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The Advancement of e-Zakat for Delivering Better Quality Service and Enhancing
Governance Sphere of Zakat Institution in Malaysia
Shawal Kaslam1
Abstract2
This paper describes the advancement of e-Zakat as a new mode for delivering better
quality services and enhancing governance sphere of zakat organizations in Malaysia. This
paper elaborates how the application of information and communication technologies (ICTs),
especially the e-Zakat is altering the way of managing zakat, thereby driving economic and
social changes. First, this paper seeks to explore how zakat institution and the management
practices in Malaysia. Second, this paper elaborates how Internet application has emerged
as a mean of the government agencies to innovate in response to such changes. Finally, this
paper analyses how the application of e-zakat has increased the convenience and
accessibility of government services, and information dissemination becomes more efficient,
effective and enhances the government accountability to citizens. The major issue that is the
concern of this paper is e-Zakat has emerged as one of the government initiative in
integrating internet application to construct a modern competitive zakat institution. e-Zakat is
an online media used to supports the ways zakat organization delivers services, especially
on collection and distribution of zakat fund to zakat recipients. This new mode of zakat
operation has improved the performance, transparency and accountability of zakat
organization.
Key words: Zakat, e-Zakat, Governance.
Universiti Teknologi Mara (UiTM), Institut Kajian Zakat Malaysia (IKaZ)
_________________________________________________________________________
Introduction
Zakat is one of the five pillars of Islam. It is an obligation of every individual Muslim to make
such payment according to its laws. One of the fundamental principles of zakat is that the
institution of zakat has to be established in the fold of Muslim society in an organized
manner and under the responsible supervision of the Muslim Government, or of a special
Muslim supervisory body appointed by the said Government. Zakat due from various
sources, either from individual and business sector must be properly collected and be kept in
the highest plane of integrity, courtesy and accountability (Zayas, 2003; Shawal, 2007). This
is not only to ensure that zakat meets the religious obligation, in accordance with the Syariah
Law (Quran 9: 60; 103), but the other important aspect is that zakat can be an important
economic tool for establishing a proper mechanism to improve the Muslim economic well
1
Associate Professor at Faculty of Administrative Science and Policy Studies University Technology Mara
Melaka and Fellow Zakat Research Institute of Malaysia (IKaZ).
2
Paper prepared for presentation at the World Zakat Forum organized by BAZNAS at University Gajah Mada
Yogyakarta, Indonesia (Mei 27 – 30, 2009).
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being and needs. The institution of zakat must be established and governed in the most
proper manner based on the god commands and follow the principles, rules and regulations
that established by the Sunnah (Hadith). The Islamic institution of zakat is accountable to all
interested parties, especially the zakat payers (muzaqki) and zakat recipients (muztahik). It
therefore remains the jurisdiction of zakat organization to establish an appropriate practice
for the purpose of effective and efficient of collecting zakat dues and distributing of zakat
funds.
Rules Governing the Administration of Zakat Institution
Zakat, likes the other pillars of Islam, is clearly set forth in the most authentic sources, viz.,
the Quran and the reliable Hadith as an important institution in Muslim ummah. The main
fundamental Quranic Principles relating to rules governing the administration of zakat is that
Zakat is a form of tax that a Muslim State may impose on its Muslim citizens. Zakat must be
properly governed in full conformity with the Quranic Principles and with due deference to
the instructions given by the Prophet (SAW). The principle rules governing the administration
of zakat requires that the part the State is to supervise and control the implementation of
zakat in that particular State. The main responsibility of the State is to enforce observance of
the Quranic Law of Zakat as directed by the verse 103 of Surah IX, and to watch over the
smooth functioning of the collection and distribution of Zakat funds. The State has the
authority to modify these Zakat rules in matters of detail implementation and this must be
always within the spirit of Quranic Precepts relating to thereto. In other word, zakat must be
governed in the most proper manner according to the Syariah law and the state has the full
responsibility and accountability to implement the law of zakat within the jurisdiction.
The main objective of the rules is to ensure zakat implementation meets the requirements of
Syariah Islam and well managed. At the end, the full potential benefits of Zakat as an Islamic
instrument for achieving social welfare and well-being become a practical and significance
means. In order to implement zakat properly, involvement of the State, the institution of
Zakat and Zakat-officials is indispensable. On the other hand, the right of supervising the
smooth functioning of the Institution of zakat, of collecting the zakat dues, and of distributing
the zakat funds unquestionably vests in the Muslim State (Zayas, 2003).
The role of Muslim state in governing the institution of zakat is to establish a proper
procedures, regulations and administrative practices for implementing zakat. The
involvement of the state in managing and governing zakat is an important issue, especially in
a majority Muslim country.
