When Giving Is Not Enough: Moving Beyond Poverty

In Islam, zakat is an individual religious obligation (fardhu ain) that reflects a responsibility to share one’s rezeki (provision) with those in need. Beyond providing immediate relief, can zakat help recipients build more secure livelihoods and a better future?

An IERIF-funded study examined this question by assessing the effectiveness of zakat assistance provided by Majlis Agama Islam Wilayah Persekutuan (MAIWP) in supporting recipients’ progress in education, employment and income.

INSIGHTS

Zakat at a Glance

The gap between poverty relief and decent living
Zakat helps households manage financial hardship, but many still struggle to afford a decent standard of living in Kuala Lumpur

90%Below benchmark
Keeping children in school
Zakat helps children stay in education and supports their learning, but access to higher education remains a challenge.

80%School retention
Getting into work
Zakat-supported programmes help recipients enter employment, but progressing into better-paying and higher-skilled jobs remains difficult.

57%Secured first job
Moving up the social ladder
Many asnaf have moved beyond their parent's occupational level, but reaching high-skilled positions remains a challenge.

4%High-skilled work
Relief and Financial Well-Being
Zakat brings peace of mind and eases financial worries, helping families cope with hardship even as some continue to struggle to afford essential needs.

92%Peace of mind

Note: The study involved 1,066 asnaf recipients in Kuala Lumpur. Percentages reflect different indicators of zakat assistance and social mobility. The 4% figure refers specifically to recipients whose parents held low-skilled occupations.
Source: INCEIF, Impact Assessment of Effectiveness of Zakat in Promoting Upward Mobility Among Its Recipients in Kuala Lumpur (2026).

REFLECTIONS

The findings reveal that the impact of zakat extends beyond financial assistance, bringing peace of mind, supporting children’s education and opening pathways into employment. Yet, these gains do not always translate into a decent standard of living or upward mobility. This highlights an important distinction between easing present hardship and achieving lasting socioeconomic progress. Understanding this distinction is essential to appreciating both the value of zakat assistance and the challenges that remain in addressing poverty.

ADVANCING MASLAHAH

The findings point to opportunities to strengthen zakat program through more targeted, longer-term support. This includes tailored skills training and career guidance for households whose incomes have stalled; employment support that prioritises job retention, wage growth, and career progression; business mentoring, market access and financial management guidance beyond start-up capital; and systematic monitoring of income, employment and educational outcomes, including transitions out of zakat assistance where appropriate. At its core, zakat is an opportunity to help asnaf move beyond financial hardship towards sustainable livelihoods and a more secure future for themselves and their families.

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Malaysia has made progress in absolute mobility, with many people doing better than their parents' generation. Yet relative mobility—moving up the economic ladder compared with others—remains a challenge.

Adapted from the World Bank, A Fresh Take on Reducing Inequality and Enhancing Mobility in Malaysia (2025), p. 3.