Zakat Strategy in Improving Community Welfare: The Case Comparison Between Baznas Indonesia and MUIS Singapore

Abstract

This research is motivated by the development of zakat in Singapore managed by the Singapore Islamic Religious Council (Majelis Ugama Islam Singapore/MUIS). Singapore
with Muslim minority population, is able to develop zakat and have a positive impact to other countries, including Indonesia. This research aims to understand and determine the
collection and distribution of zakat in state authority institutions in Indonesia and Singapore. The research method used is qualitative using focused interviews with a
comparative approach. Beside interviews, the authors also carried out data by observation and documentation at the National Amil Zakat Agency (BAZNAS) of the Republic of
Indonesia and at the Majlis Ugama Islam Singapura (MUIS) in Singapore. The result of the research show that the collection of zakat funds at the National Zakat Amil Agency
(BAZNAS) and the Singapore Islamic Religious Council (MUIS) is already optimal. One of the strategies used is to develop administration and transparency so that people entrust
their zakat to be managed by state authority institutions. The distribution of zakat funds to the BAZNAS is quite optimal but not as optimal as that of MUIS. This is because the distribution is managed by several parties, while the distribution of zakat funds at Majlis Ugama Islam Singapura (MUIS) is distributed directly to those entitled to receive it,
thereby avoiding operational costs which cause zakat funds to be deducted.