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Zakat Contribution to Development Expenditure in Southern Malaysia (Johor,<br />

Malacca and Negeri Sembilan)<br />

Nurul Izzah Afiqah binti Mohmad<br />

Dr. Bayu Taufiq Possumah<br />

Bachelor of Economic (Natural Resources)<br />

School of Social and Economic Development<br />

Zakat is one indicators of economic development. Zakat can improve the economic<br />

growth and increase the socio-economic of society. The purpose of this study is to identify<br />

the contribution of zakat to the Malaysia's southern development expenditure (Johor,<br />

Melacca and Negeri Sembilan). This study uses data panel of zakat and state development<br />

expenditure for 10 years from 2006 to 2016 comprising 3 states namely Johor, Malacca<br />

and Negeri Sembilan by using the least-squares method (OLS). The findings show that<br />

zakat has a positive correlation and contributes to the development expenditure of<br />

Southern Malaysia's spending.<br />

Keywords: Zakat, Malaysia's Southern Development Expenditure, growth<br />

1458 | UMT UNDERGRADUATE RESEARCH DAY 2018

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