari’ah, it would not be advisable to use it widely or indiscriminately in view of the danger attached to it of opening a back door for dealing on the basis of interest."
In additional, the high amount will be burden to the customer especially for the lower income group. (Ahamed, 2008) The customer argues that when they choose this contract they need to pay higher amount than conventional bank. Then, customer will choose conventional loan for housing financing because customer does not afford to pay balance of settlement at the Islamic bank.
There are three factors that leading to the issue of highly balance of early settlement.
Firstly, the price is fixed based on the market interest rate annual percentage. The rate is 10.75% per annum. This rate are the maximum that Islamic bank to get a profit. The rate is fixed for the monthly payment because the bank wants to get the profit if the rate is turning down drastically. But, the Islamic are use the rebate to reduce the amount that customer to pay. According to Bank Negara Malaysia, the fixed rate had been announced as a fixed to Islamic banking to follow the regulation.
Second factor is changes in price of the houses. The changes of price are happen because of economic condition. The situation will encourage the customer to do the refinancing from conventional bank.
The last factor is, there are difficult to estimate the accurate amount because in long term period, the rate is fixed. That why, the early settlement is high. For example, the tenure of financing is 20 years. The balance of 10 years payment is not the same as the 20 years payment. For first 10 years, the customer might pay the amount higher than 20 years payment due to the variable market price parallel with the changes of economic situation. Whereas, due to the fix rate the payment for 20 years are cheaper than the 10 years payment. It is because the economic hard to estimate accurately the cost of fund and profit rate.
Difficult to estimate accurately the cost of fund and profit rate over long period because both the conventional bank and Islamic bank using different formulae. The formula for both banks is:
Conventional bank:
PV= PMT 1- 1
i (1 + i)ᵑ
Islamic bank:
Component
Computation formula
Details
Annuity
Factor (AF)
I (1 +i) ᵑ
(1 + i)ᵑ -1
i = Periodic profit rate p.a or CRR rate
n = Total Number of Periodic Payments
Periodic
Repayment
AF* Purchase price
AF= Annuity Factor
Purchase price= Financing Amount
Selling price
PR*n
PR= Periodic Repayment
n = Total Number of periodic payments
Profit amount
Selling price –purchase price
The example is as the following table:
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The table shows, the APRs are the same among conventional loan and BBA when the customer to pay the loan in 20 year instalment which are at 10%. Otherwise, the total payment and total interest are also same among BBA and conventional loan.
But , when the customer settle the financing earlier the loans balance under BBA is always high than conventional loan. Which are RM 208444.68 in BBA loan and RM 131443.76 in conventional loan.
Therefore, for MMP loan the total monthly payment and total interest are always lowest than BBA and conventional loan. It is due the the low APR rate which are 6%. Balance on early settlement of the MMP loan are lowest than BBA and conventional loan which is RM 116156.56.
Firstly bank should focusing in addressing the major shortcomings of BBA features and be more Syariah compliant.
Second, is customer can choose another contract which is musyarakah mutanaqisah ( diminishing partnership). This contract mean, partnership between financier and customer to own an asset in which one of the partners give the right to the other partner to buy his equity share of the asset either by one lump sum payment or several payments based on agreed conditions. To enter this contract, firstly customer must join to musyarakah under the concept of ‘shirkah al-milk’ ( joint ownership ) with the bank. Customer will pay 10% from the price of house and 90% pay by the bank. After that, the bank will lease their share 90% to customer under the concept of Ijarah( leasing). After the customer pay all the lease, bank will change the ownership of the house to the customer.
Based from our discussion, our recommendation is the bank should clearly mention about the fixed rate to the customer to avoid misunderstanding in the future about the rate. In the agreement the price sale is in accordance to the ceiling price of 10.75% which is the maximum rate that can be taken by the Islamic bank. However, the price is on when in the contract only. It is because for installment payments of Islamic bank will follow current rate which is 4.05%. Although , from the agreements made, the BIMB will only take advantage of 4.3% only a year. This is in contrast to the conventional banking contained riba and there are many hidden charges imposed as the price not mentioned when the contract sales.
