Assessing the Effectiveness of the Zakat Capital Assistance Programme (ZCAP) in Enhancing Asnaf Economic Empowerment: Malaysia Perspective

Abstract

Background: The Zakat Capital Assistance Programme (ZCAP) is one of the key zakat distribution
initiatives designed to enhance the living standards of eligible recipients (asnaf). Unlike conventional
financial aid, ZCAP provides loan-free capital assistance, allowing recipients to start or expand their
businesses without the obligation to repay the funds. Despite its potential to promote
entrepreneurship and financial independence among the asnaf, the number of applications for
ZCAP remains significantly lower compared to cash-based zakat assistance.

Purpose: This study aims to examine the factors contributing to the success and failure of the program
from both the officers’ and recipients’ (asnaf) perspectives.

Methodology: Through interviews: conducted with 2 zakat officers and 5 selected recipients (asnaf).

Finding: The findings reveal that several factors influence the program’s outcomes. These include
the recipients’ attitudes and motivation, their knowledge and ability to maintain proper financial
records, as well as the overall structure and implementation of the program.

Limitation: Small Sample Size: The study relies on interviews with selected zakat officers and
recipients, which may not represent the broader population of all ZCAP participants across different
regions or states. Lack of Longitudinal Data: The study does not track recipients over time, so it
cannot fully measure the long-term impact or sustainability of the programme’s success.

Originality: Unlike previous zakat studies that focus mainly on financial performance or distribution
efficiency, this research highlights attitude, financial knowledge, and programme structure as key
determinants of success or failure. The study enriches the growing field of Islamic social finance and
zakat management by providing empirical insights that can guide improvements in capital assistance
schemes aimed at economic empowerment.