The Stakeholders Ecosystem of Waqf Institutions in Malaysia

Abstract

Improved accounting and reporting practice for waqf institution in Malaysia has become an indispensable necessity. The identification of waqf stakeholders may help the institution to achieve this objective as the interest of these accounting users are to be properly addressed in the financial reports. This paper investigates the stakeholders of waqf and their relationship with waqf institution. Semi-structured interviews have been conducted involving 27 waqf managers and accountants from various organizations in waqf institution. Based on the thematic analysis, 18 groups of waqf stakeholders and three categories of stakeholder influential relationship have been identified. The results of this study provided a basis for waqf institution to further

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“…On the other hand, beneficiaries are stakeholders who have no influence on waqf institutions, but are influenced by their actions (Hamdan et al, 2019). This study discovered that there has been dishonesty by students as the main mawquf alaihi in providing information to the university in Case Study A and this may also happen to other public universities because the waqf funding application is still manual through writing and interviews.…”

“…Babacan (2011) reports the existence of irregular or uncertain decisions made by the mutawalli in waqf distribution in Turkey, causing the waqf distribution to be excessive or reduced to mawquf alaihi. In Malaysia, SIRC is the dominant stakeholder and can be influenced or itself influence the decisions of waqf institutions (Hamdan, Osman & Rashid, 2019). As such, its involvement in the waqf management system needs to be considered to ensure the accountability and transparency of public universities as waqf administrators, especially in making distribution decisions.…”

“…The government evaluation dimension (periodic reports and visits) and Shariah audit compliance dimension represent the accountability logic for waqf institutions (Siswantoro et al 2018). Al-waqifs (waqf givers) are stakeholders who have mutual power-dependence, and can be influenced or influence the decisions of the waqf institution (Hamdan et al, 2019). Beneficiaries, on the other hand, are stakeholders who have no influence on the waqf institution, but are influenced by its actions, also referred to as firm dominance (Hamdan et al, 2019).…”

“…Al-waqifs (waqf givers) are stakeholders who have mutual power-dependence, and can be influenced or influence the decisions of the waqf institution (Hamdan et al, 2019). Beneficiaries, on the other hand, are stakeholders who have no influence on the waqf institution, but are influenced by its actions, also referred to as firm dominance (Hamdan et al, 2019). This suggests that the involvement of waqf givers and beneficiaries in the university waqf management system is essential for maintaining accountability and transparency, as highlighted by Ihsan (2007), Ihsan and Septriani (2016) and Arshad et al (2018).…”

“…This suggests that the involvement of waqf givers and beneficiaries in the university waqf management system is essential for maintaining accountability and transparency, as highlighted by Ihsan (2007), Ihsan and Septriani (2016) and Arshad et al (2018). Moreover, Hamdan et al (2019) report that regulators and auditors are the dominant stakeholders who have influence but do not depend on waqf institutions. Hussin and Abdul Rashid (2017) also report that working with stakeholders is one of the improvements in waqf management in public universities in Malaysia.…”