ZAKAT ON GOLD PRACTICES IN MALAYSIA

Abstract

Islam's mandatory Zakat is very important in nations where Muslims predominate, such as Malaysia. Zakat is a financial custom that applies to both conventional and contemporary financial assets, such as gold. The purpose of this essay is to examine Malaysian Zakat practices, with an emphasis on administration, computation techniques, and distribution systems. This research clarifies the practices of Zakat on Gold especially jewellery using an extensive analysis of the literature, official regulations, and guidelines issued by Islamic financial institutions. It also looks at the role that organizations like Shariah-compliant banks and Zakat institutions play in making it easier to collect, handle, and distribute Zakat on gold. The analysis also explores Zakat on gold, such as standardizing Zakat rates, determining gold valuation techniques, and urf of Zakat on gold. This paper advances knowledge of Islamic finance concepts and Malaysia's socioeconomic development programs by illuminating the procedures and dynamics of Zakat on gold.