Innovations in Islamic law: contemporary applications of trust and cash waqf for wealth management in Malaysia

Abdullah, Muhamad Muizz and Abdullah, Mohammad and Mahmad Robbi, Ahmad Akram and Ahmad, Md Yazid and Amir Nur Rashid, Zubair (2026) Innovations in Islamic law: contemporary applications of trust and cash waqf for wealth management in Malaysia. MilRev: Metro Islamic Law Review, 5 (2). pp. 949-990. E-ISSN 2986-528X

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Abstract

Efficient management of wealth represents a core pillar of Islamic socioeconomic development, especially in efforts to alleviate poverty and foster sustainable social welfare. Within the modern Islamic financial landscape, trust instruments and cash waqf have gained recognition as strategic tools for mobilising and channelling wealth to support both individual financial security and broader social prosperity. This study seeks to assess the effectiveness of trust instruments and cash waqf in enhancing the socioeconomic conditions of Muslim communities, reducing poverty, and improving welfare outcomes, with particular emphasis on the education and healthcare sectors. It also explores the contribution of these instruments through the lens of maqāṣid al-sharī'ah and public interest (maṣlaḥah). A qualitative methodology is adopted in this research, grounded in a systematic literature review and document analysis encompassing scholarly publications, policy reports, legal documents, and institutional records pertaining to trust and cash waqf practices in Malaysia. A comparative analytical framework is applied to identify similarities, distinctions, and complementary functions between the two instruments, while the gathered data are analysed descriptively to evaluate their socioeconomic impact and institutional effectiveness. The findings indicate that both trust instruments and cash waqf play a pivotal role in advancing the socioeconomic well-being of Muslim communities through structured asset management, sustainable wealth distribution, and support for public welfare initiatives. These instruments demonstrate meaningful contributions to educational development, healthcare accessibility, and poverty reduction, while fostering long-term financial resilience. Despite differences in their legal foundations, governance structures, and operational mechanisms, both instruments exhibit comparable strengths in terms of flexibility, tax incentives, and socioeconomic impact. From the perspective of maqāṣid al-sharī'ah, they effectively serve the preservation of wealth and the realisation of public welfare. This study enriches the expanding body of literature on Islamic social finance by presenting a comparative understanding of trust instruments and cash waqf as complementary wealth management tools. The findings offer valuable practical insights for policymakers, financial institutions, and waqf organisations aiming to strengthen Islamic wealth management frameworks, both in Malaysia and across other Muslim-majority contexts.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Cash Waqf, Socioeconomic, Social Welfare, Trust, Wealth Management
Subjects:	BPH Islamic Economics BPK Islamic law. Shari'ah. Fiqh
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Islamic Revealed Knowledge and Human Sciences > Department of Fundamental and Inter-Disciplinary Studies (Effective: 5th Feb 2014)
Depositing User:	DR AHMAD AKRAM MAHMAD ROBBI
Date Deposited:	14 Jul 2026 14:44
Last Update:	14 Jul 2026 14:44
Queue Number:	2026-07-Q3941
URI:	http://irep.iium.edu.my/id/eprint/129762

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