Shariah-Compliant Savings (Simpanan Shariah): An Analysis of Attitudes Among Muslim Employees Provident Fund Members

Abstract

This study examines the influence of attitude on the intention to invest in Shariah-compliant savings (Simpanan Shariah) among Muslim members of the Employees Provident Fund (EPF) in Malaysia. Grounded in the Theory of Planned Behaviour (TPB), attitude is conceptualised as a key determinant that shapes individuals’ behavioural intentions and decision-making processes. Drawing on prior literature, attitude reflects an individual’s evaluative judgement whether favourable or unfavourable towards a particular behaviour, influenced by both cognitive and affective components. Using a quantitative research design, data were collected from Muslim EPF members and analysed to test the proposed hypothesis, which posits a significant positive relationship between attitude and investment intention. The findings reveal that attitude significantly and positively influences the intention to invest in Simpanan Shariah, thereby supporting the hypothesis. This suggests that individuals with more favourable perceptions of Shariah-compliant savings are more likely to demonstrate stronger investment intentions. The results are consistent with previous studies indicating that positive attitudes enhance investment intentions, particularly in Islamic financial contexts where religious beliefs and ethical considerations play a central role. The findings also highlight that Muslim investors tend to perceive Shariah-compliant investments as beneficial, not only in financial terms but also in fulfilling religious obligations, thereby strengthening their behavioural intentions. This study contributes to the growing body of literature on Islamic finance by providing empirical evidence on the role of attitude in shaping investment intentions within the EPF Simpanan Shariah framework. The findings offer practical implications for policymakers and financial institutions to enhance awareness and promote positive perceptions of Shariah-compliant savings among Muslim investors.