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 3015

www.rsisinternational.org

Legal Regulation of Productive Zakat for Empowering

Entrepreneurs in Malaysia

Siti Aisyah Sabri

, Nooramira Ghazali

, Wan Mohd Khairul Firdaus Wan Khairuldin

, Nurul Najibah

Zainal

, Nurul Farhana Azmi

, Aminah Nur Nik Mohd Noor

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

Badak Campus, 21300 Kuala Nerus, Terengganu, Malaysia.

Faculty of General Studies and Advanced Education, University Sultan Zainal Abidin, Terengganu,

Malaysia.

Faculty of Language and Communications, University Sultan Zainal Abidin, Terengganu, Malaysia.

Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.91100237

Received: 20 November 2025; Accepted: 26 November 2025; Published: 06 December 2025

ABSTRACT

Productive zakat has emerged as a strategic tool in Malaysia for promoting economic independence and poverty

alleviation, particularly through the empowerment of entrepreneurs among eligible zakat recipients (asnaf). In

addressing persistent socio-economic inequalities, this study examines the design and implementation of

Malaysia’s legal regulations on productive zakat to support entrepreneurial growth, with comparisons to

regulatory approaches in other Muslim majority countries. Using a critical and comparative legal analysis, the

study reviews key principles of Islamic jurisprudence alongside relevant statutory provisions and evaluates the

alignment of Malaysia’s regulatory framework with the objectives of maqasid al-shariah in fostering self-

reliance and sustainable livelihoods. The findings indicate that Malaysia has introduced progressive legal

measures and structured productive zakat programs that provide capital, equipment, and training to asnaf

entrepreneurs to enhance their business capacity and reduce long-term dependency. Zakat institutions have

incorporated entrepreneurship development strategies into their operational frameworks, reflecting a

commitment to socio-economic transformation. Despite these advancements, the study identifies gaps in legal

uniformity, enforcement mechanisms, and comprehensive monitoring of entrepreneurial outcomes. To address

these issues, the study recommends refining zakat regulations to ensure greater transparency and accountability,

strengthening inter-agency collaboration, and embedding mechanisms for active participation of asnaf

entrepreneurs in program design and evaluation. This research contributes to the discourse on Islamic economic

law by offering a legal analysis of Malaysia’s productive zakat regulations and proposing enforceable and

inclusive approaches to empowering entrepreneurs.

Keywords: productive zakat, asnaf entrepreneurs, Malaysia, maqasid al-shariah; legal analysis.

INTRODUCTION

Due to persistent social and economic inequalities facing many Muslim majority countries, the promotion of

economic self-reliance among disadvantaged communities has become an imperative that cannot be overlooked.

Poverty alleviation is no longer a distinct or isolated concern (Rahayu, 2015). It has rather evolved into a

fundamental component of the broader sustainable development agenda, which seeks to achieve a careful balance

between social, economic, and moral dimensions (Wardoyo et al., 2016). In the Islamic context, the institution

of zakat plays a pivotal role in this balance, ensuring that the needs of the present are addressed without

undermining the capacity of future generations to build self-sustaining livelihoods (Othman et al., 2021).

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 3016

www.rsisinternational.org

Productive zakat, in particular, offers a mechanism through which economic empowerment can be achieved,

enabling recipients (asnaf) to transition from dependency to independence through entrepreneurship (Ivan

Rahmat Santoso et al., 2024).

Empirical evidence underscores the importance of this approach. Data from several zakat institutions in Malaysia

reveal that structured productive zakat schemes, which combine financial assistance with training and business

development support, have significantly improved income generation among selected asnaf entrepreneurs

(Qamaruddin et al., 2019). However, the sustainability of these outcomes depends on the robustness of the legal

and regulatory framework that governs the distribution, utilisation, and monitoring of zakat funds. From a

Shariah perspective, productive zakat is rooted in the principles of maslahah (public interest) and maqasid al-

shariah, aiming not only to fulfil immediate needs but also to promote long-term social and economic

transformation (Sawmar & Mohammed, 2021). These objectives necessitate clear legislative guidelines and

enforceable mechanisms to ensure that zakat is distributed effectively, transparently, and in a manner that

maximises its developmental impact (Shiyuti et al., 2022).

The growing recognition of zakat as a development tool has led to increasing calls for the examination of laws

and regulations designed to govern productive zakat and ensure its alignment with both national priorities and

Islamic legal principles. This legal dimension is crucial, as the credibility and effectiveness of zakat distribution

depend heavily on statutory provisions that define eligibility, permissible uses, and institutional responsibilities

(Meiwanto Doktoralina et al., 2018). In Malaysia, each state’s Islamic Religious Council is empowered under

respective state enactments to manage zakat, yet differences in legal provisions and administrative practices can

lead to disparities in programme outcomes (Azman et al., 2024). The need for legal harmonisation is further

underscored by contemporary challenges, such as ensuring equitable access to resources, preventing misuse of

funds, and fostering accountability in entrepreneurial support schemes.

