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Why the ‘one-size-fits-all’ subsidy structure of Tabung Haji no longer works and how to move forward

The original, novel idea behind Tabung Haji’s establishment was to help Malaysian Muslims save for hajj. However, throughout the years, the subsidy amount for hajj pilgrims has proven to be ever-increasing. As a case in point, for the 2020 hajj season, a first-time hajj pilgrim needs only pay RM9...

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Main Authors: Abd Rahman, Nur Hasnida, Md Zabri, Mohd Zaidi
Format: Article
Language:English
Published: International Institute of Advanced Islamic Studies (IAIS) Malaysia 2021
Subjects:
BPH72 Economic development. Growth. Sustainable development. Sustainability
Online Access:http://irep.iium.edu.my/91030/7/91030_Why%20the%20%E2%80%98one-size-fits-all%E2%80%99%20subsidy%20structure%20of%20Tabung%20Haji.pdf
http://irep.iium.edu.my/91030/
https://icrjournal.org/index.php/icr/article/view/827/801
https://doi.org/10.52282/icr.v12i1.827
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spelling my.iium.irep.910302021-07-26T05:08:39Z http://irep.iium.edu.my/91030/ Why the ‘one-size-fits-all’ subsidy structure of Tabung Haji no longer works and how to move forward Abd Rahman, Nur Hasnida Md Zabri, Mohd Zaidi BPH72 Economic development. Growth. Sustainable development. Sustainability The original, novel idea behind Tabung Haji’s establishment was to help Malaysian Muslims save for hajj. However, throughout the years, the subsidy amount for hajj pilgrims has proven to be ever-increasing. As a case in point, for the 2020 hajj season, a first-time hajj pilgrim needs only pay RM9980 out of RM22,900 of the original costs. Stated differently, Tabung Haji subsidises more than half (56.42 per cent) of the total cost. As with any subsidy, the main question is, where do we find the money? For instance, the governments of Muslim majority nations such as Pakistan and Indonesia used to directly subsidise their hajj pilgrims but have recently stopped doing so. Moreover, Tabung Haji is a business entity, which understandably needs to generate profit that will then be used to subsidise hajj pilgrims. Consequently, this paper aims to examine the (un)sustainability of the existing subsidy structure and suggest a way forward. Due to its politically sensitive nature, instead of eliminating the subsidy, the authors used data from the Household and Basic Amenities Survey 2019 to mathematically simulate a regressive subsidy structure for firsttime hajj pilgrims. International Institute of Advanced Islamic Studies (IAIS) Malaysia 2021-06-30 Article PeerReviewed application/pdf en http://irep.iium.edu.my/91030/7/91030_Why%20the%20%E2%80%98one-size-fits-all%E2%80%99%20subsidy%20structure%20of%20Tabung%20Haji.pdf Abd Rahman, Nur Hasnida and Md Zabri, Mohd Zaidi (2021) Why the ‘one-size-fits-all’ subsidy structure of Tabung Haji no longer works and how to move forward. Islam and Civilisational Renewal, 12 (1). pp. 98-113. ISSN 2041-871X E-ISSN 2041-8728 https://icrjournal.org/index.php/icr/article/view/827/801 https://doi.org/10.52282/icr.v12i1.827
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
language English
topic BPH72 Economic development. Growth. Sustainable development. Sustainability
spellingShingle BPH72 Economic development. Growth. Sustainable development. Sustainability
Abd Rahman, Nur Hasnida
Md Zabri, Mohd Zaidi
Why the ‘one-size-fits-all’ subsidy structure of Tabung Haji no longer works and how to move forward
description The original, novel idea behind Tabung Haji’s establishment was to help Malaysian Muslims save for hajj. However, throughout the years, the subsidy amount for hajj pilgrims has proven to be ever-increasing. As a case in point, for the 2020 hajj season, a first-time hajj pilgrim needs only pay RM9980 out of RM22,900 of the original costs. Stated differently, Tabung Haji subsidises more than half (56.42 per cent) of the total cost. As with any subsidy, the main question is, where do we find the money? For instance, the governments of Muslim majority nations such as Pakistan and Indonesia used to directly subsidise their hajj pilgrims but have recently stopped doing so. Moreover, Tabung Haji is a business entity, which understandably needs to generate profit that will then be used to subsidise hajj pilgrims. Consequently, this paper aims to examine the (un)sustainability of the existing subsidy structure and suggest a way forward. Due to its politically sensitive nature, instead of eliminating the subsidy, the authors used data from the Household and Basic Amenities Survey 2019 to mathematically simulate a regressive subsidy structure for firsttime hajj pilgrims.
format Article
author Abd Rahman, Nur Hasnida
Md Zabri, Mohd Zaidi
author_facet Abd Rahman, Nur Hasnida
Md Zabri, Mohd Zaidi
author_sort Abd Rahman, Nur Hasnida
title Why the ‘one-size-fits-all’ subsidy structure of Tabung Haji no longer works and how to move forward
title_short Why the ‘one-size-fits-all’ subsidy structure of Tabung Haji no longer works and how to move forward
title_full Why the ‘one-size-fits-all’ subsidy structure of Tabung Haji no longer works and how to move forward
title_fullStr Why the ‘one-size-fits-all’ subsidy structure of Tabung Haji no longer works and how to move forward
title_full_unstemmed Why the ‘one-size-fits-all’ subsidy structure of Tabung Haji no longer works and how to move forward
title_sort why the ‘one-size-fits-all’ subsidy structure of tabung haji no longer works and how to move forward
publisher International Institute of Advanced Islamic Studies (IAIS) Malaysia
publishDate 2021
url http://irep.iium.edu.my/91030/7/91030_Why%20the%20%E2%80%98one-size-fits-all%E2%80%99%20subsidy%20structure%20of%20Tabung%20Haji.pdf
http://irep.iium.edu.my/91030/
https://icrjournal.org/index.php/icr/article/view/827/801
https://doi.org/10.52282/icr.v12i1.827
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score 13.211869

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