Page 13 - Zakat in Malaysia

ZAKAT IN MALAYSIA

ZAKAT ADMINISTRATION IN

THE FEDERAL TERRITORY

In 1991, Hartasuci Private Limited or better known as Pusat Pungutan Zakat
(PPZ, Zakat Collection Centre) became a subsidiary of the Federal Territories IRC.
Subsequently, PPZ-MAIWP established its corporate administration along with a
computerised zakat collection system, proactive marketing, and customer-oriented
approaches.

The opening ceremony of PPZ-MAIWP was officiated by the fourth Prime Minister
of Malaysia, Tun Dr. Mahathir Mohamed on 8 March 1991, and PPZ-MAIWP became
the first zakat office to operate as a corporate organisation. This structure was
recommended by a study conducted by Pricewaterhouse Coopers. The study’s
findings are summarised as follows:

1. To set up an organisation specifically for zakat matters that is separate from
other activities of the Islamic Religious Department of the Federal Territories
2. To adopt the structure and method of a corporate organisation for zakat collection
3. To deploy and utilise IT in all aspects of zakat transactions

PPZ-MAIWP is responsible for collecting zakat on wealth (mal) and zakat on self
(fitr). PPZ-MAIWP for the Federal Territories of Kuala Lumpur, Labuan, and Putrajaya
is responsible only for zakat collection, as the distribution aspect is administered by
Baitulmal under the Federal Territories IRC (MAIWP).

PPZ’S Organisational Objectives

1 2 3 4 5

To improve To convey To facilitate To utilise IT To
and information zakat in collecting implement
increase the regarding the payers in zakat a corporate
collection of obligation to performing organisation
zakat pay zakat their zakat approach
obligations and system

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