Cross-Country Comparison of Zakat Management Model for Economic Resilience: Insights from Indonesia and Malaysia
DOI:
https://doi.org/10.13135/2421-2172/12000Keywords:
Zakat, Zakat Management, Zakat Distribution, Zakat Governance, Government Policy, Comparative AnalysisAbstract
The negative economic growth observed in Indonesia and Malaysia has led to the classification of both nations as experiencing an economic recession. This situation arises from a reduction in total household expenditure, despite an increase in zakat collection. The management of zakat in Indonesia and Malaysia, in light of the economic recession, is implemented through various programs. This research aims to conduct a comparative examination of zakat management in Indonesia and Malaysia during economic downturns, with a particular emphasis on policy responses to the recession triggered by COVID-19. Subsequently, this investigation employs a qualitative descriptive methodology grounded in secondary data sourced from zakat institutions, governmental reports, and scholarly literature. The findings elucidate four notable distinctions in zakat management between Indonesia and Malaysia: the focus on resource allocation, the prioritization of beneficiaries, the sustainability of impact, and the originality of programs. Indonesia focuses on directing zakat towards economic initiatives, whereas Malaysia places greater importance on its distribution for consumptive purposes. Indonesia has delineated six priority clusters of mustahik affected by the COVID-19 pandemic, whereas Malaysia has categorized only three priority clusters of mustahik. Malaysia employs a unique methodology, characterized by a thorough focus on distributing consumptive zakat to meet pressing household needs. The execution of the program is expected to enhance overall household consumption, thereby aiding in the recovery from economic recession by restoring public purchasing power. This study advances the framework for zakat distribution, contributing to informed decision-making in the realm of policy development during economic crises. This research provides a comprehensive analysis of the allocation of zakat funds as a mechanism for social safety and economic resilience, highlighting exemplary practices from Indonesia and Malaysia, two leading Muslim-majority countries.
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