MEASURING THE POVERTY LEVEL OF POOR AND DESTITUTE AṢNĀF IN KUALA LUMPUR: APPLICATION OF AN ENHANCED MALAYSIAN MULTIDIMENSIONAL POVERTY INDEX

Purpose — This study aims to analyse the multidimensional poverty characteristics among the poor and destitute aṣnāf (zakat recipients) in Kuala Lumpur, Malaysia.

Design/Methodology/Approach — This study conducts a quantitative analysis to empirically measure the poverty scenario of the aṣnāf using the enhanced Malaysian Multidimensional Poverty Index (MMPI). The proposed enhanced MMPI is based on the redesigned Malaysia MPI, utilising the Alkire-Foster counting methodology.

Findings — The results corroborate the benefits of utilising an enhanced MMPI, since it effectively encompasses a wider range of deprivation areas among the aṣnāf community. It is found that most of the poor and destitute aṣnāf are deprived of coverage in health insurance,followed by access to means of communication and access to online learning. In addition, around 94.7 per cent of the aṣnāf households are categorised as multidimensional poor, with an average deprivation recorded at 50.1 per cent.

Originality/Value — While existing studies predominantly rely on acute poverty measures that emphasise aggregate national-level indicators, this study contributes to the body of literature by proposing an enhanced MMPI framework that incorporates locally and contextually relevant indicators. It advances beyond conventional measures of acute povertyand could serve as a model for other regions in refining their poverty measurement frameworks.

Research Limitations/Implications — The analysis of the study was conducted in Kuala Lumpur, Malaysia, which encompasses 11 parliamentary areas. Hence, the findings of the study may not be generalised to other states or other zakat institutions in Malaysia, although the results provide valuable input on the deprivation aspect that poor and destitute aṣnāf could experience.

Practical Implications — The enhanced MMPI supplements monetary indicators with insightful disparities in observed poverty levels, aiming to increase its impact in improving well-being among the aṣnāf.