Ensuring the continued funding of programmes under the zakat

Question

Mr Muhamad Faisal Abdul Manap: To ask the Minister for Communications and Information and Minister-in-charge of Muslim Affairs (a) whether there is any balance remaining in the MUIS zakat fund after the annual disbursement exercise from 2011 to 2014; (b) if so, what is the remaining balance amount of each year from 2011 to 2014; (c) what is the reason(s) for the retention of monies in the fund annually from 2011 to 2014; and (d) what is the retention period before the balances will be fully disbursed.

Response

1. Minister Dr Yaacob Ibrahim: The final balance from zakat collection varies each year depending on the amount collected, and the amount eventually disbursed. In 2011, MUIS collected $23.3m of zakat and disbursed $23.2m, resulting in a surplus of $0.1m. In 2012, MUIS collected $25.5m and disbursed $25.8m, resulting in a deficit of $0.3m. In 2013, MUIS collected $28.4m and disbursed $28.0m, resulting in a surplus of $0.4m. The zakat collection figures for 2014 are in the process of being audited, as is the usual practice, and will be released later this year.
   

2. Annually, more than 70% of zakat is collected during the month of Ramadhan. This is the period when MUIS would have greater clarity on the zakat funds available for disbursement in the year. However, zakat financial assistance, disbursements, programmes and services under the 8 asnafs, or categories in which zakat is disbursed, is spread throughout the year. This difference between when zakat is collected and disbursed means that there may be a slight excess or shortfall in any particular year. To ensure the continued funding of programmes under the zakat, MUIS sets aside a reserve to buffer against shortfalls and unforeseen situations which may affect collections and needs, such as an economic downturn.