Zakat Institution has not played a significant role so far, the main reason is the small amount of zakat collected in the country. It is very small (about RM 408 Million in 2003) compared to the revenue of the government (which is about RM 89.2 billion from tax and other revenues) Therefore, development of the Muslim community in this country does not and cannot depend on zakat money. Zakat is such a small portion. The economic, educational and social needs of the community are financed almost wholly from government revenue. If a national zakat organisation is set up and the collection in Malaysia is about RM 700
million a year.

The projected collection include zakat on business if they are given rebate from corporate tax.Even though it is still a small amount compared to government revenue and the general economy, the zakat institution may then be able to play some significance role in meeting some of the needs of the community, provided effective distribution programs are carried out in all the states to complement government programs. The challenge is to be able to make an impact on the community using zakat money of about RM 430 million a year collected by the various Islamic councils in the country. Overall the malaysian economy is many times larger, namely about 230 billion ringgit for a population of about 25 million people of whom about 61 are Muslims.