Utilisation of zakāh and waqf fund in micro-takāful models in Malaysia: an exploratory study

Abstract

Purpose This paper aims to investigate the utilisation of both zakāh and waqf fund as external resources to ensure micro-takāful services are delivered to underserved communities in an effective and sustainable manner. It also addresses Sharīʿah issues related to the zakāh- and waqf-based model. Design/methodology/approach The study is a qualitative-based research. It uses both focus group and content analysis approach to gather primary data and identify and interpret relevant secondary data and Sharīʿah concepts in developing the zakāh- and waqf-based micro-takāful model. Findings It is discovered throughout the investigation of attributes of beneficiaries of zakāh and waqf institutions as well as micro-takāful scheme that all share commonalities in terms of social securities and socio-economic support to low-income households in societies. The study also finds that the disintegration of zakāh and waqf which form part of the Islamic ecosystem from the micro-takāful model makes it less effective and sustainable. Originality/value This study appears as a primitive attempt to discuss and develop a zakāh and waqf-based micro-takāful model with reference to Malaysian jurisdiction.

Designing Integrated Zakat-Waqf Models for Disaster Management

“…Public and huge audience involves into donors or crowd funder while the SIRCs or Department of Waqf, Haji and Zakat (JAWHAR) involves into waqf institutions. Meanwhile Mikail et al (2017) examined micro-takāful and discussed some pertinent Sharīʿah issues and views of both past and present scholars in respect of utilization of zakāh and waqf in the micro-takāful model through qualitativebased research. They took the investigation further to discover its scheme of commonalities of social securities and economic support for beneficiaries.…”

IFRS based Zakat Reporting: Adoption Rational WesternMethod into Institutional Accountability

“…(Hassan and Noor; empirically proved that Capital based zakat fund assistance particulary for retail and manufacturing business that had been done by Selangor Zakat Board (SZB) Malaysia could really help the poor. Moreover, another study discovers that the zakat and waqf fund support lowincome household becomes better in social securities and socio economic (Mikail;et.al2017) Those two studies are evidences of successfull application of zakat fund based Islamic Microfinance institution (Ahmed;2002, Rahman andDean, 2013, Kaleem et.al;2010). While other study also reveals that the zakat fund had been use through Islamic finance scheme in Indoensian Zakat Institution, and lately known as Zakat for Productive purpose (Yumna and Clarke, undate).…”

Zakat Management Paradigm: Comparison of Indonesia, Malaysia and Saudi Arabia

“…People who pay zakat will feel a calm and a comfort soul because it has fulfilled Allah's orders. Whereas those who receive zakat will feel pleasure because their economy has been helped by those who give zakat (Muzakki) (Abdullah et al, 2015;Mikail et al, 2017)namely, the Basic Needs Deficiency Index (BNDI.…”

“…Based on the language understanding, the concept of wealth spent on zakat will grow and develop because of the prayers of those who receive it. Zakat is essentially a waste of property that must be disposed of by muzakki so that the property is free from doubtfulness so that it can purify all of the muzakki's assets (Mikail et al, 2017).…”