INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XI November 2025

Page 1462

www.rsisinternational.org

Legal Framework of Zakat-Based Microfinancing for Asnaf

Entrepreneurs in Malaysia

Nurul Najibah Zainal

, Nooramira Ghazali

, Wan Mohd Khairul Firdaus Wan Khairuldin

, Siti Aisyah

Sabri

, Nurul Farhana Azmi

Faculty of Contemporary Islamic Studies (FKI), Universiti Sultan Zainal Abidin (UniSZA), Gong

Badak Campus,21300 Kuala Nerus, Terengganu, Malaysia

Faculty of General Studies and Advance Universiti Sultan Zainal Abidin (UniSZA), Gong Badak

Campus,21300 Kuala Nerus, Terengganu, Malaysia

Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.91100115

Received: 20 November 2025; Accepted: 26 November 2025; Published: 02 December 2025

ABSTRACT

Financial inclusion and resilient livelihoods have gained policy prominence in Malaysia due to persistent MSME

credit gaps and the limits of consumptive aid. Yet a clear comparative legal mapping of zakat-based

microfinancing against international guidance remains limited, creating uncertainty over enforceable beneficiary

protections. This study aims to assess how Malaysian laws align with global microfinance norms and

contemporary Islamic finance standards, identify regulatory gaps and propose a harmonised model. Using a

critical comparative legal analysis, it reviews shariah governance standards, state zakat enactments and

guidelines, national policy documents, and international frameworks on inclusive finance. Findings indicate

progressive institutionalisation of productive zakat through asset grants and revolving qard al-hasan, and

growing integration of entrepreneurship support such as training, mentoring, and asset provision. Nonetheless,

interstate fragmentation, ambiguity over tamlik versus use rights, weak enforcement, uneven monitoring and

impact evaluation, and limited stakeholder participation persist. The study contributes a consolidated map of

Malaysia’s evolving regulatory landscape and a model framework that clarifies shariah governance, standardises

disclosures, and strengthens beneficiary safeguards. Future recommendations include interstate harmonisation,

interoperable data and impact reporting, and structured partnerships with Islamic finance providers and SME

agencies, alongside empirical evaluations of program effectiveness.

Keywords: Asnafpreneurs; Islamic law, Malaysia, Spiritual capital, Zakat microfinancing

INTRODUCTION

Persistent gaps in financial inclusion and rising livelihood vulnerabilities in many economies have intensified

the call to expand access to ethical finance that is transparent, fair and purposeful (Goel, 2023). In this context,

zakat-based microfinancing has shifted from peripheral charity to a structured policy lever that mobilises

communal resources for inclusive enterprise (Abdullah Thaidi et al., 2024a). It aligns with sustainable

development thinking that seeks a balance among social welfare, economic productivity, and environmental

stewardship so present needs are met without reducing prospects (Zahri et al., 2023). With credible governance

and beneficiary centered safeguards, zakat-based microfinancing can help low-income entrepreneurs stabilise

cash flows, build assets and progress to viable microenterprises (Jauhari et al., 2023). These possibilities justify

legal scrutiny in practice, since the promise of zakat depends on enforceable rules that ensure integrity,

accountability, and equity in delivery (Jumailah & Ahmad Fauzan, 2022). Accordingly, this study asks whether

Malaysia’s evolving arrangements supply coherent authority, processes and protections commensurate with

inclusion challenges consistently.

Evidence highlights urgent need for inclusive enterprise finance, with reports documenting sizeable credit

constraints for small firms, uneven access to affordable capital, and the limited effectiveness of short-term aid

INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XI November 2025

Page 1463

www.rsisinternational.org

in building resilient livelihoods (Bettoni et al., 2023). These dynamics apply in Malaysia, where micro and small

enterprises anchor local economies yet face barriers to shariah compliant finance for investment and growth

(Affif & Mohamad, 2010). In this context, the legal and regulatory architecture is decisive it sets eligibility,

defines instruments, and protects rights across relationships (Bisht & Singh, 2020). Robust statutes, subsidiary

rules, and administrative guidelines are needed to safeguard beneficiaries, ensure accountability and enable

productive use while preventing diversion or exploitative terms (Koenig-Archibugi & Macdonald, 2017). This

article assumes that credible legal design can convert fragmented practices into system capability, turning

sporadic assistance into scalable, rights consistent finance for vulnerable entrepreneurs. Design, rather than

intent, conditions whether zakat-based microfinancing can reliably advance inclusion at meaningful scale over

time.

