A proposed model forwaqffinancing public goods and mixed public goods in Malaysia

Abstract

Purpose: The purpose of this paper is to formulate a model for waqf financing of public goods and mixed public goods in Malaysia which constitute the country's federal government expenditures. The model is built on the basis of understanding the concept of waqf, learning from waqf institutions of the past and present and addressing specific Malaysian waqf issues. Design/methodology/approach: This study uses both primary and secondary data. The primary data originate from semi-structured interviews of waqf academicians from the Islamic economics and Islamic finance fields, waqf government officials and private sector institutions that are involved in waqf management. The secondary

Waqfintech and Sustainable Socio-Economic Development

“…Solely relying on donation decreases the likelihood of financial sustainability in the long-run (Shaikh et al, 2017) because it largely depends on the generosity of the human behaviours. Just like profitoriented organisations, diversifying sources of income is important for non-profit organisations like waqf institutions, whereby financial risks could be minimised by holding a diversified portfolio of assets with varying levels of liquidity risk (Ambrose et al, 2018). However, the indirect waqf model is more complicated than the direct waqf model and it requires business acumen to make sound investment decisions, in addition to the long period of time needed before an investment becomes profitable.…”

“…Historically, waqf had played a vital role in financing infrastructure, education, healthcare in Islamic civilisation (Abdul Aziz et al, 2019; Mohsin and Muneeza, 2019; Shukri et al, 2019). In the late eighteenth century, waqf was used to support retired sailors, finance water supply, and fund commuter ships (Ambrose et al, 2018). Waqf became a part of the government policy during the Ayyubid Dynasty (Ambrose et al, 2018) and the use of waqf reached its peak during the Ottoman Empire when the income from waqf donations was equal to nearly one-third of the total revenue of the Ottoman state (Abdul Aziz et al, 2019; Ambrose et al, 2018).…”

“…In the late eighteenth century, waqf was used to support retired sailors, finance water supply, and fund commuter ships (Ambrose et al, 2018). Waqf became a part of the government policy during the Ayyubid Dynasty (Ambrose et al, 2018) and the use of waqf reached its peak during the Ottoman Empire when the income from waqf donations was equal to nearly one-third of the total revenue of the Ottoman state (Abdul Aziz et al, 2019; Ambrose et al, 2018). A large proportion of the real estate in many towns and villages was actually endowed property (Abdul Aziz et al, 2019).…”

ANALYSIS OF COMMUNITY CASH WAQF INTENTION TO SUPPORT SUSTAINABLE DEVELOPMENT GOALS (SDGs): THEORY PLANNED BEHAVIOUR APPROACH

“…Cash waqf has also been practiced during the Caliphate of the Abbasiah Dynasty, the Ayyubid Dynasty to the Ottoman Turks. At that time, cash waqf was used as a fiscal obligation, the main budget, then distributed to social institutions engaged in education, food, clothing and so on (Ambrose et al, 2018).…”

The Role of Waqf in Social Development

“…Ambrose et al (2018) explained that the history of waqf in the form of goods has been widely carried out, since the existence of the Prophet Muhammad who changed the property of Mukhayriq into waqfs to finance defense. Uthman ibn Affan who bought a well as a source of water for all his citizens for free in Medina.…”