Effective Zakat Distribution: Highlighting Few Issues and Gaps in Kedah, Malaysia

M Ashraf Al Haq, Norazlina Binti Abd. Wahab


The aim of this paper is to identify what are the impediments in implementing an effective Zakah distribution in Kedah, Malaysia. Auspiciously, post-colonial Malaysia is experiencing robustness in terms of Zakah collections, as the statistics are currently signifying, but at the same breath the degree of effectiveness in Zakah distribution has not been providentially catching that optimistic evolution. And even if, the Zakah is duly distributed, the point to note is that the effectivity of that distribution has indubitably remained in question. So this gap is an issue that has been observed by the givers, and if the collection is to increase further, the issue of effectivity in Zakah distribution needs to show a healthier trend to convince these worried payers. The implications of resolving the issues discussed below may assist to enhance this sector, if timely addressed and taken applicable measures for remediation.

DOI: 10.15408/aiq.v9i2.4002


zakah; effective distribution; sustainable balanced scorecard


Ab Rahman, A. et.al. (2010). Tauhid Epistemology in Increasing The Number of Zakah of Wealth Payers and Its Contribution Toward The Development of Malaysia Economy. Proceding Seventh International Conference–The Tawhidi Epistemology: Zakah and Waqf Economy, Bangi.

Ab Rahman, A. et.al (2012). Zakah Institutions in Malaysia: Problem and Issues, Global Journal Al-Thaqafah, 2 (1): 31-40.

Abdul‐Rahman, A. R. & A. Goddard. (1998). An Interpretive Inquiry of Accounting Practices in Religious Organisations. Financial Accountability & Management, 14(3): 183-201.

Abdul-Rahman, A. R., & A. Goddard. (2003). Accountability Verstehen: A Study of Accounting in State Religious Councils in Malaysia. School of Management, University of Southampton.

Abdul-Rahman, A. R. (2003). Zakah on Business Wealth in Malaysia: Corporate Tax Rebate, Accountability, and Governance. Jurnal IKIM, 11(1): 37-50.

Abioye, M. O. et.al. (2011). Antecedents of Zakah Payers’ Trust: The Case of Nigeria. International Journal of Economics, Management and Accounting, 19(3): 133-164.

Abioye, M. O. et.al. (2013). Antecedents of Zakah payers' trust in an emerging Zakah sector: an exploratory study. Journal of Islamic Accounting and Business Research, 4(1): 4-25.

Adebayo, R. I. (2011). Zakah and Poverty Alleviation: A lesson for the Fiscal Policy Makers in Nigeria. Journal of Islamic Economics, Banking and Finance, 7(4): 26-41.

Adnan, N. S., et.al. (2013). Intellectual Capital in Religious Organisations: Malaysian Zakah Institutions Perspective. Middle-East Journal of Scientific Research, 16(3): 368-377.

Adriansyah, A., et.al. (2016). Does the Principle of Running a Business in Conventional Vs Sharia Become Differentiator? Study on Banking Industry in Indonesia 2009-2014. Jurnal Ilmu Manajemen & Ekonomika, 8(2): 41-57.

Ahmad, S. et.al. (2011). Tax-Based modeling of Zakah compliance. Jurnal Ekonomi Malaysia, 45: 101-108.

Ahmad, W.M.W. (2012). Zakah Investment in Malaysia: A Study of Contemporary Policy and Practice in Relation to Sharia. (Unpublished Thesis). Edinburgh: University Edinburgh.

Ahmad, I. H. & M. Ma’in. (2014). The Efficiency of Zakah Collection and Distribution: Evidence from Two Stage Analysis. Journal of Economic Cooperation and Development, 35(3): 133-170.

Ahmed, H. (2004). Role of Zakah and Awqaf in Poverty Alleviation, IRTI, IDB, Jeddah.

Ahmed, H. (2008). Zakah, Macroeconomic Policies, and Poverty Alleviation: Lessons from Simulations on Bangladesh. Journal of Islamic Economics, Banking and Finance, 4(2): 81-105.

