Narrow Results

This paper examines the nexus of income and multidimensional life satisfaction (LS) in the oil- and gas-rich Belait district of Brunei Darussalam. Using a random sample of 1,000 Belait residents and principal component factor analysis to sort 11 domains-of-life satisfaction into three uncorrelated LS spheres–LS with materialist life (job, stress, and income); LS with post-materialist life (family, spirituality, neighbors, and community activities); and LS with public life (health, neighborhood facility, feeling safe at home, and quality of living environment)—we discover the following. First, positive income effects on LS with materialist life sphere are evidenced from lower-middle- to high-income bands. Second, a positive income effect on LS with post-materialist life sphere is only found in the high-income band. Income does not relate to LS with public life sphere. These findings are robust to using each domains-of-life satisfaction and treating scores on domain satisfaction as ordinal and cardinal measures.

This paper is a case study on Brunei Darussalam’s public sector employees’ observations regarding the new performance appraisal system introduced in 2018. While the new system was aimed at instilling a more “performance-driven” public sector, however, based on the survey findings of this paper, a majority of respondents raised their concerns on the key performance indicators (KPIs) and other aspects of the appraisal system. The findings highlight the need for more research to be done on appraisal systems and their processes, specifically in the public sector, where an effective appraisal system can create a performance-driven public sector which can improve overall governance.

In Islamic finance, Profit and Loss Sharing (PLS) concepts are widely advocated as one of the most equitable concepts available for Islamic Financial Institutions (IFIs), given the equitable nature of sharing one’s profit and loss. However, in practice its use is limited as challenges exist which include moral hazard and a mismatch of the competencies of contemporary IFIs vis-a-vis the risk profile of PLS concepts. These challenges of PLS from an IFI perspective had been extensively covered in the literature, therefore this paper attempts to assess the challenges of PLS from a consumer or demand perspective. It is argued that there should be a reasonable level of awareness and willingness for consumers to demand a particular product; it is economically inefficient to create a product for which demand is lacking. Using a mixed method research design which includes surveys to 177 MSMEs and semi-structured interviews with two Islamic finance academicians, the findings indicate a low-level awareness of Mudarabah and Musharakah amongst MSMEs. Further, the willingness to use PLS financing among MSMEs is also found to be low, notably in terms of the willingness to share profits with IFIs, as well as having reservations on IFIs to be involved in playing an operational role in the small enterprise. These findings prompt the need for enhanced marketing approaches to enhance the awareness of these concepts for MSMES, and at the same time, defining a selective target market to explore the willingness amongst MSMEs, should PLS financing be widely available in Brunei.