Administration of Baitulmal of Federal Territories : its practices and challenges

Abstract

Baitulmal is a primary financial institution in the era of Prophet (s.a.w) and his companions. However, in Malaysia, the definition of Baitulmal has been narrowed to very limited sources. Nevertheless, the role of Baitulmal is abandoned and reduced into small units under the patronage of Islamic Religious Council. Besides, the existence of several institutions similar to Baitulmal has denied its right to receive funds. Being a treasury, Baitulmal ought to be placed in the prime structure of the administrative system of Malaysia. Hence, this study focused a string of legal constraints that could hinder the successful administration of Baitulmal in the Federal Territories. This study examined matters relating to Baitulmal of Federal Territories administered by the Islamic Religious Council of Federal Territories as a lawful entity that has a legal enforcement through the federal laws of Malaysia and also shar?ah laws. It focused on the suggestions to standardize the distribution of asset into new sources and the management of the asset. Besides it also includes the suggestion to strengthen the institutions of Baitulmal to be independent Statutory Body which has its own rules and regulations in conducting its role in collecting, managing and distributing the sources of the Islamic country. This study was conducted as legal research analysing primary and secondary documents. Interviews were also conducted with the relevant authority to support the findings of the study. This research found that the existing provisions relating to the administration of Baitulmal of Federal Territories are inadequate to enhance its management in collecting and distributing Baitulmal sources. Therefore this study suggests that relevant laws should be amended to give specific starting to Baitulmal under the Federal Constitution, National Land Code, Unclaimed Monies Act 1965 and Administration of Islamic Law (Federal Territories) Act.