How to manage zakat fund in Malaysia?

Abstract

Zakat is the third pillar of Islam. It is the main tool for redistributing the Islamic wealth that is collected regularly from the zakat payers and channeled to the specified beneficiaries in accordance with the principles of Islamic law (Sharia). Therefore, it is necessary to organize and develop institutions to manage this wealth.

This article analyzes the Malaysian zakat system, and evaluates its performance by examining the mechanisms of zakat income collection and redistribution. The document uses a descriptive analytical method. It analyzes the annual reports of zakat collection centers and religious councils. The paper focuses on data between the years 1991 and 2016. This article finds that the Malaysian experience of managing zakat funds has advanced methodically and technically in collection and distribution.

In addition, the document identifies the importance and the need to establish a database on people in need, and link it with the national social protection system and other humanitarian non-governmental organizations so that the Malaysia's zakatary system is more efficient and more consistent between all its components