Wakalah Zakat and Distribution Governance: A Comparative Study of Five Zakat Institutions in Malaysia

Abstract

Wakalah zakat is a distribution mechanism that permits eligible zakat payers or appointed institutions to distribute part of zakat funds to qualified asnaf under the authority and conditions predetermined by zakat institutions. Although “wakalah” refers to a form of authorized representation in Islamic law, its public presentation and policy communication vary across state zakat authorities, namely Pusat Pungutan Zakat-Majlis Agama Islam Wilayah Persekutuan (PPZ-MAIWP), Majlis Agama Islam Negeri Sembilan (MAINS), Lembaga Zakat Negeri Kedah (LZNK), Majlis Agama Islam Kelantan (MAIK), and Majlis Agama Islam dan Adat Istiadat Melayu Perlis (MAIPs). This study compares how wakalah zakat arrangements are publicly communicated and disclosed by five selected zakat institutions in Malaysia. Utilizing qualitative document analysis, the study examines official websites, institutional documents, application forms, and academic literature related to wakalah zakat, accountability, and Islamic social finance. The findings show that PPZ-MAIWP provides the most organized publicly disclosed model among the sources examined through MyWakalah, while MAINS provides a fixed refund of 37.5%. LZNK emphasizes distribution to the destitute, the poor, and fisabilillah, while MAIK discloses a related waad concept through its e-Pembayar system. From a public-disclosure perspective, the study finds that wakalah zakat should be understood as a governance mechanism involving transparency, reporting, beneficiary targeting, and cross-state policy communication.