The international normative environment provides a reference frame for legal design. The Sustainable

Development Goals (SDG) foreground poverty reduction, decent work, innovation, reduced inequalities, and

responsible consumption and production, linked to inclusive enterprise finance and social protection (Liu et al.,

2015). In parallel, Islamic finance standards and global frameworks on responsible finance and consumer

protection set expectations for transparency, fair treatment and proportionate risk management for vulnerable

clients (Kutty, 2020). These instruments do not dictate a single model, they offer benchmarks against which

national systems can align practice while remaining faithful to shariah objectives (Yap, 2024). Malaysia is

instructive as it combines a mature Islamic finance ecosystem, a diverse MSME base, and a federal structure that

allocates Islamic affairs to the states (Kassim, 2016). Recently, several zakat authorities have complemented

consumptive transfers with productive support, including asset provision, training, mentoring, and use of

revolving qard al hasan for enterprise formation and expansion, illustrating ongoing alignment efforts (Shiyuti

et al., 2022).

Despite these advances, critical concerns persist that warrant systematic legal assessment. Interstate

fragmentation yields uneven eligibility, divergent documentation and monitoring and inconsistent interpretations

of ownership versus use rights in financing structures, creating uncertainty for administrators and beneficiaries

(Pamuncak et al., 2022). Beneficiary safeguards and dispute resolution mechanisms are uneven, and data systems

for impact measurement remain nascent and inconsistently embedded, constraining learning and public

accountability. Distribution has expanded on governance, poverty alleviation and outcomes, yet comparative

legal mappings against international inclusive finance benchmarks and contemporary shariah governance remain

limited (Bakar et al., 2019). Questions on enforceability, interoperability with MSME agencies, and risk sharing

instruments such as equity like partnerships are seldom examined with doctrinal clarity or operational specificity.

They also complicate comparability across states and hinder cumulative evaluation and evidence-based scaling

(Kim & Hudayana, 2022). These gaps shape the present study by identifying where legal development could

plausibly accelerate practice and strengthen protection for vulnerable entrepreneurs.

Against this backdrop, the article examines the legal framework for zakat-based microfinancing across levels

with Malaysia as the case. The analysis considers legal efforts to address inclusion through rules, guidelines and

initiatives that support sustainable enterprise. It reviews the legal basis for productive zakat, common contract

forms like qard al-hasan and equity like partnerships, governance and disclosure duties, beneficiary rights, risk

management and interfaces with fintech and SME agencies. Attention also covers data governance and impact

reporting to anchor accountability and cross jurisdiction learning (Sarif et al., 2024). Two research questions

guide the inquiry. First, to what extent do Malaysia’s frameworks align with and operationalise international

guidance for inclusive finance and contemporary shariah governance supporting sustainable entrepreneurship.

Second, what legal gaps and structural deficiencies impede compliance and scalability including interstate

harmonisation, contractual clarity, enforcement, and beneficiary protection. Addressing these questions aims to

clarify a credible enforceable pathway for a federated context.

RESEARCH METHODOLOGY

This study employs descriptive, analytical, and critical legal methods within a qualitative design to interpret

rules and policy instruments in international standards on Islamic social finance and inclusive finance. It also

interprets Malaysian legislation, with emphasis on state level zakat governance. Using a structured comparative

approach, it canvasses convergences and divergences in global provisions on microfinance and social protection,

INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XI November 2025

Page 1464

www.rsisinternational.org

then tests their correspondence with Malaysian statutes, subsidiary regulations and administrative guidelines

while assessing progress on financial inclusion, entrepreneurial empowerment, poverty alleviation and alignment

with maqasid shariah. Data come from primary sources, including Islamic legal texts, shariah governance

standards, state zakat enactments and regulations, fatwa resolutions, executive circulars and official strategies,

and from secondary sources, namely peer-reviewed literature in Scopus and Google Scholar, complemented by

