Spotlighting Fintech Research in Malaysia: A Systematic Review

Spotlighting Fintech Research in Malaysia: A Systematic Review

Chaleeda Som Sak^1*, Zuraidah Mohd Isa², Hanif Abu Hassan³, Nuraini Abdullah⁴

^1,2Faculty of Business Management, University Technology MARA, Cawangan Kedah, Kampus Sungai Petani, 08400 Merbok, Kedah

³School of Business Management College of Business, University Utara Malaysia, 06010 Sintok, Kedah.

⁴Faculty of Business and Communication, University Malaysia Perlis, Perlis

*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.908000529

Received: 12 May 2025; Accepted: 19 May 2025; Published: 19 September 2025

ABSTRACT

Purpose: The primary aim of this systematic review is to identify and synthesize the research on Fintech in Malaysia. This article summarizes the findings of Fintech research published in WOS and Scopus, providing insights into the present Fintech ecosystem in Malaysia. It also advocates for the creation of a foundation for prospective research opportunities in fintech.

Design/methodology/approach: The research systematically reviews literature indexed by Scopus and Web of Science to analyze the trends of Fintech research in Malaysia.

Findings: Malaysia’s Fintech research concentrates on four domains: blockchain applications, crowdfunding, cryptocurrencies, and electronic wallets. Blockchain technology is being investigated for its potential to enhance efficiency, transparency, and security. Equity crowdfunding is attracting attention, predominantly driven by technology enterprises. Malaysians are progressively adopting cryptocurrencies, signifying an expanding acceptance of digital currencies as financial instruments. The utilisation of e-wallets has surged, especially during the COVID-19 pandemic, owing to their convenience, health considerations, and governmental incentives.

Practical implications: This research aids fintech practitioners by illustrating the trends in fintech research published in esteemed journals, specifically WOS and Scopus. The research findings were summarized comprehensively, offering recent insights on the future of fintech, particularly in Malaysia.

Originality/value: This paper presents a thorough review of recent Fintech research published in WOS and Scopus. The research elucidates the recent trends in Fintech and synthesizes the findings of the whole study, depicting the current Fintech ecosystem in Malaysia.

Keywords: Fintech, Blockchain application, Crowdfunding, Cryptocurrencies, E-Wallet, Systematic review

INTRODUCTION

Fintech is a portmanteau, a word coined from a combination of the words of “finance” and “technology,” refers to the use of technology to deliver financial services and products to customers. The concept emerged in the late 20th century with the advent of digital technologies and the growth of e-commerce. Fintech has revolutionized the financial sector by offering more convenient, accessible, and cost-effective solutions for consumers and businesses. Rising innovations like mobile wallets, digitized money, paperless lending, etc., and adoption of e-commerce platforms across the economies, coupled with rising smartphone penetration have paved the way for increasing fintech transactions. This has disrupted the traditional financial services industry, leading to increased competition, innovation, and improved customer experience.

Rising popularity for digital payments, increased investments in technology-based solutions, supportive government regulations, increased adoption of IOT devices are expected to positively influence the Global Fintech Market in the coming years. The global fintech market attained a value of more than USD 194.1 billion in 2022 and expected to grow in the forecast period of 2023-2028 at a CAGR of 16.8% to reach over USD 492.81 billion by 2028 (Expert Market Research, 2022).

As for ASEAN-6 countries, Fintech Index by Zheng et al. (2022) proved that among the 6 countries, Singapore possesses the most robust Fintech ecosystem, with Thailand, Malaysia, Vietnam, Indonesia, and the Philippines following in order. Research by (Karim et al., 2022) revealed that the most crucial factors contributing to the growth of fintech and the strengthening of small and medium enterprises (SMEs) in Indonesia, Malaysia, Philippines, Singapore, and Thailand are the interactions between new fintech and SMEs during the COVID-19 pandemic.

