Kuala lumpur: Behind the rows of skyscrapers, bustling business centres and economic progress that define the Federal Territories as a key engine of national growth, there remains a segment of society struggling to meet basic needs.
According to BERNAMA News Agency, urban poverty has its own harsh realities, as almost every daily necessity-food, housing, transportation, and education-requires continuous spending. Unlike rural areas, where people may still have access to natural resources, life in the city is heavily dependent on household financial capacity. Chief Executive Officer of the Zakat Collection Centre of the Federal Territories Islamic Religious Council (PPZ-MAIWP), Datuk Abdul Hakim Amir Osman, stated that rising living costs in urban areas were making life increasingly challenging for low-income groups, who also face economic uncertainty, job losses, health problems, and rising daily expenses.
He explained that while economic growth does not guarantee financial freedom for all, zakat collected by PPZ-MAIWP and distributed by MAIWP serves as an essential tool for social protection for the Muslim community. This system not only provides immediate assistance but also creates opportunities for more stable futures. However, the effectiveness of the zakat system hinges on its ability to maintain trust, strengthen the confidence of zakat payers, and ensure that funds deliver maximum impact to recipients.
Abdul Hakim emphasized that aid must be need-based, assessing the comprehensive circumstances of each family. Currently, MAIWP assists about 38,000 registered asnaf families across Kuala Lumpur, Putrajaya, and Labuan. The number of recipients is not static, as economic and social circumstances change. Factors such as job loss or health problems could necessitate zakat assistance.
Zakat distribution in the Federal Territories requires around RM100 million monthly, covering a range of needs including education and medical care. Strengthening zakat collection is crucial as the number of aid recipients and the cost of assistance fluctuate. As of July, PPZ-MAIWP collected about RM600 million in zakat, aiming for a RM1.352 billion target for the year. With significant potential for zakat collection, especially in Kuala Lumpur, there remains considerable room to increase participation among eligible Muslims.
Abdul Hakim noted that technology and innovation are integral to strengthening the zakat ecosystem. Public trust is a valuable asset, and maintaining it requires a robust governance system. PPZ-MAIWP has implemented international standards and leverages technology like data analytics to improve management efficiency and decision-making.
The organisation also emphasizes digital transformation to facilitate zakat payments through various channels, including online platforms and partnerships with financial institutions. This approach has significantly boosted collection through the Monthly Zakat Salary Deduction Scheme.
Beyond collection, the zakat ecosystem aims to transform lives. Guided by maqasid syariah principles, zakat institutions strive to protect religion, life, intellect, lineage, and wealth. The system aligns with the Environmental, Social, and Governance (ESG) agenda, focusing on social responsibility and governance. Dr. Mohd Faizal P. Rameli, an Islamic economics expert, highlighted the need for comprehensive asnaf development programs to ensure sustainable improvement in recipients' living standards.
Ultimately, the success of zakat institutions lies in their ability to transform recipients into future zakat payers, ensuring a sustainable cycle of support and empowerment.