UNDERSTANDING THE ORGANISATIONAL STRUCTURE OF STATE ISLAMIC RELIGIOUS COUNCIL AND BAITULMAL IN MALAYSIA

Abstract

As a renowned public wealth management institution in Islam, Baitulmal has a vital role in managing Muslim’s affairs as well as providing social services to its society. However, the complexity of the government structure and legal system particularly in Malaysia contributes to the lack of understanding about State Islamic Religious Councils (SIRCs) and Baitumal, especially in terms of its functions and responsibilities. Hence, the purpose of this paper is to discuss and explain the organisational structure of Malaysia’s SIRCs that would affect the roles of Baitulmal in each state that it serves. Adopting a qualitative approach, the study utilised interview and documents review as data gathering techniques. The study provides an overview of the government structures in Malaysia consisting of Federal Government and State Government, placing the State Islamic Religious Councils in the structure and later narrowed into the organisational structure of Baitulmal. The research findings demonstrate that Malaysian government structures and legal system influence the structure of Baitulmal institutions across Malaysia. Thus, Baitulmal institutions differ slightly in terms of its organisational structure, consequently influencing the functions and responsibilities of each Baitulmal. However, the main role of an Islamic wealth management institution remains similar for every Baitulmal in different states of Malaysia.