ZAKAT, or Islamic alms managers expect to see more asnaf (beneficiaries) and fewer contributors with the expiry of the loan repayment moratorium today.

Distribution of zakat has increased while collection has dropped since the movement control order (MCO) was imposed on March 18.

In Penang, the state zakat management body, already facing cash flow problems at the start of the MCO, has seen collection drop by 40%, widening the deficit

Penang Zakat chief executive officer Amran Hazali said collection shrank in March, April and May.

“This is because the community needed money to meet daily expenses. Some individuals were laid off, and roadside traders were not allowed to do business,” Amran told The Malaysian Insight.

From January to August, ZPP distributed alms to 36,987 people in the state, about 39% more than during the same period last year.

Collection

Amran said March’s collection at RM4 million was 42% less compared to the same month last year. It dropped 32% in April and 40% in May, compared to the same periods last year.

Collection in May amounted to RM10.5 million, increasing slightly to RM11.5 million in June, and dropping to RM8.4 million in July.

In view of the trend, ZPP has lowered its 2020 collection target by 10%, from RM136 million to RM122.4 million, Amran said.

The number of zakat payers has not decreased much, however. In January to August , there were about 62,000 contributors compared to 63,000 during the same period in  2019.

Distribution

From January to August, RM80.8 million of zakat was distributed. This was more than the RM70.5 million distributed during the same period last year, Amran said.

Meanwhile, there is surplus cash of RM11 million from 2019. Last year saw RM121 million collected against RM110 million distributed, he said.

The balance will go to new zakat applicants, especially the poor affected by the Covid-19 pandemic.

The money will also help ZPP to meet the increase in applications amid lower inflows when the bank repayment moratorium expires, Amran said.

“When the moratorium expires, we expect the number of applicants to increase in October, and for collections to decrease.

“With the surplus we have, we can still provide assistance without having to reduce aid or zakat allowances.”

Klang Valley keeps up

In contrast, the urban growth centre of Klang Valley has seen sustained zakat collection, with the Federal Territory Zakat Collection Centre (PPZ) reporting a 7% increase.

The Selangor Zakat Board meanwhile recorded a slight drop in collection of 0.1% in January to May compared to the same period last year.

PPZ chief executive officer Ahmad Syukri Yusoff as of August, the database has 348,612 contributors, who gave RM448.79 million, and 20,348 recipients.

“It shows that people should pay zakat continue to do so, but there were some who did not pay, perhaps as a result of losing their jobs.

“We call on those who still have jobs and income to continue paying zakat so that we can help new asnaf,” Shukri said.

He also expects the number of applications to rise in the next three months.

“There are concerns that the end of the loan moratorium will have an impact on people, as well as the fear that more people could lose their jobs. – September 30, 2020.