Contributions and Drawbacks to the Zakat System in Malaysia Essay

906 Words 4 Pages
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
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This research paper is mainly to examine the contribution and drawbacks of current zakah system in Malaysia particularly in the issue of poverty alleviation as well as socio-economic development of the nation. During the period of Umar ibn ‘Abd Aziz, it can be seen that zakah acts as an important tool to eradicate poverty and improve the living standard of the poor and needy. Zakah also can be used as a tool to achieve full stability in Islamic economy whereby an effective zakah fund management can help towards the relief of government’s budgetary revenues in meeting other objectives.
However, zakah system in Malaysia still needs to be further study and should be improve in terms of the efficiency since the main objective of zakah; to eradicate poverty still not fully achieve. In Malaysia, zakah payment is made on voluntarily basis to any zakah institutions throughout the country therefore; the distribution of zakah is only confined to the beneficiaries at the respective state where zakah is collected. As a result, the allocation of zakah for the poor and other asnafs varies significantly from one state to another. Hence, zakah distribution should not remain restricted at particular state since it will be impossible to achieve an efficient and fair allocation of zakah among the asnafs across the country.
Besides that, due to the nonexistence of established laws

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