Poverty is considered a social problem because it will affect the society as a whole. It is also an ideological problem as it affects the fulfillment of one's socio-religious obligations towards the community and Islam. As we already know, the main goal of zakat is to alleviate poverty in society. Therefore, to achieve this goal it is necessary to take a holistic approach as poverty cannot be alleviated through income redistribution alone. In Malaysia, the zakat distribution method still uses the periodic form of direct payment whereby recipients receive zakat money monthly or annually. However, there are many cases showing that direct payments reduce beneficiaries' incentive to work and they ultimately end up depending only on zakat funds. However, direct payment of zakat is still acceptable especially for non-productive asnaf such as the disabled and the elderly. Furthermore, it is recommended that zakat be distributed in the form of capital financing to beneficiaries, especially the poor and needy, in order to encourage them to engage in business activities so that they can maintain a living. In addition to this, zakat funds are also used to support the families of the beneficiaries by supporting their children's school and university fees. These educational and training programs are very useful to prevent Asnaf children from continuing to live in poverty in the future due to lack of knowledge. Furthermore, issues involving zakat institutions in Malaysia are also highlighted, such as issues relating to the inefficiency of zakat distribution. as well as inefficient in collecting zakat, which will affect the goal of poverty alleviation. In terms of distribution of zakat, there were bureaucratic problems in the zakat institut… middle of the paper… the poor feelings of hatred and animosity they might have towards the rich. Therefore, to achieve this goal, the zakat fund must be fully utilized to develop the economy of Muslims so that zakat wealth can be considered a productive asset. The zakat fund also serves as additional capital subsidized by the society to support the unemployed, orphans, widows, physically disadvantaged, sick and others. The Zakat fund not only helps beneficiaries provide basic necessities and improve the living standards of the poor and downtrodden; but it also serves to help beneficiaries in the long term by making them productive members of society. Therefore, the allocation of zakat proportion must not only be sufficient to meet basic needs, but must also be sufficient to help beneficiaries expand their zakat fund to support their living..