United Nations and Malaysian government portals. The analysis maps benchmarks such as AAOIFI shariah

Standards and IFSB principles and evaluates their incorporation and enforceability in domestic law and practice

(Bhatti et al., 2025). Research rigor is supported through a transparent document selection protocol, a deductive

and inductive codebook, triangulation across legal texts, policy instruments and implementation reports, and an

auditable analytic trail. Comparative references to Indonesia and Pakistan identify good practices and inform

context-sensitive legal and policy recommendations (Farooq et al., 2024).

FINDINGS AND DISCUSSIONS

The Concept of Zakat-Based Microfinancing and the Sustainable Development Goals

Zakat-based microfinancing is emerging as a core policy instrument that mobilises communal resources for

inclusion while preserving them for future generations, which aligns directly with Sustainable Development

Goals (Mazroatus Saadah & Uswatun Hasanah, 2021). Properly designed programs combine working-capital

access with rights-preserving processes, thereby protecting dignity, reducing exposure to risk finance, and

enabling viable livelihoods for low-income entrepreneurs (Skees & Barnett, 2006). In practice, instruments such

as targeted asset grants, revolving qard al-hasan, and monitoring aftercare create pathways from subsistence to

productive self-employment when embedded in transparent governance (Melak et al., 2023).

Evidence associates productive zakat with enterprise formation, job creation, and resilience through income

diversification and improved cash flow management, which cushions local economies against shocks (Ivan

Rahmat Santoso et al., 2024). Although policymakers caution about administrative costs, compliance risks, and

mission drift from immediate relief, standards-based governance, basic disclosure, portfolio quality monitoring,

and grievance mechanisms consistently improve targeting and crowd in complementary capital. On balance,

zakat-based microfinancing complements rather than displaces social protection, provided that law clarifies

eligibility, tamlik versus use-rights, permissible instruments, and monitoring obligations within a coherent

supervisory schema Abdullah Thaidi et al., 2024).

Zakat-Based Microfinancing within International and Islamic Norms

Access to ethical finance is increasingly framed as a rights based imperative that links livelihood security to

human development, situating zakat within a broader justice narrative (Othman et al., 2021). In Islamic legal

theory, maqasid shariah prioritises the preservation of faith, life, intellect, progeny, and wealth, and productive

zakat operationalises the protection of wealth among the poor while sustaining social solidarity (Fakhruddin et

al., 2024). International norms reinforce these aims: the SDGs, responsible microfinance principles, and financial

consumer protection frameworks specify fair treatment, transparency, and proportionate risk management for

vulnerable clients (Vranovci, 2025).

Contemporary standards from Islamic finance bodies further translate these expectations into shariah consistent

requirements without prescribing a single delivery model, thereby offering benchmarks for national alignment

(SHAWAMREH, 2013). Juristic discourse addresses the permissibility and modalities of productive use,

including the conditions of tamlik, the scope for use rights and service contracts, and the legitimacy of revolving

funds that preserve capital across cycles, with comparative practice revealing multiple acceptable interpretations

(Ropiah, 2025). Consequently, clear domestic rules are needed to reconcile doctrinal requirements with

operational effectiveness so that programs remain both lawful and implementable at scale (Hussan et al., 2013)

Zakat-Based Microfinancing under Malaysian Legislation

Malaysia recognises productive zakat as part of development policy within the constitutional allocation of

Islamic affairs to the states, and many state enactments and guidelines authorise capital grants, asset provision,

and, in selected cases, revolving qard al-hasan for microenterprises (Abdullah Thaidi et al., 2024c). Recent

initiatives show movement from consumptive transfers toward integrated enterprise support that bundles finance

INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XI November 2025

Page 1465

www.rsisinternational.org

with training, mentoring, market access, and aftercare, often in partnership with SME agencies and ecosystem

actors (Mohammad et al., 2020). The legal foundation rests on state enactments and regulations that define

distribution categories, administrative powers, and procedural safeguards, complemented by executive

instruments that set eligibility, documentation, and permissible modalities while prohibiting riba and exploitative

terms (Handriani et al., 2019).

