Zakat : a Singapore perspective

• Main Authors: Abdul Jabar Mustaffa, Amran Robani, Mirza Irwan Osman
• Other Authors: Nanyang Business School
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Business::Accounting
• Online Access: http://hdl.handle.net/10356/51438
• Institution: Nanyang Technological University

This report puts the spotlight on zakat, a major Islamic institution based on social justice that makes it obligatory for a Muslim who satisfies certain conditions, to contribute a portion of his wealth to the society. Issues relating to zakat are highlighted and discussed in three ways: by focusing on zakat itself and its potential, bycomparing it to taxation, and by applying these issues to the Singapore context. This report also introduces a Malaysian model for zakat administration, which is a company established for that sole purpose, and examines whether it can be implemented in Singapore. The knowledge of the Muslim public on zakat matters are assessed. In addition, the position of the Islamic ReUgious Council of Singapore (MUIS) in zakat administration is given a close look. The above discussions lead to the conclusion that MUIS is indeed the best body to administer zakat and that in this matter, it should both seriously consider the Malaysian model and take a more proactive approach. Finally, this report recommends that MUIS employ a more effective marketing strategy, qualified personnel and appropriate modem technology to help increase the awareness of zakat and of its own capabilities to administer zakat, among the Singapore Muslims. MUIS should also give serious consideration to the the issues pertaining to zakat on salary and to the possibility of effecting a more innovative distribution policy such as the one recommended in this report.