The Economic Value of Waqf Assets in India A Study of the Sachar Committee’s Report (original) (raw)
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Linguistics and Culture Review, 2021
The Penang Islamic Religious Council (MAINPP) is a major leader in the development of waqf properties, especially through its inaugural product Wakaf Seetee Aisah. In managing the assets of the ummah, of course, MAINPP goes through various twists and challenges in order to implement the dreams of waqf givers and develop the socio -economy of the community. This study focuses on the issues and challenges of Seetee Aisah Wakaf Development and further suggests some improvements for the development of waqf land by MAINPP. Qualitative study using the method of interviews with parties involved in the development of endowment properties in MAINPP. The results of the study found that MAINPP faces several challenges in developing waqf properties. Therefore, to address the challenges faced, it is proposed that MAINPP improve the development mechanism for waqf properties to be in line with the vision and mission of MAINPP. Thoroughly, this study provides added value to MAINPP and the parties i...
Recent investigations of the financial management practices of mosques in Indonesia have influenced this study, which investigates the ability of mosques in Malaysia to invest cash waqf for development activities. The impact of cash waqf investment is further extended to study the importance of such cash waqf donations toward poverty alleviation. 100 mosques in Melaka and Terengganu are selected for the purpose of conducting a survey using a self-developed questionnaire. Data collected from the survey are tested for their validity and reliability before conducting Structural Equation Modelling (SEM) analysis using Smart PLS 3.0. This study finds that cash waqf donation plays a positive role in increasing the ability of the selected states to alleviate poverty. The negative relationship between cash waqf investment and donation raises the need for a rigorous analysis. A conceptual model integrating cash waqf investment, donation, and poverty alleviation is provided in this study, which is the first of its kind. The results provided by the study will allow regulators and mosque fund managers to understand the significance of cash waqf donations and the importance of effective cash waqf management. Efficient investment of cash waqf can ensure sustainable and perpetual income that will allow a mosque to play a vital role in improving the living standards of the Muslim Ummah. The findings of the study cannot be generalized for all states in Malaysia due to the limitation of purposive sampling. ABSTRACT 1
This paper explores the application of Islamic concept of Hibah Mudarabah in managing waqf commercial properties in the state of Kedah, Malaysia as a wealth redistribution mechanism instead of the present welfare mechanism role. In the past, the traditional practice of waqf properties is that pieces of lands were handed over to mosques in owners' neighbourhood for waqf uses and the State Islamic religious affairs council was the trustee. There should be a change in the management of waqf institutions in Malaysia which include the management of this untapped potential in waqf properties so that the owner and public can benefit from this new wealth redistribution role. Hibah Mudarabah is a form of partnership where one of the contracting parties, the rabb-al-mal (the financier), provides a specified amount of capital and acts like a sleeping partner, while the other party called the mudarib, provides the entreprenuership and management for carrying on any venture, with the objectives of earning profits. The principles are applicable for profit and loss sharing, which are widely used in Islamic finance. A waqf is a charitable endowment which is used in Islam used for philanthrophic purposes without consuming the property itself. Waqf not only acts as a welfare mechanism but also plays an important role in the economic development and advancement of Muslims society just like during the golden era of the Muslim civilization. It is hoped that this exploratory study on unlocking the value of waqf property development in Kedah, Malaysia will offer regional experiences of waqf properties as a productive resource. New information will help create a new paradigm shift as well as provide input to unexplored issues on waqf properties in Malaysia. It is hoped that this research will be a springboard for more in depth studies in Islamic real estate in the future.
