Exploring the Concept of Financial Planning from the Perspective of Maqāṣid al-Sharīʿah

Main Article Content

Fadillah Mansor
Ahmad Naim Abdullah
Zairani Zainol


Financial planning is commonly associated with the management of debt. In reality, financial planning also includes money management, emergency planning, investments, and estate planning among others. Muslims in Malaysia generally lack of involvement in the matters concerning financial planning. It is evident when the majority of those who are declared bankrupt are Muslims. Lack of Muslims’ participation in takāful and matters pertaining to Muslim inheritance is also worrying. Hence, this study is aimed at exploring the concept of financial planning from the perspective of the Objectives of the Sharīʿah (Maqāṣid al-Sharīʿah). The methodology of this study involves an in-depth interview with selected experts in the area of Maqāṣid al-Sharīʿah and Islamic financial planning. The results indicate the elements involved in financial planning concept are in accordance with the guidelines provided by Islam and the concept of financial planning is related to all the elements in Maqāṣid al-Sharīʿah, particularly on wealth protection.

Article Details



Abdullah, and Junaina Muhammad. “Ethical Values in Islamic Financial Planning.” Jurnal Pengurusan, 2013, 38: 133–140.

Ahcene, Lahsasna. Maqasid Al Shariah in Islamic Finance. Malaysia: IBFIM Publication. https://www.researchgate.net/publication/321333441_Maqasid_al_Shariah_in_Islamic_Finance_2013_IBFIM_Publication_Malaysia, 2013.

Ahmad Ghazi, Mahmood. Muhazirat e Maeeshat o Tijarat. Lahore, Pakistan: Alfaisal, 2010, http://www.genrica.com/books_download.aspx?titleID=183&metaID=0&volumes=0

Ahmed, Habib, and Hasnol Alwee. “Inclusive Islamic Financial Planning: A Conceptual Framework.” International Journal of Islamic and Middle Eastern Finance and Management, 2016, 9 (2): 170–89. https://doi.org/10.1108/mf.2008.00934jaa.001.

Al-Qaradawi, Yusuf. The Lawful and Prohibited in Islam. Chicago: American Trust Publications, 1999.

Alias Azhar and Noraziah Che Arshad. “Takaful as a Risk Management Tool in Islamic Estate Planning.” Journal of Business Management and Accounting, 2012, 2 (2): 101–116. https://doi.org/10.1158/0008-5472.CAN-09-3112.

Ali, Emrullah, and Muhammad Hadimi. Ethics of Islam. 3rd ed. Istanbul: Waqf Ikhlas Publication, 2001.

Altfest, Lewis. “Personal Financial Planning: Origins, Development and Plan for Future Direction.” The American Economist, 2004, 48 (2): 53–60. https://doi.org/10.1098/rstb.2011.0050.

______. Personal Financial Planning. New York: McGraw-Hill/Irwin, 2007.

Asmadi Mohamed Naim, “Maqasid Syariah Dan Pemikiran Pengurusan Islam.” Universiti Utara Malaysia., 2003. https://www.researchgate.net/publication/280830338_ Maqasid_syariah_dan_pemikiran_pengurusan_Islam.

Asyraf Wajdi Dusuki and Said Bouheraoua, “The Framework of Maqasid Al-Shariah and Its Implication for Islamic Finance.” ICR-Islamic Civilization and Renewal Journal, 2011, 2 (2): 316–336.

Ayub, Muhammad. “Understanding Islamic Finance.” Understanding Islamic Finance, 2015, https://doi.org/10.1002/9781119209096.

Bensaid, B., Grine, F., Mohd Nor, M. R., & Mohd Yusoff, M. Y. Z., Enduring Financial Debt : An Islamic Perspective. Middle-East Journal of Scientific Research, 2013, 13(2), 162–170. https://doi.org/10.5829/idosi.mejsr.2013.13.2.1790

Bhat, Samee-Ullah. “Human Rights in Islamic Tradition : An Overview.” Journal of Advanced in Humanities and Social Science, 2018, 5 (3): 12–16.

BNM. “Financial Stability and Payment Systems Report 2018”, 2018.

