Multidimensional poverty characteristics of zakat recipients based on Maqasid al-Shariah in Kuala Lumpur / Muhammad Nooraiman Zailani

Muhammad Nooraiman , Zailani (2024) Multidimensional poverty characteristics of zakat recipients based on Maqasid al-Shariah in Kuala Lumpur / Muhammad Nooraiman Zailani. PhD thesis, Universiti Malaya.

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Abstract

It is widely recognised that the concept of poverty is complex and multifaceted. The narrow approach to defining poverty that is focused on a monetary approach neglects other key aspects such as access to education, access to healthcare, type of home, and others that are relevant and may affect the quality of life. Definitions and measurements of poverty are critical in determining if a certain level of income and living standard for a person is acceptable for both society and the national level. At present, Islamic financial institutions such as zakat institutions are applying the monetary approach to identify the poor and destitute. On a global front, the United Nations Development Program (UDNP) has unveiled the Multidimensional Poverty Index (MPI) method for measuring the deprivation aspect of poverty. Hence, the study adopted the Malaysia MPI (MMPI) released during the 11th Malaysia Plan (11MP) and tailored it according to the context of the study, with some additional and changes made to the dimensions and indicators applied. The study incorporated five dimensions namely religion, health, education, living standards and income with 18 indicators under the Zakat Multidimensional Poverty Index (ZMPI). The objectives of this study are (I) to identify the dimension and indicators of the proposed ZMPI (II) to examine the dimensions and the indicators that the poor and destitute asnaf in Kuala Lumpur are deprived of (III) to identify the multidimensional poverty level of the poor and destitute asnaf in Kuala Lumpur based on ZMPI and MMPI and (IV) to analyse the determinants of multidimensional poverty status among the poor and destitute asnaf in Kuala Lumpur based on ZMPI and MMP. The study constructed ZMPI to analyse the multidimensional poverty characteristics of the poor and destitute asnaf in Kuala Lumpur. Using multidimensional poverty measurement, the income dimension recorded the highest deprivation, followed by health and education dimension. iv Since the study involves the poor and destitute asnaf, the highest deprivation indicator is household monthly income, followed by Islamic health insurance coverage, access to the internet for communication and access to health facilities. In addition, the MPI calculated using the ZMPI was recorded at 0.408% while the MPI calculated using the MMPI was recorded at 0.364%. Hence, the multidimensional poverty measurement, particularly the ZMPI is able to provide a more comprehensive picture of the poverty scenario of the targeted group of people in comparison to the unidimensional poverty measurement. The findings of the study demonstrate that the poor and destitute asnaf in Kuala Lumpur are still deprived in many aspects that are not measurable using the current applied poverty measurement. In addition, the household head’s education level, household size, and amount of zakat received significantly influence the multidimensional poverty status of the asnaf. Despite the declining trend of poverty incidence recorded in Malaysia, pockets of areas of deprivation that require more attention are worth highlighting. The outcome of the study is significant for the government and zakat institutions to better allocate and optimise the zakat resources in channelling zakat funds to qualified asnaf.

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