If customer cannot accept the concept BBA in high balance of early settlement, they can choose the other contract either musyarakah mutanaqisah or ijarah because this two contract related to housing financing.
The importance of this concept is based on the fixed rate. This contract is benefit to the customer if the rate is lower but the bank will suffer the loss. As the protection, that is why the fixed rate Islamic banking is high. Nowadays the BBA concept is not relevant to be practice by the customer. Then, the Islamic banking are introduce the another contract for housing financing which is musyarakah mutanaqisah. This concept is more relevant to be practice by the customer because the early settlement is not high than BBA concept. It is because it operated as partnership.
The factor that leading to the issue of ‘iwad is bank had said that as a small bank they need to take high profit to bear the survival cost to compete with others biggest conventional bank. That why they just put little capacity on ‘iwad. It also because to protect them from sharing risk with their customer. Besides, bank had worried that if they fail to give affordable return to the depositor, then the depositor will move to other banks which give more profit to them.
Comparison between ‘iwad with riba’
Iwad is therefore the basic trait or condition ‘sine qua non’ (must) of the lawful (halal)sale.
Riba literally means 'increment' (ziyadah), grow or increase.
Must be included in the transaction
Prohibited from shariah compliance
Sale is inevitably an exchange of a value against an equivalent value. There for, the transaction without ‘iwad is totally prohibited because it encounter value as riba’.
a) Bay' bithaman ajil practised in Malaysia lacks the element of 'iwad as Islamic banks have taken practically all measures to protect them from sharing risk with their customers.
b) Public’s perception that bank not applying ‘iwad, but the bank argued they use the ‘iwad but in small capacity.
The factor that leading to the issue of ‘iwad is bank had said that as a small bank they need to take high profit to bear the survival cost to compete with others biggest conventional bank. That why they just put little capacity on ‘iwad. It also because to protect them from sharing risk with their customer. Besides, bank had worried that if they fail to give affordable return to the depositor, then the depositor will move to other banks which give more profit to them.
For example, Mrs. Sharifah has paid RM1000 for a cabinet set in which an exchange of goods for money has taken place. Pricing of the cabinet shall consists of cost of inputs and a profit margin where it i.e. the profit margin is created from the effort (ikhtiyar) rendered and risk-taken (ghurmi) by the manufacturer and the liability to rectify any defects found in the goods sold.
First, the risk element (ghurmi), namely the risk of ownership which implicate itself with risks arising from volatile market price movement. That is, inability to sell goods at a price higher than the average cost will mean losses. Failure to sell goods due to changes in consumer tastes can also lead to high inventory buildup, which can also end up in losses.
Secondly, the contract of sale must provide a warranty agreement that favours the customer when the goods sold are proven defective. The seller must be made responsible to assume this type of liability. The legal maxim "al-kharaj bil daman" is therefore instrumental in determining the nature of ‘iwad in sales since it says that any benefits (i.e. profit) derived from a transaction must be accompanied with the liability arising from a potential loss.
Lastly, the conversion of inputs into output involves work or effort as it adds value to the process of production. It follows that skills and expertise imputed into production must therefore be rewarded.
In the case of an interest-bearing loan say, RM10000, at 10% interest rate per annum, we are looking at an exchange of money worth RM 10000 in year 1 for RM11000 in year 2. The principle component, namely RM 100000, constitutes the cost of inputs while the extra RM 1000 represents the profit created from the loan made to the debtor. However, this surplus or profit does not implicate risk taking, liability and value added services discharged by the creditor. It does not contain "iwad and such any increment arising from it is tantamount to riba since by definition
"every increase which is without "iwad or equal counter value is riba"
The vital solution is to highlight the role of ‘iwad in explaining the superiority of sale (al-bay’) over riba, it would not be wise to embrace the riba issues without placing the al-bay and ‘iwad factor as an integrated whole.