Cash Waqf Investment and Poverty Alleviation: Case of Tabung Masjids in Malaysia
Journal of Islamic Monetary Economics and Finance, 2019
Recent investigations of the financial management practices of mosques in Indonesia have influenced this study, which investigates the ability of mosques in Malaysia to invest cash waqf for development activities. The impact of cash waqf investment is further extended to study the importance of such cash waqf donations toward poverty alleviation. 100 mosques in Melaka and Terengganu are selected for the purpose of conducting a survey using a self-developed questionnaire. Data collected from the survey are tested for their validity and reliability before conducting Structural Equation Modelling (SEM) analysis using Smart PLS 3.0. This study finds that cash waqf donation plays a positive role in increasing the ability of the selected states to alleviate poverty. The negative relationship between cash waqf investment and donation raises the need for a rigorous analysis. A conceptual model integrating cash waqf investment, donation, and poverty alleviation is provided in this study, whi...
2015
This paper explores the application of Islamic concept of Hibah Mudarabah in managing waqf commercial properties in the state of Kedah, Malaysia as a wealth redistribution mechanism instead of the present welfare mechanism role. In the past, the traditional practice of waqf properties is that pieces of lands were handed over to mosques in owners ’ neighbourhood for waqf uses and the State Islamic religious affairs council was the trustee. There should be a change in the management of waqf institutions in Malaysia which include the management of this untapped potential in w aqf properties so that th e owner and public can benefit from this new wealth redistribution role. Hibah Mudarabah is a form of partnership where one of the contracting parties, the rabb - al - mal (the financier), provides a specified amount of capital and acts like a sleeping partne r, while the other party called the mudarib, provides the entreprenuership and management for carrying on any venture, with the obj...
Waqf Land Development Approaches and Practices in the State Islamic Religious Councils
PLANNING MALAYSIA
Waqf land is a religious property that is provided as a charity act by a donor and placed under the jurisdiction of the State Islamic Religious Councils (SIRCs). The SIRCs are the sole trustees in charge of governing, managing, and developing these properties. SIRCs have been working to develop waqf lands through a variety of projects and ways that adhere to best practices and a sound management system. However, the waqf's potential for greater outcomes is yet to be optimised. This research has reviewed the literature of waqf land development approaches and practices in Malaysia and it has tabled the significant development approaches that can be implemented by the SIRC. These approaches and practices may overcome the issues and challenges faced by the SIRCs in developing waqf land.
The existing Waqf lands in the State of Selangor have not been strategically categorized and the modes of Islamic investments have been used arbitrarily to manage these lands. Improper categorization of these lands has also implications for attracting investments and for the human resource needed for managing these waqf resources. This paper proposes the categorization of waqf lands in Selangor based on their strategic locations and uses as stipulated in the provisions of the National Land Codes. Then the categorization is matched with the appropriate Islamic investment modes for their efficient management. The study has provided the benefits and implications of the proposed categorization and, concludes with suggestions for future research
kantakji.com
The existing Waqf lands in the State of Selangor have not been strategically categorized and the modes of Islamic investments have been used arbitrarily to manage these lands. Improper categorization of these lands has also implications for attracting investments and for the human resource needed for managing these waqf resources. This paper proposes the categorization of waqf lands in Selangor based on their strategic locations and uses as stipulated in the provisions of the National Land Codes. Then the categorization is matched with the appropriate Islamic investment modes for their efficient management. The study has provided the benefits and implications of the proposed categorization and, concludes with suggestions for future research
An Ideal Financial Mechanism for the Development of Waqf Properties in Malaysia
2005
