SHAH ALAM, 22 May 2023 – Malaysia’s leading zakat institution, the Selangor Zakat Board (LZS), has achieved a historic milestone by breaking the record for zakat distribution, amounting to RM1.05 billion for the year ending 31 December 2022. This has benefited 350,000 Asnaf individuals and various organizations in Selangor. With the highest zakat distribution since its establishment, LZS demonstrates its commitment to meeting the growing needs of Asnaf in the state.
Zakat Distribution 2022
In 2022, LZS distributed RM1.05 billion across eight categories of Asnaf. This represents an increase of 13.8% from RM922 million in the previous year, driven by the effectiveness of LZS’s zakat distribution and collection channels, as well as various initiatives implemented throughout the year to support those in need.
Reflecting the socio-economic landscape of the year, LZS focused its efforts on supporting Asnaf development through five pillars, including social development, educational development, religious institution development, human capital development, and economic development, along with special assistance through the “Zakat Selangor Peduli” program.
Of the total zakat distribution, RM885 million was allocated to programs in social development, education, and religious institutions. RM700 million of the total distribution was directed toward Social Development Programs, marking a significant increase of over RM100 million compared to the previous year for the same initiatives.
Through Amil management funds, LZS also redistributed RM3.6 million as part of the zakat distribution to Asnaf. This is the highest contribution from Amil to date, continuing their service to the community. With prudent and effective operational management, LZS, as Amil, has contributed a cumulative total of RM5.5 million from Amil funds to Asnaf since 2021.
Zakat Collection 2022
This successful distribution was made possible by zakat collections, which saw a 7.5% increase in 2022. The high trust shown by Muzakki (zakat payers) toward LZS also contributed to this achievement, as seen in the increase in the number of zakat contributors from 364,778 in 2021 to 400,580 in 2022.
This significant growth is attributed to higher use of digital payment channels, enabling easier zakat payments via debit or credit cards. Notably, debit and credit card payments increased by an encouraging 170%.
Income zakat (zakat on income) was the highest contributor, totaling RM612.5 million. Among the various collection channels, payroll deduction payments contributed the largest amount, RM353.3 million.
The Chairman of LZS, Y.A.M. Tan Sri Syed Anwar Jamalullail, stated, “With urban poverty rates rising in Selangor, the Asnaf population is expected to increase to 400,000 recipients by 2025. Although we have achieved the significant milestone of distributing RM1 billion, we must realize that future distribution needs will continue to grow. Zakat distribution has been carried out effectively due to the continued contributions of Muzakki, and we strongly encourage the public to fulfill their zakat obligations to help improve the quality of life of the Asnaf community.”
Looking Ahead
Inflation is expected to persist in 2023, affecting individuals and families in urban areas, especially those with limited financial resources. Therefore, LZS will continue enhancing its services for the benefit of the state and its people, addressing future needs amid challenging market conditions.
Y.A.M. Tan Sri Syed Anwar Jamalullail added, “To address the rising cost of living and the expected increase in Asnaf numbers in the coming years, we strive to ensure that zakat assistance remains sufficient. It is therefore crucial for LZS to stay on course. Through efficient management, strong corporate governance, and adherence to Shariah principles, LZS is committed to effective zakat distribution that impacts the community. Most importantly, we will continue to drive community engagement, which is central to all our efforts, aligned with our ESG framework.”
Starting 1 July 2023, LZS will adopt a new Had Kifayah rate, increasing it from RM2,734 to RM2,990. This aims to help more eligible Asnaf and ensure they receive the full benefits of zakat.