Initially, there were mixed reactions among Malaysians to fintech. A survey conducted by (PwC, 2016), 82% of financial institutions respondents concerned about the threat fintech poses to their business but only 47% of them, to some extent, have placed Fintech at the forefront of strategic decision making at that time. The major concerns highlighted were regulatory uncertainty, pressure on margins and the IT security. In fact, to optimize the potential benefits and mitigate the associated risks of fintech, the effective implementation of fintech adoption models within banks requires an astute understanding and utilization of consumer sentiment, including the emotion of fear among the bank consumers (Abdul-Rahim et al., 2022). Nevertheless, the emergence of fintech in Malaysia has rapidly altered the country’s financial sector landscape, presenting an encouraging outlook for its continued development despite being a relatively new industry with a significant growth rate (Urus et al., 2022). Figure 1 below displays the Malaysia’s Fintech Landscape in 2022.

Figure : Malaysia’s Fintech Landscape in 2022

Source: Compiled by Fintech News Malaysia

The largest share belongs to the payment sector with 19%, followed by lending and e-wallet with 17% and 12% respectively. Insurtech accounts for 9% while wealthtech accounts for 8% of the market share. The blockchain/cryptocurrency, remittance and Islamic Fintech each account for 7%, 6%, and 5% of the market share, respectively. KYC/regtech and Marketplace have a 4% share while AI / Data and equity crowdfunding have a 3% share. Proptech and digital banking each have a 2% share.

In parallel with the rapid expansion of Fintech in Malaysia, there has been a significant increase in academic research and publications related to Fintech in the country. The present research is significant due to the limited availability of comprehensive studies that present a holistic view of fintech research in Malaysia. Furthermore, existing systematic review by Salleh & Tasnim (2022) on the subject have covered an analysis for the period of 2009 to 2019. The review conducted is already outdated as research in Fintech has increased rapidly. This research is significant due to the necessity of an updated review on Fintech studies in Malaysia. The study is essential in providing researchers with a better understanding of the current trends and peer-reviewed literature on fintech in Malaysia. The primary goal of this systematic review is to identify the research patterns and deficiencies in the existing understanding of fintech in Malaysia, thereby establishing a foundation for future research pathways. This study emphasizes the necessity of doing a comprehensive examination of fintech research in Malaysia. The following section provides an explanation of the methodology employed to address the research question, while the third section presents a methodical examination and integration of the scientific literature, encompassing the identification of keywords, screening of articles, assessment of eligibility, and analysis of pertinent research on fintech in Malaysia. Ultimately, the study emphasizes the essential actions that need to be implemented and directs the focus of prospective researchers towards the stated concerns.

MATERIALS AND METHODS

A systematic literature review (SLR) is a rigorous and reproducible procedure for consolidating and analyzing previous research on a particular subject. The objective is to offer a thorough overview of all pertinent research, evaluating and combining their discoveries to address a specific research inquiry. SLRs are specifically crafted to discover, evaluate, and combine all relevant empirical material that satisfies predetermined criteria in order to address a research inquiry (Kraus et al., 2020). Systematic literature reviews (SLRs) offer a thorough and detailed overview of existing primary research, commonly utilized to direct clinical decision-making and shape policy development (Clarke, 2011). Systematic Literature Reviews (SLRs) encompass a thorough investigation to identify all pertinent published and unpublished research, which is then methodically combined and evaluated for its validity and significance (Linnenluecke et al., 2019; Siddaway et al., 2019). Systematic literature reviews (SLRs) employ explicit methodologies that are specifically designed to reduce bias and ensure the production of accurate conclusions (Krupinski, 2019). The process of systematic literature review (SLR) involves several key processes, namely identification, screening, eligibility assessment, data abstraction, and analysis.

Identification

In choosing several appropriate papers for this report, the systematic review process consists of three main phases. The first step is keyword recognition and the quest for linked, similar terms based on the thesaurus, dictionaries, encyclopedia, and previous studies. Accordingly, after all the relevant keywords were decided, search strings on Scopus and WOS (see Table 1) database have been created. In the first step of the systematic review process, the present research work successfully retrieved 389 papers from both databases.

Table 1 Here’s your data neatly formatted into a comparative table:

 The search string.

