Malaysian Consumer Income and Spending Behaviour During the COVID-19 Pandemic: An Insight from Maqāṣid Al-Sharīʿah

Abstract

Purpose — Spending patterns changed during the COVID-19 pandemic due to the health crisis turning into an economic challenge. This study examines the Malaysian public’s awareness level and changes in their spending behaviour during COVID-19. It also aims to identify the spending patterns on different items based on the consumers’ income and establish whether the awareness level of maqāṣid al-Sharīʿah (objectives of Islamic law) on spending affects the public’s perception of future spending behaviour. Design/Methodology/Approach — Quantitative approaches were implemented through questionnaire outcomes, and further analysis was carried out through the SPSS software. The survey included 420 participants, and the results were analysed using inferential and descriptive statistics such as the Chi-Square test and regression. Findings — Important findings of this paper show that the situation following the COVID-19 pandemic led to behavioural changes in many aspects, especially in Malaysians’ spending patterns. The findings show that most items related to awareness of maqāṣid al-Sharīʿah and spending are less than 3, which means that respondents are not aware or slightly aware of the concept. Only one item related to spending more on necessities during the pandemic achieves an average of more than 3. Secondly, changes in spending behaviour are seen on all items included in the study, which means the pandemic caused various changes in the spending patterns of Malaysians. Furthermore, certain categories of items (e.g., food and groceries, meal delivery services, entertainment items, face masks/hand sanitisers/disinfectants, and internet services) have shown significant differences among income groups in this study. Finally, from the regression results, it is found that the awareness level of maqāṣid al-Sharīʿah and its impact on spending is significant for the future perception of spending. Originality/Value — The novelty of this study comes from the concept of relating spending behaviour to maqāṣid al-Sharīʿah, especially during challenging moments such as the COVID-19 pandemic. Practical Implications — This paper reflects the importance of enhancing the maqāṣid al-Sharīʿah concept in spending patterns, especially in Muslim-majority countries. The current research added to knowledge in regard to how consumer behaviour changed during the COVID-19 pandemic. The findings may be useful in developing marketing strategies, considering psychological elements to suit the feelings and demands of genuine customers.