THE Klang Valley is a vital hub for the socio-economic development of the nation, attracting many individuals, both local and international, to seek better opportunities.
However, amidst the economic progress, there exists a harsh reality that requires attention.
This was highlighted in a report by the United Nations Children's Fund (Unicef) released in May titled "Living on the Edge" which was conducted between Oct 14 and Nov 16, 2023, covering 16 People's Housing Project (PPR) locations in Kuala Lumpur with data collected from 755 low-income households.
The findings revealed a poverty rate of 41 per cent in these areas.
While this data is specific to Kuala Lumpur, it significantly reflects the current urban poverty situation in the country, particularly in Selangor.
According to the Household Income and Expenditure Survey 2022 by the Statistics Department, urban poverty has risen to 4.5 per cent, up from 3.9 per cent in 2019.
In Selangor, Lembaga Zakat Selangor (LZS) currently supports 68,154 families classified as underprivileged.
Of this number, more than 61 per cent (41,818 families) reside in urban areas.
This indicates that LZS is addressing the needs of these two distinct segments of society.
LZS categorises urban poverty as families living in densely populated areas facing high living costs, specifically in four districts bordering Kuala Lumpur: Petaling, Klang, Hulu Langat, and Gombak.
Household income in this context falls within the B40 category, which is RM5,250 and below.
To identify B40 individuals as beneficiaries, LZS uses the "haddul kifayah" calculation, referring to the minimum basic needs required for comfortable living, based on the current cost of living in the state.
Those earning below the Haddul Kifayah threshold (currently RM2,990) are classified as underprivileged and are eligible for zakat assistance.
Factors contributing to urban poverty
Urbanisation and migration are significant factors driving the rise in urban poverty, as rapid economic growth in cities attracts more rural residents.
This includes migration from rural to urban areas, and moving from outside Selangor to urban areas within the state.
An increasing population without adequate social infrastructure and support creates new pressures on local communities.
These pressures include economic challenges, job loss, high living costs, low education and skill levels, as well as limited access to quality healthcare.
Consequently, the challenges faced by urban underprivileged individuals differ greatly from those in rural areas.
For example, a family head earning RM4,000 a month in an urban setting struggles to provide a better standard of living for their household in comparison with living in a non-urban area.
A portion of their income is spent on transportation costs to work, including toll and fuel.
The remaining income is also allocated for housing and food, leaving very little for other essential needs such as medical care and child education.
Without effective intervention, the adverse effects will mainly impact children and youth.
Excessive economic pressure can lead to family instability, increasing the risk of social issues, including crime and educational dropout.
This group is also vulnerable to health risks and stunted growth due to a lack of access to nutritious food and quality healthcare.
Challenges and opportunities for better support
Poverty remains as a major challenge for LZS, which was established in 1994.
LSZ's role has evolved to distribute zakat contributions more effectively and impactfully.
Since its inception, LZS has distributed zakat exceeding RM11 billion to hundreds of thousands of beneficiaries from various categories (not limited to the underpriviledged).
The assistance is categorised into five main schemes: social development, human development, educational development, economic development, and religious institution development.
These schemes also include support for urban beneficiaries.
However, internal studies at LZS have shown that the diverse backgrounds, conditions, and challenges faced by urban underprivileged individuals require tailored assistance compared with their rural counterparts.
Targeted and effective assistance
To enhance the effectiveness of its distribution, LZS recognises the need to refine its assistance through a multidimensional approach to reduce overlaps in support among various agencies and ensure that the assistance provided is not solely financial.
It also aims for continuous efforts to free beneficiaries from the cycle of poverty.
This strategy allows for a broader reach in helping more underprivileged individuals.
In light of the increasingly challenging situation, LZS acknowledges the need for collaboration with various stakeholders.
In addition to partnerships with governmental departments such as the Statistics Department and the Social Security Organisation, LZS welcomes working with other government agencies and non-governmental organisations.
The future demand for supporting the underprivileged will extend beyond just financial needs. The focus should also include psychological support, health, spirituality, and overall well-being.
It is essential to instil in the underprivileged a sense of dignity, reminding them that they have the potential to achieve success and attain self-sufficiency.
Realising the noble intentions of contributors
All ongoing initiatives and those planned for the future are part of the responsibilities entrusted by zakat contributors in Selangor.
Every zakat contribution is invaluable as it enables various forms of assistance and programmes to meet the needs of the underprivileged.
As awareness of fulfilling this fifth pillar of Islam grows, LZS will continue to explore opportunities to bridge the concerns of contributors with the needs of the underprivileged.
*The writer is the chief executive officer of Lembaga Zakat Selangor