Identifying Determinants of Subjective Poverty Among Zakat Applicants

Poverty is multifaceted and can be measured using both objective and subjective approaches. Objective approach viewed poverty in terms of quantitatively measurable indicators of welfare; whereas, the subjective poverty measured poverty according to personal judgment of individuals regarding their own welfare. Understanding this multifaceted poverty is important as it will lead to efficient intervention schemes and strategies to reduce poverty. Currently, zakat institution utilize objective measures that is poverty line income (PLI) and zakat poverty line (haddul kifayah). This interest is motivated by the concern on why individuals felt they are poor and deserve to receive zakat yet, their applications are rejected due to the objective indicators which indicate them as non-poor individuals. Therefore, the primary objective of this study is to analyze determinants of subjective poverty among zakat applicants. This study surveyed on zakat applicants among asnaf poor and needy in three district of Melaka: Melaka Tengah, Jasin and Alor Gajah. The findings showed that demographic, socio-economic background, household type, marital status, education, financial stress, income, wealth and debt effects on why applicants felt poor. By identifying these aspects, zakat institutions could better enhance the pocess of identifying and selecting more true asnaf.