The object of this study was to find an Ideal Financial Mechanism for the development of Waqf properties in Malaysia. The problem is that waqf properties are thought to be inalienable because they have to remain as waqf in perpetuity, which make the waqf institutions not to use them as collateral for fear of losing them to the financers and the financers are not willing to accept due to legal constrains arising from the same concept of inalienability and perpetuity. To achieve its objective, this study proposes to substitute the concept of perpetuity of the physical being of the subject matter of waqf with one that recognizes the perpetuity of dedication, through assigning value to the object of waqf and amortizing it, so that not only various rights can be accepted as the object of waqf but also make the object alienable. This also opens the door for liquid assets (e.g. cash waqf), so that financing development activities would be carried out by the waqf institutions with ease. At the same time, in addition to cash waqf and in spite of the concept of inalienability of waqf, this study identifies and refines various financial mechanisms, which comprises traditional, and contemporary, including institutional in form of credit based modes, joint ventures, corporate financing such as equities and bonds (securitization) and lastly self-financing through a combination of hikr, istibdal, saham waqf etc. The imperial study indicates that local waqf institutions in Johor, Malacca and Negiri Sembilan still need to catch up with a trend in other Muslim countries. The modes of istibdal, saham waqf and benevolent loans are popular among them. This study, however, finds that none of these is really an ideal financial mechanism for the development of waqf properties with exception of cash waqf. vii ABSTRAK Objektif kajian ini ialah untuk mengkaji mekanisma pembiayaan yang ideal dalam pembangunan harta tanah wakaf di Malaysia. Masalah yang timbul ialah harta tanah wakaf dianggap tidak boleh dipindah milik kerana ia mesti kekal sebaai wakaf secara berkekalan. Ini menyebabkan institusi wakaf tidak dapat menggunakan harta tanah ini sebagai sandaran kerana dikhuatiri harta tanah ini jatuh ke tangan pihak pembiaya. Pihak pembiaya pula tidak bersedia untuk menerima harta tanah wakaf sebagai sandaran kerana sifatnya yang berkonsepkan ketidakboleh pihdah milikan dan keberkekalan. Untuk mencapai objekif ini, kajian ini mencadangkan supaya konsep keberkekalan dalam entiti fizikal objek wakaf kepada konsep yang mengiktiraf keberkekalan dedikasi menerusi penjelmaan nilai kepada objek wakaf dan mengabadikan nilai ini supaya bukan sahaja pelbagai hak boleh diterima sebagai objek wakaf tetapi membolehkan juga objek berkenaan dipindah milik. Ini juga membuka pintu kepada aset cair (e.g. wakaf tunai), supaya aktiviti-aktiviti pembiayaan pembangunan dapat dijalankan oleh institusi wakaf dengan lebih mudah. Di samping wakaf tunai dan meskipun wujud konsep ketidakboleh pindahan wakaf, kajian ini mengenal pasti dan meghalusi pelbagai mekanisma pembiayaan yang mengandungi mod tradisional, kontemporari, termasuk insitusi dalam bentuk kredit, usaha sama, pembiayaan korporat seperti ekuiti dan bon (pensekuritian) dan akhirnya pembiayaan sendiri menerusi kombinasi hikr, istibdal, saham wakaf, dan lain-lain. Kajian empiric menunjukkan bahawa institusi wakaf tempatan di Johor, Melaka, dan Negri Sembilan masih perlu untuk mengikuti jejak langkah Negara-negara lain dalam tren pembiayaan wakaf. Mod istibdal, saham wakaf dan pinjaman qard alhasan adalah popular di antara cara-cara pembiayaan wakaf. Kajian ini walau viii bagaimanapun, mendapati bahawa tiada satu pun dari cara-cara pembiayaan di atas mekanisma yang ideal dalam pembiayaan pembangunan wakaf, kecuali wakaf tunai. ix
Waqf Assets Management: Harnessing Tool for Muslims’ Welfare
International Journal of Academic Research in Business and Social Sciences
This article discusses the potential of waqf in harnessing the Muslims' welfare. A professional and effective administration of waqf is seen essential and regarded as a basic tool for a highly impact economic instrument in Islam. The varieties of waqf's objectives at the same time provide support for wide spreading religious and philanthropic activities. The potential of waqf institution strongly depends on Muslims's understanding towards waqf and significantly influenced by effective administration of its fund. Therefore, this writing aims to put forward a conceptual discussion on the meaning of waqf and its role in the Malaysian society. In addition, it is also importance to higlight the necessity to legislate a standardized law on waqf and its administration in developing Muslim socioeconomy.