Social Welfare Management in Zakat Fund Organizations in Malaysia

Abstract

The Zakat fund in Malaysia is collected from a religious obligation of alms-giving treated in Islam. This research aims to: (1) study the system of collecting and distributing zakat in Malaysia; (2) study the roles and plans of the zakat fund management organizations in Malaysia; and (3) to synthesize and propose a recommendation to develop a zakat fund management in Thailand. The researchers employed the mixed methods approaches. For qualitative approaches, studying from relevant documents, interviewing with zakat organization administrators in three states form Kuala Lumpur, Melaka and Kelantan. Organizing group discussion with those 30 zakat stakeholders were used as research methods. For quantitative approach, 300 research questionnaires were collected from zakat payers, zakat recipients and non-Muslims form three states and using descriptive and inferential statistics to analyze. The results showed that:
(1) Zakat fund management in Malaysia is conducted by the Islamic religious councils in each state. Companies are established in some states to operate in zakat management under the supervision of the Islamic religious council. (2) The zakat fund management organizations in each state are responsible for establishing management policies, operations, and preparing performance reports. Social welfare provided from the zakat fund is a protective welfare with aims of achieving sustainable development among zakat recipients (Productive welfare) and reducing social inequality. The Zakat Fund in Malaysia is therefore an important tool in tackling social problems and reducing the burden of government agencies in taking care of the welfare of the people.
(3) In order to optimize the management of Zakat Funds in Thailand for maximum efficiency, there is a need for legislation to certify the status and operation of Zakat Funds and national Zakat Fund Organization should be established under the supervision of the government to support and regulate local zakat fund organization.