Adnan, M.A. & N.B.A. Bakar. (2009). Accounting treatment for corporate Zakah: a critical review. International Journal of Islamic and Middle Eastern Finance and Management, 2(1): 32-45.

Al Arif, M.N.R. (2012). Efek Multiplier Zakat Terhadap Pendapatan di Provinsi DKI Jakarta. Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics), Vol. IV (1): 51-66

Al Parisi, S. (2017). Tingkat Efisiensi dan Produktivitas Lembaga Zakat di Indonesia. Esensi: Jurnal Bisnis dan Manajemen, 7 (1): 63-72.

Ali, H. & S. Ahmad. (2009). Why poor regions remain poor? Evidence from Malaysia. International Review of Business Research Papers, 5(1): 340-351.

Ali, I., & Z.A. Hatta. (2014). Zakah as a poverty reduction mechanism among the Muslim community: case study of Bangladesh, Malaysia, and Indonesia. Asian Social Work and Policy Review, 8(1): 59-70.

Anwar, M. (1995). Financing Socioeconomic Development with Zakah Funds. Journal of Islamic of Economics, Vol: 4(1&2): 15-32.

Bakar, N.B.A. (2007). A Zakah accounting standard (ZAS) for Malaysian companies. American Journal of Islamic Social Sciences, 24(4): 74-92.

Bakar, N.B.A. & A. Rahman. (2007). A Comparative Study of Zakah and Modern Taxation. Journal of King Abdulaziz University: Islamic Economics, Vol. 20 (1): 25-40.

Bakar, N.B.A. & H.M.A. Rashid. (2010). Motivations of paying Zakah on income: Evidence from Malaysia. International Journal of Economics and Finance, 2(3), 76-90.

Bakar, M. H. A, & A.H. Ghani. (2011). Towards Achieving the Quality of Life in the Management of Zakah Distribution to the Rightful Recipients (The poor and needy), International Journal of Business and Social Science, Vol. 2 (4): 237-245.

Bakar, N. R. A., & T.S. Tajuddin. (2014). Performance Management System in Non-Profit Organisation: A Case Study in Mosque. Proceeding of the International Conference on Masjid, Zakah and Waqf. Kuala Lumpur, Malaysia.

Bashir, M. S. et.al. (2012). Analysis of Zakah Management In Brunei Darussalam. IJMS, 19(2): 75-102.

Bello, D.A. (2009). Poverty Alleviation through Zakah and Waqf Institutions: A Case for the Muslim Ummah in Ghana. First National Muslim Summit, Al-Furqan Foundation.

Bidin, Z. et.al. (2009). Predicting Compliance Intention on Zakah on Employment Income in Malaysia: An Application of Reasoned Action Theory. Jurnal Pengurusan, 28: 85-102.

Clark, G. (2001). Pakistan's Zakah system: A Policy Model for Developing Countries as a Means of Redistributing Income to the Elderly Poor. Social Thought, 20(3-4): 47-75.

Farooq, M. O. (2008). The Challenge of Poverty and the Poverty of Islamic Economics. Journal of Islamic Economics, Banking and Finance, Vol. 4, No. 2: 35-58.

Ferreira, A. & D. Otley. (2009). The Design and Use of Performance Management Systems: An Extended Framework for Analysis. Management Accounting Research, 20(4): 263-282.

Gray, R. et.al. (2006). NGOs, Civil Society and Accountability: Making the People Accountable to Capital. Accounting, Auditing & Accountability Journal, 19(3): 319-348.

Halim, H.A. et.al. (2012). Individual Characteristics of The Successful Asnaf Entrepreneurs: Opportunities and Solutions for Zakah Organization in Malaysia. International Business and Management, 4(2): 41-49.

Haron, N. H. et.al. (2010). Zakah for Asnafs’ Business by Lembaga Zakah Selangor.Malaysian Accounting Review, 9(2): 123-138.

Hasan, S. (2006). Muslim Philanthropy and Social Security: Prospects, Practices, and Pitfalls, ISTR Biennial Conference, Bangkok.