Screening

During the initial round of screening, 298 papers were excluded based on the scholars’ various exclusion and inclusion criteria, leaving 91 papers. 16 duplicate papers were then eliminated in the second stage of screening. As literature (research articles) is the major source of practical advice, it was the first criterion used. It also covers systematic reviews, reviews, metasynthesis, meta-analysis, books, book series, chapters, and conference proceedings excluded from the latest research. Furthermore, the review was limited to English-language publications. It is important to keep in mind that the plan was established for the year 2022. In all, 314 publications were eliminated predicated on particular criteria.

Eligibility

For the third step, known as eligibility, a total of 75 articles have been prepared. All articles’ titles and key content were thoroughly reviewed at this stage to ensure that the inclusion requirements were fulfilled and fit into the present study with the current research aims. As a result, 45 papers were removed since their title and abstract were not significantly relevant to the study’s objective based on empirical data. Finally, 29 articles are available for review (see Figure 1).

Table 3 The selection criterion is searching

Data Abstraction and Analysis

Figur 1.  Flow diagram of the proposed searching study (Moher D, Liberati A, Tetzlaff J, 2009)

RESULT AND FINDING (N=29)

Blockchain Application in Various Industries in Malaysia

The researches on blockchain in Malaysia focused on the potential of applying the blockchain technology in various sectors. Blockchain is viewed to be very helpful in record-keeping. In the research conducted by Ghazali et al. (2022), a smart contract was executed on the Ethereum platform within the Malaysian Government network setting. The outcomes of the study offer compelling proof of the fundamental principles of private Ethereum blockchain, which includes high availability, efficiency, immutability, transparency, and truthfulness, particularly in the domain of record-keeping. Similarly, in response to concerns about the integrity and traceability of Halal food supply chains, Tan et al. (2022) proposes a traceability framework built on input from three Blockchain software providers to integrate Halal processes and technologies using smart contracts.

Not only that, the record keeping feature in blockchain is also seen to be potentially useful in the tenancy agreements in th property sector. Recent advancements in blockchain technology have led to the development of “smart tenancies” which are smart contracts that are capable of performing tenancy obligations and terminating tenancy agreements without human intervention (Yong et al., 2022). Regulators should recognize smart tenancy applications as a means to enhance efficiency in tenancy relationships, rather than a hostile innovation, and consider enacting enabling laws for clarification on the status of smart tenancies.

In addition to this, Basori & Ariffin (2022) have proposed that blockchain-based authentication in the banking and financial sector in Malaysia has the potential to replace the conventional transaction authorization code (TAC) that relies on short messaging service (SMS). This recommendation is based on various advantages of blockchain such as the security risks, support from regulatory bodies, latency in technology, and complexity in technology.

For the healthcare industry, research by Hira et al. (2022) discussed the challenges and potential of implementing blockchain technology. One of the potential application of blockchain technology is for record keeping, empowering patients to have complete control over their health records. The transparent and decentralized nature of bitcoin enables peer-to-peer digital property transactions without any intermediaries. Figure 3 below outlines the sequential stages involved in a health information transaction between stakeholders, which begins with a data transaction proposal. The proposal undergoes validation by multiple stakeholders, facilitated through cryptographic signature verification, before the data is added to the block, culminating the transaction. In essence, the patient holds the final decision-making authority in authorizing and validating the transaction. Nevertheless, there are various potential technological, organizational, environmental, and individual-level acceptance concerns and challenges that must be addressed before deploying blockchain to support electronic health records.

Figure 3: Secured medical data exchange steps in blockchain-based data exchange (Hira et al., 2022)

Blockchain technology also holds the potential to provide benefits to institutions of higher education. BloSPer (Blockchain Student Performance Tracking System) framework developed by Junejo et al. (2022) enables convenient and transparent record keeping and students’ performance tracking, allowing students and educators to analyze reasons for poor performance. The framework also provides tamper resistance, making the data more reliable and suitable for data analytics, overcoming the limitations of existing systems.

Raising Funds Through Crowdfunding in Malaysia

Equity crowdfunding has become an alternative way for businesses to raise funds from a larger pool of investors, including retail investors, without going through the traditional routes of seeking funding from venture capitalists or banks. Table 4 below illustrates the equity crowdfunding market in Malaysia for the year 2022, categorized by the issuer’s industry, either technology or non-technology. The data shows that there were 32 issuers in the technology category and 33 issuers in the non-technology category, collectively raising a total of RM140,384,791.34 through equity crowdfunding. The technology category has raised a higher amount of funding, totaling RM77,864,939.73, while the non-technology category raised a total of RM62,519,851.61. This indicates that investors may have a higher preference for technology companies when it comes to equity crowdfunding in Malaysia.

