Zakah Collection and Distribution Management: A Case Study of MAIDAM in Terengganu

Md Habibur Rahman,Shahirah Binti Mat Shaari Shahirah Binti Mat Shaari

doi:10.37231/jmtp.2021.2.2.108

Md Habibur Rahman, Shahirah Binti Mat Shaari Shahirah Binti Mat Shaari

Open Access

https://doi.org/10.37231/jmtp.2021.2.2.108

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Abstract

Zakah is one of the systems to promote wealth-sharing among the Muslims in assuring a minimum standard of living for them. The problems associated with the distribution of zakah and poverty are damaging the performance and achievement of the zakah institution itself. The statistics on the distribution of zakah shows that the poor and extreme poor in Terengganu has been increased over the last few years. In addition, there are people who pay zakah directly to the asnaf while such payments of zakah are not being recorded. Thus, an efficient management for zakah in terms of collection and distribution can contribute to the achievement of the utmost objective of zakah. This qualitative mode of study investigates the activities of zakah collection and distribution that are being practiced by MAIDAM. This study uses the semi-structured interviews to collect the primary data. The study interviews the staff from the Majlis Agama Islam Dan Adat Melayu (Islamic Religious Council and Malay Customs), known as MAIDAM, whereby several issues have been asked and discussed to achieve the objectives. MAIDAM is the only organization that collects and distributes zakah in Terengganu. The study finds that MAIDAM has been using several channels for the zakah payers to make direct payments to MAIDAM. Besides, MAIDAM has collaborations with other organizations to distribute the funds effectively. The study posits that zakah is to be distributed in sustainable modes such as in a form of small financing for needy SMEs to achieve the objective of eradicating poverty line and minimizing income inequality.

Highlights

Zakah is the fourth pillar in the pillars of Islam, which is obligated towards all Muslims
Sources of Zakah by MAIDAM Plantation: Agriculture is among the most important zakah resources in Malaysia because agricultural sector is among the major sectors in which it became the backbone of the economy in Malaysia, along with the services and manufacturing sectors (Mohd Faisol Ibrahim & Suhana Musani, 2010)
MAIDAM ensures that asnaf would receive a sustainable income and to help them to escape the poverty

Summary

Introduction

Zakah is the fourth pillar in the pillars of Islam, which is obligated towards all Muslims. There are several mechanisms for zakah collection and distribution practiced by Zakah Institution in Malaysia. The proper and transparent zakah distribution will contribute to the direct impact on the distribution of fair society wealth. It reflects on the meaning of zakah to improve, offering security, to cleanse and grow (Al-Ayni, 1972). The problems that relate with the distribution of zakah and poverty defame the performance and achievement of the zakat institution itself. It happens because the method of the distribution of zakah is still not proper. This is because the methods of zakah distribution is still ineffective and the dissemination of information on zakah distribution

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Conclusion