Acceptance of Zakat institutions in Malaysia towards Micro Credit-Qard Hasan financing through Zakat fund (MCZF) for post-pandemic Asnaf entrepreneurs
Authors: Asni Fathullah , Zulkifli Mohamad Ihsan , Yusli Yusairi 
Published: November 2024

Purpose
This paper aims to examine the acceptance of Zakat institutions in Malaysia towards Micro Credit-Qard Hasan Financing through Zakat Fund (MCZF) for post-pandemic asnaf entrepreneurs. The study is motivated by the declining trend in Zakat collection and the increasing number of asnaf individuals in the post-pandemic period. This necessitates alternative initiatives such as the MCZF scheme by Zakat institutions. However, the reception of the MCZF scheme in Malaysia is unfavourable, despite studies suggesting its suitability for Zakat institutions and asnaf entrepreneurs.

Design/methodology/approach
This study adopts a qualitative methodology involving library and field research as data collection methods. The library research encompasses reviewing relevant books, articles, statutes and circulars. In terms of the field study, semi-structured interviews were conducted with five selected Zakat management officers from Zakat institutions and two proficient academics specialising in Shariah and Zakat management. The interview data generated several themes analysed using the content analysis method. Consequently, the snowball method was employed to determine the sample size of Zakat institutions, ensuring comprehensive coverage of their acceptance of the MCZF scheme.

Findings
The study’s findings reveal that three Zakat institutions accept the MCZF scheme for implementation, justifying it as a matter of differing opinions (khilaf) that allows room for ijtihad based on the current needs and well-being (maslahah). However, one of the Zakat institutions expresses unpreparedness to implement the scheme due to obstacles posed by an official fatwa. Additionally, the study demonstrates that two Zakat institutions reject the MCZF scheme, citing reasons such as the principle of direct ownership (tamlik) in giving Zakat funds, the prohibition specified by the official state fatwa, and the prevailing societal expectation of direct Zakat distribution without loans.

Research limitations/implications
This study focuses solely on five Zakat institutions in Malaysia, all of which have specific fatwas concerning the MCZF scheme. Future research may explore Zakat institutions in other states. Furthermore, this study specifically concentrates on asnaf entrepreneurs. Hence, further research could investigate the applicability of the MCZF scheme for other asnaf groups, such as asnaf students.

Practical implications
This study examines the acceptance of Zakat institutions towards the MCZF scheme and the justifications provided by Zakat institutions for its implementation. The findings of this study can guide Zakat institutions in Malaysia in accepting and implementing the MCZF scheme. It can significantly impact these institutions by assisting asnaf entrepreneurs in securing capital and expanding their businesses.

Social implications
This study has substantial implications for society, particularly for asnaf entrepreneurs, as loans provided through Zakat funds can help boost their business capital. Consequently, this can elevate the asnaf group from being recipients of Zakat to becoming contributors. Furthermore, when Zakat funds are provided as debt to asnaf entrepreneurs, they can be motivated to grow their businesses since they commit to repaying the debt through instalments.

Originality/value
This study analyses the acceptance of the MCZF scheme by Zakat institutions in Malaysia as an alternative initiative to support asnaf entrepreneurs after the pandemic.