Khaliq, Ahmad and Mohd Thas Thaker, Mohamed Asmy and Mohd Thas Thaker, Hassanudin and Pitchay, Anwar Allah and Abd Jalil, Mohamad Isa (2025) Modelling remedies to waqf liquidity constraints: the case of waqf unit trust model (WUTM). Labuan e-journal of muamalat and society, 19 (1). pp. 49-67. ISSN 1985-482X E-ISSN 2672-7390
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Abstract
The history of the waqf institution is rich with impressive achievements that cover each phase of socio-economic life and human development. However, recent initiatives among local waqf institutions indicate that the liquidity limitation contributes as the core concern to cultivating further development undertakings. This research aims to offer a sustainable source of financing through the application of the waqf unit trust model (WUTM) for local waqf institutions in mitigating their liquidity constraint to cultivate waqf undertakings such as land rejuvenation, health sector improvement, educational sector enhancement and other critical necessities. Specifically, this study aims to discover the liquidity constraints needed in waqf institutions in Malaysia, to propose an alternate WUTM in fostering liquidity of waqf assets, and to explore the pertinent stakeholders’ stance on the feasibility of the model proposed. This research employs in-depth interview methods for data collection with the waqf practitioners such as authorities from the State Islamic Religious Council (SIRC), financial consultants linked to capital market development, academicians engaged with waqf-related projects, and regulators of Islamic capital market stationed in Klang Valley (the State of Selangor and Federal Territory of Kuala Lumpur), Penang and Johor state of Malaysia. Findings propose the craft of the WUTM framework could potentially assist in liquidity pooling, cash flow solutions and generate continuous income and wealth. This study contributes to the body of knowledge by offering a potential remedy for the liquidity constraint faced by waqf institutions
| Item Type: | Article (Journal) |
|---|---|
| Uncontrolled Keywords: | Waqf liquidity, Waqf unit trust model (WUTM), Islamic capital market |
| Subjects: | BPH Islamic Economics H Social Sciences > H Social Sciences (General) |
| Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): | Kulliyyah of Economics and Management Sciences > Department of Economics |
| Depositing User: | Dr Mohamed Asmy Bin Mohd Thas Thaker |
| Date Deposited: | 03 Jun 2025 12:23 |
| Last Modified: | 03 Jun 2025 12:23 |
| URI: | http://irep.iium.edu.my/id/eprint/121315 |
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