Empowering Malaysia's Islamic Social Finance System: Integrating Zakat Management Through Financial Technology

State Islamic Religious Councils (SIRCs) play a pivotal role in managing and regulating Islamic affairs in Malaysia. According to the Second Schedule, Ninth Schedule of the Federal Constitution, SIRCs are constitutionally empowered to manage zakat collection and distribution. As the nation strives toward financial inclusion and economic sustainability, Islamic social finance (ISF) emerges as a critical pillar. The national digitalisation agenda facilitates these ambitions. SIRCs are responsible for ensuring the socio-economic development of the asnaf (eligible zakat recipients). However, there remains an inconsistency in zakat and waqf management across different states in Malaysia. Legally, zakat falls under state jurisdiction, as enshrined in the Constitution, resulting in non-uniform systems nationwide. Moreover, this study examines the potential of financial technology (FinTech) in zakat operations. Using doctrinal research methodology and secondary data from reputable sources, this study proposes strategic approaches to strengthen ISF systems through digital integration and advocates for a harmonised legal framework. The findings aim to contribute to the development of a more robust Islamic social finance system in Malaysia.