Zakat Institution and Management Practices in Malaysia
In the Malaysian contexts, Islam has been recognized as the official religion of the State. As
stated in the Federal Constitution, Article 3 (1), It is clear that Islam is the religion of the
Federation; but other religions may be practiced in peace and harmony in any part of the
Federation. Corresponding to this article, item 1 of List II (State List) of Schedule 9 of the
Federal Constitution it is provided, inter alia, that the power to enact Islamic laws includes
law of Zakat, Fitrah and Baitulmal or other similar Islamic religious affairs vests to the
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jurisdiction of every State. The Sultan as Head of the Muslim religion may acts in his
discretion to appoint the State religious officials and to determine the direction of the
religious affairs in the State (Mohamed Suffian, 1978). Therefore, the Sultan acts very
important part in the issue of fatwas or rulings on the Muslim religion and law. He has the
responsibility to ensure that Islamic law is fully implemented and practiced by the Muslim
citizens in the State. In this sense, the main jurisdiction of the State relating to Islamic law is
to establish an enactment and to ensure the effective implementation of the enactment, and
to establish a proper institution to regulate the implementation of the Syariah law.
The State government has certain jurisdictions in managing the State, including the rules of
sustaining the right implementation of Islamic affairs, and zakat is one of the main
jurisdictions. The jurisdiction of the State through the State Religious Council is
indispensable and it is the authority of the State Religious Council to establish a proper
system of zakat and appoint zakat-officials to manage zakat organization. In the past, zakat
was implemented in very traditional approach and the administration of zakat very much
depends on Quranic Law and Hadith by strictly adopting the fundamental law and principles
of zakat that established by the conventional fuqaha, especially by the jurists of the Shafii
School of Law. The administration of zakat was purely designated as religious obligation and
nothing connected with social obligation. The main responsibility of zakat institution was to
ensure zakat dues is collected and distributed according to the lawful beneficiaries. For this
very reason, the scope of zakat was restricted and zakat funds may never be used for any
other purposes. However, since 1996 a clear understanding on the broader scope of zakat
has widened the practices of managing the institution of zakat. Several initiatives are being
undertaken by zakat institution to modernise system of zakat in Malaysia. Through the
corporatization policy and the deployment of ICT, the government believe that zakat can be
improved and play significant role for Muslim society. The establishment of corporatize zakat
center at state level has contributed significant change and management improvement in
zakat organization.
Internet Applications and e-Zakat in Malaysia
The emergence of the internet and concerns for developments in processing capacity as
well as data storage over the 1990s has significantly altered the environment for ICT use
across society and institution.The development of ICT and its wide applications has
contributed a significant change in a way an institution disseminate information and delivery
services to citizens. This application enables the citizens to get service or information in
minutes or hours, versus today’s standard of days or weeks. Citizens should be able to
access any required information without having to go to the office. Public also be able to
communicate directly to any institution and give comments or any suggestions on issues
relating to their interest via e-mail. Malaysia has embarked on a number of measures to
ensure that information and communication technologies (ICTs) play a vital role in that
society. The advancement of electronic government is one of the government initiatives that
aim to transform and improve government services delivery to the citizen (Mohsin, 2006;
Sohaimi 2003). e-Zakat is one of the electronic service delivery that newly introduced by
zakat organizations aims to provide better quality zakat service delivery to citizens in
Malaysia. An effective application of e-zakat contributes significant improvements in zakat
system including:
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• Simplifying zakat service delivery;
• Eliminating layers of zakat procedures and management practices;
• Making it possible for citizens, businesses, and other levels of government to easily find
information and get service from zakat institution;
• Simplifying agencies' business processes and reducing costs through integrating and
eliminating redundant systems;
• Enabling achievement of the other elements of zakat organization Management Agenda;
and streamlining zakat operations to guarantee rapid response to citizen needs.
Many zakat organizations in Malaysia are now deploying e-Zakat by adopting web-based
internet applications to make available zakat information electronically to citizens. The
application of these technologies can transform the business of zakat organizations, which
traditionally used manual system and human based working practices. The e-Zakat
significantly improve internal work processes, increase the performance and enhancing
governance sphere of zakat organizations.
Table 1: Website and Portal Address of Zakat Organizations in Malaysia
State Zakat Organization Website/Portal
Selangor Lembaga Zakat Selangor (LZS-MAIS) http://www.e-zakat.com.my/baru/
Federal Territory Pusat Pungutan Zakat (PPZ-MAIWP) http://zakat.com.my/
Melaka Pusat Zakat Melaka (PZM) http://www.izakat.com/
Negeri Sembilan Pusat Zakat Negeri Sembilan (PZNS) http://www.zakatns.com.my/v2/intro/index.html
Johor Majlis Agama Islam Johor (MAIJ) http://www.maij.gov.my/
Pahang Pusat Kutipan Zakat Pahang (PKZP) http://www.zakatpahang.com.my/
Terengganu Majlis Agama Islam dan Adat Melayu http://www.maidam.gov.my/puz_pungutan.php
Terengganu (MAIDAM)
Kelantan Majlis Agama Islam Kelantan http://maik.kelantan.gov.my/
Perak Majlis Agama Islam dan Adat Melayu http://www.maiamp.gov.my/
Perak
Pulau Pinang Pusat Urus Zakat P.Pinang (PUZP) http://www.izakatdpuz.com.my/web2/index.asp
Kedah Jabatan Zakat Negeri Kedah http://www.zakatkedah.com/
Perlis Majlis Agama Islam Perlis http://www.perlis.gov.my/maips/
Sabah Pusat Zakat Sabah http://www.zakat.sabah.gov.my/
Sarawak Tabung Baitulmal Sarawak (TBS) http://www.tabung-baitulmal-sarawak.org.my/
From the table, it shows that most zakat organizations in Malaysia have already developed
and used web-based internet applications and e-Zakat as a media to communicate with
citizens and deliver services. The e-Zakat as an electronic and online delivery of services
creates new sphere of zakat and promote more efficient and cost-effective zakat institution,
facilitate more convenient services, allow greater public access to zakat information, and
make zakat institution more accountable to citizens. Although the most fundamental use of
web-based is for information delivery to citizens by adopting broadcasting model website,
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but the web or portal is also can be used as a platform to facilitate interactive communication
between zakat organization with citizens, business communities and other agencies. To
support this, the website will need to contain information that is useful to public, presented in
a way that will help them with the enquiries, and which will enable them to pay zakat online
with zakat organizations. The strategy for using the website should be the integral part of
communications strategy for the zakat organizations. In particular, the corporate
communications strategy of the zakat organization should be updated to reflect the maturity
of the web as a mainstream communication channel, including providing services in enabling
interactions for electronic service delivery.
