Designing a Blockchain-Based Model for Zakat Management in Malaysia

Khairil Faizal Khairi, Nur Hidayah Laili, Azuan Ahmad and Murad Ali Ahmad Al-Zaqeba
Additional contact information
Khairil Faizal Khairi: Faculty of Economics and Muamalat (FEM), Universiti Sains Islam Malaysia (USIM) 71800 Nilai, Negeri Sembilan, Malaysia
Nur Hidayah Laili: Faculty of Economics and Muamalat (FEM), Universiti Sains Islam Malaysia (USIM) 71800 Nilai, Negeri Sembilan, Malaysia
Azuan Ahmad: Faculty of Economics and Muamalat (FEM), Universiti Sains Islam Malaysia (USIM) 71800 Nilai, Negeri Sembilan, Malaysia
Murad Ali Ahmad Al-Zaqeba: Faculty of Economics and Muamalat (FEM), Universiti Sains Islam Malaysia (USIM) 71800 Nilai, Negeri Sembilan, Malaysia

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 23, 58-83

Abstract: Wealth redistributive tax, basically based on the zakat, one of the five pillars of Islam, and a very significant form of social benefit. However, zakat management in Malaysia is still facing wasteful problems that are non-transparent, poor governance, and a lack of technological applications. Therefore, this paper is set to identify the main determining success factors of the blockchain-based zakat management model in Malaysia, which will be focused on several key factors: a sound legal and regulatory environment, efficiency and sustainability, stakeholder involvement supporting the initiative, a techno-savvy culture towards technology adoption, and readiness for implementing blockchain. The study employed cross-sectional quantitative research, with Partial Least Squares Structural Equation Modeling (PLS-SEM) as the framework to analyze and examine the direct, indirect, and mediating effects of the constructs on both zakat practices and blockchain adoption. The results suggest several functional policy implications for regulators, zakat institutions, and Islamic finance actors in the realm of zakat administration modernization, focusing on regulatory certainty, technological preparedness, cooperative advocacy, and shared vision as well as institutional reform. Therefore, this paper furthers the Islamic social finance literature by exploring empirically how the blockchain technology can enhance transparency, efficiency, and trustworthiness within zakat governance. This paper proposes future research that includes cross-border blockchain-based zakat systems, comparative with other Muslim countries, and the effectiveness of long-term sustainability using blockchain for zakat management frameworks.

Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.rsisinternational.org/journals/ijriss/ ... 58-83-202510_pdf.pdf (application/pdf)
https://www.rsisinternational.org/journals/ijriss/ ... agement-in-malaysia/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bcp:journl:v:9:y:2025:i:23:p:58-83

Access Statistics for this article

International Journal of Research and Innovation in Social Science is currently edited by Dr. Nidhi Malhan

More articles in International Journal of Research and Innovation in Social Science from International Journal of Research and Innovation in Social Science (IJRISS)
Bibliographic data for series maintained by Dr. Pawan Verma ().