Significant policy and legislative efforts have been made in recent years to address these concerns, with Malaysia

introducing a range of productive zakat initiatives through formal programmes such as micro financing,

equipment grants, and entrepreneurship training (Zahri et al., 2023). These efforts form part of the normative

foundation for zakat governance in the country. However, while these frameworks set broad objectives, their

successful implementation depends largely on the capacity and willingness of state level authorities to

operationalise them in a manner consistent with Shariah objectives and good governance principles (Ridlwan &

Sukmana, 2018). This raises the critical question of whether Malaysia’s existing legal provisions on productive

zakat are sufficiently comprehensive, enforceable, and harmonised to ensure consistency in empowering

entrepreneurs across the country (Muhd Adnan et al., 2019).

Given the urgency of social and economic empowerment, Malaysia presents a compelling case study in this

regard (Syahid M. A. A et al., 2024). As a rapidly developing nation with diverse economic sectors, Malaysia

has sought to integrate zakat distribution into its poverty eradication and entrepreneurship development

strategies. This integration is evident in initiatives led by zakat institutions such as Lembaga Zakat Selangor,

Majlis Agama Islam Wilayah Persekutuan, and Majlis Agama Islam dan Adat Melayu Terengganu, all of which

have incorporated productive zakat programmes into their annual operational plans (Abdul Majid et al., 2024).

In addition to aligning domestic regulations with classical Islamic jurisprudence, these institutions have adopted

modern management tools and key performance indicators to track programme effectiveness. Such

developments reflect Malaysia’s integrated approach to balancing religious obligations with contemporary social

and economic goals (Nurul Hasanah & Abdul Hamid, 2024).

Despite these advancements, several critical challenges remain. Legal fragmentation across states, varying

interpretations of permissible zakat utilisation, and the absence of standardised monitoring systems contribute to

inconsistencies in outcomes (Said et al., 2014). Moreover, while institutions have demonstrated innovation in

entrepreneurship support, persistent dependency among certain asnaf groups suggests that further refinement of

legal and regulatory frameworks is needed (Said et al., 2014). Comparative experience from other Muslim

majority countries, such as Indonesia and Brunei, illustrates that stronger enforcement mechanisms, enhanced

inter agency collaboration, and greater beneficiary participation in programme design can strengthen the impact

of productive zakat schemes (Ghofar et al., 2024).

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 3017

www.rsisinternational.org

Previous research on productive zakat in Malaysia has explored its conceptual basis, social and economic

outcomes, and operational models. However, few studies have undertaken a focused comparative legal analysis

to examine the extent to which Malaysia’s zakat laws are aligned with both the principles of maqasid al-shariah

and the practical requirements of entrepreneurship development (Al-Bohari et al., 2025). There remains limited

explicit legal examination of whether existing state enactments sufficiently regulate the governance of

productive zakat, including its disbursement, oversight, and integration with broader economic policies. This

gap underscores the need for research that evaluates the compatibility of Malaysia’s legal framework with

Shariah objectives and development oriented governance standards (Mustofa et al., 2025).

Accordingly, this study examines the legal regulation of productive zakat in Malaysia with specific reference to

its role in empowering entrepreneurs. It focuses on the legal measures undertaken to promote productive zakat

distribution, including legislative provisions, institutional responsibilities, and policy mechanisms designed to

enhance entrepreneurial capacity among asnaf (Mohd Sufian, 2018). The study aims to critically analyse both

the strengths and limitations of the current legal framework, drawing comparative insights from other Muslim

majority jurisdictions. The objective is to identify areas for reform that can ensure greater transparency,

accountability, and effectiveness in zakat governance, thereby contributing to sustainable social and economic

development and fulfilling the higher objectives of Islamic law (Nashirudin et al., 2025).

The scope of this research covers legislative enactments, administrative regulations, and institutional policies

governing productive zakat, as well as their application in entrepreneurship development programmes. It

examines the integration of these laws with Malaysia’s broader social and economic strategies and assesses their

alignment with Shariah principles, particularly in relation to poverty alleviation, economic empowerment, and

social justice. The importance of this research is reinforced by Malaysia’s ongoing efforts to strengthen its zakat

institutions as vehicles for sustainable development (Hamid et al., 2024). This necessitates an evidence-based

evaluation of the legal tools available to enhance zakat governance and ensure that productive zakat fulfils its

potential as a catalyst for entrepreneurial empowerment and economic transformation.

