Challenges of Financial Planning for Performing Hajji of Muslims in Thailand

Abstract

This research consists purposes were 1. to study financial planning for performing Hajj among Thai Muslims, 2. to examine approaches to promote financial planning for Hajj and 3. to propose appropriate financial planning strategies suitable for the context of Thai Muslims. This study adopted a mixed-methods research design integrating both quantitative and qualitative approaches. The research instruments consisted of a questionnaire, in-depth interview protocol and focus group discussion record form. The quantitative sample comprised 400 Muslims in Thailand, determined using Cochran’s sample size formula (W.G. Cochran). In addition, 27 key informants were selected through purposive sampling for the qualitative phase. The reliability coefficient of the instrument was 0.73. Data collected from the questionnaires were analyzed using descriptive statistics, including mean and standard deviation. Qualitative data obtained from the in-depth interviews and focus group discussions were analyzed using content analysis. The findings revealed that 1) Financial planning for performing the Hajj among Muslims in Thailand consists of three dimensions 1.1) Financial goal setting and life goal orientation, including knowledge and understanding of personal financial planning, objectives, and factors influencing personal financial planning, were overall at a high level (x̄ = 3.65, S.D. = 0.58) 1.2) Spending and saving behaviors, including saving patterns, financial allocation, written financial planning, implementation and review of spending behavior, timeframes for saving, future savings, and emergency funds, were also overall at a high level (x̄ = 3.52, S.D. = 0.61) 1.3) Information awareness, attitudes and perceptions toward performing the Hajj were at a moderate level overall (x̄ = 3.38, S.D. = 0.63) 2) Guidelines for promoting financial planning for the Hajj involve multiple approaches. Government agencies emphasize support in expense management and information provision for Muslims undertaking the Hajj, with a focus on long-term savings and the establishment of community-based Hajj funds. Islamic banks and the Bank for Agriculture and Agricultural Cooperatives apply wadiah-based savings schemes as long-term accounts with returns and lottery incentives; however, limitations remain in public understanding, promotion, and the requirement to travel with designated tour companies. Insurance institutions, such as Takaful providers, promote life and property protection but do not directly focus on Hajj expense planning. Meanwhile, the three Islamic cooperatives in the southern border provinces encourage members to save and provide financing for Hajj and Umrah, emphasizing smooth and secure financial management and 3) The establishment of village or community Hajj funds can significantly expand opportunities for Muslims to access the Hajj more equitably. The study found that limitations within Islamic financial institutions tend to restrict access to those who are depositors, customers, or members of those institutions. As a result, opportunities to perform the Hajj often depend on individual initiative in seeking access. Establishing community-based Hajj funds would shift this dynamic by bringing opportunities closer to individuals, thereby increasing equitable access for a broader segment of the Muslim population in Thailand.