23 September 2024

Yan, Kedah: CIMB Islamic Bank Berhad ("CIMB Islamic" or "the Bank") strengthened its support of asnaf in Kedah through the Bank's contribution of a paddy harvester machine worth RM298,000 to Lembaga Zakat Negeri Kedah ("LZNK") under the Asnaf Large-Scale SMART Paddy Field or Smart Sawah Berskala Besar Asnaf programme ("SBBA" or "the Programme"). The contribution was mobilised through CIMB Islamic's Zakat Wakalah Fund to support the programme, which aims to upskill local asnaf farmers and address the nation's food security challenges while minimising the overall production and outsourcing costs of producing paddy.

The provision of the machine is expected to provide significant savings of up to RM5,600 yearly per farmer for each hectare. As part of the collaboration, asnaf farmers will now be able to use the LZNK paddy harvester machine for only RM40 per relong, compared to renting local machinery, which will usually cost about RM120 per relong. On top of that, participating asnaf farmers will also be able to save up to RM24 for transporting a tonne of paddy and up to RM10 for the use of agricultural drones.

A handover ceremony was held recently with Ahmad Shahriman Mohd Shariff, Chief Executive Officer of CIMB Islamic, presenting the machine to Dato' Syeikh Zakaria Othman, Chief Executive Officer of LZNK.

Ahmad Shahriman said, "We are pleased to support asnaf farmers in Kedah through our collaboration with LZNK. As a strong proponent of value-based intermediation principles, we hope this contribution will enhance the efficiency of paddy output and facilitate significant cost savings, empowering asnaf farmers while providing them with a sustainable source of income."

"CIMB Islamic remains committed in our efforts to pioneering innovative mechanisms in our zakat distribution that address the wider global challenges our nation faces today, particularly food security. Echoing recent directives by the government, we firmly believe that the effective use of Islamic social finance instruments such as zakat, coupled with the embrace of technology will uplift the vulnerable communities by narrowing the gap and reducing social and economic disparities," he added.

Dato' Syeikh Zakaria Othman said, "We would like to thank CIMB Islamic for their contribution of this paddy harvester machine which will make a lasting impact to the lives of the asnaf community in Kedah and ease their burdens by helping them find practical solutions to agricultural challenges. LZNK will also play its part in providing comprehensive training to the participating asnaf farmers on operating and managing the machine."

LZNK established SBBA as a long-term food security initiative to increase the efficiency of paddy planting activities and post-harvest production by consolidating rice paddy land through contract farming. The programme is designed to ensure sufficient supply of rice while improving the socio-economic status and standard of living of the asnaf groups in Kedah through opportunities to work on the land. In addition, LZNK also ensures food security in Kedah remains addressed by providing 40 packets of rice to 590 foodbanks located at mosques across Kedah on a monthly basis. Since its inception in 2021, the programme now encompasses 201.7 hectares of paddy fields across four different districts in Kedah including Yan, Kuala Muda, Kubang Pasu and Kota Setar.

CIMB Islamic is among the pioneering banks in Malaysia to roll out this innovative zakat initiative in partnership with LZNK, aimed at empowering the asnaf community in Kedah. By providing cutting-edge agricultural technology, the collaboration seeks to significantly uplift the socioeconomic status of the beneficiaries, fostering long-term sustainability and financial independence. This is in line with Strengthening Zakat, one of the key focus areas delineated by the Malaysia International Islamic Financial Centre ("MIFC") Leadership Council ("MLC") in the recent launch of the MLC Position Paper.

CIMB Islamic has spearheaded various initiatives for underserved communities through a wide spectrum of programmes focusing on supporting the long-term growth and development of underprivileged groups, such as Program Keusahawanan CIMB Islamic – Taylor's, iTEKAD CIMB Islamic Rider Entrepreneur Programme, CIMB Islamic – International Islamic University Malaysia ("IIUM") iTAAJIR Programme, Melon Manis Terengganu Graduate Agropreneur Programme and CIMB MicroBizReady. Collectively, these initiatives aim to mobilise social finance to empower aspiring asnaf and B40 entrepreneurs to improve their livelihoods and reach their full potential by providing them with mentorship and training to enhance their entrepreneurship skills and build resilience.