Table 4: Number of issuers and total fundraising amount by issuer category (technology and non-technology category) for the year 2022

However, the researches of crowdfunding in Malaysia are at the beginning stage of surveying the potentiality of practising crowdfunding, and education sector is no exception. This is because the quality of school facilities and instructional tools plays a crucial role in the academic success of students and teachers, while low-standard facilities can negatively affect education performance. In the meantime, the Malaysian Ministry of Education is spending millions to improve the quality of education by restoring, refurbishing, and building new schools. Recently, the Ministry has launched the Maintenance Fund for Government Schools and Public Institutes of Higher Learning which is fully administered by themselves through the crowd-funding concept. Abdullah et al. (2022) investigates factors that may affect potential investors’ willingness to contribute to the initiative and discovered that trustworthiness have the highest impact. This calls for the government in making crowdfunding for maintenance of government schools legal and pave the way for similar initiatives in other public services and institutions such as universities and colleges.

Wasiuzzaman et al. (2022) conducted research examining how investment risk, legal risk, and technology risk influence the decision of investors in Malaysia to invest in equity crowdfunding. Questionnaires were distributed to individuals with prior knowledge of equity crowdfunding and found that investment risk and legal risk significantly affect the decision to invest in equity crowdfunding, while technology risk does not have a significant impact. However, there are gaps in equity crowdfunding cybercrimes in Malaysia that needs to addressed to prevent fraud and intellectual theft  (Yeon et al., 2022). The various legal challenges that equity crowdfunding companies face in Malaysia include issues related to contracts between Issuers and Recognized Market Operators, privacy and personal data protection, cybercrime, compliance with public offering rules and guidelines, and registration procedures, all of which are subject to different regulations such as the Capital Markets and Services Act 2007 (CMSA) and the Guidelines on Recognized Markets 2020 (GRM).

Aside from that, research of Shalihah & Mohd Shariff (2022) and Yeon & Putri (2022) compares the equity crowfunding between Malaysia and Indonesia. The former examines the barriers to protecting data privacy and personal information in the context of equity crowdfunding in Malaysia and Indonesia. The study found that while Indonesia and Malaysia have different approaches to protecting personal data and investor privacy in ECF activities, both face challenges. In Indonesia, data protection and investor privacy in ECF activities are governed by various legal rules that sometimes conflict with each other. In contrast, Malaysia has specific regulations for personal data protection under the Personal Data Protection Act (PDPA) 2010, yet cases of personal data theft remain high due to a lack of legal awareness among ECF platform organizers. The latter employs doctrinal research and the conventional legal method to analyze the regulatory framework of the equity crowdfunding industry in Malaysia and Indonesia. This article examines the prospects of the equity crowdfunding business in Malaysia and Indonesia during the COVID-19 pandemic. The study finds that the prospects for the equity crowdfunding industry are favorable, as the fintech industry continues to democratize investments, leading to the creation of new investment products and services. Additionally, as investors become more educated and informed, the popularity of equity crowdfunding is expected to increase further. However, the study notes that the legal framework governing equity crowdfunding in both countries differs significantly in terms of governance, process and procedure, and types of investors.

Researchers also looked into integrating crowdfunding into Islamic finance. Hapsari et al. (2022) surveys the opinions and recommendations of experts on the Crowdfunding Waqf Model in terms of its suitability, applicability, and prospects in the market. The study finds that the experts support the suitability of the model as a financing resource for developing waqf lands and emphasize the importance of establishing, managing, and operating it under the State Islamic Religious Council in Malaysia and being supervised by the Wakaf, Zakat or Hajj Department. Ishak et al. (2022) explores the potential of mudharabah-based crowdfunding to support the book publishing industry, with a focus on self-publishers and small publishers. The study finds that mudharabah crowdfunding could address the financial challenges faced by the book publishing industry, but certain requirements must be met to prevent fraudulent cases. Effective platform management and a loyal base of funders are also crucial for the sustainability of the crowdfunding model.