Otherwise it can cause great confusion to society if undue focus is given to the riba factor alone when one wishes to introduce and propagate the concept and the practice of Islamic banking and finance to the discerning public.
Bank that applying SPI (sistem perbankan islam) must have ‘iwad, so the transaction will be lawful in shariah compliance in order to avoid riba’. The importance is to avoid customer move to other banks because they might think although it was in islamic bank, but the profit still containing riba’ as well as the conventional bank.
Nowadays, Islamic financial institutions had being rapidly growing especially in Malaysia. So, Islamic financial institutions cannot think that they are small institution and it is not an excuse for them to put away the element of ‘iwad in the profit gained.
There are three issue regarding the ibra’ in variable rate bay’ bithaman ajil product. (Ibra’ In Variable Rate Bai` Bithaman Ajil Product, 2011)
First, whether a clause on ibra’ can be included in the financing agreement document;
Second, whether two forms of ibra’ can be incorporated in one single agreement: one clause on ibra’ for early settlement and another clause on ibra’ for monthly basis, to correspond the current profit rate in the market;
Last, in the event the effective profit rate is increased with the monthly instalment payment to remain unchanged, whether a clause on rescheduling to extend the financing period can be provided for in the agreement, without the need to execute a fresh contract.
For the first, Bank Negara Malaysia, 2013 said that the customers should be informed on the relevant conditions and procedures on the granting of ibra’ by the IFI.
The Council, in its 32nd meeting on 27th February 2003 / 25th Zulhijjah 1423, resolved that granting of ibra’ in a variable rate bai` bithaman ajil product is permissible. (Ibra’ In Variable Rate Bai` Bithaman Ajil Product, 2011, Bank Negara Malaysia, 2013)
In this context, the bank is the party who offered the ibra’ (unilaterally promises to give ibra’) to the customers and the bank may decide to give ibra’, in any manner it feels appropriate. If the bank has promised (binding promise) to give ibra’ to its customers, the bank is bound to fulfill its promise.
Based on the mutual agreement in the contract, the financing period for the customer can be extended without the need to execute a fresh contract, provided that both parties fulfill all conditions in the agreement and the final price charged on the customer shall not exceed the original selling price (based on the ceiling profit rate) contracted earlier.
Ibra’ is a mechanism that resembles a discount to be granted to the customer by the bank at the bank’s absolute discretion.
Main features of ibra’
The contract used is deferred payment or bai` bithaman ajil. This contract would not change throughout the financing period, except for the effective profit rate, which may vary, depending on the current market rate, by modifying the rate of ibra’ (rebate), on a monthly basis;
The bank and the customer would execute an asset sale contract based on a selling price. This selling price comprises cost and agreed ceiling profit. The ceiling profit rate would normally be higher than the current profit rate in the market, since the bank needs to provide a buffer to cater for the increase in the market rate; and
The bank will give monthly rebate to the customer, to make it equivalent to the market rate, if the current profit rate is lower than the agreed ceiling profit rate. In any circumstances, the effective profit rate will not exceed the stipulated ceiling profit rate.
Comparison with conventional system
 a customer has to pay only the outstanding principal amount and earned interest at the time when early settlement is made.
the discount that is also known as rebate is granted to customers upon the customer making early settlement subject to the bank examining the credit history of the customer.Â
There are three issue regarding the ibra’ in variable rate bay’ bithaman ajil product.
First, whether a clause on ibra’ can be included in the financing agreement document;
Second, whether two forms of ibra’ can be incorporated in one single agreement: one clause on ibra’ for early settlement and another clause on ibra’ for monthly basis, to correspond the current profit rate in the market;
Last, in the event the effective profit rate is increased with the monthly instalment payment to remain unchanged, whether a clause on rescheduling to extend the financing period can be provided for in the agreement, without the need to execute a fresh contract.
