Islamic Finance

RULING ON THE INVESTMENT OF PERLIS STATE ZAKAT FUNDS

The original ruling on zakat investment is not permissible. However, if zakat distribution has been optimally made to all categories of recipients (asnaf) entitled to possess it, and there is still found to be a surplus, then it is permissible for such zakat assets to be invested for the benefit that returns to the zakat recipients subject to the following stipulated conditions:

1. The investment must be certified as Shariah-compliant by an authoritative Shariah supervisory body

2. The investment must be low to moderate risk from financial institutions recognised by the authorities.

3. High‑risk investments may be undertaken only if special guarantees are obtained from the competent authority and the structure is made fully Shariah‑compliant.

4. MAIPs is the body that approves and guarantees each investment.

DETERMINATION OF THE RATE OF ZAKAT FITRAH FOR THE STATE OF PERLIS FOR THE YEAR 1436H/2015M

The meeting agreed to set the rate of Zakat Fitrah for the State of Perlis for the year 1436H/2015M at RM6.50.

FATWA ON ZAKĀH ON GOLD JEWELLERY

After extensive deliberation and careful consideration of the arguments presented, the Perlis State Fatwa Committee resolves as follows:

The Perlis State Fatwa Committee unanimously agrees to maintain the decision of the Perlis State Shariah Committee that convened on 11 May 1988 as follows:

I. There is no distinction regarding the obligation of zakāh on gold that is worn or gold that is stored
II. There is no term ḥadd 'urf (customary limit) in the State of Perlis
III. All owners of gold whose holdings exceed the nisāb of 85 grams of gold are liable for zakat.

THE RULING ON ZAKAT FOR THE EMPLOYEES PROVIDENT FUND (EPF)

After deliberation, the Fatwa Committee of the State of Perlis agreed upon the following resolutions:

1) All types of EPF schemes are subject to obligatory zakat payment on condition that the contributor's original employment is lawful (halal).

2) Dividends provided by EPF from Shari‘ah-compliant savings accounts are also subject to zakat. As for dividends from conventional savings accounts, they require prior purification, and the remaining balance is subject to zakat.

3) A Muslim must place his or her savings into the Shari‘ah-compliant EPF savings account. If he or she has violated the Shariah directive by placing his or her money into a non-Shariah-compliant account when possessing the choice to do otherwise, then he or she must repent (tawbah), and the relevant dividend money must be purified. The Fatwa Committee of the State of Perlis recommends that the purification method may be referred to on the EPF website at http://secure.kwsp.gov.my/shariah/bm/faq.html