Adoption of Cryptocurrencies in Malaysia

The increasing demand for a cashless economy based on digital currency and more convenient payment mechanisms has led to extensive research on cryptocurrencies, particularly in developed countries such as the United States and Europe. However, limited research has been conducted on the factors that influence the acceptance of cryptocurrencies in developing countries like Malaysia.

The researches on the adoption of cryptocurrencies in Malaysia’s digital market mainly zoomed into the factors influencing the behaviour. Yeong et al. (2022) discovered that Malaysian individuals’ intention towards cryptocurrency adoption is high, and factors such as performance expectancy, social influence, facilitating condition, and price value have a significant influence on their cryptocurrency adoption behavior. Social influence, price value, traceability, and attitude significantly influence adoption through customer satisfaction mediation but transparency has a negative impact on the digital market in Malaysia (Chen et al., 2022). A study by Sukumaran et al. (2022) on Malaysian investors shows that perceived value significantly affects cryptocurrency adoption, whereas perceived risk has no significant influence on Malaysian investors’ adoption of cryptocurrencies. Meanwhile, Malaysian students remain cautious of cryptocurrencies as an electronic payment method as trust is a major concern, receiving negative responses from respondents (Farhana & Muthaiyah, 2022).

Othman et al. (2022) examined the sentiments and opinions of well-known Muslim scholars and experts in Malaysia regarding the permissibility of using cryptocurrency in Islamic communities and discovered that most of them were in support and in the positive side of the argument that cryptocurrency can be used as a legal tender in Muslim communities.

The Usage of E-Wallet in Malaysia

Source: (Visa, 2022)

The research on the factors affecting the intention to use e-wallet in Malaysia mostly found similar result. Ming & Jais (2022) appliedcovariance-based structural equation modeling (CB-SEM) researching 598 respondents and discovered that social influence, perceived risk, government support, and perceived usefulness, are positively related to users’ attitudes toward using e-wallets, and consequently, positively affecting the intention to use the wallets. Ojo et al. (2022) added that, the usage intention is indeed influenced by facilitating conditions, perceived government support, and perceived COVID-19 risk. This is due to the health risk avoidance during COVID-19 and government incentives, along with facilitating conditions, play significant roles in influencing the usage intention of e-wallets. Additionally, the implementation of money gift functions can foster favourable outcomes that affect user behaviour and views of e-wallet applications, supporting the cognitive absorption theory (Lim et al., 2022). Perceived ease of use, perceived usefulness, and perceived risk are critical determinants affecting the acceptance of Sarawak Pay, using the Technology Acceptance Model (Tang et al., 2022). However, on the opposite side, the research of Abdul-Halim et al. (2022) found that the intention to continue using e-wallets was not influenced by perceived usefulness and trust using the Technology Continuance Theory.

Employing UTAUT theory to analyse the adoption of Fintech payment services in Malaysia and Indonesia during the COVID-19 epidemic, performance expectancy and the cultural dimension of individualism have the most significant influence on the decision to embrace digital payment services (Urus et al., 2022). The research offers suggestions to Fintech providers, financial institutions, and governments in policymaking, and endorses the government’s objective of achieving a cashless society to enhance financial inclusion in both nations. In fact, refining regulations and legislation will also bolster consumer trust and encourage e-wallet subscriptions, too (Bohari et al., 2022).

The study by Hassan et al. (2022) examines the security aspects of five prominent e-wallets and five leading mobile banking applications in Malaysia, revealing that although all applications adhere to security standards, their security features and attributes, including encryption, security protocols, and app services, vary significantly.

DISCUSSION AND CONCLUSION

Potential of Blockchain Application in Various Industries in Malaysia

The transparency, immutability, and decentralised governance of blockchain technology offer a substantial possibility to revolutionise multiple industries in Malaysia. The potential applications mentioned encompass vital industries like as government, food supply chains, property management, banking, healthcare, and education. Each of these sectors can gain advantages from the incorporation of blockchain technology, especially in the area of record-keeping.

