Economic Impact of Covid-19 Outbreak: A Study of Zakat Collection and Distribution Management in Zakat Penang (ZP)

Abstract

The outbreak of COVID-19 at the end of 2019 has caused the economic landscape and social life of the world’s communities to change. The impact of this epidemic has forced most countries to implement the Movement Control Order (MCO), and Malaysia as a country is no exception in implementing the MCO, which involves three phases of implementation. The implementation of MCO has caused the country's economic activities to be affected through shocks that occurred to the economic chain and, in turn, caused economic agents consisting of households, firms and government to experience a significant impact. The economic crisis due to COVID-19 has also directly impacted the management landscape of collection and distribution of zakat for zakat institutions, especially the expected decline in the collection and increased distribution burden due to the economic impact resulting from the implementation of MCO to curb the spread of COVID-19. Therefore, this study aims to explain the economic impact of the implementation of MCO by the Malaysian government to curb the spread of COVID-19 and study the management of collection and distribution of zakat institutions in Zakat Penang (ZP) when faced with the spread of COVID-19. Through a qualitative approach in collecting and analysing secondary data obtained, the study found that ZP has taken several initiatives involving aspects of distribution and collection management that have contributed to reducing the economic burden of asnaf through increasing zakat distribution during COVID-19 by various methods. Apart from that, ZP is also involved in efforts to reduce the effects of the COVID-19 epidemic, such as the distribution of zakat to the health sector in Penang.