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

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

Muhsin Nor Paizin (Pusat Pungutan Zakat, Malaysia)
Copyright: © 2021 |Pages: 11
DOI: 10.4018/978-1-7998-3452-6.ch005

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.
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Overview Of Zakat Administration In Malaysia

The zakat system in Malaysia has started when Islam arrived in the Malay Archipelago in the 13th century. However, the data of collection and distribution of zakat is obviously hard to find and it is limited in nature if it could be found particularly in the period before the coming of colonial power. During that time, the zakat system is conducted via an informal framework. For instance, it was traditionally activity by delivering the goods to religious teachers who will distribute them in accordance with the need of available zakat beneficiaries or asnaf (Aidit, 1988).

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