Example 1: Lembaga Zakat Selangor (LZS-MAIS)
Lembaga Zakat Selangor (LZS-MAIS) for example has developed a web-based internet
zakat and e-Zakat since 2002 as the strategy to improve the performance and governance
sphere of the organization. The website of Lembaga Zakat Selangor can be accessed at
http://www.e-zakat.com.my/baru/. The web provides very important zakat news and
information to citizens, especially zakat payers. The web also facilitates online zakat
payment and interactive communication between the organization and citizens which enable
the users to download form, register as zakat payers and view their record on zakat payment
online. Through this system, LZS is also able to be transparence by publishing the major
zakat information, especially on zakat collection and distribution which is the major element
of governance sphere to build public confident and enhancing public integrity of the zakat
organization.
The e-Zakat becomes an alternative means, especially for zakat payers who want to pay
zakat by using non cash payment such as credit card or bank card. The most important
aspect of online zakat or e-Zakat is that e-Zakat has improved citizen participation in zakat,
improving organizational transparency and widening global networking of zakat organization
throughout the region and the rest of countries around the world. The advancement of e-
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Zakat by LZS-MAIS has improved the quality service and enhancing governance sphere of
the zakat organization.
Example 2: Pusat Pungutan Zakat Wilayah Persekutuan (PPZ-MAIWP)
Pusat Pungutan Zakat Wilayah Persekutuan (PPZ-MAIWP) is another example of zakat
organization which seriously advancing e-Zakat as an electronic means to promote more
efficient, effective and better quality zakat services delivery. It can be accessed at
http://zakat.com.my/. PPZ-MAIWP has started advancing electronic channel since 2000 as a
media to disseminate zakat information, but also use to communicate with public, employees
and employers in the public and private sector organizations.
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Majlis Ugama Islam Singapura Website & e-Zakat
Department of Zakat and Income Tax of Saudi Arabia
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The Significance Impacts of e-Zakat in Malaysia
Providing services through website and other digital channel is already providing the
following benefits to citizens and government. The development of e-zakat has contributed
significant impacts on the performance of zakat organizations in Malaysia which can be
analysed on several aspects such as
1. Improve Zakat Collection – online zakat payment has attracted many citizens to pay
zakat via internet kiosk.
2. Enhancing Information Dissemination – many zakat informations can be published
and accessible to anybody.
3. Improve Public Participation – people has direct opportunity to interact with zakat
organization via e-mail.
4. Improve Organizational Transparency – zakat organization uses this media to inform
public on the business operation.
5. Improve service delivery – more services can be added through the website
6. Extend global communication and networking -
Conclusion
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The most important aspect of online zakat or e-Zakat is that e-zakat has improved citizen
participation in zakat, improving organizational transparency, integrity, accountability and
widening global networking of zakat organization throughout the region and the rest of
countries around the world. The deployment of e-zakat has significant impacts on the way
zakat institution operates and deliver its services to citizens
Zakat Collection in Malaysia 2001 - 2006
800,000,000.00
700,000,000.00
671,095,888.89
600,000,000.00
573,088,305.74
500,000,000.00
473,269,093.00
400,000,000.00 408,430,403.56 Zakat
373,924,167.00
Collection
320,348,661.01
300,000,000.00
200,000,000.00
100,000,000.00
0.00
2001 2002 2003 2004 2005 2006
Reference
1. Mohsin Hj. Ahmad, Implementation of Electronic Government in Malaysia: The
Status and Potential for Better Service to Public, Public Sector ICT Management
Review. Oct 2006 – Mac 2007, Vol 1 No. 1
2. Sohaimi Md Salleh, The Multimedia Super Coridor (MSC) and E-Government
Initiatives in Malaysia. Paper presented at the Third ITU Waseda University
Workshop for Regulators and Policy Makers held in conjunction with the World
Summit on E-Government organized by GITI, Waseda University in Tokyo (October
27 – 30, 2003).
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