Abstract :
This paper investigates the strategic, legal, and institutional dimensions of zakat implementation on contributions within the Lembaga Tabung Angkatan Tentera (LTAT) a semi-compulsory retirement fund for Malaysian military personnel. Despite the religious obligation of zakat and the significant volume of funds involved, implementation remains inconsistent due to ownership ambiguity (al-milk al-tām), limited institutional readiness, and legal constraints under the Armed Forces Fund Act 1973. Drawing on a qualitative exploratory study commissioned by Akademi Zakat (AZKA), PPZ-MAIWP, the research combines classical and contemporary fiqh analysis with in-depth interviews involving Lembaga Tabung Angkatan Tentera (LTAT), Jabatan Arah Urusan Gaji Angkatan Tentera (UGAT), and Kor Agama Angkatan Tentera (KAGAT) officials. Thematic findings reveal that while voluntary contributions meet full zakat criteria, mandatory savings involve complex Shariah and procedural considerations. Four operational models for zakat implementation are proposed including voluntary withdrawal-based payment, retrospective qada’ calculations, and institutional auto-deduction via wakalah each evaluated against Shariah validity, legal permissibility, and administrative feasibility. The study recommends structured collaboration between LTAT and zakat institutions, supported by legal reform and digital integration, to ensure compliance and optimize zakat’s socio-economic role within Malaysia’s retirement ecosystem.