International Journal of Academic Research in Business and Social Sciences

search-icon

Strategic Zakat Management and Socio-Economic Impact: The Case of LZNK in Kedah, Malaysia

Open access
This paper investigates the strategic transformation of zakat management by Lembaga Zakat Negeri Kedah (LZNK) and its impact on socio-economic development in Malaysia. Drawing on historical records, institutional reforms, and contemporary practices, the study highlights how LZNK evolved into a leading Islamic social finance institution through structured governance, innovation, and inclusive development strategies. Key initiatives such as the Smart Sawah Berskala Besar Asnaf (SSBBA), digitization through Zakat on Touch (ZOT), and the implementation of wakalah mechanisms illustrate LZNK's role in empowering asnaf and transforming Zakat into a sustainable socio-economic instrument.
Abdullah, M., & Suhaib, A. Q. (2011). The impact of Zakat on social life of Muslim society. Pakistan Journal of Social Sciences, 30(2), 439–445.
Ahmed, H. (2008). Zakat, macroeconomic policies, and poverty alleviation: Lessons from simulations on selected Asian countries. Islamic Economic Studies, 15(2), 47–87.
Mohd Noor, S., Ab Rahman, A., & Fauzi, W. (2020). Governance in zakat institutions: A qualitative analysis. International Journal of Islamic and Middle Eastern Finance and Management, 13(2), 289–306. https://doi.org/10.1108/IMEFM-08-2018-0272
Wahid, H., & Ahmad, M. (2017). Efficiency of zakat institutions in Malaysia: An application of DEA. Journal of Islamic Accounting and Business Research, 8(3), 282–298. https://doi.org/10.1108/JIABR-03-2016-0031
Majid, A. H. A., Yusuff, M. S. S., & Haji-Othman, Y. (2025). Strategic Zakat Management and Socio-Economic Impact: The Case of LZNK in Kedah, Malaysia. International Journal of Academic Research in Business and Social Sciences, 15(6), 771-777.