METHODOLOGY

This study utilises descriptive, analytical, and critical legal research methods to provide an accurate and detailed

account of the legal regulation of productive zakat in Malaysia, with particular emphasis on its role in

empowering entrepreneurs among eligible recipients (asnaf). The purpose is to analyse information relevant to

the governance of productive zakat and organise it in a coherent manner by interpreting statutory provisions,

Shariah principles, and institutional policies at both federal and state levels. The research adopts a comparative

approach to highlight similarities and differences between Malaysia’s legal provisions and those in selected

Muslim majority jurisdictions, allowing for a comparative evaluation of best practices in zakat-based economic

empowerment. The study also examines whether the relevant legal frameworks and policies in Malaysia have

fulfilled their intended objectives in promoting entrepreneurship, reducing dependency, and achieving the

broader maqasid al-shariah objectives related to social and economic development.

This research applies a qualitative legal research approach to interpret and systematically analyse legislative

texts, fatwas, policy documents, and institutional guidelines governing productive zakat. Data collection covers

both primary and secondary sources (Webley, 2010). Primary sources include state Islamic administration

enactments, regulations issued by zakat authorities such as Lembaga Zakat Selangor and Majlis Agama Islam

Wilayah Persekutuan, official programme reports, and Shariah rulings on zakat utilisation. Secondary sources

consist of academic books, scholarly writings, and peer-reviewed articles from reputable journals accessed

through databases such as Scopus, Google Scholar, and ResearchGate to ensure up-to-date coverage of

developments. Official websites of zakat institutions, state religious councils, and relevant government agencies

are also consulted. The study employs a systematic method to identify and analyse key legal provisions on

productive zakat, critically examining their incorporation and enforcement in Malaysia. Using comparative legal

analysis, the research evaluates similarities, differences, and gaps in Malaysia’s approach relative to other

jurisdictions. Analytical frameworks derived from maqasid al-shariah and Islamic economic governance guide

the assessment, while comparative insights inform evidence-based recommendations for strengthening the legal

and policy framework for productive zakat in empowering entrepreneurs.

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 3018

www.rsisinternational.org

RESULT

The findings of the study reveal that Malaysia has undertaken progressive legal reforms and structured the

implementation of productive zakat programs to address socio-economic disparities. These measures include the

provision of financial capital, business equipment, and targeted training to asnaf entrepreneurs. Enabling them

to enhance their entrepreneurial capacity and reduce long-term dependency on consumptive aid. Such initiatives

demonstrate that zakat institutions in Malaysia have moved beyond the traditional role of providing temporary

relief, instead positioning productive zakat as a developmental tool for fostering sustainable economic

independence (Daud et al., 2025).

Moreover, the results indicate that zakat institutions have embedded entrepreneurship development strategies

within their operational frameworks. This institutional shift reflects a deliberate commitment to socio-economic

transformation, where asnaf are empowered not merely as recipients of assistance but as active participants in

the economic landscape. By aligning these initiatives with the higher objectives of Islamic law (maqasid al-

shariah), particularly the preservation of wealth (hifz al-mal) and the promotion of human dignity (karamah

insaniyyah). Malaysia’s zakat framework illustrates how religious obligations can be operationalized into long-

term developmental outcomes (Abdul Majid et al., 2024).

At the same time, the findings highlight critical gaps that hinder the full realization of productive zakat’s

potential. These include the lack of legal uniformity across state jurisdictions, insufficient enforcement

mechanisms, and limited systems for comprehensive monitoring of entrepreneurial outcomes (Hamid et al.,

2024). Such shortcomings suggest that while Malaysia has made commendable progress, there is still a pressing

need for more consistent regulations, stronger accountability measures, and participatory mechanisms that

involve asnaf entrepreneurs in program evaluation (Mohd Radhuan Arif Zakaria et al., 2025). Addressing these

issues would strengthen the overall effectiveness of productive zakat in achieving self-reliance and sustainable

livelihoods.

