Zakat fuels social equity and growth

New Straits Times

26-06-2025

IPOH: Zakat plays a pivotal role as a powerful instrument of social justice, uplifting those in need and narrowing the gap between the rich and the poor, the Sultan of Perak said.
Sultan Nazrin Muizzuddin Shah said the collection of zakat has a rich and longstanding history.
"Traditionally, it was given directly to religious teachers, who would then distribute it to eligible recipients within their communities.
"This approach was rooted in deep trust and faith, but it often lacked proper record-keeping and distribution data.
"As a result, it was difficult to track collections and distribution, hindering the full realisation of zakat's intended philosophy and purpose," he said in his speech at the launch of Zakat Perak Al Ridzuan (Zapar) here today.
Also present were Perak Menteri Besar Datuk Seri Saarani Mohamad and MAIPk president Tan Sri Mohd Annuar Zaini.
Sultan Nazrin said a significant transformation in the administration of zakat collection occurred following the British involvement in the governance of the state.
He said that responsibilities for Islamic affairs and Malay customs were entrusted to the Ruler at the state level.
"This marked the birth of the institution now known as the Majlis Agama Islam (Islamic Religious Council), first established in Kelantan in 1916.
"Subsequently, it became the principal institution responsible for managing Islamic affairs, including the collection of zakat, across all states," he said.
Sultan Nazrin said the Perak Islamic Religious and Malay Customs Council (MAIPk) was established on 1 Muharram 1369 Hijri, or Oct 23, 1949, under the Perak State Constitution of 1948.
"Subsequently, on May 1, 1952, the Perak state government enacted the law to establish MAIPk.
"MAIPk plays a pivotal role not only as a religious advisory body to His Royal Highness the Sultan but also as the Baitul Mal, entrusted with managing Islamic funds, particularly zakat and waqf, in Perak," he said.
He said that during the first decade of its establishment, the total amount of zakat collected by MAIPk was below RM400,000.
"This was due in part to a lack of awareness about the obligation to pay zakat, the small number of Muslims eligible to contribute, and the relatively low amounts being paid.
"Additionally, many Muslims still adhered to the traditional practice of paying zakat directly to religious teachers.
"At that time, zakat collection was largely limited to zakat fitrah and agricultural produce, particularly from paddy fields in the sub-districts of Sungai Manik, Seberang Perak, and Kerian," he said.
He said that in 2004, MAIPk's total zakat collections, encompassing both property and fitrah, stood at RM26.3 million.
"Praise be to Allah, by 2024 this amount had surged to RM253,020,010, reflecting a remarkable 858 per cent growth over the past two decades.
"The growth in zakat collections can be attributed to six key drivers that have collectively fuelled its remarkable rise.
"First, the rising awareness, understanding, and conviction among Muslims regarding their religious obligation to pay zakat.
"Second, an increase in income among Muslims, both individuals and those involved in business and agriculture.
"Third, government incentives, including income tax rebates and corporate tax deductions for those who fulfil their zakat obligations," he said.
He said the fourth factor is the introduction of wakālah, a delegation mechanism that allows payers greater flexibility in discharging their zakat.
"Fifth, continuous improvements in zakat management and administration. And sixth, the growing confidence of Muslims in MAIPk to manage and distribute zakat effectively," he said.