MEASURING POVERTY FROM EXPENDITURE VIEW: AN ANALYSIS OF ZAKAT RECIPIENTS AMONG POOR AND NEEDY IN KELANTAN, MALAYSIA

The effects of zakat distribution on poverty are analysed within the context of burden of poverty; specifically in terms of incidence, intensity and severity of poverty. These are examined using three major indices of poverty, which include the Headcount Index, Poverty Gap Index and Sen Index. The findings show that the poor and needy have higher poverty measures based on expenditure compare to income poverty measures. Poverty incidences are higher in the rural areas. All methods identify the poorest gender household head is rural female. From the results, it is noted that poverty is prevalent among the households with female household’s head who live in rural area. Besides that, the results of this study show that the extent of poverty can be high in low poverty incidence area. This suggests that poverty should be measured based on expenditure method which reflect on their poverty conditions. Results of this article is important for policy implications for Kelantan Zakat Department in making the zakat distribution more efficient and uplift the important role of zakat as one of the poverty alleviation tools among the Muslims