KUALA LUMPUR, Sept 8, 2025 — Alliance Islamic Bank Berhad (AIS) continues to redefine Islamic finance through its groundbreaking Zakat Microfinancing Programme, AZAM, leveraging zakat wakalah funds to empower asnaf (underprivileged) micro-entrepreneurs with interest-free funding that catalyses real economic transformation.
Launched in December 2023 in partnership with Lembaga Zakat Selangor and Amanah Ikhtiar Malaysia (AIM), AZAM has to date channeled approximately RM450,000 to support 103 asnaf micro-entrepreneurs across two cohorts—each receiving around RM225,000.
An independent impact study conducted by Satu Creative underscores the programme’s efficacy: participants’ average monthly business income surged by 36% within just one year, with standout cases seeing growth of up to 150%. Beyond financial gains, over 90% of beneficiaries reported meaningful improvements in areas such as education, healthcare, and family wellbeing, demonstrating AZAM’s holistic impact.
CEO Rizal IL-Ehzan Fadil Azim characterises AZAM not merely as a charitable endeavour, but as a sustainable, high-impact social financing model. “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,” he remarked.
At the heart of AZAM’s innovation is its revolving fund structure rooted in the Islamic concept of qard (benevolent loan). As recipients repay their loans, these funds are reinvested into the programme, thus enabling continuous support for new beneficiaries. The scheme is diligently managed: Lembaga Zakat Selangor handles recipient eligibility, while AIM oversees fund distribution, collection, and entrepreneur training.
Buoyed by its pilot success, AIS is accelerating plans to scale AZAM nationwide. Discussions are underway with state zakat authorities and shariah councils to replicate the model beyond Selangor. AIS is also exploring wakalah-based contributions from the public and corporate sectors, inviting broader community participation and bolstering zakat’s developmental potential.
