Poverty is considered a social problem because it will affect society as a whole. It is also an ideological problem as it affects the fulfillment of socio-religious obligation to the community and Islam. As we already know, the main objective of zakat is to reduce poverty in society. Thus, a holistic approach must be adopted to achieve this goal, 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, many cases show that direct payments reduce recipients' incentive to work and end up relying solely on zakat funds. However, direct payment of zakat remains acceptable, especially for non-productive asnafs such as the disabled and the elderly. Additionally, it is recommended to distribute zakat in the form of capital financing to beneficiaries, especially the poor and needy, to encourage them to get involved in business activities so that they can sustain themselves. In addition, zakat funds are also used to support recipient families by sponsoring their children's school and college fees. These education and training programs are very helpful in preventing 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 of inefficiency in zakat distribution. as well as the inefficiency of zakat collection, which will affect the goal of poverty reduction. In terms of zakat distribution, there were problems with bureaucracy within the zakat institute... in the middle of the newspaper... the weak feelings of hatred and animosity they might have towards the rich. So, to achieve this goal, the zakat fund must be fully utilized to develop the economy of Muslims so that the zakat wealth can be considered as a productive asset. The zakat fund also acts as additional capital subsidized by society to support unemployment. orphans, widows, the physically disadvantaged, the 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 the beneficiaries in the long term by making them productive members of society. Thus, the allocation of the proportion of zakat must not only be sufficient to meet basic needs, but it must also be sufficient to help recipients increase their zakat funds in order to meet their needs...