Hassan, N. M. N. (1987). Zakah In Malaysia: Present And Future Status. IIUM Journal of Economics and Management, 1(1): 47-75.

Hassan, S. & T. Christopher. (2005). Corporate Governance Statement Disclosure of Malaysian Banks and The Role of Islam. Asian Review of Accounting, 13(2): 36-50.

Hassan, M. K. & J.M. Khan (2007). Zakah, external debt and poverty reduction strategy in Bangladesh. Journal of Economic Cooperation, 28(4): 1-38.

Hassan, K. (2010). An Integrated Poverty Alleviation Model combining Zakah, Awqaf and Micro-finance, Seventh International Conference – The Tawhidi Epistemology: Zakah and Waqf Economy, Bangi, Malaysia.

Hassan, N.M., et.al. (2012). Embracing Microfinance: Proposed Collaboration Between Zakah Institutions and Microfinance Institutions, 3rd International Conference on Business and Economic Research Proceeding, 12 - 13 March.

Idris, A., & S.O. Muhammad. (2013). Zakah as an Instrumen for Poverty Allevation: A Case Study of Niger State Nigeria. Paper Proceeding of the 5th Islamic Economics System Conference.

Ismail, V. Y., & E. Zain. (2015). The Optimization of Human Resource's Performance in Islamic Microfinance Institutions Through Job Analysis and Competency Model. The Asian Journal of Technology Management, 8(1): 56-70.

Jawad, R. (2009). Social welfare and religion in the Middle East: A Lebanese perspective. Bristol: Policy Press.

Johari, F. et.al. (2013). The Roles of Islamic Social Welfare Assistant (Zakah) for the Economic Development of New Convert. Middle-East Journal of Scientific Research, 18(3): 330-339.

Johari, F. et.al. (2014). The Success Of Zakah Distribution And Aids For Sustaining Muallaf (New Convert) Belief And Thought: A Case Study. Retrieved from http://ddms.usim.edu.my/handle/123456789/9907. Accessed at September 30, 2016.

Kadir, M. R. A..et.al. (2014). Factors Influencing a Business Towards Zakah Payment in Malaysia. International journal of Science Commerce and Humanities, 3(3): 1-10.

Kahf, M. (1999). The Principle of Socio-Economic Justice in the Contemporary Fiqh of Zakah. Jeddah: IRTI-IDB.

Kaplan, R. S. & D.P. Norton. (1992). The Balanced Scorecard: Measures That Drive Performance, Harvard Business Review, 70(1): 71–79.

Kaplan, R. S. (2001). Strategic Performance Measurement and Management in Non-profit Organizations. Nonprofit management and Leadership, 11(3): 353-370.

Kaplan, R. S. & D.P. Norton. (2001). Transforming the Balanced Scorecard from Performance Measurement to Strategic Management: Part I. Accounting horizons, 15(1): 87-104.

Kaplan, R. S. & D.P. Norton. (2004). Measuring the Strategic Readiness of Intangible Assets. Harvard business review, 82(2): 52-63.

Kasri, R. A. (2016a). Maqasid al-Shariah and Performance of Zakah Institutions. Kyoto Bulletin of Islamic Area Studies, 9: 19–41.

Kasri, R.A. (2016b). Effectiveness of Zakah Targeting in Alleviating Poverty in Indonesia. Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics), 8 (2): 169-186.

Lubis, M. et.al. (2011). Enhancement of Zakah distribution management system: case study in Malaysia. In International Management Conference 2011 Proceedings. University Sultan Zainal Abidin.

MacKrell, D.et.al. (2011). Just a Not For Profit Supporting Sustainability With Business Intelligence in The Not For Profit Sector. MCIS 2011 Proceedings. Paper 52.

Mahamod, L. H. (2011). Alleviation of rural poverty in Malaysia: the role of Zakah, a case study. (Unpublished Dissertation). Edinburgh: The University of Edinburgh.

Masyita, D. (2012). Sustainable Islamic Microfinance Institutions in Indonesia: an Exploration of Demand and Supply Factors and The Role of Waqf . (Unpublished Dissertation). Durham: Durham University.