Subordinate rules increasingly address asset stewardship, maintenance, limited resale, and diversion deterrence,

and some states are piloting digital tools for application processing and monitoring to improve efficiency and

reduce leakage. National development plans and MSME strategies reinforce these efforts by promoting inclusive

entrepreneurship, women’s economic participation, and sustainable business practices, enabling alignment

between zakat microfinance and public incentives that broaden impact and reduce duplication (Alhadi et al.,

2025).

Challenges in Implementation and Pathways to Improvement

Despite progress, interstate fragmentation generates uneven eligibility criteria, divergent documentation and

monitoring requirements, and inconsistent interpretations of tamlik versus use-rights, which produce variable

program experiences and legal uncertainty (Haryanti et al., 2022). Beneficiary safeguards and dispute-resolution

mechanisms are unevenly articulated, while portfolio and impact transparency remain limited, constraining

evidence-based decision making, blended finance risk pricing, and cross-institution learning (Hadi et al., 2024).

Comparative experience from mature inclusive-finance regimes shows that clear disclosure duties, proportionate

prudential norms, and accessible grievance systems enhance accountability without commercialising religious

funds (Pg Md Salleh, 2015).

Malaysia’s zakat sector can adapt these elements by codifying baseline conduct standards, adopting uniform

beneficiary charters, and establishing independent redress mechanisms tailored to zakat cases, supported by

progressive sanctions for non-compliance (Mukhlishin et al., 2024a). Effective implementation also requires

structured stakeholder coordination among state religious authorities, SME agencies, cooperatives, Islamic

banks, microfinance providers, training institutions, and fintech partners, with protocols for referrals, co-funding,

and privacy aware data sharing that shorten client journeys from application to scale-up (Mukhlishin et al.,

2024b). Finally, interoperable data systems, standard monitoring indicators, periodic compliance reporting, and

third party assurance would strengthen oversight and enable credible outcome evaluation across jurisdictions.

Table 1: Core Themes and Implications from the Zakat Microfinancing Legal Discussion

Items

Main Theme

Key Findings

Implications

Legal basis and

governance in

Malaysia

State enactments authorise productive

zakat, agencies issue program guidelines,

pilot use of revolving qard al-hasan and

asset grants

Aligns domestic practice with

inclusion goals and maqasid,

enables structured enterprise

support

Compliance with

Islamic and

international standards

Reference to shariah standards, consumer

protection principles, responsible

microfinance norms

Enhances credibility, protects

beneficiaries, facilitates

partnerships and blended finance

Strengths in national

and state frameworks

Training, mentoring, aftercare bundled with

financing, linkages to SME programmes

and digital tools

Positions Malaysia as a leader in

Islamic social finance and

transitions from consumptive to

productive aid

Challenges in

enforcement and

harmonisation

Interstate fragmentation, ambiguity on

tamlik versus use-rights, limited data

transparency, weak grievance mechanisms

Weakens legal accountability and

public trust, constrains scalability

and impact evaluation

Recommendations for

legal reform

Model framework for state harmonisation,

beneficiary rights charter, standard contracts

and disclosures, shared impact reporting and

structured

Strengthens justice, improves

governance, and supports effective

and scalable microenterprise

outcomes

Source: Prepared by the Authors

INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XI November 2025

Page 1466

www.rsisinternational.org

The information in Table 1 synthesises thematic document analysis concerning the legal framework for zakat-

based microfinancing in Malaysia and its alignment with inclusive development objectives (Muhd Adnan et al.,

2019). State enactments provide the primary legislative foundation, while institutional guidelines operationalise

productive instruments (Kusriyah, 2020). Alignment with Islamic standards and responsible finance principles

indicates a willingness to engage with global good practice. National and state initiatives that bundle finance

with capability building have facilitated meaningful advances in enterprise formation and resilience

(Zabolotskaya, 2019). Despite these gains, fragmentation, data opacity, and limited redress mechanisms

undermine legal effectiveness and public confidence (Pablo, 2014). The recommended reforms, including a

model framework, a beneficiary rights charter, and shared impact reporting, aim to improve accountability,

support inclusive governance, and strengthen the implementation of sustainable microenterprise development

within Malaysia’s evolving legal and institutional landscape (Wong, 2024).

