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Financial Protection for the Poor in Malaysia: Role of Zakāh and Micro-takaful الحماية المالية للفقراء في ماليزيا: دور الزكاة والتكافل المصغّر

Author

Listed:
  • Noor Ashikin

    (Multimedia University and University Technology MARA)

  • Mohd Rom

    (Multimedia University and University Technology MARA)

  • Zuriah Abdul Rahman

    (Multimedia University and University Technology MARA)

Abstract

Numerous researches have shown that most of low income and poor do not have financial protection in mitigating their financial losses. The purpose of this paper is to investigate firstly, whether there is any means of financial protection among the poor, and secondly, to determine their financial capacity and perseverance in making monthly contribution for a micro-takaful policy. The study was conducted on respondents who fall into the poverty level category in the rural area of Perak, Malaysia. It was found that 97% of the respondents are without financial protection and unable to contribute any amount of money to get the protection. The authors recommend that intervention and support from government is vital in providing the financial capacity for the poor to have the needed protection that principally cover death, medical and savings benefits. The Malaysian government should enforce a policy in providing aid to the poor via micro-takaful by providing subsidy and zakāh forming part of their monthly contribution. With zakāh fund, these low income and poor could have their own micro-takaful schemes which should be able to provide sufficient benefits, preventing them to be trapped into the poverty cycle permanently. أظهرت العديد من البحوث أن معظم ذوي الدخل المحدود والفقراء ليس لديهم الحماية المالية للحد من مخاطر الخسارة. إن الغرض من ورقة البحث هذه هو التحقيق في: أولاً: فيما إذا كانت هناك وسيلة لحماية المال بين الفقراء، وثانياً، لتحديد قابليتهم المالية والمواظبة على تقديم دفعات شهرية لبوليصة التكافل المصغّر. الدراسة جاءت استجابة للذين سقطوا تحت خط الفقر في المناطق النائية من فيراق ماليزيا. لقد تبين أن (97?) من المجيبين بدون حماية مالية وغير قادرين على المساهمة بأي مبلغ من المال للحصول على الحماية. يوصي الباحثان بأن تدخل ودعم الحكومة حيوي من أجل توفير القابلية المالية للفقراء من أجل الحصول على الحماية التي في الأساس ستغطي مصاريف الوفاة والعلاج والاستفادة من الادخار. على الحكومة الماليزية أن تفرض سياسة لتوفير المساعدة للفقراء من خلال التكافل المصغّر عن طريق تقديم الدعم والزكاة كجزء من مساهمتهم الشهرية. بأموال الزكاة، ذوي الدخل المحدود هؤلاء سيحصلون على نموذج التكافل المصغر خاصتهم الذي يفترض أن يكون قادرا على توفير المساعدة الكافية، مانعا إياهم أن يحتجزوا في دائرة الفقر بصورة دائمة.

Suggested Citation

  • Noor Ashikin & Mohd Rom & Zuriah Abdul Rahman, 2012. "Financial Protection for the Poor in Malaysia: Role of Zakāh and Micro-takaful الحماية المالية للفقراء في ماليزيا: دور الزكاة والتكافل المصغّر," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 25(1), pages 119-140, January.
    • Handle: RePEc:abd:kauiea:v:25:y:2012:i:1:no:5:p:119-140
    DOI: 10.4197/Islec.25-1.5
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    References listed on IDEAS

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