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© Zakat & Waqf: Impact on Women and Community Development
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2022 to 6.2% in 2023 (DOSM, 2023) the data shows that Malaysian
households are living in vulnerable economic state due to the unstable
economic growth of the country (World Bank, 2022; Malaysiakini,
2023).

Islam defines poverty as an individual's failure to meet any of the five
essential human needs based on Maqasid Shariah (Hassan, 2010).
Poverty is viewed as a social and theological problem in Islam, which
is a religion of balance. It is classified as a social problem since the
consequences are felt throughout society. Furthermore, it is an
ideology issue because it interferes with the execution of one's socio-
religious obligations to the community and the religion (Nadri et al,
2012). Therefore, Islam promotes and supports the notion of good
and balanced wealth distribution for the betterment of society in
general.

Zakat and waqf are the two essential pillars in Islamic social finance
instruments of which the objectives are to promote better wealth
distributions among the society that is effective for poverty alleviation.
Zakat is an obligatory annual tax on certain assets like cattle, crops, and
cash that is donated to the poor and needy while waqf is a voluntary
endowment of assets such as land, buildings, or money that is
dedicated to a charity purpose in perpetuity (Nadzri et al, 2012). Deeply
anchored in Islamic beliefs, Malaysia has traditionally embraced the
twin pillars of waqf and zakat as tools for reducing poverty. These
long-standing customs of group giving have been essential in reducing
poverty and advancing social fairness in Malaysian society.

The federation of Malaysia recognises Islam as its official religion, as
stated in the Federal Constitution of 1957. Except in Federal territory,
where Islamic law and administration are overseen by the Federal
government, all matters pertaining to Islamic laws and customs,

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