Mohamad, Arwin Idham and Zulkepli Hew, Jafri and Zainal Abidin, Norhaslinda (2024) Ensuring Sustainable Waqf-Zakat Microtakaful Protection Through a System Dynamics Approach. Journal of Computational Innovation and Analytics (JCIA), 3 (2). ISSN 2821-3408

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Abstract

The Islamic fnancial ecosystems, such as zakat and waqf, have roles in tackling poverty and can be integrated into providing fnancial protection, such as death benefts to the poor through microtakaful. However, unpredictable payouts and irregular contributions can hinder the implementation of microtakaful, affecting cash fows. This paper employs a system dynamics approach to simulate the cash fows of microtakaful funds, emphasizing the infuence of three key factors: the rate of new participants, the mortality rate, and the contribution rate. Note that this approach is chosen for its ability to model complex systems and predict the behavior of microtakaful funds over time. The data collected were from various institutions, including the Life Insurance Association of Malaysia (LIAM), the Central Bank of Malaysia (BNM), and the Department of Statistics Malaysia (DOSM) from 2018 to 2020. The model indicates a minimum contribution rate of RM130 per year, with a 2% mortality rate and 0.8% annual increase in the new participants. The model serves as a foundation for designing a simple and understandable non-proft microtakaful product

Item Type:	Article
Uncontrolled Keywords:	Microtakaful, Zakat, Waqf, System Dynamics, Sustainability
Subjects:	H Social Sciences > HD Industries. Land use. Labor
Divisions:	School of Computing
Depositing User:	Mdm. Rozana Zakaria
Date Deposited:	10 Jul 2025 14:13
Last Modified:	10 Jul 2025 14:13
URI:	https://repo.uum.edu.my/id/eprint/32347

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