PNB obtains approval for zakat assessment for ASNB fixed-price funds

KUALA LUMPUR – The implementation of the zakat al-Mustaghallat method via khultah (collective method) is expected to begin in mid-2026, providing a more organised, transparent and efficient mechanism for Muslim unit holders to fulfil their zakat obligations for Amanah Saham Nasional Berhad (ASNB) fixed-price funds.

Permodalan Nasional Berhad (PNB) deputy president and group chief executive officer Datuk Rick Ramli said the method, which calculates zakat based solely on income distribution, also allows unit holders to receive net income distribution after zakat deduction without needing to manually calculate zakat, which often causes confusion.

He said the initiative is also in line with efforts to ensure zakat governance for fixed-price funds is more systematic and in line with current syariah developments.

“This approach makes it easier for unit holders to fulfil zakat obligations in a syariah-compliant manner through a more organised and accurate process,” he said during a briefing and media conference on the Zakat Al-Mustaghallat via Khultah Method for ASNB fixed-price funds at Menara Merdeka 118 here on Tuesday.

He explained that a decision by the National Council for Islamic Religious Affairs Malaysia (MKI) on Sept 4 provided clear syariah grounds for implementing the method.

“MKI agreed to this method after a comprehensive review at the national level,” he said.

So far, PNB said five states have approved its implementation: Federal Territories, Pahang, Penang, Kelantan and Kedah, while other states are still discussing it at their respective fatwa committee levels.

“Engagement with other states is ongoing, so more states can join this implementation,” he added.

He said the al-Mustaghallat concept applies zakat to income distribution only, not to principal investments, ensuring that the unit holder’s principal remains completely intact.

This is more suitable for fixed-price funds that do not generate profit through the selling and buying of units.

Under the khultah (collective) method, zakat is deducted before income distribution is made and unit holders may choose to receive either full gross income distribution or net income distribution after zakat.

“The zakat rate is set at 2.57 per cent for all ASNB fixed-price funds,” he said.

The funds involved include ASB, ASB 2, ASB 3 Didik, ASM, ASM 2 Wawasan and ASM 3, with zakat collection coordinated according to each unit holder’s address and unit holdings.

“PNB projects zakat collection of around RM60 million in the first year of implementation, based on an estimate that 30 per cent of Muslim unit holders will opt in.

“If this initial target is achieved, zakat collection is expected to reach around RM60 million,” he said.

He added that the zakat collected will be channelled directly to the state zakat centres that have approved the method. For states that have not yet approved, collections will be temporarily channelled to PPZ-MAIWP.

“All zakat collections will be handed over completely and directly to the state zakat centres without any charges or commission,” he said.

PNB emphasised that full implementation will begin only after obtaining the necessary approvals from the Securities Commission (SC), while additional technical details will be shared closer to the official launch.

Zakat is not intended to reduce income distribution

Meanwhile, the zakat al-Mustaghallat via khultah method to be introduced by ASNB is not meant to reduce the income distribution of unit holders, but to provide a more organised and syariah-compliant zakat payment process.

PNB Group Head of Syariah Management Dr Ahmad Basri Ibrahim said the term "reduction" does not reflect the true intention of the method.

“What is being introduced is not a reduction in income distribution, but a convenience for Muslim unit holders who already intend to fulfil their zakat obligation,” he said.

He said the al-Mustaghallat method stipulates that zakat is imposed on income only, which differs from the previous practice that also considered investment principal.

He added that the khultah approach allows ASNB to manage zakat collection collectively, removing the burden of individual calculations that previously troubled some investors.

“With the collective method, calculations are made uniformly and more efficiently compared to individual payments,” he said.

At the same time, the mechanism brings significant benefits to state zakat centres, especially in terms of data coordination and improved certainty in annual zakat collection amounts.

“Zakat centres may not have complete data on Muslim unit holders, but ASNB has detailed records by state and unit holdings,” he said.

He added that large-scale collective collection enables zakat centres to manage distribution to asnaf more systematically, as collections are more consistent than irregular individual contributions.

“Although zakat is calculated only on income and not capital, the impact remains significant because collective collection provides a stable and structured amount,” he said.

He said the method also enables state zakat centres to identify zakat compliance rates among unit trust holders by locality, aiding in policy planning and welfare programmes.

“We will have clearer visibility of how many people pay zakat in each state and this provides added value that did not exist before,” he added.

He said these benefits show that the al-Mustaghallat via khultah method creates a "win-win" situation for investors, zakat institutions and the overall zakat management ecosystem.

“The benefits outweigh the limitations, which is why we are introducing this initiative,” Basri said.

The method will be implemented in stages according to the fixed-price funds, after receiving full approval from the SC and state fatwa committees currently undergoing discussion.