Zakah is an Islamic financial instrument anchored within the Islamic economic system. Its establishment is to reduce inequalities within the Muslim community so that fair and social justice would be attained. In Malaysia, the administration of all religious matters including zakah is under the auspice of State Islamic Religious Council (SIRC). There are 14 states in Malaysia, and every state has its SIRC. As a religious and zakah agent, the institution is entrusted to govern zakah funds so that the beneficiary’s living standard could be transformed to a higher level. This paper conceptually reviews the role of zakah institution in governing and transforming the beneficiary’s living standard from daruriyyat (dire necessities) to higher level that is hajiyyat (comfort living) in relation to Maqasid al Syariah. As to ensure the success of the transformation, zakah institution should play proactive roles and be optimistic in formulating and initiating potential programmes that would generate income and make the beneficiary wealthy. Hence, the objective of Maqasid al Syariah under zakah jurisprudence will be achieved, if zakah funds are channelled to productive programs that would transform the beneficiary’s living standard and eventually free him/her from the shackles of poverty.