CONCLUSION

The study finds that zakat-based microfinancing in Malaysia has shifted from charitable transfers to structured,

rights-aware enterprise support that aligns with maqasid al shariah and global inclusion norms. It maps how state

enactments and guidelines enable asset grants and revolving qard al hasan, often bundled with training and

mentoring, while identifying barriers such as interstate fragmentation, ambiguity over tamlik and use rights,

uneven safeguards, and weak data transparency. Conceptually, it offers an integrated comparative legal lens that

links shariah governance with responsible finance benchmarks, and methodologically it demonstrates a rigorous

document-based assessment that can be replicated across jurisdictions. Practically, it proposes a model

framework, standard contracts and disclosures, a beneficiary charter, interoperable data and shared dashboards,

and structured partnerships with SME agencies and Islamic finance providers. The expected societal payoffs

include stronger livelihoods, fairer markets, and greener transitions through resilience and resource stewardship.

The analysis is limited by its doctrinal focus and dependence on publicly available legal and policy texts,

potential heterogeneity across states, and rapidly evolving administrative practices. Future research should pair

legal mapping with mixed-methods evaluations that test cost effectiveness, distributional and gender outcomes,

and the performance of alternative contractual forms under varied market conditions. Priority agendas include

longitudinal impact reporting, participatory audits, comparative studies with Indonesia and Pakistan, privacy-

aware data integration with fintech channels, and measurement of environmental co-benefits from enterprise

upgrading and low carbon adoption.

ACKNOWLEDGEMENT

This research was supported by Ministry of Higher Education (MOHE) through Fundamental Research Grant

Scheme (FRGS/1/2023/SS10/UNISZA/03/2). We also want to thank to the under the Government of Malaysian

which provide MyBrain15 programme or sponsoring this work under the self- funded grand and L000022 from

Ministry of Science, Technology and Innovation (MOSTI).

REFERENCE

1. Abdullah Thaidi, H. ’Azeemi, El-Alami, D., Ab Rahman, M. F., & Jailani, M. R. (2024a). Zakat-Based

Microfinancing: Insights from The Melaka Islamic Religious Council (MAIM). Journal of Fatwa

Management and Research, 29(3), 199–218. https://doi.org/10.33102/jfatwa.vol30no1.659.

2. Affif, A., & Mohamad, S. (2010). An Empirical Investigation into SMEs’ Perceptions of Credit Guarantee

Corporation (CGC) Malaysia Berhad: A Case Study of the Islamic Guarantee Scheme in Malaysia. ISRA

International Journal of Islamic Finance, 2(2), 101–128. https://doi.org/10.55188/ijif.v2i2.107.

3. Alhadi, A., Dr Tom, B., & Yacine, R. (2025). Enhancing asset management: Integrating digital twins for

continuous permitting and compliance - A systematic literature review. Journal of Building Engineering,

99, 111515. https://doi.org/10.1016/j.jobe.2024.111515.

4. Bakar, N. M., Abdul Rahman, R., & Ibrahim, Z. (2019). Client protection and sustainable performance

in microfinance institution. International Journal of Productivity and Performance Management, 69(4),

651–665. https://doi.org/10.1108/IJPPM-03-2019-0127.

INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XI November 2025

Page 1467

www.rsisinternational.org

5. Bettoni, L., Santos, M., & Filho, G. O. (2023). The impact of microcredit on small firms in Brazil: A

potential to promote investment, growth and inclusion. Journal of Policy Modeling, 45(3), 592–608.

https://doi.org/10.1016/j.jpolmod.2023.04.005.