DISCUSSION

1. The Concept of Productive Zakat in Relation to Social and Economic Empowerment

Productive zakat has become one of the key strategies in Malaysia’s zakat management framework aimed at

eradicating poverty and promoting self-reliance among eligible recipients (asnaf). Unlike consumptive zakat,

which provides short term relief, productive zakat seeks to transform recipients into active economic participants

by supplying them with capital, equipment, and training to start or expand income generating activities (Arifin

& Anwar, 2021). This approach aligns closely with the objectives of maqasid al-shariah, particularly the

preservation of wealth (hifz al-mal) and the promotion of social and economic welfare. Productive zakat also

contributes to national development goals by reducing dependency on welfare schemes, creating new

entrepreneurs, and strengthening local economies. Official reports from several state zakat institutions, including

Lembaga Zakat Selangor (LZS) and Majlis Agama Islam Wilayah Persekutuan (MAIWP), indicate measurable

improvements in household incomes among productive zakat recipients who received integrated support

packages that combined financial aid with skills training and mentorship (Sarif et al., 2024).

While some policymakers have raised concerns that channeling zakat funds into entrepreneurial ventures carries

risks such as business failure or mismanagement, the evidence suggests that with proper regulatory oversight,

these risks can be mitigated (Abdullah Thaidi et al., 2024). For example, states that have implemented structured

monitoring systems, such as quarterly performance reporting and periodic business audits, have reported higher

rates of entrepreneurial survival and profitability. These findings indicate that strong legal provisions governing

beneficiary selection, permissible uses of zakat funds, and post disbursement monitoring are critical to ensuring

the long term sustainability of productive zakat programmes. Furthermore, according to (Tika Widiastuti & Lina

Nugraha Rani, 2020), the shift toward productive zakat has spurred innovation within zakat institutions,

encouraging them to develop new financial instruments, strategic partnerships with government agencies, and

training modules that enhance business viability.

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 3019

www.rsisinternational.org

2. Productive Zakat within the Scope of Malaysian Law

The regulation of zakat in Malaysia is decentralised, with each state Islamic Religious Council empowered under

its respective Islamic Administration Enactment to manage zakat collection and distribution (Taufik et al., 2023).

This decentralised model allows states to tailor productive zakat programmes to local economic needs, but it

also results in variations in legal provisions, eligibility criteria, and operational practices. For instance, some

states have enacted specific guidelines for productive zakat utilisation, clearly defining the categories of

permissible business activities and stipulating capacity building requirements for recipients (Mohd Ali et al.,

2018). In contrast, other states rely on broad discretionary powers vested in zakat administrators, leading to

potential inconsistencies and gaps in governance.

Comparative analysis reveals that while Malaysia’s legal framework provides a solid foundation for productive

zakat, it does not yet constitute a uniform national policy (Hasbullah et al., 2024). In contrast, Indonesia’s zakat

law explicitly recognises productive zakat as a statutory distribution category and prescribes operational

procedures for its implementation, including mandatory beneficiary training and transparent reporting

mechanisms (Jumailah & Ahmad Fauzan, 2022). Similarly, Brunei has embedded productive zakat into its

national economic development agenda, ensuring cross agency coordination in programme delivery (Roslee &

Yussof, 2022a). Malaysia’s absence of a coordinated national regulatory framework means that effective

practices in one state are not always replicated in others, limiting the overall scalability and impact of productive

zakat (Nazeri et al., 2023).

3. Challenges in Implementation

Despite notable achievements, the study identifies several challenges to the effective regulation and

implementation of productive zakat in Malaysia. First, legal fragmentation among states leads to disparities in

programme quality and monitoring standards (Riani et al., 2024). Second, in some jurisdictions, the absence of

statutory enforcement mechanisms limits accountability for fund utilisation, making it difficult to ensure that

recipients use zakat capital as intended (Mohd Shazilli et al., 2012). Third, there is a lack of consistent data

collection and public reporting on the performance of productive zakat projects, which hinders evidence based

policy reform (Sulaiman et al., 2015). In certain cases, recipients have reverted to dependency on consumptive

aid due to inadequate training, insufficient market access, or weak post disbursement support.

These challenges are not unique to Malaysia, similar issues have been observed in other jurisdictions where

decentralised zakat management operates without national harmonisation (Jamaludin et al., 2025). However, the

absence of standardised legal provisions in Malaysia exacerbates disparities between states, with some

demonstrating high levels of programme success and others struggling to achieve sustainable outcomes (Zaini

Nasohah, 2007). Addressing these challenges requires a combination of legislative refinement, improved

institutional capacity, and structured collaboration between zakat authorities, government agencies, and private

sector actors.

4. Comparative Insights and Legal Reform Recommendations

Lessons from international experience indicate that strong legal frameworks for productive zakat should combine

clear statutory mandates with robust governance mechanisms (Naim Nor-Ahmad et al., 2025). In Indonesia, for

example, the codification of productive zakat provisions within national zakat legislation has enhanced

transparency and ensured alignment with broader poverty alleviation policies (Munir, 2021). In Brunei,

productive zakat initiatives are integrated into strategic development plans and supported by inter agency task

forces, ensuring a holistic approach to entrepreneurial empowerment (Roslee & Yussof, 2022).

