Managing Zakat Through the Wakalah Zakat System

<jats:p>Malaysia has developed a zakat system that allows for collection and distribution beyond private institutions or groups involved in zakat collection and zakat distribution. Since the Malaysian zakat system is often regarded as sophisticated, it is frequently used as a benchmark to learn from. In zakat management, the wakalah concept is used in relation to the zakat return policy. This policy is a program where zakat institutions give zakat payers the authority to self-distribute zakat funds to qualified asnaf groups through the return of a specific amount of zakat funds paid in accordance with the established conditions. This study aims to explain the implementation of zakat wakalah at PPZ–MAIWP. A semi-structured interview was conducted to collect relevant data from subject-matter expert. The collected data were analysed with a focus on the identified themes. The findings indicate a transition in wakalah zakat at PPZ–MAIWP from a manual process to a more sophisticated and systematic one, facilitated by an established system. This study is significant for zakat institutions, academics and zakat payers as it enhances their understanding of the application of zakat wakalah.</jats:p>