PPZ sees 17% rise in 2009 zakat collection

The zakat authorities for the Federal Terriroties (FT) collected zakat worth RM241.97 million last year, a 17% increase from RM206.26 million in 2008. Pusat Pungutan Zakat (PPZ) MAIWP also saw an increase in the number of people paying zakat.
Last year, 78,820 people were listed as zakat payers, compared to 67,872 in 2008. In a statement, PPZ said the total zakat collection for 2009 surpassed its RM230 target by 5%.
PPZ, established by the Federal Territory Islamic Religious Council, which is better known locally by its Malay acronym MAIWP. In terms of categories, income zakat was the highest, contributing RM167.48 million or 69% to the total collection. This was followed by business zakat (RM29.11 million), asset zakat (RM25.69 million) and zakat on savings (RM18.37 million).
At a press conferece yesterday to announce the results, Minister in the Prime Minister's Department Senator Mej Gen Datuk Jamil Khir Baharom announced that the target set for PPZ's zakat collection for 2010 is RM250 million.
Jamil, who is also MAIWP chairman, said that there were fears that the collection could take a beating due to the economic slowdown last year. On the contrary, he said the increase in zakat collected indicated an increased awareness amongst Muslims on the importance of paying zakat. He also noted that the zakat authority was able to announce its results so soon after the clear-end was proce of the effectiveness of its integrated zakat information technology system called Sistem Integrasi Zakat (Siza).
Looking at the numbers, Jamil noted that December was the most active month with PPZ recording a total collection of RM49.21 million. In 2009, 75 zakat contributors paid more than RM100,000, a slight drop from 81 people in 2008. There were 131 in band between RM50,000 and RM99,999 and 513 people for RM20,000 to RM49,999.
In his speech, PPZ chairman Datuk Mustafa Abdul Rahman said the zakat collector had managed to rope in 18,552 new zakat contributors who paid RM25.52 million.
However, he also noted that 12,786 who paid zakat in 2008 had yet to fulfil their obligations in 2009, probably due to death, change of address or that they did not fulfil the conditions to be eligable to pay zakat.
"2010 and the following years are challenging years ahead for PPZ," he said. PPZ, set-up via a company named Hartasuci Sdn Bhd, is placed under a foundation cal led Yayasan Taqwa Wilayah Persekutuan and is controlled by MAIWP.

(This story appeared in The Malaysian Reserve on 8 Jan 2010. The Malaysian Reserve is a daily business/finance newspaper published out of Kuala Lumpur, with a sectoral page on Islamic finance on Mondays, edited by Habhajan Singh)