6. Bhatti, M., Saleem, M. S., & Mansor, F. (2025). Need for reform in AAOIFI standards on murabaha

financing: evidence from Islamic Banks in Pakistan. Quality & Quantity, 59(S1), 59–78.

https://doi.org/10.1007/s11135-024-01974-y.

7. Berghe, Wouter Van den, Victoria Gitelman, and Shalom Hakkert. “Safety Performance Indicators.” In

Traffic Safety Data, 237–62. United Kingdom: The Institution of Engineering and Technology, 2024.

doi:10.1049/PBTR028E_ch12.

8. Bisht, H. S., & Singh, D. (2020). Challenges faced by micro, small and medium enterprises: a systematic

review. World Review of Science, Technology and Sustainable Development, 16(3), 205.

https://doi.org/10.1504/WRSTSD.2020.113046.

9. Fakhruddin, F., Hasan, S., Firdaus, D. H., & Hidayat, H. (2024). From Fiqh al-Ibadat to Muamalat:

Repositioning Zakat Management in Indonesia in the Perspective of Maqāṣid Al-Sharī’ah. Samarah:

Jurnal Hukum Keluarga Dan Hukum Islam, 8(1), 495. https://doi.org/10.22373/sjhk.v8i1.19637

10. Farooq, S. H., Din, A. U., Soomro, I. A., & Riviezzo, A. (2024). Unveiling the path to sustainable poverty

alleviation in Pakistan: Investigating the role of microfinance interventions in empowering women

entrepreneurs. Scandinavian Journal of Management, 40(2), 101331.

https://doi.org/10.1016/j.scaman.2024.101331.

11. Goel, A. (2023). Trends and reforms of financial inclusion in India. International Review of Applied

Economics, 37(2), 275–285. https://doi.org/10.1080/02692171.2023.2167952.

12. Hadi, R., Shafrani, Y. S., Hilyatin, D. L., Riyadi, S., & Basrowi, B. (2024). Digital zakat management,

transparency in zakat reporting, and the zakat payroll system toward zakat management accountability

and its implications on zakat growth acceleration. International Journal of Data and Network Science,

8(1), 597–608. https://doi.org/10.5267/j.ijdns.2023.8.025.

13. Handriani, I., Priambodo, B., Hazidar, A. H., Masril, M., Pratama Putra, Z., Kudr Nseaf, A., & Naf’an,

E. (2019). Standard operational procedure fund distribution system of zakat infaq and shodaqoh for zakat

foundations. Journal of Physics: Conference Series, 1339(1), 012106. https://doi.org/10.1088/1742-

6596/1339/1/012106.

14. Haryanti, D. A., Andriani, F., Nugraha, N., Lestari, D. P., & Susanti, B. (2022). Decision Support System

for Selection of Zakat Mustahik Using Analytical Network Process Method. 2022 IEEE 7th International

Conference on Information Technology and Digital Applications (ICITDA), 1–8.

https://doi.org/10.1109/ICITDA55840.2022.9971265.

15. Hussan, S. B. M., Abdul Karim, F. M., & Manap, A. N. (2013). Instituting Sharīʻah Audit in Malaysian

Islamic Financial Institutions. ISRA International Journal of Islamic Finance, 5(2), 127–137.

https://doi.org/10.12816/0002772.

16. Ivan Rahmat Santoso, Syahrir Mallongi, Siradjuddin, & Muhammad Basir Paly. (2024). MEDIATING

EFFECTS OF ISLAMIC BUSINESS SUCCESS ON PRODUCTIVE ZAKAT AND MUSTAHIQ

WELFARE. International Journal of Business and Society, 25(1), 111–127.

https://doi.org/10.33736/ijbs.6903.2024.

17. Jauhari, F. F., Yusoff, S. S. M., & Kassim, S. (2023). Enhancing Access to Finance Amongst Asnaf Micro

Entrepreneurs: How Can Islamic Fintech in Zakat Institutions Play a Role? (pp. 345–357).

https://doi.org/10.1007/978-3-031-27860-0_31.

