Statutory Governance and Regulatory Compliance in Islamic Social Finance: A Legal Review of Zakat-Funded Care Centres in Malaysia
DOI:
https://doi.org/10.31958/jisrah.v7i02.16986Abstract
The rapid demographic transition towards an aging nation in Malaysia has significantly strained conventional social safety nets, forcing Islamic social finance institutions to pivot from direct cash aid to institutionalized, long-term care provisions. However, this shift introduces a dual-compliance challenge: satisfying institutional Shariah mandates while strictly adhering to rigorous civil regulations. This study examines how zakat-funded care Centres navigate statutory governance. The central research question addresses how these facilities harmonise state-level Islamic administrative law with federal legislation, primary among which is the Care Centres Act 1993 (Act 506). Employing a qualitative library research methodology, this paper systematically evaluates statutory documents and institutional case reviews of model facilities, including Bait Al-Mawaddah (in Selangor) and Darul Ilmi (in Kuala Lumpur). The findings indicate that strict compliance with civil regulatory frameworks, encompassing registration, fire safety, and clinical health guidelines, does not contradict Shariah principles. Instead, it substantively operationalises the higher objectives of Islamic law (Maqasid al-Shariah), specifically the preservation of life (hifz al-nafs) and human dignity (hifz al-‘ird). The study concludes that statutory compliance is vital for institutional legitimacy and recommends the formulation of a standardized national blueprint for zakat-based care Centres.
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