Proposed temporary waqf model for family waqf implementation in Malaysia

Abstract

Purpose This study aims to propose a temporary waqf model for family waqf by establishing its application parameters, which may facilitate the management of family waqf in Malaysia and encourage new donors to establish waqf. Design/methodology/approach A qualitative methodology was employed to analyse the data through deductive and field research methods. For field research, this study conducted semi-structured interviews with the Waqf Corporations and Mufti's Department in the selected states within Malaysia. Findings Results drawn from the interview's findings are that creating family waqf in Malaysia is hindered by several obstacles, including family waqfs not serving the public interest but rather their descendants, and family waqfs have been practised in perpetuity. Besides, inefficient management of family waqf and a lack of an effective mechanism and parameter exists. Therefore, this study presented a conceptual framework for a temporary cash waqf model for family waqf along with the parameters that can be used to implement it. The temporary waqf is a strategy to develop waqf property and the interests of creators, beneficiaries and trustees. Temporary waqf merged into the family waqf yields benefits to the family waqf. Research limitations/implications Because of Malaysia's Waqf Regulation and Administration, this study was confined to selected states. This study has broadened the scope of temporary family waqf, including moveable, immovable property and cash waqf. Practical implications This study presented a temporary waqf model for family waqf as a realistic mechanism and criterion for its practical implementation in Malaysia. Social implications This study could encourage new donors to establish waqf. Originality/value This study’s novelty lies in its attempt to highlight the importance of the temporary waqf model as a practical mechanism with holistic principles for its implementation in Malaysia to benefit the donors, their families and trustees. In addition to family waqf, numerous temporary waqfs may be established, in which the income or usufruct is shared proportionally, such as charitable waqf (waqf khairi), private waqf (waqf khas) and joint waqf (waqf mushtarak).

Viability of Cash Waqf-Linked Ṣukūk in Malaysia

“…The earlier findings in this regard came mostly from conceptual and theoretical studies. However, findings by more recent empirical studies have supported this conclusion and the fact that it continues to prevail (Jalil, 2020;Laallam et al, 2020;Mohd Thas Thaker et al, 2020;Khan et al, 2022;Laila et al, 2022;Ab Rahman et al, 2023). It is vital to note that such low literacy and awareness in the community on cash waqf reduces people's motivation to participate in waqf (Sasongko et al, 2021), hence making cash waqf an unfavourable medium for charity.…”

Waqf Fundraising Strategies: A Comparison between Indonesia and Malaysia

“…Waqf with this model can allow donors to participate more with its own advantages in ensuring the continuity of benefits for family members, but it can also provide more benefits to other communities, because in general the concept of family waqf is considered not productive enough in developing waqf assets, so temporary waqf can be one of the strategies to increase the spirit of waqf and improve the poor family waqf system. (Ab Rahman et al 2023).…”

Micro Waqf Bank Innovation Models in Aceh

“…Its key strengths lie in its voluntary nature, potential for long-term sustainability (Kamaluddin, 2021), and extensive reach (Saiti et al, 2021). The core asset of cash waqf is money, which must be preserved in value, with the generated proceeds benefiting the designated beneficiaries (mawquf alaih) (Ab Rahman et al, 2024). Indonesia holds immense potential for cash waqf, offering a promising avenue to address economic challenges, including those faced by MSMEs (Wahab et al, 2022).…”