18. Jumailah, & Ahmad Fauzan. (2022). The Effectiveness of the Implementation of the Norms for the

Distribution of Zakat Funds in BAZNAS of Pekalongan City (Articles 25 and 26 of Law No. 23 of 2011).

Jurnal Hukum Islam, 20(2), 305–328. https://doi.org/10.28918/jhi.v20i2.2274.

19. Kassim, S. (2016). Islamic finance and economic growth: The Malaysian experience. Global Finance

Journal, 30, 66–76. https://doi.org/10.1016/j.gfj.2015.11.007.

20. Kim, H.-J., & Hudayana, B. (2022). What Makes Islamic Microfinance Islamic? A Case of Indonesia’s

Bayt al-Māl wa al-Tamwīl. Studia Islamika, 29(1), 31–54. https://doi.org/10.36712/sdi.v29i1.17862.

21. Koenig-Archibugi, M., & Macdonald, K. (2017). The Role of Beneficiaries in Transnational Regulatory

Processes. The ANNALS of the American Academy of Political and Social Science, 670(1), 36–57.

https://doi.org/10.1177/0002716216688862.

INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XI November 2025

Page 1468

www.rsisinternational.org

22. Kusriyah, S. (2020). GOVERNMENT POLICY IN ACHIEVING COMMUNITY WELFARE

THROUGH THE EFFECTIVENESS OF MANAGEMENT OF ZAKAT IN INDONESIA. Journal of

Critical Reviews, 7(05). https://doi.org/10.31838/jcr.07.05.26.

23. Kutty, F. (2020). Islamic Finance, Consumer Protection and Public Policy. In Faith, Finance, and

Economy (pp. 129–172). Springer International Publishing. https://doi.org/10.1007/978-3-030-38784-

6_7.

24. Liu, Q.-Q., Yu, M., & Wang, X.-L. (2015). Poverty reduction within the framework of SDGs and Post-

2015 Development Agenda. Advances in Climate Change Research, 6(1), 67–73.

https://doi.org/10.1016/j.accre.2015.09.004.

25. Mazroatus Saadah, & Uswatun Hasanah. (2021). The Common Goals of BAZNAS’ Zakat and

Sustainable Development Goals (SDGs) according to Maqasid Al-Sharia Perspective. AL-IHKAM:

Jurnal Hukum & Pranata Sosial, 16(2), 302–326. https://doi.org/10.19105/al-lhkam.v16i2.4990.

26. Melak, D., Derbe, T., & Derso, B. (2023). Stakeholders’ Integration to Social Responsibility: Its

Implication on Youth Self Employment. Ethiopian Renaissance Journal of Social Sciences and

Humanities, 10(1), 41–60. https://doi.org/10.4314/erjssh.v10i1.3.

27. Mohammad, Khan, S., Mustafa, & Yannis. (2020). An Artificial Intelligence and NLP based Islamic

FinTech Model Combining Zakat and Qardh-Al-Hasan for Countering the Adverse Impact of COVID 19

on SMEs and Individuals. International Journal of Economics and Business Administration, VIII(Issue

2), 351–364. https://doi.org/10.35808/ijeba/466.

28. Muhd Adnan, N. I., Mohd Kashim, M. I. A., Hamat, Z., Adnan, H. M., Adnan, I. M., & Md. Sham, F.

(2019). THE POTENTIAL FOR IMPLEMENTING MICROFINANCING FROM THE ZAKAT FUND

IN MALAYSIA. Humanities & Social Sciences Reviews, 7(4), 542–548.

https://doi.org/10.18510/hssr.2019.7473.

29. Mukhlishin, M., Wahab, A., Setiaji, B., & Tazhdinov, M. (2024a). Zakat Maal Management and

Regulation Practices: Evidence from Malaysia, Turki and Indonesia. Journal of Human Rights, Culture

and Legal System, 4(2), 569–592. https://doi.org/10.53955/jhcls.v4i2.204.

30. Othman, Y. H., Sheh Yusuff, M. S., & Khaled Moawad, A. M. (2021). Analyzing Zakat as a Social

Finance Instrument to Help Achieve the Sustainable Development Goals in Kedah. Studies of Applied

Economics, 39(10). https://doi.org/10.25115/eea.v39i10.5346.

