Efficiency assessment of zakat institution in Malaysia: evidence from the DEA-BCC model

Zakat institutions in Malaysia support socio-economic well-being through systematic collection and redistribution, yet concerns over inefficiency and declining public trust persist. A study evaluating the operational efficiency of fourteen State Islamic Religious Councils as decision making units using the Data Envelopment Analysis BCC model analyzed staff size, payer numbers, and recipient numbers against total collection and distribution outputs. Findings revealed that half of the institutions achieved optimal efficiency relative to their peers. These insights provide valuable guidance for administrators and policymakers seeking to optimize institutional performance, increase transparency, enhance public confidence, and drive sustainable social justice across Malaysia.