Publication:
Optimizing zakat collection: Explorative benchmarking among selected authorities in Peninsular Malaysia.
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Date
2025
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Abstract
While most articles and studies are focused on zakat collection per se, this study would like to explore the optimality of zakat collection rate, albeit actual zakat collection rate versus potential zakat collection rate. Issues such as awareness, education and accountability are among the key obstacles that hinders the optimization of zakat collection rate. This study is explorative in nature. Data was collected from zakat institutions and Department of Statistics Malaysia, which are all publicly available, covering 2005 to 2022. Proxies were used for estimation of potential zakat collection rate, namely fraction of gross domestic product (GDP) and Muslim population. A formula was also used to complete this process. It was found that Kelantan is the state with the highest actual collection rate, followed by Kuala Lumpur and Terengganu. Issues of education, awareness and accountability is also present in this study; hence, better promotion of zakat and accountability of zakat institutions are required to optimize the zakat collection rate in Malaysia.
Keywords
Zakat potential , Awareness , Accountability , Zakat optimality
Citation
Noor Haslan, A. I., Othman, N., & Abdul Hamid, B. (2025). Optimizing zakat collection: Explorative benchmarking among selected authorities in Penisular Malaysia. Journal of Awqaf, Zakat and Hajj (Jawhar), 3(1), 86-107.
Publisher
Department of Awqaf, Zakat and Hajj
DOI
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