ALOR SETAR: On 27 August, a group of master’s students sponsored by the Ministry of Religious Affairs, Republic of Indonesia (KEMENAG) had the opportunity to visit the Zon Pembangunan Ekonomi Ummah and Lembaga Zakat Negeri Kedah (LZNK).
The purpose of the visit was to provide students with first-hand knowledge of the zakat operations, management, and its impact in the state of Kedah. The students were accompanied by the Dean of Islamic Business School (IBS), Assoc. Prof. Dr. Selamah Maamor, Prof. Dr Nor Hayati Ahmad and several other members of the school.
Dr. Selamah said, the primary objectives of the visit were to gain a comprehensive understanding of the roles performed by LZNK in collecting and distributing zakat, to gain insights into the challenges and strategies involved in managing zakat funds, to observe the transparent and accountable processes and systems in place, and to explore potential research opportunities in zakat management.
The visit began at Zon Pembangunan Ekonomi Ummah, located in Yan. This special project, funded by LZNK, aims to develop a smart large-scale paddy field in Kedah that is more capital- oriented. The goal is to increase rice production to meet the local demand.
Ustaz Naim delivered a briefing and facilitated a productive discussion on the management of paddy fields with selected locals, who are also asnaf. The session also addressed the numerous challenges faced during the land acquisition.
The visit proceeded to LZNK Alor Setar. The students were warmly welcomed by the officials of LZNK. The officials gave an introductory briefing detailing the organisation’s history, mission, and vision. An extensive presentation was delivered on the management of zakat in Kedah, focusing on the collection methods, distribution mechanisms, and the impact on local communities. The presentation also included discussions on how technology can enhance zakat management.
During the session, students had the opportunity to interact with officials and ask them questions regarding the operational challenges, strategies for increasing zakat collections, and the socio-economic impact of zakat distribution.
They were provided with a guided tour of the facilities at Lembaga Zakat Negeri Kedah, which included the data management centre, collection counters, and the distribution unit. The tour provided an in-depth understanding of the daily operations and the intricate workflow involved in zakat management. The visit concluded with a group discussion among the students to reflect on their observations and insights. The discussion focused on the potential application of the knowledge gained in their respective research areas.
Dr Hafizah Zainal, the official in charge, expressed gratitude on behalf of LZNK for the organisation’s efforts to position itself as a leading global player in zakat management, particularly in innovation and social impact. Notably, the Zon Pembangunan Ekonomi Ummah has advanced significantly, reaching the fifth stage, where LZNK now independently produces rice after acquiring a large factory.
During the visit, students actively participated in meaningful discussions, posing numerous thought-provoking questions. As a gesture of appreciation, the students presented LZNK staff with a token of gratitude on behalf of IBS and Universiti Utara Malaysia.
The one-day visit to LZNK offered master’s students specialising in Islamic finance and banking, sponsored by KEMENAG, a valuable educational experience. The visit provided these students with critical insights into the role of zakat in socio-economic development and the intricate challenges involved in managing such a key institution. Notably, several new concepts emerged during the visit, which are set to be documented in an upcoming research report. – Dr. Mohd Fikri Sofi