For Malaysia, the findings suggest the need for a hybrid regulatory model that preserves state level autonomy

while establishing baseline national standards for productive zakat governance. This could be achieved through

a federal level guideline or model law that sets out minimum requirements for beneficiary eligibility, permissible

business activities, training and capacity building obligations, and post disbursement monitoring (Hairunnizam

Wahid, 2017). Additionally, legal provisions should mandate the publication of periodic performance reports to

enhance transparency and build public trust (Azman et al., 2025). Embedding maqasid al-shariah principles

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 3020

www.rsisinternational.org

explicitly into statutory and policy documents can further ensure that productive zakat remains aligned with its

fundamental objective of promoting self-reliance, dignity, and social justice among the asnaf.

Table 1: Comparative Insights and Legal Reform Recommendations for Productive Zakat

Country/Context

Legal and Policy Features

Key Lessons/Recommendations for Malaysia

Indonesia

Codification of productive zakat within

national zakat legislation, mandatory

beneficiary training, transparent reporting

mechanisms.

Enhances transparency and accountability,

ensures alignment with national poverty

alleviation policies.

Brunei

Productive zakat integrated into national

development strategies, inter-agency task

forces coordinate implementation.

Promotes holistic entrepreneurial empowerment

through cross-sector collaboration.

Malaysia (Current)

Decentralised state-level governance under

respective enactments, variation in

guidelines and monitoring systems, no

unified national policy.

Allows flexibility but results in inconsistencies,

limited scalability, and gaps in accountability.

Malaysia

(Proposed Reform)

Hybrid model: retain state autonomy but

introduce federal-level guideline or model

law with baseline standards (eligibility,

business activities, training, monitoring,

performance reporting). Embed maqasid al-

shariah principles into law and policy.

It would strengthen governance, improve

uniformity, build public trust, and ensure

productive zakat fulfils its role in promoting

self-reliance, dignity, and social justice.

Source: Prepared by the Authors

The comparative analysis presented in Table 1 highlights significant differences in the legal and policy

approaches to productive zakat across jurisdictions. Indonesia’s codification of productive zakat within national

legislation demonstrates how statutory recognition and operational safeguards, such as mandatory training and

transparent reporting, can enhance accountability and ensure alignment with national development agendas

(Mukhlishin et al., 2024). Brunei’s integration of productive zakat into its broader economic planning further

illustrates the value of cross-sector collaboration through inter-agency coordination, which enables zakat to

function not merely as a religious obligation but also as a structured instrument of economic empowerment (Pg

Md Salleh, 2015).

In contrast, Malaysia’s current decentralised model provides states with autonomy to design and administer their

own productive zakat programmes (Azman Ab Rahman, 2012). While this approach allows for flexibility in

adapting to local economic contexts, it has also led to inconsistencies in eligibility criteria, disbursement

practices, and monitoring mechanisms between states. The absence of a unified national policy has resulted in

fragmented governance, thereby limiting scalability and weakening the overall impact of productive zakat

(Mohamed Esa, 2018).

The proposed reform in Malaysia, as indicated in Table 1, suggests a hybrid model that balances state autonomy

with federal-level coordination. By introducing baseline national standards through a model law or guideline,

the system could achieve greater uniformity in beneficiary selection, permissible business activities, and post-

disbursement monitoring. Importantly, embedding maqasid al-shariah principles explicitly into statutory and

policy frameworks would ensure that the legal regulation of productive zakat remains faithful to its higher

objectives, particularly the promotion of self-reliance, dignity, and social justice among the asnaf (Al-Bohari et

al., 2025). Such reforms would not only improve governance and accountability but also enhance public trust

and ensure that productive zakat fulfils its intended role as a sustainable tool of poverty alleviation and

entrepreneurial empowerment.

CONCLUSION

The research concludes that there is a strong connection between the legal regulation of productive zakat and the

empowerment of entrepreneurs among eligible recipients in Malaysia. It underscores the importance of

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 3021

www.rsisinternational.org

legislative measures and institutional policies implemented by state zakat authorities to align productive zakat

initiatives with the objectives of maqasid al-shariah and national social and economic development strategies.

While Malaysia has developed a substantial legal and administrative framework for zakat, the findings reveal

that the current regulations are fragmented across states, leading to inconsistencies in implementation,

beneficiary eligibility standards, permissible business activities, and monitoring mechanisms. These variations

limit the uniformity of outcomes and hinder the full potential of productive zakat in achieving long-term

economic transformation.

