Zakat Collection From Foreign Workers in Malaysia: The Zakat Collection Untapped Potential

Abstract

Foreign labor in Malaysia has been recently estimated to range between 1 to 2 million. Recent figures show that there are about 1.8 million registered or regular foreign workers, and the rest are unregistered (undocumented or irregular) workers. To understand the potential, we need to take consideration that zakat payment should be made by those who gained income above a specific nisab. In order to obtain the number of foreign workers under this category, the authors refer to the percentage of foreign workers (expatriates) who work under category I and II of employment passes (monthly salary above RM5,000 per month). The religiosity factor has to be addressed carefully to at least change Muslim foreign workers' outlook in life to become potential zakat payers. The mosque is recognized as an important Islamic institution to act as a catalyst in the evolution of zakat management in Malaysia. Nonetheless, the target of potential zakat collection should be more on higher educated foreign workers by giving special incentives to them if they are paying zakat in Malaysia.