Overview of Zakat Collection in Malaysia: Regional Analysis

Abstract

Zakat is the most appropriate methodology in Islamic concept to encounter the social issue such as poverty in society by sharing the percentage of wealth to relevant recipients as the obligation to the muslim who is affordable based on the syariah rules and guidelines. This study attempts to analyze the trend of Zakat collection from Pusat Zakat Melaka (PZM) by using Polynomial Model, Exponential Model and Discrete Malthusian Growth Model spanning the year 2000 - 2009. Based on the value from Sum of Squares errors (SSE), the best model will be identified and it helps to predict the total collection and distribution for the following years. As a result, Malthusian is the best model to be use due the smallest amount of SSE comparing to the other two models. It shows that the value and the model is more accurate to forecast the future trends in order to prepare the proper strategies and the future planning for the organization.