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Mahamod2011.Pdf i Acknowledgements I am very grateful to Emeritus Professor William R. Roff, of the University of Edinburgh, for his guidance, comments, encouragement and help in the course of this thesis. I am also indebted to Dr Aiman Shihadeh and Dr Yassin Dutton for their guidance and comments. For my fieldwork in Kedah, Malaysia, I send my warm thanks to Dato’ Ghazali bin Haji Yaacob, Dr Abdullah bin Ibrahim, Ridhuan bin Ahmad and Haji Hamid bin Lebai Saad of the Department of Zakat Kedah (Jabatan Zakat Kedah), Dato’ Paduka Sheikh Hasbullah bin Haji Halim (Mufti of Kedah), Mohd Nadzir bin Shafie (KEDA), Khadri bin Shaari as well as Anuar bin Hassan of the Department of Zakat Kedah, Padang Terap Branch for their assistance and co- operation in providing information and materials for this thesis. During the preparation of the thesis, I have benefited from discussions with and guidance from Dr Andrew Newman, Professor Carol Hillenbrand and Dr Adam Budd of the University of Edinburgh. I have also benefited from discussions with and comments from Royal Professor Dr Ungku Abdul Aziz and Dr Ali Baharum (ANGKASA), Dr Che Omar bin Awang (Department of Zakat Wakaf and Hajj of Malaysia), Professor Dr Mansor bin Ibrahim and Professor Dr Ismawi bin Zin (International Islamic University of Malaysia), Professor Dr Muhammad Syukri bin Salleh (University of Science Malaysia), Associate Professor Dr Abd Halim bin Mohd Noor and Associate Professor Musa bin Ahmad (University of Technology Mara), Dr Azhar bin Mohd Nasir (University of Putra Malaysia).Special thanks go to the Ministry of Higher Education of Malaysia for granting me a scholarship and financial support during my study at Edinburgh as well as to the International Islamic University of Malaysia for travel grants for fieldwork in Malaysia. In addition, I thank the Dean and staff of the Kulliyyah of Architecture and Environmental Design (International Islamic University of Malaysia) for their support during my study.Last, but not least, I am very grateful to my parents, Mahamod and Jamilah, my parents-in-law, Osman and Zainab, my wife, Shakirah, and my children, Nurina Arwa, Humaira and Ahmad Ahkam Unays, for their encouragement, patience and love, which have boosted my morale and motivated me to complete the thesis. Finally, of course, thanks be to God, without Whom nothing is possible. Amin. ii Abstract This study focuses on the factors contributing to the lack of emphasis by the Kedah Department of Zakat (KDoZ), Malaysia on the alleviation of poverty among the rural poor through zakat capital assistance programmes and employment opportunities. In this study, seven research questions were outlined. A mixed-methods study was developed to answer research questions 1, 2, 3 and 4. Research questions 5, 6 and 7 were answered using qualitative data. Quantitative data was collected from questionnaire. The sample size was 406 participants from among the capable poor who can work which received annual monetary assistance. Qualitative data was generated from the interviews with KDoZ officers (n=11) and participants for the qualitative method were selected purposefully. The responses to research questions 1, 2,3 and 4 show that the majority of the respondents were not aware of the existence of SHS. Respondents’ awareness towards SHS programme is significantly related with the socio-economic and zakat assistance characteristics which are rate of districts’ collection, number of years respondents receive zakat and distance of respondents’ house from the KDoZ office. 80% of respondents interested to apply for the SHS programme. The factors contributing to apply SHS were current zakat assistance, current income, economic activity, lack of motivation and constraints. Furthermore, the lack of interest in SHS was significantly related to the age of the respondents. In answering research question 5, there were 3 factors leading to this approach by the KDoZ: 1) the KDoZ faces the constraints of low zakat collection caused by two subscales; 2) a high rate of failure among the recipients or the poor in economic activities; and 3) incompetence of members of the KDoZ committee. The answers to research question 6 were difficulties in dealing with the poor, responsibility of the state government, and the committee’s lack of interest. The answers to research question 7 were factors related to politics, the committee and priority in providing financial assistance. There are 5 main findings which hindered the effective use of zakat, which are capitalist thinking, local collection rates, avoiding the query of Sultan, a large number of committee members and limited zakat funds allocated for administration. Finally, recommendations were provided to overcome these problems. Several additional recommendations