Mohammed, R. et.al. (2010). Sustainability disclosure among Malaysian Shari’ah-Compliant listed companies: web reporting. Issues in Social and Environmental Accounting, 3(2): 160-179.

Mohit, M. A. & N. Nazyddah. (2011). Social Housing Programme of Selangor Zakah Board of Malaysia and Housing Satisfaction. Journal of Housing and the Built environment, 26(2): 143-164.

Mohsin, M. I. A. et.al. (2011). Zakah from Salary and EPF: Issues and Challenges. International Jouirnal of Business and Social Science, Vol 2, No 1: 278-286.

Möller, A., & Schaltegger, S. (2005). The Sustainability Balanced Scorecard as a Framework for Eco‐efficiency Analysis. Journal of Industrial Ecology, 9(4): 73-83.

Mooraj, S. et.al. (1999). The balanced scorecard: a necessary good or an unnecessary evil?. European Management Journal, 17(5): 481-491.

Moore, M. H. (2000). Managing for value: Organizational strategy in for-profit, nonprofit, and governmental organizations. Nonprofit and Voluntary Sector Quarterly, 29(suppl 1): 183-208.

Muhamat, A. A. et.al. (2013). An appraisal on the Business Success of Entrepreneurial Asnaf: An Empirical Study on The State Zakah Organization (The Selangor Zakah Board or Lembaga Zakah Selangor) in Malaysia. Journal of Financial Reporting and Accounting, 11(1): 51-63.

Nadzri, F. A. A. et.al. (2012). Zakah and Poverty Alleviation: Roles of Zakah Institutions in Malaysia, International Journal of Arts and Commerce, Vol. 1, No.7: 61-72.

Obaidullah, M. (2008). Islam, Poverty and Micro Finance - Best Practices, IRTI, Jeddah.

Oran, A. F. (2009). Zakah Funds and Wealth Creation. Review of Islamic Economics, 13(1): 143-154.

Othman, A. B. et.al. (2011). Non recipients of Zakah funds (NRZF) and its Impact on the Performance of Zakah institution: A conceptual model. IEEE Colloquium on Humanities, Science and Engineering Research (CHUSER 2011).

Othman, A., & A.H.M. Noor. (2012). Role of Zakah in Minimizing Economic Inequalities Among Muslim: A Preliminary Study on Non Recipients of Zakah fFnd (NRZF). In 3 rd International Conference on Business and Economic Research (ICBER 2012), Bandung, Indonesia.

Othman, A. et.al. (2015). An Analysis Relationship Between Social Exclusion and Non Recipients Asnaf of Zakah Fund (NRAZF). Australian Journal of Sustainable Business and Society, 1(2). 101-120.

Ousama, A. A. & A.H. Fatima. (2010). Voluntary disclosure by Shariah Approved Companies: an Exploratory Study. Journal of Financial Reporting and Accounting, 8(1): 35-49.

Petrini, M. & M. Pozzebon (2009). Managing Sustainability with The Support of Business Intelligence: Integrating Socio-environmental Indicators and Organisational Context. The Journal of Strategic Information Systems. 18(4): 178-191.

Raimi, L. et.al. (2014). Corporate social responsibility, Waqf system and Zakah system as faith-based model for poverty reduction. World Journal of Entrepreneurship, Management and Sustainable Development, 10(3): 228-242.

Ramli, R.M. et.al. (2011). Understanding asnaf attitude: Malaysia’s experience in quest for an effective Zakah distribution programme. In International Zakah Conference: Sustainable Zakah Development in the Poverty Alleviation and Improvement of Welfare of the Ummah.

Raquib, A. (2011). Islamic Banking & Zakah-An Alternative Approach to Poverty Reduction in Bangladesh. Journal of Islamic Economics, Banking and Finance, 7(2): 11-26.

Sadeq, A.M. (1996). Ethico-economic Institution of Zakah: an Instrument of Self-Reliance and Sustainable Grassroot Development. Humanomics, 12(2): 47-69.

Sadeq, A. M. (1997). Poverty alleviation: an Islamic perspective. Humanomics, 13(3): 110-134.