To address these gaps and ensure that productive zakat realises its intended objectives, the research recommends

the establishment of a cohesive national policy framework that harmonises minimum legal standards while

respecting state-level autonomy. This should include clear statutory provisions for eligibility criteria, mandatory

capacity-building programmes, transparent reporting requirements, and stronger enforcement mechanisms to

ensure compliance and deter misuse of funds. The study also calls for the explicit integration of maqasid al-

shariah principles into statutory and policy documents to preserve the focus on self-reliance, dignity, and social

justice. Furthermore, it emphasises the need to enhance community participation by involving recipients in

programme design and evaluation, as well as improving training and business development support to equip

asnaf entrepreneurs with the knowledge, skills, and resources necessary for sustainable success.

ACKNOWLEDGMENT

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. Abdul Majid, A. H., Maamor, S., Zainal, H., Che Halim, R. A., Yusoff, M. F., Nik Abdullah, N. S., &

Mohd Yusof, R. (2024). The Ummah Economic Development Zone: An Innovative Community

Development Initiative by Lembaga Zakat Negeri Kedah. PaperASIA, 40(6b), 331–339.

https://doi.org/10.59953/paperasia.v40i6b.293

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

3. Al-Bohari, M. A., Ab Rahman, A., & Abd Shakor, M. F. (2025). Analisis Skim Agihan Zakat Di Universiti

Tenaga Nasional (UNITEN) Mengikut Maqasid Syariah. Journal of Fatwa Management and Research,

30(1), 199–210. https://doi.org/10.33102/jfatwa.vol30no1.669

4. Arifin, N., & Anwar, A. Z. (2021). The improvement model of microenterprises of post-disaster through

empowerment of productive zakat. Journal of Governance and Regulation, 10(4), 156–163.

https://doi.org/10.22495/jgrv10i4art14

5. Azman Ab Rahman, A. M. H. , & S. M. N. S. O. (2012). Zakat Institution in Malaysia: Problems and

Issues. Global Journal Al-Thaqafah, 35–41.

6. binti Mohd Shazilli, H. M. S., Sa’adon, N. I., Ibrahim, R., Rahim, M. A., & Ambali, A. R. (2012). Good

governance in zakat distribution: Perceptions of zakat recipients at Kota Tinggi, Johor. 2012 IEEE

Symposium on Business, Engineering and Industrial Applications, 619–624.

https://doi.org/10.1109/ISBEIA.2012.6422963

7. Daud, M. Z., Mohd Noh, M. S., Fidhayanti, D., & Mat Hussin, M. N. (2025). EMPOWERING

FUTURES: Unveiling Zakat’s Vital Role Economic Development and Legal Framework in Malaysia’s.

Jurisdictie: Jurnal Hukum Dan Syariah, 16(1), 235–274. https://doi.org/10.18860/j.v16i1.31424

8. Ghofar, A., Fawwaz, M., Prestianawati, S. A., Mubarak, M. F., Manzilati, A., & Imamia, T. L. (2024).

Young muslim generation’s preferences for using digital platforms for Zakat payments: A cross-country

study of Indonesia and Malaysia. Journal of Infrastructure, Policy and Development, 8(6), 3249.

https://doi.org/10.24294/jipd.v8i6.3249

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 3022

www.rsisinternational.org

9. Hairunnizam Wahid, S. A. M. A. M. N. M. A. R. (2017). Prestasi Kecekapan Pengurusan Kewangan dan

Agihan Zakat: Perbandingan antara Majlis Agama Islam Negeri di Malaysia. Jurnal Ekonomi Malaysia,

51(2), 33–46. https://doi.org/10.17576/JEM-2017-5001-4

10. Hamid, N. A., Ismail, I. S., Yunus, N., Norizan, S., & Palil, M. R. (2024). Insights for growth:

Understanding the drivers of ASNAF entrepreneurial success in Malaysia. Edelweiss Applied Science

and Technology, 8(2), 108–124. https://doi.org/10.55214/25768484.v8i2.753

11. Hasbullah, M., Sulaiman, S., Hamir, H., & Ab Rahman, A. (2024). Model Tabdir Urus Pengurusan Zakat

Universiti Awam: Perbandingan Pusat Wakaf Dan Zakat (PWZ), Universiti Sains Islam Malaysia Dan

Pusat Pengurusan Wakaf, Zakat Dan Endowmen (WAZAN), Universiti Putra Malaysia. Journal of Fatwa

Management and Research, 29(2), 127–143. https://doi.org/10.33102/jfatwa.vol29no2.590