______. “Financial Stability Review Second Half 2019.” Retrieved from https://Www.Bnm.Gov.My/Ar2019/.

CEIC. “Malaysia Household Debt: % of GDP, 2002–2021 Data.” 2020. https://www.ceicdata.com/en/indicator/malaysia/household-debt--of-nominal-gdp.

Certified Financial Planner Board of Standards Inc. “Consumer Surveys - CFP Board.” 2009. https://www.cfp.net/news-events/research-facts-figures/cfp-board-research/consumer-surveys.

Chapra, Muhammad Umer. “The Nature of Riba in Islam.” The Journal of Islamic Economics and Finance (Bangladesh), 2006, 2 (1): 7–25.

Creswell, John W., and Vicki L. Plano Clark. “Principles of Qualitative Research: Designing a Qualitative Study”, 2004, http://leaderpart.andrews.edu/RoundTable/2004/workshops/2b/AU-Qual-071504-jwc-vpc.pdf.

Department of Statistics Malaysia. “Report of Household Income And Basic Amenities Survey” , 2016, https://www.dosm.gov.my/v1/index.php?r=column/cthemeByCat&cat=120&bul_id=RUZ5REwveU1ra1hGL21JWVlPRmU2Zz09&menu_id=amVoWU54UTl0a21NWmdhMjFMMWcyZz09.

Fraenkel, Jack R., Norman E. Wallen, and Helen Hyun. How to Design and Evaluate Research in Education. 8th ed. New York, NY: McGraw-Hill Education, 2011.

Muhammad Hanif, “Differences and Similarities in Islamic and Conventional Banking.” International Journal of Business and Social Sciences, 2014, 2: 25. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1712184.

______. “Economic Substance or Legal Form: An Evaluation of Islamic Finance Practice.” International Journal of Islamic and Middle Eastern Finance and Management, 2016, 9 (2): 277–295. https://doi.org/10.1108/IMEFM-07-2014-0078.

Mohammad Hatta, Firdaus Mohammad, and Mawil Izzi Dien. “Examining the Dominance of IslamicDebt-Based Products in the Economy.” International Journal of Arts and Commerce, 2014, 3(6): 51–68.

Ibn Ashur, Muhammad al-Tahir. Tafsir Al-Tahrir Wa’l-Tanwir. Dar Ihya’ al-Turath al-’Arabi, 2001.

IFA-OIC. Resolutions and Recommendations of the Council of the Islamic Fiqh Academy 1985–2000. Islamic Development Bank & Islamic Research and Training Institute. International Islamic Fiqh Academy of the Organisation of Islamic Cooperation, 2000.

Izzuddin Abdul Aziz, and Ahmad Azrin Adnan, “Fenomena Keberhutangan Di Zaman Rasulullah.” Ulwan’s Journal, 2017, Jilid 1: 143–177.

Khan, Mohamed Fahim. “Essays in Islamic Economics.” The Islamic Foundation, 1995.

Malaysian Department of Insolvency. “Bankruptcy Statistic Disember 2018.” Kuala Lumpur. http://www.mdi.gov.my/index.php/about-us/resources/statistics/bankruptcy/1390-, 2018.

Mansoori, Muhammad Tahir. “Shariʻah Maxims: Modern Applications in Islamic Finance.” Islamabad, Pakistan, 2012.

Maznita Mokhtar and Azman Ismail. “Shariah Issues in Managing Household Debt: The Case of Malaysia.” Jurnal Pengurusan, 2013, 37: 63–76. http://journalarticle.ukm.my/6959/.

Muhamad Fazli Sabri. “Beban Hutang Isi Rumah: Isu Dan Penyelesaian.” paper presented at Seminar Beban Hutang Isirumah: Punca Dan Penyelesaian, IKIM, Kuala Lumpur 25–26 September 2014.

Moraru, Mariana. “Debt and Religion: Are Religious People More Debt Averse and Have High Willingness to Pay Their Debts Off ?” , 2012, 62. https://brage.bibsys.no/xmlui/handle/11250/183950.

Palys, Ted. “Purposive Sampling.” The Sage Encyclopedia of Qualitative Research Methods, 2008, 2: 697–698.

