A Systematic Review of Issues and Challenges of Micro Takaful Financing Through Zakat and Waqf Funds in Malaysia

Micro takaful protection is vital to the low-income population, providing them with affordable financial and health protection. However, the uptake of micro takaful schemes is still scarce due to the reduction of its operational and promotional costs. This systematic review study aims to collect, analyse and discuss academic literature from relevant journal articles related to the issues and challenges of micro takaful financing through zakat and waqf funds using the PRISMA method. A search using Scopus, MyJurnal and Google Scholar academic databases for this study resulted in a total of 47 documents. After going through the screening processes outlined by PRISMA, 11 journal articles were accepted as the literature of this study. The issues and challenges of micro takaful financing through zakat and waqf funds in Malaysia are related to the ownership (al- tamlīk) of zakat funds, limitations of legal provisions, high operating cost and common understanding from the community. Therefore, this review suggests publishing more journal articles on the related study field to develop a practical and sustainable micro takaful financing framework through zakat and waqf funds.