12. 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

13. Jamaludin, H., Zhang, H., Syed Salleh, S. N., & Lacheheb, Z. (2025). Trust as the engine of change: a

conceptual model for trust building in zakat institutions. Journal of Islamic Accounting and Business

Research. https://doi.org/10.1108/JIABR-03-2024-0099

14. 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

15. Meiwanto Doktoralina, C., Asariah Ilias, N., Bahari, Z., Waluyo, W., & Suryadhi, J. (2018). Investment

of Zakat Fund in Malaysia. The Journal of Social Sciences Research, Special Issue 5, 710–715.

https://doi.org/10.32861/jssr.spi5.710.715

16. Mohamed Esa, M. S. M. N. M. A. W. H. (2018). Proposal on codification of the National Zakat Act and

the establishment of the National Zakat Council. Jurnal Ekonomi Malaysia, 52(1), 153–165.

17. Mohd Radhuan Arif Zakaria, Mushera Bibi Ambaras Khan, Nasarudin Abdul Rahman, & Ahmad

Muhyiddin Yusof. (2025). JURISDICTIONAL OVERLAP BETWEEN THE MALAYSIAN

COMPETITION COMMISSION AND THE SECURITIES COMMISSION IN MERGER REVIEW.

IIUM Law Journal, 33(1), 1–34. https://doi.org/10.31436/iiumlj.v33i1.1054

18. Mohd Sufian, M. E. M. A. M. N. H. W. (2018). Market Risk and Efficiencies of the Malaysian Banking

Industry: The Post-merger and Acquisition. Jurnal Ekonomi Malaysia, 52(1), 145–156.

https://doi.org/10.17576/JEM-2018-5201-1

19. Mohd Sufian Mohamed Esa, M. A. M. N. H. W. (2018). Cadangan Kodifkasi Akta Zakat Nasional dan

Penubuhan Majlis Zakat Negara. Jurnal Ekonomi Malaysia, 52(1), 145–156.

https://doi.org/10.17576/JEM-2018-5201-12

20. 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

21. Mukhlishin, M., Wahab, A., Setiaji, B., & Tazhdinov, M. (2024). 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

22. Munir, Z. A. H. (2021). The Effect of Financial Report Transparency and Zakat Management on Muzakki

Trust in BAZNAS Lombok Timur. Al-Risalah: Forum Kajian Hukum Dan Sosial Kemasyarakatan, 21(2),

194–207. https://doi.org/10.30631/alrisalah.v21i2.889

23. Mustofa, M., Ahyani, H., Firdaus, D. A., Putra, H. M., Kirin, A. Bin, & Muhammad, Z. (2025).

Strengthening Zakat Regulation through the Siyāsah Māliyah Approach: A Constitutional and Legal

Analysis of Indonesia and Malaysia. JURIS (Jurnal Ilmiah Syariah), 24(1), 111.

https://doi.org/10.31958/juris.v24i1.14637

24. Naim Nor-Ahmad, S. N. H. J., Sulaiman, A. J., Abdul Rahman, R., Shafai, N. A., & Osman, M. F. (2025).

Unveiling Business Zakat Compliance: A Systematic Review of Determinants and Influential Factors.

Indian Journal of Information Sources and Services, 15(1), 378–387. https://doi.org/10.51983/ijiss-

2025.IJISS.15.1.48

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 3023

www.rsisinternational.org

25. Nashirudin, Muh., Razali, R., & Ulfah, A. K. (2025). Modernizing Zakat and Waqf Management in

Indonesia: A Legal And Governance Perspective. Mazahib, 24(1), 198–220.

https://doi.org/10.21093/mj.v24i1.9419

26. Nazeri, A. N. N., Mohd Nor, S., Abdul Rahman, A., Abdul Majid, M., & Ab. Hamid, S. N. (2023).

Exploration of a New Zakat Management System Empowered by Blockchain Technology in Malaysia.

ISRA International Journal of Islamic Finance, 15(4), 127–147. https://doi.org/10.55188/ijif.v15i4.568

27. 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

28. 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

29. Qamaruddin, M. Y., Anwar, S. M., Surullah, M., Azaluddin, & Jusni. (2019). Zakat expenditure patterns

and its relationships with the improvement of prosperity and environment. IOP Conference Series: Earth

and Environmental Science, 343(1), 012147. https://doi.org/10.1088/1755-1315/343/1/012147

30. Rahayu, N. W. I. (2015). LEMBAGA AMIL ZAKAT, POLITIK LOKAL, DAN GOOD GOVERNANCE

DI JEMBER. KARSA: Jurnal Sosial Dan Budaya Keislaman, 22(2), 207–223.

