ACHIEVING EFFECTIVENESS OF ZAKAT DISTRIBUTION TO THE RIGHFUL RECIPIENTS IN MALAYSIA

By: Muhammad Yahya bin Shafee (2012186815)

Overview of Presentation
Content
Abstract Motivation Problem Statement Objectives Findings Implications Conclusion

Abstract
The aim of this research is to examine the effectiveness of zakat distribution by Lembaga Zakat Selangor (LZS) focuses to the rightful recipients in Selangor state. Even though the zakat collections from LZS were increased from year to year, yet there are still beggars roaming around the Klang valley area. It intends the researcher to examine the root problem arises on the zakat distribution whether the management of LZS lacking in doing publicity or the citizen itself did not aware with the existence of this institution. The statistical data for this research were obtained from documents such as reports and financial records of LZS. The article would discuss on matters that should be dealt with in order to improve LZS in terms of the effectiveness on zakat distribution.

Motivation
To provide a crystal view regarding issues arise on the zakat distribution in Malaysia.

Problem Statement
Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Total Collection (RM Million) 11.5 15.9 28.6 31.4 37.4 35.3 51.3 61.4 78.9 86.5 107.8 133.2 159.9 38.26% 79.87% 9.79% 19.11% -5.61% 45.33% 19.69% 28.50% 9.63% 24.62% 23.56% 20.05% Increase/ Decrease (%) Total Distribution (RM Million) 14 16.3 27.1 29.6 30.7 31.7 32 52.5 66.8 85.2 100.8 114.2 146.9 16.43% 66.26% 9.23% 3.72% 3.26% 0.95% 64.06% 27.24% 27.54% 18.31% 13.29% 28.63% Increase/ Decrease (%) Surplus/Shortage (RM Million) -2.5 -0.4 1.5 1.8 6.7 3.6 19.3 8.9 12.1 1.3 7 19 13

2007
2008 2009 2010 2011 2012

202.1
244.5 283.8 336.7 394.1 451.3 2751.6

26.39%
20.98% 16.07% 18.64% 17.05% 14.51%

177
189 279.2 364.9 373.5 401.8 2533.2

20.49%
6.78% 47.72% 30.69% 2.36% 7.58%

25.1
55.5 4.6 -28.2 20.6 49.5 218.4

(Source: Lembaga Zakat Selangor, 2012)

Cont.
The total surplus of zakat in LZS is RM218.4 million on year 2012. It is a huge amount of money that LZS did not distributed yet. Yet, there are many beggars surrounding us and could be seen roaming in Klang valley area. It is whether the management of LZS did not disburse the zakat collection effectively or the number of poor and needy people in Selangor has decreased.

Objectives
To identify the problems and issues arise on the zakat distribution in Malaysia.

To provide recommendations for LZS in improving their zakat distribution.

Findings
Zakat did not reach the targeted group due to lack of publicity by the authority or lack of knowledge on the other part of the community (Mohammad et al., 2011). Zakat has been handed over to the rightful persons but at the same time there are people who need more zakat compared to the former (Siti Akmar et al., 2011) Bureaucracy plays another role where it would disrupt the process of distributing zakat (Ahmad & Shofian, 2010). All kinds of requirements and bad experience with the authority discourage people from making an application for zakat (Azman et al., 2012).

Implications
The government should have the head of zakat institution in Malaysia so that the money surplus can be channel to other states. Enlarge the definition of asnaf; such as Fisabilillah. Promoting the zakat institution massively to the public and identify the potential asnaf thoroughly. Restructuring the procedures and requirements on zakat application. Allocate some portion of zakat money in the profitable investments

Conclusion
The researcher believes that zakat institution plays an important role in complementing the Governments poverty eradication with regard to the poor and needy Muslims. Besides the poor and needy, there are other rightful recipients allowed by the Syariah. Administering zakat is very important; not only deals with collecting and distributing money, but also related to the spirit to uphold Islam as a religion for all humanity. Therefore, such spirit must be the foundation of operating the zakat institutions because it would enhance their wellbeing and quality of life, thus it would increase the individual and organizational productivity and performance.