Patton, Michael Quinn, and Michael Cochran. “A Guide to Using Qualitative Research Methodology.” Medicins San Frontieres, 2002, 1–36. https://doi.org/10.1109/PROC.1978.11033.

Philip, Gerrard, and J Barton Cunningham. “Islamic Banking: A Study in Singapore.” International Journal of Bank Marketing, 1997, 15 (6): 204–216. http://dx.doi.org/10.1108/02652329710184433.

Qian, Da Jia, and Sivakumar Velayutham. 2017. “Conventional Banking and Islamic Banking : Do the Different Philosophies Lead to Different Financial Outcomes ?”, 2017, 4 (June): 3–14. http://mfpc.org.my/wp-content/uploads/2017/05/3-14_Original-Research_Paper-1_Conventional-Banking-Islamic-Banking.pdf.

Raj, Paul Selva, Mohd Yusof, Siti Rahayu, and Nurul Husna. “Memperkukuh Amalan Pembiayaan Yang Bertanggungjawab.” Pusat Penyelidikan Dan Sumber Pengguna (CRRC), 2013, 2–3. http://www.bnm.gov.my/index.php?ch=109&pg=824&ac=60&bb=file.

Ramesh, Babu G. Research Methodology in Social Sciences. New Delhi, India: Concept Publishing Company Pvt. Ltd., 2008

Rammal, Hussain Gulzar, and Ralf Zurbruegg. “Awareness of Islamic Banking Products among Muslims: The Case of Australia.” Journal of Financial Services Marketing, 2007, 12 (1): 65–74. https://doi.org/10.1057/palgrave.fsm.4760060.

Sekaran, Uma, and Roger Bougie. Research Methods for Business—A Skill Building Approach. 6th ed. West Sussex: John Wiley and Sons, 2013.

Sharezan Rahman, and Mansur Masih. “Increasing Household Debts and Its Relation to GDP, Interest Rate and House Price: Malaysia’s Perspective,” 2014 (August 2014), https://mpra.ub.uni-muenchen.de/62365/.

Siddiqi, Nejatullah. “Objectives of Syariah.” Islamabad, Pakistan, 2010.

Siti Hanifah, Borhan Nordin, Lim Sheng Ling, and Abd Aziz Muhammad Khairul Muizz. “Indebted to Debt: An Assessment of Debt Levels and Financial Buffers of Households”, 2018 (no. March 2018). www.bnm.gov.my.

Siti Rohana Idris. “Lebih RM60 Bilion Harta Orang Islam Terbeku.” 2019. https://www.hmetro.com.my/mutakhir/2019/02/427566/lebih-rm60-bilion-harta-orang-islam-terbeku.

Syahnaz Sulaiman, “Konsep Pinjaman Menurut Perspektif Islam.” Jurnal Penyelidikan Islam, 2009, 22: 167–188.

Tashakkori, Abbas, and Charles Teddlie. Handbook of Mixed Methods in Social & Behavioral Research. New York, NY: SAGE Publication Ltd., 2003.

Teddlie, Charles, and Fen Yu. “Mixed Methods Sampling: A Typology With Examples.” Journal of Mixed Methods Research, 2007, 1 (1): 77–100. https://doi.org/10.1177/2345678906292430.

The Edge Markets. “Malaysia’s Household Debt-to-GDP Ratio Surges to New Peak of 93.3%.” 2021. https://www.theedgemarkets.com/article/malaysias-householddebttogdp-ratio-surges-new-peak-933.

Turner, Daniel W. “Qualitative Interview Design: A Practical Guide to Novice Investigators.” The Qualitative Report, 2010, 15 (3): 754–60. https://nsuworks.nova.edu/tqr/vol15/iss3/19.

Vicary Abdullah, Daud, and Keon Chee. Islamic Finance : Why It Makes Sense. Marshall Cavendish Business, 2010.

Zairani Zainol, Aini Nur Hajjar Khairol Nizam, and Rosemaliza Ab Rashid. 2016. “Exploring the Concept of Debt from the Perspective of the Objectives of the Shariah.” International Journal of Economics and Financial Issues, Issue 6, 7S (2016): 304—312.