Sapingi, R. et.al. (2011). A Study of Zakah of Employment Income: Factors that Influence Academics’ Intention to Pay Zakah. Second International Conference on Business and Economic Research.

Sarea, A. (2012). Zakah as a Benchmark to Evaluate Economic Growth: An Alternative Approach, International Journal of Business and Social Science, Vol: 3 No: 18: 242-245.

Sari, M. D. et.al. (2013). Review on Indonesian zakah management and obstacles. Social Sciences, 2(2): 76-89.

Sarif, S. et.al. (2013). The Shifts in Zakah Management Practices in Malaysia: What has Actually Been Happening? Shariah Journal, Vol. 1 (2): 21-30.

Sarif, S. M. (2016). Managing Companies With Ukhuwwah Approach as Business Core Catalyst for Sustainability. International Journal of Business, Economics, and Law, Vol. 3 (2): 9-17

Sarif, S.M. (2016). The Influence of Taqwa in Sustainable Capacity Building. South East Asian Journal of contemporary Business, economics and Law, 9. (2): 1-7.

Shariff, A. M. et.al. (2011). A Robust Zakah System: Towards a Progressive Socio-economic Development in Malaysia. Middle-East Journal of Scientific Research, 7(4): 550-554.

Shirazi, N. S. (1996). Targeting, coverage and contribution of Zakah to households' income: The case of Pakistan. Journal of Economic Cooperation among Islamic countries,17(3-4): 165-168.

Siswantoro, D. & S. Nurhayati. (2012). Factors Affecting Concern About Zakah as a Tax Deduction in Indonesia. International Journal of Management and Business Research, 2(4): 293-312.

Taha, R. et.al. (2014). Developing a Multi-dimensional Performance of Zakah Collection System in East Coast Region. Procedia-Social and Behavioral Sciences, 164: 84-90.

Tajuddin, T. S. B. et.al. (2014). Management Accounting Practices in Non-Profit Religious Organization: A Case Study in Lembaga Zakah Selangor. E-proceedings of the Conference on Management and Muamalah (CoMM 2014), 26-27 May 2014 Synergizing Knowledge on Management and Muamalah.

Velayutham, S. (2014). “Conventional Accounting vs Islamic accounting: the Debate Revisited. Journal of Islamic Accounting and Business Research, 5(2): 126-141.

Wahab, N. B. A. & A. Rahman. (2011). A Framework to Analyze the Efficiency & Governance of Zakah Institutions. Journal of Islamic Accounting and Business Research, Vol. 2 No: 1: 43-62.

Wahab, N. B. A. & A.R.A. Abdul-Rahman. (2012). Efficiency of Zakah institutions in Malaysia: An application of data envelopment analysis. Journal of Economic Cooperation & Development, 33(1): 95-105

Wahab, N. B. A. & Abdul-Rahman, A. R. A. (2015). Efficiency of Zakah institutions and its determinants. Access to Finance and Human Development—Essays on Zakah, Awqaf and Microfinance, 33.

Wahid, H. (2014). Localization of Malaysian Zakah distribution: Perceptions of Amils and Zakah Recipients. (Unpublished Dissertation). Kuala Lumpur: Universiti of Malaya.

Yusoff, M. B. (2006). Fiscal Policy in an Islamic Economy and the Role of Zakah. IIUM Journal of Economics and Management, Vol. 14, No. 2: 117-145.

Yusoff, M. B. (2011). Zakah Expenditure, School Enrollment, and Economic Growth in Malaysia, International Journal of Business and Social Science, 2(6): 175-81.

Yusoff, M. & S. Densumite. (2012). Zakah distribution and growth in the federal territory of Malaysia. Journal of Economics and Behavioral Studies, 4(8): 449-456.

Zakaria, M. (2014). The Influence of Human Needs in the Perspective of Maqasid al-Syari'ah on Zakah Distribution Effectiveness. Asian Social Science, 10(3): 165-175.

Full Text: PDF

DOI: 10.15408/aiq.v9i2.4002


  • There are currently no refbacks.