ISLAM recognises the consumer’s important role in an economy.
The behavioural pattern of the consumer can influence the economy of a country.
Thus, it is important to educate the consumer to help stabilise the economy.
This effort is also in line with the approach of Islam Hadhari pertaining to achieving balanced and comprehensive economic development.
Islam believes that Muslim consumers, living under the influence of an Islamic worldview and ethical norms, will possess a certain kind of behavioural pattern.
First, it begins with the understanding that a Muslim consumer is responsible initially to spend on his needs and that of his dependants.
In fact, this is his prime responsibility. Say: Who hath forbidden the beautiful (gifts) of God, which he hath produced for His servants, and the things, clean and pure, (which He hath provided) for sustenance? Say: They are, in the life of this world, for those who believe, (and) purely for them on the Day of Judgment. Thus we do explain the signs in detail for those who understand. (Quran 7:32).
Islam considers meeting family needs as religious responsibility. Allah says: “And render to the kindred their due rights, as (also) to those in want and to the wayfarer: but squander not your wealth in the manner of a spendthrift.” (Quran 17:26).
Narrated Ibn Omar, the Prophet of Allah: “If a person is striving to provide for his old parents he is in the path of Allah. If he is striving to provide for small children he is striving in the cause of Allah. Even if he is striving to make himself well provided for, he is in the cause of Allah”.
One’s need for future contingencies is also recognised by Islam. The Quran says: “Make not thy hand tied (like a niggard’s) to thy neck, nor stretch it forth to its utmost reach, so that thou become blameworthy and destitute.” (Quran 17:29).
This saving proportion is for one’s future consumption. Thus Islam recognises saving but it must be realistically proportionate to one’s total income.
In performing his consumption duty, an Islamic man also has his responsibility towards his fellow men. His fellow men are also dear to him, in line with his philosophy of life (tawhid).
Thus spending for others for the sake of Allah is also a righteous act. The Quran says: “Verily the most honoured of you in the sight of God is (he who is) the most righteous of you.” (Quran 49:13).
Spending for others for the sake of Allah is unlimited. It should be in correlation with one’s level of income. The higher the income a person receives, the more he will help others.�
As Allah prescribes: “They ask thee how much they are to spend. Say: What is beyond your needs.” (Quran 2:219).
In another verse, Allah says: “They ask thee what they should spend (in charity). Say: whatever ye spend that is good, is for parents and kindred and orphans and those in wants and for wayfarers and whatever ye do that is good God knoweth it well.” (Quran 2:215).
It is clear that spending for others for the sake of Allah is a righteous act and this can be done after one has fulfilled his needs and the needs of his dependents.
This good deed of the Muslim is done in anticipation of reward (utility) in the life after death.
Doing a righteous act is in line with the concept of God-fearing, which consequently will lead to the achievement of success.
Since consumption activity is an essential activity for every man and doing it within the Islamic prescriptions can lead to one’s achievement of success, a rational Islamic man then will try his very best to optimise his achievement.
In fact, if one were to ponder seriously the achievement of success through one’s activity of consumption, one is truly practising perfection in consumption, that is, leading towards optimisation of one’s welfare.
This is because Islam teaches a Muslim to fulfil his needs and the needs of his dependents in an ethical manner and not to waste unnecessarily.
Over-consumption, which is a characteristic of a Godless society, is condemned in Islam and is termed extravagance (israj) or profligacy (tabzir). This is because it is harmful to that particular individual’s welfare.
Beyond his and his dependents’ needs, a Muslim has a responsibility to help others in their consumption needs.
Allah says: “O ye who believe! Give of the good things which ye have (honourably) earned. And of the fruits of the earth which we have produced.” (Quran 2:267).
This not only will tackle the problem of poverty in society, but will also strengthen human brotherhood.
On top of that, it will also generate more economic activities as consumption contributes to a bigger proportion of the aggregate demand, based on the assumption that marginal propensity to consume is higher among the lower-income bracket.
If the well to do among society were to be conspicuous in their consumption needs, that is, going for luxurious consumption, the country’s resources will then move towards the luxurious sector at the expense of the basic needs sector. The welfare of the majority of the population will then be affected.
The institution of zakat system practised in an Islamic society may also influence consumer behaviour. According to Islam, it is compulsory for Muslims who have satisfied the minimum requirements laid down by the Quran to give zakat (alms).
The Quran says: “Alms are for the poor, the needy, and those employed to administer the (funds), for those whose hearts have been (recently) reconciled (to truth), for those in bondage and in debt, in the cause of God, and for the wayfarer: (Thus is it) ordained by God and God is all-knowing and wise.” (Quran 9:60).
The aims of zakat, among other things, are to prevent wealth from being circulated among the rich and to foster brotherhood among men.
This imposition of zakat will influence a consumer�s behaviour as to how he allocates his income for consumption, saving/investment, spending on others for the sake of Allah, and the amount required for zakat.
In an Islamic society, we can divide people into two groups: those who are zakat-payable and those who are not.
For the zakat-payable, his income for spending can be allocated in the following categories:
- SPENDING for zakat;
- SPENDING for his needs and the needs of his dependants;
- SAVING for future needs; and
- SPENDING on others for the sake of Allah.To the non-zakat-payable individual, his income for spending can be allocated in the following categories:
- SPENDING for his needs and the needs of his dependants;
- SAVING, if any, for future needs; and
- SPENDING on others, if any, for the sake of Allah.The above discussions clearly reveal to us the importance of religious belief on the life of the individual Muslim. Every act of an Islamic man should be governed by religious ethics and norms. The religious values mould the consumer’s behaviour so that every act of his in consumption is patterned towards achieving success.