The utilisation of blockchain technology in government contexts, namely for maintaining records via smart contracts on platforms such as Ethereum, highlights the capacity of this technology to improve the trustworthiness and dependability of governmental activities. Blockchain has the potential to establish a basis for governance that is more transparent and responsible by guaranteeing that records cannot be changed, are readily accessible, and are effectively controlled. This is especially crucial in situations where trust and transparency are of utmost importance, such as in the field of public administration and service delivery.
Blockchain’s traceability framework in the food business, namely in the Halal food supply chain, is well-positioned to tackle significant concerns regarding the genuineness and credibility of products. Through the utilisation of blockchain technology to monitor and authenticate every stage of the supply chain, consumers may be guaranteed of the Halal certification of products, thus bolstering trust and adherence to regulations. This application serves as a prominent illustration of how blockchain technology may be customised to fulfil precise cultural and religious prerequisites, therefore augmenting its worth beyond simply technological effectiveness.

The property industry can potentially gain advantages from blockchain technology by using “smart tenancies,” which automate and enforce rental agreements without the need for human involvement. This innovation holds the capacity to optimise property administration procedures, diminish conflicts, and augment the overall effectiveness of the rental market. Nevertheless, the effective execution of intelligent tenancies necessitates proactive involvement from regulators to guarantee that the legal structure accommodates these novel technologies and safeguards the interests of all parties involved.

Blockchain has the potential to replace existing means of transaction authorisation, such as SMS-based codes, in banking and finance. This showcases the technology’s capabilities to improve security and minimise weaknesses. Financial institutions may reduce risks, enhance transaction speeds, and provide a more secure and seamless customer experience by implementing blockchain-based authentication solutions.

Blockchain technology has the potential to significantly revolutionise the healthcare sector, which has intricate requirements for managing data. Blockchain technology empowers patients to manage their health records, resulting in improved privacy, enhanced security, and a healthcare system that prioritises the needs and preferences of patients. Nevertheless, the implementation of blockchain technology in the healthcare sector must overcome various obstacles, such as the acceptance of new technology, adapting to organisational changes, and ensuring compliance with regulations.

Blockchain has the potential to revolutionise student performance tracking in education with frameworks like BloSPer. This technology can give more accurate and tamper-resistant information. This feature is very beneficial for data analysis and enhancing educational results, as it enables instructors and students to make well-informed choices based on dependable facts.

Malaysia’s exploration of blockchain’s possibilities in many sectors highlights a technology that is ready to bring about substantial improvements in efficiency, transparency, and security. Nevertheless, achieving the effective incorporation of blockchain technology necessitates not only being technologically prepared but also having a regulatory framework that is supportive and gaining approval from stakeholders. In order to effectively use the revolutionary capabilities of blockchain technology in many sectors in Malaysia, it is imperative to establish a regulatory framework that is conducive to its growth, encourage collaborations between the public and private sectors, and provide resources towards education and training. Moreover, it will be imperative to prioritise scalability and ensure smooth interface with pre-existing systems in order to overcome the current technical obstacles. By focussing on these crucial domains, Malaysia may position itself as a frontrunner in blockchain advancement, stimulating economic expansion and augmenting the standard of living for its populace.

Potential of Practicing Crowdfunding in Malaysia

Crowdfunding in Malaysia, namely equity crowdfunding, offers a dynamic and disruptive opportunity for firms and other sectors to obtain finance from sources other than traditional financial channels. The data indicates a rising interest and effectiveness in utilising equity crowdfunding as a means of generating funds, with technology companies taking the lead in drawing investor attention. This preference exemplifies a wider global pattern in which technology sectors are regarded as lucrative prospects for growth, garnering increased interest from both individual and institutional investors.

Nevertheless, although equity crowdfunding exhibits potential, it is evident that Malaysia’s crowdfunding ecosystem is still in its nascent phases of growth. Currently, study is mostly focused on comprehending the elements that impact investor decisions, the legal and technological hazards associated with it, and the potential for wider utilisation of crowdfunding in areas other than business, such as education and Islamic financing.

