The Importance of Zakat Distribution and Urban-Rural Poverty Incidence among Muallaf (New Convert)

Abstract

This study demonstrates literately the importance of regional (urban-rural) differences and the impact of zakat distribution towards the poverty alleviations among asnaf Muallaf. This study was motivated by the monthly official zakat distribution towards asnaf Muallaf that did not differentiate the true urban-rural cost of living differences. Differences in urban and rural poverty lines that did not reflect the actual urban-rural cost of living differences will provide a misleading picture of the distributional impact of development, which usually involves urban sector expansion. In a dualistic economy, one of the ways the poor benefit from development is through expansion of job opportunities in the modern predominantly urban sector, in addition to increases in productivity in the traditional predominantly rural sector. Thus, this study aims to identify the dispersal of Muallaf in terms of urban-rural poverty that involved in allocation of zakat distribution. In defining poverty between urban and rural areas, therefore, one should ensure the differences in the cost of living between these two areas. The finding suggest that, a huge of amount of zakat been allocated to the development of asnaf Muallaf in the state of Selangor especially in urban area. However, most of zakat distribution on Muallaf goes to urban region which higher in cost of living without considering a set of prices including a broader bundle of goods and services representative of the purchases of consumers in different region.

Corporate social responsibility and financial performance in Saudi Arabia

“…The paper analyses the appropriateness of Islamic poverty reduction model as a policy response for the actualization of the eight MDGs (namely, to eradicate extreme poverty and hunger, achieve universal primary education, promote gender equality and empower women, reduce child mortality, improve maternal health, combat, HIV/AIDS, malaria and other diseases, ensure environmental sustainability and develop a global partnership for development) and argues that Islamic economic principles is plausible and beneficial in tackling poverty-related issues. In addition, studies by Ali and Hatta (2014), Johari et al (2014), Ali et al (2015), Olanipekun et al (2015), Amuda (2013) had offered strategies to eliminate poverty through the Zakat distribution model, thereby reducing income inequality and maximizing social welfare, which, in turn, provides foundations for sustainable development and good life.…”

Manqul: Communicating the Message of God to the Diverse Islamic Disciples

“…At the moment, Islam has been spread widely throughout the world, but with a lot of muallaf, the new convert followers (Kettani, 2010;Moon, Kobayashi, & Suh, 2006) and/or those are still poor on sharia (Islam law) literacy. For this reason, they need the guidance of implementation of Islam (Ismawati, 2012;Johari, Ali, Aziz, & Ahmad, 2014). Another reason is to open the eyes of the world so that the negative image addressed to Islam can be clarified whether it's true or not (Ali, Salem, Oueslati, Andrew, & Quirke, 2011;Oueslati, McAndrew, & Helly, 2011).…”

Zakat and Accounting Valuation Model

“…The implication of this concept is a total commitment to the will of Allah. Another emphasis presented by this preaching is the role of individuals in a wide social context and the obligation that these individuals have as not to benefit at the expense of other people (Johari, Ali, AbAziz, & Ahmad, 2014). All business dealings must be legitimate, and justifiable and far and achieve reasonable amount of profit.…”