The Role of Productive Zakat in Improving Mustahik Welfare: a Comparative Study in Malaysia and Indonesia
Keywords:
Islamic Economics, Malaysia, Productive Zakat, SDGs, IndonesiaAbstract
This study examines the role of productive zakat in improving mustahik welfare, focusing on a comparative analysis between Malaysia and Indonesia. Productive zakat has been increasingly recognized as a strategic instrument to alleviate poverty and support sustainable development goals (SDGs), yet its effectiveness varies across socio-economic and institutional contexts. Using a mixed-method approach, data were collected through surveys and interviews with 240 mustahik beneficiaries and zakat institution officers in Selangor, Malaysia, and West Java, Indonesia, during the period 2022–2023. Quantitative data were analyzed using descriptive statistics and regression models, while qualitative insights provided deeper understanding of program implementation. The findings reveal that productive zakat significantly improves mustahik income, business sustainability, and access to education and healthcare in both countries. However, the magnitude of impact differs: Malaysian institutions show stronger program integration with government and private sector initiatives, resulting in higher average income growth (28%) compared to Indonesia (19%). In Indonesia, although productive zakat enhances entrepreneurial activities, challenges remain in program monitoring and beneficiary capacity building. The comparative analysis highlights that governance quality, institutional capacity, and stakeholder collaboration are critical determinants of zakat effectiveness. This study concludes that productive zakat serves not only as a poverty alleviation tool but also as a catalyst for sustainable socio-economic empowerment when supported by robust institutional frameworks. The research contributes to the discourse on Islamic economics and sustainability, offering policy implications for enhancing zakat management systems across Muslim-majority countries.
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