Constructive collaboration in ensuring sustainability of Waqf fund in Malaysia: a case study of myWakaf initiative

Mahmud, Syahirah and Noordin, Nazrul Hazizi (2024) Constructive collaboration in ensuring sustainability of Waqf fund in Malaysia: a case study of myWakaf initiative. Journal of Islamic Social Finance, 2 (2). pp. 1-17. E-ISSN 3009-0687

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Abstract

This study aims to identify critical factors leading towards the culmination of a sustainable Waqf funds in Malaysia by considering the case of myWakaf initiative. MyWakaf, a partnership between Islamic banks and State Islamic Religious Councils (SIRCs), exemplifies a structured approach to Waqf sustainability, leveraging financial expertise from banks and regulatory oversight from SIRCs to enhance accountability, transparency, and operational efficiency. The study employs a qualitative case study approach, drawing from interviews with key stakeholders and analysis of policy and financial documents to identify five major themes in myWakaf’s framework: governance, financial innovation, transparency, socio-economic impact, and alignment with Sustainable Development Goals (SDGs). Findings reveal that myWakaf’s financial innovations, such as Cash Waqf Linked Sukuk (CWLS) and Waqf-featured unit trusts, provide a sustainable funding model, drawing a broader base of donors by combining social impact with financial returns. However, the initiative faces challenges, including regulatory fragmentation across states, limited public understanding of investment-based Waqf, and occasional inter-organizational friction. To maximize Waqf’s potential in supporting Malaysia’s socio-economic goals, the study recommends a standardized regulatory framework, enhanced transparency, and expanded public-private partnerships. These reforms would strengthen the role of Waqf to effectively contribute towards poverty alleviation and development of the social sector such as education, healthcare, and environmental sustainability, align with national and global development objectives.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Islamic social finance; sustainability; Waqf
Subjects:	BPH Islamic Economics BPH Islamic Economics > BPH741 Waqf
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Dr Nazrul Hazizi Noordin
Date Deposited:	01 Feb 2025 21:09
Last Modified:	01 Feb 2025 21:20
URI:	http://irep.iium.edu.my/id/eprint/119063

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