PPZ-MAIWP: Helping communities thrive through zakat

PPZ CEO, Datuk Abdul Hakim Amir Osman

Zakat, one of the Five Pillars of Islam, plays a significant role in fostering compassion, reducing inequality and promoting social cohesion.

By mandating a portion of wealth to be allocated to the less fortunate, zakat helps to purify the giver’s wealth while addressing critical social and economic issues by redistributing resources to those in need, ensuring a safety net for the most vulnerable members of society.

As the year ends, the Federal Territory Zakat Centre (PPZ-MAIWP) urges eligible Muslims to fulfil their zakat obligations at the latest by Dec 31.

Funds collected are channelled into supporting families struggling to meet basic needs, offering scholarships and education programmes for underserved communities, and providing healthcare for individuals unable to afford treatment.

Zakat catalyses economic empowerment, breaking the cycle of poverty and enabling individuals to build better lives for themselves and their families.

The Ministry of Economy recently highlighted that Kuala Lumpur had the highest number of hardcore poor households, according to eKasih data as of Nov 30, 2024, with 2,191 categorised as hardcore poor and 391,539 as poor.

The high number of hardcore poor in Kuala Lumpur highlights the challenges urban populations face, where the high cost of living can exacerbate poverty levels.

Urban poverty often stems from limited access to affordable housing, rising healthcare costs and insufficient public transportation options, which together strain household incomes.

Additionally, job insecurity and the lack of access to quality education further entrench poverty cycles in urban areas.

Addressing these issues requires targeted interventions, such as affordable housing programmes, expanded healthcare subsidies and skills training initiatives that empower individuals to secure better employment opportunities.

Moreover, MAIWPNow data shows (as of Dec 24) that the total zakat distributed stood at RM1.026 billion, a shortfall of approximately RM100 million compared with the total collection of RM936.78 million, underscoring the urgency to increase zakat collections to bridge the gap.

This shortfall highlights the growing needs within communities and the increasing reliance on zakat funds to address critical social and economic challenges. To mitigate this gap, initiatives such as digital payment platforms, targeted awareness campaigns and corporate social responsibility partnerships have been introduced to enhance zakat collection and distribution.

With the theme “Bahagia Memberi”, PPZ-MAIWP launched the Year End Zakat campaign to boost zakat contributions.

It is also worth noting that zakat payments made by Dec 31 are eligible for a 100% tax rebate in Malaysia, offering a dual benefit of fulfilling one’s religious duty and reducing taxable income.

This added incentive underscores the importance of acting promptly and ensures that contributions are made on time.

Paying zakat is more than a religious obligation; it is a commitment to building a more equitable society.

By contributing to the well-being of others, Muslims fulfil a higher purpose while purifying their wealth.

PPZ-MAIWP remains dedicated to facilitating this process, ensuring transparency and efficiency in managing contributions.

As the year-end deadline approaches, seize the opportunity to make a meaningful impact by fulfilling your zakat obligations to empower communities, uplift lives and create a brighter future for all.