A zakat distribution for Asnaf empowerment at Lembaga Zakat Negeri Kedah (LZNK)

Zakat is an integral part of the Islamic financial system, serving as a mechanism to purify wealth and improve the welfare of the community. Although zakat institutions have long been present in Malaysia, challenges remain in ensuring equitable distribution of zakat to asnaf and ensuring that the distribution system effectively empowers them economically. This study uses General Systems Theory (GST) to examine the interrelationship between zakat and human capital, and their integration into an efficient distribution model. The study uses a qualitative methodology by conducting in-depth interviews, and thematic analysis assisted by ATLAS.ti software to show that while LZNK’s zakat distribution is in line with maqasid syariah, there is a need for integration of technological tools, such as the Zakat on Touch platform, and stronger empowerment programs to foster sustainable socio-economic independence for asnaf. The findings suggest that LZNK’s initiative to develop a comprehensive empowerment strategy, which includes skills training and capital provision, is critical to reducing the asnaf’s dependence on zakat. However, challenges such as the accuracy of asnaf selection, transparency of fund distribution, and resolution of socioeconomic issues remain. The report concludes with recommendations to improve zakat management through increased community participation, advancement of technology systems, and creation of programs that focus on developing long-term empowerment to transform asnaf from recipients to donors of zakat