Penang Enforces Local Zakat Compliance for Muslim Workers and Entrepreneurs

By Abdullahi Yusuf

Muslim employees, traders, and entrepreneurs operating in the northern Malaysian state of Penang are required to pay zakat (Islamic tithe) through Zakat Pulau Pinang (ZPP), according to a recent directive issued by the state’s religious authorities.

The Penang Mufti, Assoc. Prof. Datuk Mohd Sukki Othman, announced the decision following the Penang Fatwa Committee’s meeting held from September 10 to 12. He emphasized that zakat payments must be made through amils (authorized collectors) appointed by the Penang Islamic Religious Council (MAINPP).

“Direct payment to qualified asnaf (eligible beneficiaries) is valid but bypassing the appointed amil is sinful and against Islamic law,” Mohd Sukki stated. “It is also prohibited (haram) to transfer zakat out of Penang, as this undermines the rights of local asnaf and their welfare.”

He highlighted that Islam encourages zakat distribution to benefit asnaf in the regions where income is generated. This approach ensures that Penang’s local communities directly benefit, particularly as the state serves as a major investment hub with significant zakat collection potential.

The directive applies broadly, urging both workers and employers, particularly in Penang’s industrial sector, to pay property, income, and business zakat through legal channels under MAINPP’s guidance.

MAINPP will also collaborate with relevant agencies to raise awareness and promote compliance among employers and employees, ensuring that the practice of zakat supports Penang’s asnaf community effectively.

This decision underscores the importance of local zakat distribution in addressing community needs while aligning with Islamic principles.

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