Newsletter & Bulletin

The Internet of things (IoT) is described as the network of physical objects - 'things' or objects - that are embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the Internet. Today using IoT it is possible to measure the stress level and the poverty level of a household. As such, there is no reason why zakat distribution to the poor can be enhanced via linking it with IoT. The advantage of this could be that the poor who register with zakat administration authorities will have to register a single time and via the data receive from the household, the zakat administrator can determine whether the household is eligible to receive zakat and can deliver the zakat via a QR Code through the smart gadget with sensor connected to the internet that collects the data from the household or by physical delivery of zakat to them by locating their geographical location through GPS tracking enabled feature that will be embedded in the smart gadget.

COVID-19 is a pandemic that has overturned the world including the whole mankind. Never in the wildest dreams, one would have anticipated that a health crisis would lead to a multi-dimensional crisis where trade and transportation activities has been stopped; creating domino effect where many have become jobless overnight and is stuck at home unable to find alternatives to ease their personal situation. It is not only the individuals who were affected, but starting from small businesses to big giant corporations, COVID-19 has hit hard. As a result, there is no way individuals or private sector could survive unless and until the government saves them by providing a helping hand. The helping hand extended by the government costs a lot to them as there is no way to receive revenue during the time of unprecedented pandemic and it is being forced to find alternative source of funding to save themselves from getting into a fiscal deficit crisis.

In 2015, countries adopted 17 Sustainable Development Goals (SDGs), to comprehend the partial success of the Millennium Development Goals (MDGs) of 2000-2015, in achieving its agenda and ending all forms of poverty by 2030. One of the main objective of the SDGs is that, ending poverty must go hand-in-hand with strategies that build economic growth and addresses a range of social needs including education, health, social protection, and creating job opportunities, while tackling climate change and environmental protection. The beauty of this new SDGs involve almost all countries, all people, partners, stakeholders, shareholders, governments, multilaterals, the private sector and the civil society. However, we believed that with the recent recognition of the faith-based organization or we can say the faith based financial institutions it is much recommended to include them for achieving the SDGs even before 2030 via Islamic & social finance as the objectives of Islamic & social finance and SDGs are same.

Technology has no religion. As long as technology is utilized to benefit the humankind, from a Shariah perspective, there is no issue in using it. Zakat is the third pillar of Islam and to enhance the processes and procedures involved in it, technology has been used. The digitization process of zakat has taken place and today we are moving towards digitalization of it. The process of zakat is simple. The Muslim or any person professing the religion of Islam who is eligible to pay zakat could do so to Baitul-mal or directly to any of the categories of asnaf stated in the Quran: "Zakat is for the poor and the needy, and amil (those employed to administer the funds), for the muallaf (those who have embraced Islam), for in bondage and in debt, in the cause of Allah and for the wayfarer: (thus is it) ordained by Allah and Allah is full of knowledge and wisdom" (Surah At-Taubah: 60). If the zakat money is paid to the baitul mal, it is the responsibility of the baitul mal to distribute the zakat money to the categories of asnaf stated in Quran. The latter process involves collection and disbursement and over the years, a number of challenges have been faced in the process of zakat collection and disbursements resulting in employment of various types of technology to overcome or mitigate these challenges.

COVID-19 is a black swan event that has turned back the global poverty clock. Millions have lost their jobs overnight and have no way to find employment due to the lockdown measures taken to adequately deal with the pandemic and save the humankind from being extinct. The first case of COVID-19 in India was reported on 30 January 2020 and on 24 March 2020, the Prime Minister of the country announced that the country is going for full lockdown. This caused disruption in all major economic activities and led to increase in unemployment causing extreme poverty as no immediate financial helping hand was offered to them. According to the International Labor Organization (ILO), it is expected that 400 million people in India risk falling into poverty due to disruption in economic activities caused by the lockdown measure taken to control the pandemic.

In this February, it was announced that The Federal Territories Islamic Religious Department (JAWI) hopes to install "Rice ATM machines" at 85 mosques in the Federal Territory to facilitate its 23,000 asnaf or tithe recipients (Bernama, 2019). It is reported by Bernama (2019) that the cost of this machine is RM19,000 and is the first in the country and it has two functions, namely to give out rice supply in desired quantity and has a donation box to receive funds from the public. On February 15th, first rice ATM machine was installed at Al-Akram Mosque in Kampung Datuk Keramat.