Contributions and Drawbacks to the Zakat System in Malaysia

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Poverty is considered as social problem because it will affect the society as a whole. It is also an ideological problem as it affects the performance of one’s socio-religious obligation towards the community and Islam. As we already know, the main objective of zakat is to alleviate poverty among the society. Thus, holistic approach must be taken in order to achieve this means since poverty cannot be alleviated through income redistribution only.
In Malaysia, zakat distribution method is still using the periodical form of direct payment whereby the recipients are given zakat money monthly or annually. However, there are many cases show that direct payments reducing the incentive of recipients to work and finally end up being dependent on zakat funds only.
However, direct payment of zakat is still acceptable especially for nonproductive asnafs such as the disabled people and elderly. Plus, it is recommended to distribute zakat in the form of capital finance to the recipients particularly for poor and needy in order to encourage them to get involve in business activities so that they will able to sustain their live. Besides that, zakat funds are also used to support the recipients’ families by sponsoring their children school and university fees. These educational and training programmes are very useful to prevent the asnaf’s children from continue living in poverty in the future due to the lack of knowledge.
In addition, there are also highlighted issues involving zakat institutions in Malaysia such as the issues of inefficiency of zakat distribution as well as inefficient in collecting zakat which will affect the objective of alleviating poverty. In terms of distribution of zakat, there were bureaucracy problems in zakat institut...

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...the poor feelings of hatred and animosity that they might have for the rich. Thus, to achieve this goal, zakat fund must be fully utilized to develop the economy of the Muslims so that the wealth of zakat could be regarded as productive assets.
Zakat fund also act as an additional capital subsidized by the society to support the unemployment, orphans, widows, physically disadvantaged people, the sick and others. Zakat fund is not only helping recipients with providing basic necessities and improve the standard of living for the poor and downtrodden; but it also serves to help the recipients in the long term by making the recipients become productive members of the society. Thus, the allocation of zakat proportion must not only sufficient to cater the basic needs but it must also be enough to help the recipients expand their zakat fund in order to sustain their life.

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