The Malaysian government’s utilisation of crowdfunding in the educational sector demonstrates their unique approach to addressing funding gaps in public service by improving school infrastructure. The importance placed on trustworthiness as a crucial element for investor involvement highlights the necessity of openness and accountability in government-led crowdfunding operations. Enacting legislation to legalise and establish crowdfunding for public projects has the potential to facilitate its application in other domains of public service, such as healthcare and infrastructure. This would offer a crucial alternative means of financing that actively engages the community.

The legal and regulatory obstacles associated with equity crowdfunding in Malaysia provide substantial barriers that must be resolved in order to cultivate a more resilient and protected environment for investors. Areas such as data protection, cybercrime, and compliance with financial legislation are crucial and demand attention. When comparing Malaysia to Indonesia, it becomes evident that Malaysia has made significant progress in regulating personal data through the Personal Data Protection Act (PDPA). However, there is still a significant number of data breaches occurring, which suggests that there is a need for stronger enforcement and increased awareness among equity crowdfunding platform operators.

Furthermore, the incorporation of crowdsourcing into Islamic financing, using methods such as crowdsourcing Waqf and mudharabah-based crowdfunding, demonstrates the versatility of crowdfunding in accommodating many cultural and religious settings in Malaysia. These approaches not only provide different ways of financing, but also adhere to the principles of Islamic finance. This might potentially create new opportunities for supporting socially useful projects like as waqf development and small-scale publishing.

The potential for crowdfunding in Malaysia is substantial, with prospects for its expansion across diverse sectors. In order to effectively utilise this potential, it is imperative to improve the legal framework, raise public awareness and education, and investigate the incorporation of crowdfunding into Islamic financing. Furthermore, it will be crucial to extend the use of crowdfunding to public services and consistently enhance the technology platforms that facilitate these endeavours. By prioritising these specific sectors, Malaysia has the potential to position itself as a prominent figure in the global crowdfunding industry. This would contribute to the expansion of its economy, facilitate the provision of public services, and effectively cater to the different requirements of its population.

Potential of Cryptocurrencies in Malaysia

The integration of cryptocurrencies in Malaysia is a result of an intricate interaction of various elements that impact the behaviour of individuals and the overall functioning of the digital economy. As Malaysia moves towards a society with reduced reliance on cash, the significance of cryptocurrencies becomes more prominent, providing an alternative to conventional financial institutions. Nevertheless, the acceptance and utilisation of these digital assets are influenced by various factors, such as the anticipated performance, social impact, ease of use, perceived value, and cultural factors, especially in the realm of Islamic banking.
The strong inclination among Malaysians to embrace cryptocurrencies signifies an increasing recognition and endorsement of digital currencies as a feasible financial instrument. The motivation behind this is influenced by the perceived advantages of cryptocurrencies, including their convenience, potential for significant profits, and the opportunity to engage in the worldwide digital economy. Social influence is a significant factor in shaping individuals’ decisions regarding cryptocurrencies. People are influenced by the attitudes and behaviours of their peers, media, and influential figures who promote the use of cryptocurrencies. The beneficial effect of social influence highlights the significance of community and cultural standards in moulding financial behaviours.

The attractiveness of cryptocurrencies is further enhanced by their price value and favourable conditions. The relatively low cost of entering the cryptocurrency market, along with the growing availability of digital platforms and financial technologies, simplifies the process for individuals to research and participate in these assets. Nevertheless, the problem of transparency, which detrimentally affects the market, underscores the difficulties of establishing confidence and ensuring security inside the bitcoin ecosystem. The lack of transparency in certain cryptocurrency transactions and the possibility of their misuse or fraudulent activities might erode trust in digital currencies, especially among more risk-averse demographics, such as students.

Surprisingly, the level of risk that is typically seen as a major obstacle in the adoption of financial practices seems to have a negligible effect on Malaysian investors. This implies that the potential benefits of investing in cryptocurrencies may be greater than the perceived drawbacks, or that investors are gaining more knowledge and confidence in the unpredictable nature of this market. Nevertheless, this phenomenon is not consistent throughout all demographic groups, as evidenced by the cautious attitude of students who prioritise trust and security.

The opinions of Muslim scholars in Malaysia regarding the acceptability of bitcoin usage within Islamic communities add complexity to the process of adopting cryptocurrencies. These experts have a generally optimistic view, indicating that cryptocurrencies could be incorporated into the financial activities of Muslim communities, as long as they adhere to Islamic standards. The permission has the potential to greatly enhance the acceptance of cryptocurrencies in Malaysia, considering the country’s substantial Muslim population.