Ibra’ in the agreement different from the real application being the cause this issue exist.
The Council, in its 32nd meeting on 27th February 2003 / 25th Zulhijjah 1423, resolved that granting of ibra’ in a variable rate bai` bithaman ajil product is permissible.
In this context, the bank is the party who offered the ibra’ (unilaterally promises to give ibra’) to the customers and the bank may decide to give ibra’, in any manner it feels appropriate. If the bank has promised (binding promise) to give ibra’ to its customers, the bank is bound to fulfill its promise.
Based on the mutual agreement in the contract, the financing period for the customer can be extended without the need to execute a fresh contract, provided that both parties fulfill all conditions in the agreement and the final price charged on the customer shall not exceed the original selling price (based on the ceiling profit rate) contracted earlier.
Ibra’ should stated in agreement but if the bank have a changed the value of ibra’, bank should sent the variable statement.
Bank can add the minimum rate of ibra’ , so that although the rate of ibra’ change, but the ibra’ given will not less than stated in agreement.
The importance of our recommendation is to make sure that the customer will notice about the ibra’ (rebate) in variable rate on bai-bithamal ajil product with help from the bank to explain about the variable rate.
The ibra’ need to be stated because if bank promise to give ibra’ they need to fulfill it. But, if the ibra’ not stated In the agreement, customer may perhaps not given any rebate at all.
Although the ibra’ rate is variable, they still can have an ibra’. Customer will be happy that they are still receiving ibra’.
Although there are many other factors that contribute to the misconception of BBA, according to our references and sense of logical thinking, I finalised that these issues are among the important factors that people need to have a clear view on the compliance ibra’ and iwad in BBA and the reason cost early settlement high.
The objective of this chapter is to explain the structure and method that will be used in my research in order to gain the data and analyse it. This section will starts with quantitative data collection by distributing a questionnaire and analysis of the data by using the relating software which is SPSS.
A structured questionnaire was used as the main instrument in this survey. It was employed to measure the relationship between the malls attributes and the performance of the Anggerik Mall. The five items of the independent variables will be measure based on a five-point Likert-type scale, ranging from strongly disagree, disagree, neutral and agree to strongly agree. Subjects will be asking to express agreement or disagreement on a five-point scale. All the scales used in the questionnaire were carefully selected from the previously established scales utilized in the same context. However, the scales are modifying to render them more appropriate for the local context.
Stratified Random Sampling
For this research, we used stratified random sampling method to stratify customers in Anggerik Mall and neighboring mall into small subgroup because each customer in Anggerik Mall and neighboring mall has different pattern of customer’s behavior and different perspective on why they choose that particular mall to shopping and segregate them into a simple random sample in each subgroup.
To rationalize the sampling, we took some samples from each subgroup to represent for each mall. We took a certain percentage of samples from four different shopping mall within the proximity of the areas. The four malls are: 1) Anggerik Mall, 2) SACC Mall, 3) Plaza Alam Sentral and 4) Kompleks PKNS.
This is will ensure people will easy when look at the result of finding. I will decide that, I want to use various types of chart which are pie chart, bar chart, line chart and also doughnut chart. Here are sample of diagram according the chart will be used for result of finding.
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Purpose of study
Specific problem to investigate
Literature Survey
Identification of variables
Research design
Data analysis
Data interpretation
Presentation and submission
The budget for this project is as shown below.
Survey supplies and Expenses
Proposal printing (30page*RM0.50)
+ binding
+ comb
20
Project printing (3 copies)
+ binding
+ hard cover
+ CD
160
Sub-Total
180
Research source
Monthly broadband (RM60* 5 month)
300
Sub-Total
300
Personnel expenses
Transportation cost by LRT (RM3* 8 time)
24
Transportation cost by bus(RM 5* 8 time)
40
Other utility
26
Sub-Total
90
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