Zakah Practice in Islamic Banking Institution in Malaysia: A Legal Horizon
Date
2016Author
Muhammad Hafiz, Badarulzaman
Alias, Azhar
Che Thalbi, Md Ismail
Metadata
Show full item recordAbstract
The objective of the zakah payment is focused on the economic
development of the ummah (society) and baldah (nation) and not only
confined to the ritual practices. Islamic banking institutions (IBIs) in
Malaysia are one of the entities that accountable for banking zakah.
This paper will look in depth the concept and the legality of zakah.
Besides, this paper also will deliberate the legal background of IBIs
and analyze specifically on the zakah practice among the IBIs in
Malaysia. This paper is totally a qualitative research paper in which it
is more exploratory in nature and possibly resulting in the
development of concepts and theories. Furthermore, historical
approach will be used as to find out how and why certain rules,
principles or institutions have come to take their present form. In
addition, this paper also recapitulates all issues and challenges
encountered by IBIs in Malaysia vis a vis zakah practice. Finally, some
recommendations will be laid down such as the needs to propose a
new statute to administer banking zakah and to set up a proper body
to supervise on the aforesaid statute as well as to improve the zakah
practice in IBIs in Malaysia.