The potential for the adoption of cryptocurrencies in Malaysia is substantial, fuelled by technology breakthroughs and increasing societal acceptability. In order to fully exploit this potential, it is crucial to improve transparency and security by implementing more effective regulatory frameworks, conducting educational campaigns to foster trust and comprehension, and investigating the possibility of integrating with Islamic banking to access wider markets. Furthermore, harnessing social influence and guaranteeing wider availability of the required technologies will be crucial in promoting a secure, all-encompassing, and thriving digital economy. To effectively bolster the growth of cryptocurrencies and enhance its standing in the global digital economy, Malaysia might focus on these specific areas.

The Future of E-Wallet in Malaysia

In Malaysia, the utilisation of e-wallets has experienced a significant increase, especially due to the COVID-19 epidemic. This growth can be attributed to the convenient nature of the technology, health-related concerns, and incentives provided by the government. The adoption of contactless payments in Malaysia is in line with worldwide trends, while also being influenced by specific elements peculiar to the country that shape user behaviour and the ongoing use of e-wallet applications.

The research suggests that cognitive absorption, which refers to the extent to which users are fully engaged with e-wallet technology, has a major influence on their impressions of how easy it is to use and how valuable it is. This discovery implies that the greater the level of natural and seamless integration of an e-wallet into a user’s daily routine, the higher the probability that they will regard it as a valuable tool, resulting in continued usage. Furthermore, the implementation of cutting-edge features, such as the money-gift function, is vital in augmenting consumer contentment and allegiance. These advanced features, surpassing the fundamental payment capabilities, generate extra value for users, cultivating a favourable perception of e-wallets and enhancing their inclination to persist in using these applications.

The connection between attitude and intention to use e-wallets is additionally influenced by subjective well-being, suggesting that e-wallets serve as more than just financial instruments, but also contribute to users’ overall life happiness. This relationship highlights the significance of creating electronic wallets that not only fulfil practical requirements but also improve the user’s experience and overall welfare. Moreover, the study emphasises the significance of perceived security as a mediator in the process of adoption. Although customers prioritise security, research indicates that their concerns may be alleviated if they are mentally engaged in using e-wallets and the apps adhere to fundamental security protocols.

Curiously, additional research indicates that conventional characteristics such as perceived usefulness and trust do not consistently have a direct impact on the desire to continue using e-wallets. However, it seems that factors such as user-friendliness, contentment, and regularity have a greater impact. This implies that once consumers grow familiar with e-wallets and find them convenient, their ongoing usage becomes more of a habitual behaviour rather than a conscious decision influenced by trust or perceived usefulness.

The studies also suggest that government assistance and perceived risks are significant factors, although they are not the exclusive determinants of e-wallet adoption. Social influence and economic value, especially within the framework of comparative economic value (CEV), have a substantial impact on moulding consumer intentions. This underscores the significance of social interactions and the perceived efficiency of costs in the process of adopting e-wallets. Policymakers and service providers should utilise this knowledge to encourage the wider use of e-wallets.

In order to promote and expedite the acceptance of e-wallets in Malaysia, it is crucial to prioritise the development of user-friendly and captivating applications that include novel functionalities such as money-gifting. Emphasising security should be a top priority while ensuring that the usability of apps is not compromised. Additionally, it is important to promote the economic advantages and social attractiveness of utilising e-wallets. Furthermore, the provision of ongoing government assistance and incentives will be essential. Additionally, it is important to develop e-wallets that easily integrate into users’ daily activities, hence promoting long-term happiness and regular usage. These tactics will facilitate the widespread acceptance of e-wallets and promote the transition to a society that relies less on cash.

Funding Statement

The authors would like to express their sincere gratitude to the Kedah State Research Committee, UiTM Kedah Branch, for the generous funding provided under the Tabung Penyelidikan Am. This support was crucial in facilitating the research and ensuring the successful publication of this article.

Conflicts of Interest

The authors declare that they have no conflicts of interest to report regarding the present study.

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