POSITIONING ZAKAH ADMINISTRATION IN MALAYSIA MADANI FRAMEWORK

On June 6, 2024, the 10th Muzakarah Zakat Kebangsaan organized by USIM and UTHM took place at the Everly Hotel in Putrajaya. In the Muzakarah considerable attention has been focused on the management of zakah in Malaysia Madani and the role of zakah in the Madani framework to alleviate poverty. The Deputy Minister in the Prime Minister’s Department (Religious Affairs), Yang Berhormat Senator Dr. Zulkifli Hasan, mentioned in his opening speech that he hopes the Muzakarah can establish the framework of Malaysia Madani in the context of zakah. I had the opportunity to attend the Muzakarah, and my sincere appreciation to the organizer for the gracious invitation to me to be one of the keynote speakers on the topic of the administration of zakah in the Malaysia Madani era.

Malaysia Madani is a significant agenda aimed at propelling Malaysia towards higher levels of progress, development, and prosperity while upholding ethical values to enhance the country’s standing on the global stage. Malaysia Madani’s agenda significantly emphasizes six core values: Sustainability, Prosperity, Innovation, Respect, Trust, and Compassion. These values are believed to be instrumental in guiding Malaysia toward its objectives. Malaysia is striving to advance its vision and establish itself as a prosperous nation. Since its official launching on 19^th January 2023 Prime Minister Dato’ Seri Anwar Ibrahim has urged Cabinet members and civil servants to embody these core values in their administrative duties. 

In the context of this agenda, Zakah institutions falling under the jurisdiction of the states are also reminded to align their work with the goals set by Malaysia Madani. During his speech at the Penang International Zakat Conference 2024, held at Universiti Sains Malaysia on 16 February, the Prime Minister emphasized the importance of governance in zakah administration, stating that poor governance can impact the management of zakah. He stressed the importance of ensuring that every last cent of the zakat collected is meticulously accounted for.  He also shared his insight that the institution should be regarded not just as a source of revenue, but also as a vital component in the fight against poverty.  He advocates for zakah institutions to collaborate with the government to address poverty, believing that zakah institutions should play a crucial role in tackling poverty. 

This idea is actually among the focal points of Malaysia Madani to establish a humane economy that prioritizes the needs of the poor and marginalized.  This aligns with the zakah distribution system, where the poor are among the eight designated recipients. Ensuring good governance and implementing best practices in Zakat management is crucial for achieving the intended goals of Zakah.

At the same time, the focus should also be on supporting entrepreneurial recipients to encourage self-reliance and reduce dependency on zakah funds. Alleviating poverty and upscaling the asnaf is actually among the requirements in the framework of zakah distribution system. The concept can be examined within the context of “had al kifayah” and pertains to the distribution scale of zakat. This standard is established either for one year (kifayah sanah) according to some jurists, or for the entire lifetime (kifayah al umur) according to others. To achieve this, the zakah institution can either give them cash or provide them with tools to help lift them out of poverty depending on their condition. 

Empowering individuals to improve their financial situation through entrepreneurial endeavors can be part of the Key Performance Indicator (KPI) of the zakah management. For this Zakah institutions can collaborate with other institutions such as the i-Tekad program established by BNM, which aims to assist low-income micro-entrepreneurs in strengthening their financial management. I-Tekad is funded by social finance instruments (including zakah) with microfinance and supplemented with business training. On the government side, under budget 2024 an amount of RM25 million matching grant has been allocated and made available to all participating financial institutions. To date, a few financial institutions have participated in this initiative, and some have initiated the program using wakalah-zakah as the initial capital. To ensure that Zakat funds used are in line with Shariah principles, the fatwa has been obtained from the relevant states, including the Department of Mufti of the Federal Territory. This smart collaboration between zakat institutions and IFIs will certainly upgrade the capability of zakah to achieve its goal. 

In addition, it is imperative to prioritize transparency in the administration of zakah which is also part of good governance. In the official Madani book, it is stated that “Based on the model of Tabang Haji, a critical reform comes by way of ensuring an effective and transparent Zakat fund in each state that provides emergency support for the poor and disadvantaged”. A transparent approach will foster trust among Zakah payers and establish a sustainable framework for Zakah organizations. Faced with an uncertain economic situation, it is crucial to ensure the sustainability of the zakah fund to guarantee that the commitments of the zakah institution to the zakah recipients are not interrupted. For instance, the Majlis Agama Islam of Federal Territory is dedicated to monthly disbursing cash zakah to over 33000 needy recipients. This commitment must be steadfastly maintained to secure uninterrupted support for zakah recipients. In the digital era, many efforts can be improved, such as implementing a real-time system that allows everyone to track the movement of the zakat money paid to the zakah institutions. The Zakat institutions should establish a robust system to ensure transparency, as it is essential for maintaining sustainability, a core value of Madani.

Positioning zakah in the Madani agenda will ensure the achievement of the government’s goals and ultimately benefit society as a whole. This nationwide agenda can succeed if all aspects of the administration are brought to one table and seen as a united agenda. Although zakah falls under the jurisdiction of state matters, it is beneficial to follow the approach of Madani as long as it complies with Shariah principles in managing zakah.–AlHijrah Online

Penulis adalah Mufti Wilayah Persekutuan

Penafian: Artikel yang disiarkan AlHijrah Online ini adalah pandangan peribadi penulis. Ia tidak menggambarkan pendirian Editorial AlHijrah Media Corporation dalam isu yang dikupas.