From Islamic Finance toward the successful of Malaysian SMEs performance

Abstract EN

The purpose of this article is to investigate the effect of Islamic financing on the SMEs performance.

The Strategy theory used to confine the factor of financing source as to determine the successful of SMEs performance.

This article review and illustrate that Malaysia has a very encouraging history of Islamic banking and has big potential to succeed in this area.

However, some areas need to be improved, as suggested in the article.

It also found that the Malaysian model in developing Islamic financial industry can be taken as a benchmark in the development of such industry in other countries.