Zakat among muslim foreign workers: payment in Malaysia versus origin country

Duasa, Jarita and Mohd Radzman, Nurhasya Adibah (2024) Zakat among muslim foreign workers: payment in Malaysia versus origin country. Global Business and Management Research: An International Journal, 16 (2). pp. 962-973. ISSN 0973-0664

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Abstract

Abstract Purpose: This study aims to analyse the factors that contribute to the practice of Muslim foreign workers in Malaysia paying zakat fitr and zakat income either in Malaysia or their origin countries. Design/methodology/approach: Based on survey data collected within the area of Klang Valley (Wilayah Persekutuan Kuala Lumpur and Putrajaya), the data are tested and analysed using logistic regression analysis. Findings: The study found that the probability of paying zakat fitr in Malaysia mainly determined by longer working duration, but less likely by those in employment sectors such as retail and business and organizational factor, as compared to other factors (altruism, religiosity, recognition, self-satisfaction). The likelihood to pay zakat income in Malaysia is positively influenced by elder workers and longer working duration but lower probability of the payment due to organizational factor. Altruism factor (the ‘rights of poor and needy’ to receive zakat payments) contributes positively and significantly to the tendency of respondents to pay zakat in their origin countries with the intention to assist the poor in home countries but working duration, religiosity factor and knowledge about zakat collection system in Malaysia negatively influence the payment of zakat in origin countries. Nonetheless, the willingness of respondents to pay zakat in Malaysia in the future is likely to be contributed significantly by the knowledge on the zakat collection and distribution system in Malaysia, working duration, and religiosity factor. Research limitations/implications: Proper education and knowledge should be imparted to the Muslim foreign workers about zakat system in Malaysia since they have very limited knowledge on zakat system in Malaysia that make them to choose to pay zakat in their origin countries. Practical implications: Workers with longer working duration must be encouraged to pay zakat in Malaysia and the ‘religiosity factor’ and ‘organizational factor’ must be addressed carefully to at least change Muslim foreign workers outlook in life to become potential zakat payers. Originality/value: The zakat collection in Malaysia needs to be strategically planned to include non-citizens residing in the country as foreign workers. Due to the scant number of literatures on the topic of current practices of Muslim foreign workers in Malaysia with regards to zakat income payment, as well as the absence of studies exploring the probability that these Muslim foreign workers will pay zakat of income in Malaysia rather than their own countries; the current study therefore, attempts to fill these gaps

Item Type:	Article (Journal)
Uncontrolled Keywords:	Muslim Foreign Workers, Zakat Fitr, Zakat Income, Malaysia
Subjects:	BPH Islamic Economics BPH Islamic Economics > BPH531 Zakat
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User:	Prof. Dr. Jarita Duasa
Date Deposited:	08 May 2024 09:52
Last Modified:	05 Sep 2024 09:05
URI:	http://irep.iium.edu.my/id/eprint/112130

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