The current rates were established some time ago and require updating to reflect Singapore's evolving economic landscape. With rising living costs and food price inflation, MUIS recognises the need to assess whether these rates continue to fulfil their fundamental purpose of adequately providing for the poor and needy.

The new fidyah rate represents a significant methodological shift. Rather than basing calculations on one mudd of staple food (rice), the rate is now calculated using the average cost of one moderate meal that reflects typical Singaporean food consumption patterns. This approach ensures recipients can obtain proper nourishment in today's context.

According to recent studies, including the Institute of Policy Studies' "Cost of Eating Out – Makan Index 2.0", an affordable meal in Singapore costs approximately S$4.00 on average. The Fatwa Committee determined that the previous calculation method no longer adequately reflects the true cost of providing a meal in contemporary Singapore. After extensive deliberation on various Syariah aspects and perspectives, the Committee concluded that this new methodology better upholds the principle of providing adequate sustenance to those in need, which remains the fundamental purpose of fidyah and kafarah.