for future research have emerged from this study and these have been briefly outlined. iii Abbreviation ABIM Angkatan Belia Islam Malaysia (Malaysian Islamic Youth Movement) AIM Amanah Ikhtiar Malaysia (Endeavour Trust of Malaysia) AMA Annual Monetary Assistance ANGKASA Angkatan Koperasi Kebangsaan Malaysia Berhad (National Co- operative organization of Malaysia) BERNAS Paddyberas Nasional Berhad (National Paddy and Rice Inc.) BIMB Bank Islam Malaysia Berhad (Malaysian Islamic Bank Inc.) BN Barisan Nasional (National Front Government) BJD Bantuan Jaya Diri (Self-Help Support) BPIMB Bank Pembangunan & Infrastruktur Malaysia Berhad (Development & Infrastructural Bank Malaysia) BRAC IGVD Bangladesh Rural Advancement Committee – Income Generation for Vulnerable Group Development CDP Community Development Programme CIMMYT Centre for Maize and Wheat Improvement CPRC Chronic Poverty Research Centre DC Developing Countries DID Drainage and Irrigation Department DRO District Religious Officer DZO District Zakat Officer ECFR European Council for Fatwa and Research EXCO State Executive Councillors FAMA Federal Agricultural Marketing Authority FELCRA Federal Land Rehabilitation and Consolidation Authority FELDA Federal Land Development Authority GDP Gross Domestic Product GMP Guaranteed Minimum Price GNP Gross National Product GR Green Revolution HGV Heavy Goods Vehicle HIV Human Immunodeficiency Virus HQ Head Quarters HYV High-Yielding Varieties IADP Integrated Agricultural Development Programmes IAMS International Association of Muslim Scholars IFAD International Fund for Agricultural Development IKaZ Institut Kajian Zakat Malaysia (Malaysian Institute of Zakat Studies) ILO International Labour Organization IMF International Monetary Fund IRD Integrated Rural Development IRBD Inland Revenue Board of Department IRRI International Rice Research Institute JAIK Jabatan Agama Islam Kedah (Kedah Islamic Affairs Department) JAIM Jabatan Agama Islam Melaka (Melaka Islamic Affairs Department) JAKIM Jabatan Kemajuan Islam Malaysia (Malaysia Department of Islamic Development) iv JAWI Jabatan Agama Islam Wilayah Persekutuan (Federal Territory Islamic Affairs Department) JKKK Jawatankuasa Keselamatan Kerja Kampung (Village Security and Development Committee) JKM Jabatan Kebajikan Masyarakat (Department of Public Welfare) JZWH Jabatan Zakat, Wakaf dan Haji (Department of Zakat, Wakaf, and Haji) KCS Kedah Civil Service KEMAS Jabatan Kemajuan Masyarakat (Department of Community Development) KDOZ Jabatan Zakat Kedah (Kedah Department of Zakat) KEDA Lembaga Kemajuan Wilayah Kedah (Kedah Regional Development Authority) KKLW Kementerian Kemajuan Luar Bandar dan Wilayah (Ministry of Rural and Regional Development) KWSP Kumpulan Wang Simpanan Pekerja (Employees Provident Fund (EPF)) LDC Least Developed Country LUTH Lembaga Urusan Tabung Haji (Pilgrim’s Fund and Management Board) LUZAM Lembaga Urusan Zakat Malaysia (Malaysian Zakat Management Board) MADA Muda Agricultural Development Authority MAIJ Majlis Agama Islam Johor (Johor Islamic Affairs Council) MAIK Majlis Agama Islam Kedah (Kedah Islamic Affairs Council) MAIMK Majlis Agama Islam dan Adat Istiadat Melayu Kelantan (Kelantan Islamic Affairs and Malay Customs Council) MAIM Majlis Agama Islam Melaka (Melaka Islamic Affairs Council) MAIN Majlis Agama Islam Negeri (State Islamic Affairs Council) MAIP Majlis Agama Islam Perak (Perak Islamic Affairs Council) MAIPP Majlis Agama Islam Pulau Pinang (Pulau Pinang Islamic Affairs Council) MAIS Majlis Agama Islam Selangor (Selangor Islamic Affairs Council) MAIWP Majlis Agama Islam Wilayah Persekutuan (Federal Islamic Affairs Council) MAKNA Majlis Kanser Negara (National Cancer Council Malaysia) MAPEN II Majlis Perundingan Ekonomi Negara Kedua (Second National Economic Consultative Council) MARA Majlis Amanah Rakyat (Trust Council for Indigenous People) MARDI Malaysian Agricultural Research and Development Institute MAS Malaysia Airlines System MV Modern Varieties M$ Malaysian Ringgit (currency of Malaysia) M-M System Monopoly-Monopsony System NEP National Economic Policy NGO Non-Governmental Organizations (p) Peace be upon him (used when mentioning God’s messengers) OIC Organization of the Islamic Conference v PAS Parti Islam Se Malaysia (Pan-Malaysian Islamic Party) PLI Poverty Line Index PPA Participatory Poverty Assessment PPK Pertubuhan Peladang Kawasan (Farmers’ Organization) PPRT Program Pembangunan Rakyat Termiskin (Development Programme for the Poor) PPZWP Pusat Pungutan Zakat Wilayah Persekutuan (Federal Zakat Collection Centre) PRSP Poverty Reduction Strategy Papers PUSBA Pusat Bimbingan dan Latihan Saudara Baru (Centre for the Training and Guidance of Muslim Converts) RDA Regional Development Authority RED Rural Economic Development RIDA Rural
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