Malaysia Champions Waqf, Zakat As Drivers Of Socioeconomic Development, Says Minister

By Mohd Iswandi Kasan Anuar

JAKARTA, Nov 2 (Bernama) -- Malaysia is stepping up its commitment to the Ummah by emphasising the mainstreaming of waqf and zakat as essential tools for sustainable socioeconomic development, said Minister in the Prime Minister’s Department (Religious Affairs), Datuk Mohd Na’im Mokhtar.

In a special address at the World Zakat and Waqf Forum Annual Summit and Conference 2024 on Saturday, Mohd Na’im outlined how waqf is being redefined not just as a mechanism for social welfare, but as a vital platform for social finance, impact investing, and community empowerment.

He highlighted the modernisation of zakat management in Malaysia, ensuring that funds efficiently reach those most in need and reinforcing zakat as a cornerstone of economic justice.

“Malaysia is leading the way in the innovative Muslim economy by utilising technology to make waqf and zakat administration more accessible and transparent,” Mohd Na’im said at the forum held at the Jakarta Convention Centre here.

With advancements in Islamic fintech, blockchain for waqf, and digital platforms for zakat, Malaysia is setting a standard for a tech-enabled Islamic economy that embodies compassion, justice and shared prosperity.

A prime example of this commitment is the partnership between Yayasan Waqaf Malaysia and the digital platform GoBarakah, which is revolutionising charitable giving by enhancing transparency, trust and inclusivity.

This initiative not only streamlines operations but also matches beneficiaries with specific needs, fostering swift and impactful collaborations, he explained.

In an era marked by unprecedented inequalities, the former Syariah Court judge stressed the urgent need for economic justice, asserting that zakat’s intrinsic purpose of wealth redistribution can help bridge this divide.

Mohd Na’im described zakat as a “transformative instrument” for supporting education, healthcare and basic needs, while acknowledging that it cannot drive social transformation alone.

Citing Indonesia’s National Zakat Agency, he underscored the effectiveness of digital zakat collection in reaching millions of underserved communities.

Mohd Na’im also called for a New Muslim World Order that encompasses spiritual, economic, intellectual and cultural reforms to ensure access to opportunities and dignity for all.

Advocating for a holistic approach, he encouraged raising awareness and engaging youth to see zakat and waqf as dynamic tools for change.

Mohd Na’im pointed to Singapore’s “Smart Waqf” initiative as an inspiring example of how blockchain technology enhances transparency and cultivates a culture of giving.

As Malaysia forges ahead in this innovative landscape, the potential for waqf and zakat to uplift communities and drive meaningful change is greater than ever, he said, inviting all to join in this transformative journey.

The two-day forum, starting Friday, was attended by representatives from 43 countries, including stakeholders from the ranks of scholars, entrepreneurs and youth.

-- BERNAMA