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http://dx.doi.org/10.13106/jafeb.2021.vol8.no5.0505

Combating Poverty in Malaysia: The Role of Zakat  

ZULKIFLI, Muhammad Faris (Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu)
TAHA, Roshaiza (Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu)
AWANG, Rohila @ Norhamizah (Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu)
MOHD NOR, Mohd Nazli (Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu)
ALI, Azwadi (Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.5, 2021 , pp. 505-513 More about this Journal
Abstract
Poverty is often referred to as a phenomenon of scarcity, inadequacy or instability of income. Besides, poverty can also cause health issues, exacerbate social problems, leading to isolation, discrimination and loss of a bright future. Lately, the role of zakat (the compulsory giving of a set proportion of one's wealth to charity) as a useful tool in combating poverty has been highlighted since zakat collected will be distributed specifically to the poor and needy groups. This paper seeks to assess the role of zakat in combating poverty among recipients. A questionnaire was distributed to 300 participants selected from the list of recipients who received assistance from Zakat institutions. A cluster random sampling has been utilized to select sampling from the target population. The data were analyzed using SPSS to provide descriptive analysis. Past evidence has shown how zakat has able to transform the recipient into a payer especially through education or business assistance. Proper management of zakat institution is seen as a powerful mechanism to facilitate community development and to strengthen the Muslim economy. Results show the importance of zakat in the effort to eradicate poverty and further able to improve the asnaf's quality of life.
Keywords
Economic; Poverty Alleviation; Rural Poverty; Zakat; Zakat Fund; Malaysia;
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