https://doi.org/10.19105/karsa.v22i2.574

31. Rahman, A. A., Al-Bohari, M. A., Panglima, S. N., Muhasim, A., & Barrow, A. (2025). Mechanism and

Analysis of Zakat Distribution Schemes at Universiti Kebangsaan Malaysia (UKM) According to

Maqasid Syariah. Journal of Fatwa Management and Research, 30(2), 162–175.

https://doi.org/10.33102/jfatwa.vol30no2.677

32. Rahman, A. A., Romli, A. B., Abd Shakor, M. F., Daud, M. N., & Matali, A. (2024). Amalan Wakalah

Pengurusan Zakat di Institusi Pengajian Tinggi Malaysia. Journal of Fatwa Management and Research,

29(3), 80–89. https://doi.org/10.33102/jfatwa.vol29no3.616

33. Rahman, N. A., & Abdul Hamid, A. F. (2024). Examining Public Administration Through the Islamic

Lens: A Glimpse of the Malaysian Experience. Ulumuna, 28(1), 281–312.

https://doi.org/10.20414/ujis.v28i1.777

34. Riani, D., Meutia, M., Taqi, M., & Ismawati, I. (2024). Efficiency and Stability of Zakat Institutions in

Malaysia and Indonesia: DEA Window Analysis. TEM Journal, 303–314.

https://doi.org/10.18421/TEM131-32

35. Ridlwan, A. A., & Sukmana, R. (2018). The Determinant Factors of Motivation to Pay Zakat in Regional

Amil Zakat Agency of East Java. KARSA: Journal of Social and Islamic Culture, 25(2), 334.

https://doi.org/10.19105/karsa.v25i2.1398

36. Roslee, B., & Yussof, H. M. (2022a). The Economic and Social Progress of Brunei Darussalam. In

Routledge Handbook of Contemporary Brunei (pp. 265–278). Routledge.

https://doi.org/10.4324/9781003020431-21

37. Roslee, B., & Yussof, H. M. (2022b). The Economic and Social Progress of Brunei Darussalam. In

Routledge Handbook of Contemporary Brunei (pp. 265–278). Routledge.

https://doi.org/10.4324/9781003020431-21

38. Said, J., Ahmad, M., & Norzehan Syed Yusuf, S. (2014). Effectiveness of Capital Assistance Programme:

Evidence from Malaysia. Research Journal of Applied Sciences, Engineering and Technology, 8(4), 488–

495. https://doi.org/10.19026/rjaset.8.997

39. 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

40. Sawmar, A. A., & Mohammed, M. O. (2021). Enhancing zakat compliance through good governance: a

conceptual framework. ISRA International Journal of Islamic Finance, 13(1), 136–154.

https://doi.org/10.1108/IJIF-10-2018-0116

41. 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

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 3024

www.rsisinternational.org

42. Sulaiman, H., Cob, Z. C., & Ali, N. (2015). Big data maturity model for Malaysian zakat institutions to

embark on big data initiatives. 2015 4th International Conference on Software Engineering and Computer

Systems (ICSECS), 61–66. https://doi.org/10.1109/ICSECS.2015.7333084

43. Syahid M. A. A, Mujitaba, M. A., Rameli, N., T. S., T. M. Z., & Razali, N. A. (2024). Entrepreneurial

Human Capital on the Empowerment of Asnaf Entrepreneurs Planning in the State of Selangor. Planning

Malaysia, 22. https://doi.org/10.21837/pm.v22i30.1441

44. Taufik, M. S. M., Hanif, M. O. M., S., S. S. S., & Juritah, M. (2023). Maim’s practices for zakat

communication strategy via new media. 050074. https://doi.org/10.1063/5.0117350

45. Tika Widiastuti, & Lina Nugraha Rani. (2020). Evaluating the Impact of Zakat on Asnaf’s Welfare.

Global Journal Al-Thaqafah, SI. https://doi.org/10.7187/GJATSI2020-10

46. Wardoyo, R. A., Wisadirana, D., & Susilo, E. (2016). Peranan Baitulmal Al-Hidayah Malang dalam

Penanggulangan Kemiskinan Berdasarkan Modal Sosial. KARSA: Jurnal Sosial Dan Budaya Keislaman,

24(2), 301. https://doi.org/10.19105/karsa.v24i2.803

47. Webley, L. (2010). Qualitative Approaches to Empirical Legal Research. Oxford University Press.

https://doi.org/10.1093/oxfordhb/9780199542475.013.0039

48. 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

49. Zaini Nasohah, H. L. Z. M. K. M. R. M. (2007). Standardisation of Fatwa in Malaysia: Management and

Problems . Advances in Natural and Applied Sciences, 923–929.