KUALA LUMPUR: CIMB Islamic Bank Bhd has donated a paddy harvester machine valued at RM298,000 to the Kedah Zakat agency as part of the Asnaf Large-Scale SMART Paddy Field programme.
In a statement, the bank said that the machine is expected to help farmers save up to RM5,600 per hectare annually.
Through this collaboration, asnaf farmers can now access the paddy harvester at a reduced cost of RM40 per relong, compared to the usual RM120 per relong for renting local equipment, it said.
"On top of that, participating asnaf farmers will also be able to save up to RM24 for transporting a tonne of paddy and up to RM10 for the use of agricultural drones," it said.
CIMb Islamic chief executive officer Ahmad Shahriman Mohd Shariff said CIMB Islamic remains committed in its efforts to pioneering innovative mechanisms in its zakat distribution.
"Echoing recent directives by the government, we believe that the effective use of Islamic social finance instruments such as zakat, coupled with the embrace of technology, will uplift the vulnerable communities by narrowing the gap and reducing social and economic disparities," said Ahmad Shahriman.
CIMB Islamic is among the pioneering banks in Malaysia to roll out this innovative zakat initiative in partnership with the Kedah Zakat agency, aimed at empowering the asnaf community in Kedah.
By providing cutting-edge agricultural technology, CIMB Islamic said the collaboration seeks to significantly uplift the socioeconomic status of the beneficiaries, fostering long-term sustainability and financial independence.
This is in line with strengthening zakat, one of the key focus areas delineated by the Malaysia International Islamic Financial Centre (MIFC) Leadership Council (MLC) in the recent launch of the MLC Position Paper, it added.