S$74m in NGO zakat funds allegedly misused in Malaysia, three arrested

MALAYSIA: Three individuals, including an NGO deputy chairman, were arrested in Selangor for allegedly misappropriating RM230 million (S$74 million) in zakat funds between 2018 and 2024. The MACC seized 18 luxury cars, properties worth RM11 million (S$3.5 million), branded watches, cash, and froze 33 bank accounts totalling RM120 million (S$38.5 million) during the probe.

Luxury cars seized in corruption cases have become the symbol of excess on social media, sparking outrage. For many Malaysians, the honour entrusted to such organisations feels betrayed, as funds meant to help the needy are diverted for personal gain. 

One X user reflects the anger many Malaysians feel. When those who claim to be religious are seen misappropriating zakat funds, it deepens the sense of betrayal. For hardworking citizens, the mandatory deductions meant to support the needy now appear diverted,

Additionally, another commenter says the poor in Malaysia are often misconstrued as those who are the wards of the state. However, strange sights like these are happening as the proprietors of these zakat funds somehow find themselves having a fleet of luxurious sports cars which are still out of reach to those who are considered successful. 

In response, one asked how many needy families missed out on assistance. He argued that the value of seized assets highlights the suffering of Malaysians, potentially left with empty stomachs. 

The Federal Territories Islamic Religious Council (MAIWP) targets RM1.341 billion (S$431 million) in zakat distribution for 2025, a 15% rise from 2024. Despite the surge, many Malaysians continue to face severe financial hardship, particularly Muslims eligible for zakat assistance. 

Social media users are questioning why poverty persists when contributions to zakat centres grow annually. Calls for transparency and accountability are mounting, with critics demanding clearer disclosure on how funds are distributed and whether they truly reach the intended beneficiaries.