Kuala Lumpur, 7 May 2025 – Alliance Islamic Bank Berhad (AIS) announced the incredible impact of its Zakat Microfinancing Programme (AZAM), which has helped participants achieve an average 36% increase in business revenue within just one short year of joining the programme. The initiative continues to uplift Malaysia’s underserved Asnaf communities by providing inclusive, interest-free financial solutions that foster sustainable economic independence.
The early outcomes are detailed in the recently released ‘AZAM Programme Evaluation’, an independent study conducted by Satu Creative, a local entrepreneur support organisation. The evaluation assessed the first cohort of 36 Asnaf entrepreneurs and highlighted meaningful improvements in their business performance and quality of life.
Key Findings from the AZAM Programme Evaluation:
- Average monthly business revenue rose from RM2,151 to RM2,924, a 36% increase.
- Over 90% of participants reported overall improvements in areas such as healthcare, education, and quality time with family.
Launched as Malaysia’s first Islamic social finance initiative of its kind, AZAM leverages zakat through a sustainable revolving fund model. Built on the Islamic concept of Qard Hasan (benevolent loan), the programme provides asnaf entrepreneurs with interest-free microfinancing to start or grow their businesses. Repayments made by participants are reinvested into the fund to support future recipients, thereby amplifying the programme’s long-term impact.
“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,” said Rizal IL-Ehzan Fadil Azim, Chief Executive Officer of Alliance Islamic Bank Berhad.
Aligned with the principles of Value-Based Intermediation (VBI) and Maqasid Shariah, AZAM promotes ethical, purpose-driven economic development. The programme is carried out in strategic collaboration with:
- Lembaga Zakat Selangor (LZS) – for the identification and verification of eligible asnaf.
- Amanah Ikhtiar Malaysia (AIM) – for fund disbursement, collection, and training support.
AIS is doubling down on its commitment regarding expanding AZAM nationwide, with discussions underway with various State Religious Councils and Zakat Authorities following the programme’s success in Selangor.
To further broaden its reach, AIS plans to integrate wakalah-based zakat contributions into AZAM. This enables individuals and institutions channeling zakat through LZS to opt for wakalah, directing funds to support AZAM’s revolving financial pool. AIS also welcomes collaborations with the private sector, government bodies, and NGOs to enhance financial inclusion and drive holistic community empowerment—reflecting the Bank’s mission of “Building Alliances, Improving Lives.”
