INCOME DISTRIBUTION AND ZAKAT CONTRIBUTION IN MALAYSIA

Main Article Content

Nur Afiqah Mohd Fizol
Nur Syahirah Syahirin
Nurul Suhada Sarnubi
Safinatun Najah Seman
Nurul Kauthsar Razman
Fuadah Johari

Abstract

One of the fundamental obligations of every Muslim is to pay Zakat. The asnaf group may receive assistance from Zakat payments and income distribution to survive financial difficulties. This article aims to describe how Malaysian Zakat income and distribution function. The significance of Zakat donations to the community for its economic development is discussed in the first paragraph of this article. The history of the Zakat contribution controversy and Sharia-based theory are then covered. The study's conclusion indicates an imbalance in the distribution of Zakat by the state in Malaysia based on the country's poverty rate. In order to ensure that Zakat's contribution to the community is effective, the article underlines the necessity for a thorough action plan to ensure that no Muslim group is overlooked or marginalised. To fulfil their different obligations and more effectively and efficiently meet the responsibility to donate Zakat, every Muslim community member must honestly collaborate and adhere to the detailed action plan.

Downloads

Download data is not yet available.

Article Details

Section
Articles

References

Abu Bakar, N.B. and Rashid, H.M. (2010) "Motivations of paying zakat on income: Evidence from Malaysia," International Journal of Economics and Finance, 2(3). Available at: https://doi.org/10.5539/ijef.v2n3p76.

Ali, M.A.M., Khamar Tazilah, M.D.A.B., Shamsudin, A.I.B., Faisal Shukri, F.R.B., Nik Adelin, N.M.F.A.B. and Zainol Zaman, W.M.S.B., 2017. Factors that influence the zakat collection funds: a case in Kuantan. SEAJBEL, 13(1), pp.30-37.

Household Income Estimates and Incidence of Poverty Report, Malaysia, 2020. Department of Statistics Malaysia. Available at: https://www.dosm.gov.my/v1/index.php?r=column/cthemeByCat&cat=493&bul_id=VTNHRkdiZkFzenBNd1Y1dmg2UUlrZz09&menu_id=amVoWU54UTl0a21NWmdhMjFMMWcyZz09

Ibrahim, P., Ali, M., Muridan, M. and Jazid, A.I.M., 2020. Revisiting zakat distribution on income inequality and welfare: The Malaysia Experience. al-Uqud: Journal of Islamic Economics, 4(1), pp.146-161.

Johari, F., Ali, A.F. and Muhammad, A.B., 2015. The Role of Zakat Distribution among Muallaf (New Convert) in Reducing Poverty in Selangor, Malaysia. Journal of Economic Policy Researches, 2(1), pp.39-56.

MAIN, M.A.I.N.-N. (2019) Statistik Agihan Zakat Mengikut Negeri, SPMJ JAWHAR. Available at: https://baitulmal.jawhar.gov.my/zkt_agihan_stat.php (Accessed: November 22, 2022).

Migdad, A., 2019. Managing Zakat through institutions: case of Malaysia. International Journal of Islamic Economics and Finance Studies, 5(3), pp.28-44.

Mohd Ali, A.F. et al. (2015) "The effectiveness of zakat in reducing poverty incident: An analysis in Kelantan, Malaysia," Asian Social Science, 11(21). Available at: https://doi.org/10.5539/ass.v11n21p355.

Peng Tey, N. et al. (2019) "Income inequality across states in Malaysia," PLANNING MALAYSIA, 17. Available at: https://doi.org/10.21837/pm.v17i10.625.

Rodzi Embong, M., Taha, R. and Mohd Nor, M.N. (2013) "Role of zakat to eradicate poverty in Malaysia," Jurnal Pengurusan, 39, pp. 141–150. Available at: https://doi.org/10.17576/pengurusan-2013-39-13.

Rosli, M.R. et al. (2018) "Modification of zakat distribution management for Muslim community well-being," International Journal of Academic Research in Business and Social Sciences, 7(12). Available at: https://doi.org/10.6007/ijarbss/v7-i12/3761.

Suprayitno, E. (2013) "The impact of zakat on aggregate consumption in Malaysia," Journal of Islamic Economics , Banking and Finance, 9(1), pp. 39–62. Available at: https://doi.org/10.12816/0001592.

Suprayitno, E., Aslam, M. and Harun, A. (2017) "Zakat and sdgs: Impact zakat on human development in the five states of Malaysia," International Journal of Zakat, 2(1), pp. 61–69. Available at: https://doi.org/10.37706/ijaz.v2i1.15.

Samad, M.N., Ariff, M. and Nassir, A.M., 2016. Impact of zakat payment offset system on income tax collection in Malaysia. International Journal of Applied Business and Economic Research, 14(13), pp.9579-9607.

ZULKIFLI, M.F., TAHA, R., MOHD NOR, M.N. and ALI, A., 2021. Combating poverty in Malaysia: The role of Zakat. The Journal of Asian Finance, Economics and Business, 8(5), pp.505-513.