31. Pablo, H. (2014). O Constitucionalismo entre a Fragmentação e a Privatização: Problemas Evolutivos do

Direito e da Política na Era da Governança Global. Dados, 57(4), 1137–1168.

https://doi.org/10.1590/00115258201435.

32. Pamuncak, M. B., Possumah, B. T., & Halim, Z. A. (2022). Integrating Zakat and Microfinance. In

Research Anthology on Microfinance Services and Roles in Social Progress (pp. 600–612). IGI Global.

https://doi.org/10.4018/978-1-6684-7552-2.ch032.

33. Pg Md Salleh, A. M. H. A. (2015). Integrating financial inclusion and saving motives into institutional

zakat practices. International Journal of Islamic and Middle Eastern Finance and Management, 8(2), 150–

170. https://doi.org/10.1108/IMEFM-12-2013-0126.

34. Ropiah, S. (2025). Implications of Islamic Law on Credit-Based Sales in Reducing Social and Economic

Inequalities in Society. Jurnal Ilmiah Mizani: Wacana Hukum, Ekonomi Dan Keagamaan, 12(1), 185.

https://doi.org/10.29300/mzn.v12i1.7091.

35. Sarif, S., Ali, N. A., & Kamri, N. ‘Azzah. (2024). Zakat for generating sustainable income: an emerging

mechanism of productive distribution. Cogent Business & Management, 11(1).

https://doi.org/10.1080/23311975.2024.2312598.

36. SHAWAMREH, C. (2013). The Legal Framework of Islamic Finance. In Contemporary Islamic Finance

(pp. 39–61). Wiley. https://doi.org/10.1002/9781118653814.ch3.

37. Shiyuti, H. A., Zainol, F. A., & Yusoff, M. N. H. (2022). Product Distributional Mechanism as an Asnaf

Entrepreneurship Support: A Case Study in Wilayah Persekutuan Kuala Lumpur, Malaysia (pp. 575–

584). https://doi.org/10.1007/978-3-031-08087-6_41.

38. Skees, J. R., & Barnett, B. J. (2006). Enhancing microfinance using index‐based risk‐transfer products.

Agricultural Finance Review, 66(2), 235–250. https://doi.org/10.1108/00214660680001189.

39. Vranovci, S. (2025). Exploring the Relationship between Client Protection Practices and Sustainable

Performance in the Microfinance Sector: A Study of Kosovo’s Microfinance Institutions. WSEAS

TRANSACTIONS ON BUSINESS AND ECONOMICS, 22, 574–583.

https://doi.org/10.37394/23207.2025.22.51.

INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XI November 2025

Page 1469

www.rsisinternational.org

40. Wong, C. F. (2024). Malaysia National Industry Environmental, Social and Governance framework. In

ESG Innovation for Sustainable Manufacturing Technology: Applications, designs and standards (pp.

65–73). Institution of Engineering and Technology. https://doi.org/10.1049/PBME027E_ch4.

41. Yap, C. K. (2024). Exploring the Impact of Personality Traits on Managerial Skills using FIKR (Facet,

Insight, Knowledge and Resilience) Personality Assessment Tool: Implications for Manager Selection

and Development. Pakistan Journal of Life and Social Sciences (PJLSS), 22(2).

https://doi.org/10.57239/PJLSS-2024-22.1.00410.

42. Zabolotskaya, V. (2019). Governmental Programs of Small Business Support in the USA. World

Economy and International Relations, 63(12), 15–22. https://doi.org/10.20542/0131-2227-2019-63-12-

15-22.

43. Zahri, Mohd. ‘Adli, Muhd Adnan, N. I., Irfan, I., & Mohd Kashim, M. I. A. (2023). Microfinancing from

the Zakat Fund in Baitul Mal Aceh and the Readiness of Malaysia’s Asnaf Entreprenuers. Samarah:

Jurnal Hukum Keluarga Dan Hukum Islam, 7(1), 418. https://doi.org/10.22373/sjhk.v7i1.16012.