Bank Pembangunan Malaysia Berhad Pays Corporate Zakat to Assist Asnaf and Front Liners in Time of Need
|Tuesday,21 April 2020 |
KUALA LUMPUR, 21 April 2020 – Bank Pembangunan Malaysia Berhad (“BPMB”) has completed the corporate zakat payment of BPMB and its subsidiaries to all fourteen (14) state zakat agencies in Malaysia amounting to RM18,236,358.00. The corporate zakat payments to each of the states are within the range of RM596,000.00 to RM2,386,358.00, where the distribution is primarily based on poverty ratio by state.
In the light of the COVID-19 pandemic in Malaysia, BPMB is fully cognisant that all state zakat agencies have embarked on special zakat distribution programs in assisting asnaf who are severely impacted due to the long period of the Movement Control Order (“MCO”) enforced by the Government. As a result of this MCO, many low-income asnaf families have suffered as their income sources had been affected. In view of the high number of low-income asnaf families severely affected during the MCO period, the payment of BPMB’s corporate zakat for the financial year ended 2019 has been expedited.
Meanwhile, Associate Professor Dr. Aznan Hassan, BPMB’s Shariah Committee Chairman said, “Since the impact of COVID-19 pandemic will be felt over the long-term especially by the asnaf groups, we believe that zakat is one of the Islamic social finance instruments that will have a greater role to play. Hence, we applaud the efforts by BPMB for its zakat initiatives in this regard and the expedited payment of corporate zakat by BPMB especially shows that they really care and are very supportive of the role of zakat in this pandemic situation”.
BPMB’s President/Group Chief Executive Officer Arshad Mohamed Ismail said, “The early payment of BPMB’s corporate zakat this year is a gesture in support of the state zakat agencies as they undertake their important role of providing assistance to the asnaf who are in need of basic food and other necessities during the MCO, especially in view of the month of Ramadan that is expected to commence Friday this week.”
In particular, BPMB has established a strategic collaboration with Lembaga Zakat Negeri Kedah (“LZNK”) in March this year by providing Ringgit Malaysia 200,000.00 worth of funds which was utilized by LZNK for two main objectives:
In addition to this, BPMB is also collaborating with its humanitarian NGO partners to directly identify, reach out and distribute basic food packs to asnaf families in selected states such as Terengganu, Sabah, Sarawak and in Klang Valley. This is in preparation for the fasting month. Zakat contributions amounting to a total of RM 115,000.00 have been allocated under “Ihsan Ramadan BPMB” and “Kempen Seorang Sekampit Beras” initiatives, which will benefit approximately 600 asnaf families. The food packs are expected to be distributed within this week.
Charity begins at home and with that in mind, BPMB has also rolled out several initiatives to assist staff during the COVID-19 pandemic outbreak.
Prior to the MCO on 18 March 2020, the Management of BPMB had provided a one-off financial assistance of up to RM450.00 for staff with salary of RM7,000.00 and below.
With the recent announcement on the 6-month moratorium by Bank Negara Malaysia (“BNM”), the Management decided to extend an automatic moratorium to all BPMB staff for their respective staff loans/financing with effect from April 2020. This move was made to alleviate any financial difficulties faced by staff during the COVID-19 outbreak. Although the loans/financing will be extended by six months, staff will not incur any additional profit or interest during the moratorium.
“We hope to lessen the burden of our colleagues through the provision of the financial assistance for those earning below RM7,000.00 and the automatic 6-month moratorium,” said BPMB President/Group Chief Executive Officer, Arshad Mohamed Ismail. “BPMB will also provide a one-off contribution to all staff in preparation for the fasting month.”
As a leading development financial institution in Malaysia, BPMB will continue to play its social finance role and establish strategic collaboration with relevant parties in providing financial support for targeted asnaf groups and their development through its high-impact zakat initiatives moving forward. BPMB will also continue its efforts in ensuring staff are well taken care of in these challenging times.
About Bank Pembangunan
Bank Pembangunan Malaysia Berhad (BPMB) was incorporated on 28 November 1973 with a role in the development of the Malaysian economy by assisting entrepreneurs involved in small and medium-sized industries through the provision of various financing facilities, training and advisory services, particularly to the Bumiputera entrepreneurs.
Today, BPMB is mandated to provide medium to long-term financing to the strategic sectors of the economy. Through its wholly-owned subsidiary Pembangunan Leasing Corporation Sdn. Bhd. (PLC), BPMB also provides financing to small and medium-sized businesses including those involved in manufacturing, construction, supply, transportation, agriculture, hospitality and information technology.
Owned by Minister of Finance Incorporated, BPMB has been accorded the highest rating ‘AAA’ by both RAM Rating Services Berhad (RAM) and Malaysia Rating Corporation Berhad (MARC). It is regulated and supervised by Bank Negara Malaysia under the Development Financial Institution Act 2002.
With a combined asset value of RM24.7 billion (as at 31 December 2018), the BPMB Group is well-positioned to meet the financing and business development needs of Malaysian businesses in the priority sectors.
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