The role of share waqf in the socio-economic development of the Muslim community

Abstract

Purpose – This study aimed to analyse the role of the Waqf Fund Scheme, by taking Penang (or Pulau Pinang) as one of the states in Malaysia as a sample of the study. Waqf Fund Scheme was established by the Islamic Religious Council of Penang, Majlis Agama Islam Negeri Pulau Pinang (MAINPP), in an effort to develop the economy of the Muslim community in the state. Design/methodology/approach – This study analysed the contribution that this endowment fund makes towards a comprehensive scheme of economic development, namely, in terms of the economic, spiritual and social welfare of the Muslim community in Penang. The primary source of data was obtained through interviews conducted by the researcher with the Manager of the Waqf Fund Scheme, the Head of Administration and Finance Section and the Account Executive of MAINPP. The researcher also interviewed respondents from four institutions that were beneficiaries of the Waqf Fund Scheme. Findings – The findings of this research show that the endowment fund scheme plays an important role in the economic development of the Muslim community in Penang. The Waqf Fund Scheme contributes by way of providing a financing facility towards the acquisition of waqf assets or through cash support channelled to associations or committees of a masjid. Research limitations/implications – This study only focuses on Waqf Fund Scheme which was established by MAINPP. Practical implications – This study is expected to contribute to the improvement of the Waqf Fund Scheme management. Originality/value – The paper is the first attempt to address the Waqf Fund Scheme contributions by MAINPP, particularly in Penang.

Specific Accounting Standards for Waqf Institutions:

“…Prior to 2007, SIRCs in Malaysia do not acknowledge cash as a form of waqf. However, pursuant to National Council of Islamic Affairs' Fatwa Committee in 2007(Mohamad Suhaimi et al, 2014 which approves cash as a form of waqf, the state recognized cash as a form of waqf as per other states in Malaysia. As cash can be used as a means to obtain other movable or immovable assets in order to provide usufructs to the beneficiaries, it is imperative that waqf managing bodies enables cash as a form of waqf.…”

Adopsi Teori Perilaku Berencana dalam Menganalisis Niat Melakukan Wakaf Tunai

“…Oleh karena itu, pada tahun 2002, Komisi Fatwa Majelis Ulama Indonesia (MUI) mengeluarkan fatwa tentang wakaf tunai, yang meliputi: (1) wakaf tunai/wakaf al-nuqud adalah wakaf yang dilakukan oleh seseorang, lembaga atau badan hukum dalam bentuk uang tunai, (2) surat berharga juga termasuk istilah "uang", (3) wakaf uang termasuk jawaz, (4) wakaf tunai hanya dapat disalurkan dan digunakan untuk hal-hal yang dibolehkan secara syar'i, (5) nilai pokok wakaf harus dijamin kelestariannya, tidak boleh dijual, dihibahkan dan atau diwariskan. Inovasi wakaf tunai dapat berupa pembiayaan wakaf bersama (Mohamad Suhaimi et al, 2014) untuk usaha mikro (Thaker et al, 2016), tujuan pendidikan (Harun et al, 2016) yang dikumpulkan oleh berbagai metode (Shulthoni & Saad, 2018).…”

An Analysis towards the Sustainability and Management of Waqf’s Properties in Malaysia with References to Johor

“…This, together with the potential of a waqf, could not be realised due to a lack of cash, as the Mutawalli institution lacks money and is not self-sufficient (Aznan & Syahnaz, 2015). However, some institutional Mutawallis take proactive measures using a range of tactics and approaches, including cash waqf (Farhana, Rahman, & Marican, 2014;Murat, 1992), shares waqf (Abdullah & Muhamad, 2008) and sukuk financing (Hydzulkifli & Asmak, 2015). Any waqf property can be utilised and modified using these fund-raising tactics, making it sustainable and providing long-term advantages.…”