Kuala Lumpur, 7 May 2025 - The Alliance Islamic Bank Zakat Microfinancing Programme (AZAM) continues to drive meaningful impact by empowering asnaf micro-entrepreneurs through inclusive financial solutions aimed at fostering long-term economic independence.
Early outcomes of the programme indicate steady progress, with participants reporting an average
36% increase in business revenue within just one year of joining AZAM—underscoring the
programme’s effectiveness in helping underserved communities build stronger financial
foundations.
These outcomes are captured in the ‘
AZAM Programme Evaluation’, an independent study by
Satu Creative, an entrepreneur support organisation committed to empowering early-stage tech startups and impact-driven businesses. The report evaluated the first cohort of 36 asnaf
entrepreneurs and highlights AZAM’s growing role in advancing financial resilience and promoting
sustainable livelihoods among Malaysia’s underserved communities.
Among the key insights from the study:
- Over 90% reported a positive shift in their lives since joining the programme, citing
improvements in healthcare, education and quality time with family
- Participants successfully increased their total business revenue, from an average
of RM2,151 to RM2,924
AZAM stands as Malaysia’s first Islamic social finance initiative that redefines zakat as a strategic
tool for economic upliftment. By adopting a sustainable revolving fund model and offering
interest-free microfinancing under the Qard concept, AZAM empowers asnaf entrepreneurs to
build and grow their businesses.
Repayments made by participants are reinvested into the fund, enabling continuous support for
new recipients and expanding the programme’s impact across more communities. This innovative
model not only preserves the value of zakat, but also cultivates the culture of shared responsibility,
dignity and resilience among recipients.
Rooted in the principles of
Value-Based Intermediation (VBI) and
Maqasid Shariah, AZAM is designed to promote socio-economic development. This programme empowers underserved communities to grow sustainably and with purpose.
To ensure effectiveness, AIS works in partnership with Lembaga Zakat Selangor (LZS) to identify
and verify eligible asnaf recipients. Amanah Ikhtiar Malaysia (AIM) plays a critical role in the
disbursement and collection of funds, while also delivering training and guidance to equip
entrepreneurs with the tools to succeed.
Rizal IL-Ehzan Fadil Azim, Chief Executive Officer of Alliance Islamic Bank Berhad, said, “The
success of AZAM lies not just in the numbers, but in the real-life impact on families and
communities. It’s about enabling livelihoods, restoring dignity, and laying the foundation for a more
inclusive economy.”
AIS is committed to expanding the AZAM Programme nationwide, with ongoing discussions
involving various State Religious Councils and Zakat Authorities following the initiative’s success in
Selangor.
In parallel, AIS aims to deepen community engagement by incorporating wakalah-based zakat
contributions into the programme. Individuals and institutional contributors who channel their zakat
through Lembaga Zakat Selangor (LZS) may opt for zakat wakalah, with funds directly allocated to
support AZAM’s revolving financial fund. This initiative will expand access to financing for asnaf
entrepreneurs, enabling greater financial inclusion and economic participation. AIS also welcomes
collaboration with private sector partners, government- bodies, and NGOs to support initiatives
that drive economic empowerment and deliver positive social, environmental, and economic
outcomes- aligned with our mission of "Building Alliances to Improve Lives."
To those interested to know more about AZAM, please visit:
www.alliancebank.com.my/Islamic/Business/Financing/zakat-microfinancing
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