Overcoming Income Disparity amongst Bumiputera by Improving Zakāt and Waqf System: A Special Focus on Improving Assets Management and Accounting Transparency

Abidullah Abid, Muhammad Hakimi Mohd Shafiai

Abstract


This paper aims to highlight the issues in Zakāt and Waqf in Malaysia and to provide a solution so that the income disparities amongst the Malay ethnic group can be minimized. Through library reach methods, we explored the literature in order to come up with the concrete conceptual model. It is found from the thorough study of literature that in the current SIRC, the issues of assets management and accounting transparency exist that make the Zakāt and Waqf system more vulnerable. Hence, it is suggested that Shari’ah Council might outsource some of its responsibilities to Islamic Microfinance Institutions so that the issues of assets management and accounting transparency can be overcome. The conceptual model that is presented in the study would provide more structured and transparent Zakāt and Waqf collection and distribution process for the Shari’ah Council so that maximum benefits can be derived in the interest of the Muslim Malays.

Keywords


Income disparity, Islamic Wealth Redistribution, Shari’ah Islamic Religious Council, Zakāt, Waqf, Accounting Transparency, Cash Management, Islamic Microfinance

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References


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