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WAQF INSTITUTION IN MALAYSIA

INTRODUCTION

Waqf is as important as any other institution in Islam, aimed at achieving social justice

through a person (Waqif) making his property a charitable donation for the on-going benefit of a

certain class of persons or the public at large. When Islam came to Peninsular Malaysia in the

14th century, it brought changes to this region, particularly to the way of life and world view of

the people. This includes the practice of Waqf in Peninsular Malaysia.

DEFINITION

Waqf is derived from the Arabic verb waqafa, which literally means to hold, keep ordetain, with awqaf being its plural in Arabic, According to Imam Abu Hanifa, waqf is the

detention of a specific thing in the ownership of the waqif (appropriator) and the devoting

of its profits or usufruct in charity for the poor or other pious intentions. In other words, a

waqf, or plural called awqaf in Arabic, is an act of holding certain property and

preserving it for the confined benefit of certain philanthropy that disallows any use or

disposition of it outside the specific objective (Kahf, 1998). Toraman et al. (2004)

determined that waqf applies to non-perishable property, the benefit of which can be

extracted without consuming the property itself. Similarly, waqf serves as a vehicle for

financing Islam as a society (Hodgson, 1974). From syariah definition, Holding certainproperty and preserving it for the confined benefit of certain philanthropy and prohibiting

any use or disposition of it outside that specific objective


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There is no direct mentioning of waqf in the Quran. This is due to the fact that the usage

of the term waqf only came into use much later after the death of the prophet. Waqf is a form of

sadaqah. Thus, although the exact term waqf is not used back in the days of the prophet, the term

sadaqah which has a broader meaning was used and in some instances the usage of the term

sadawah similar to that of the our usage of the term waqf now is mentioned.

There is a hadith reported by Ibn Umar, whereby Umar Ibn Al Khitab acquired land in

Khaibar and went to Prophet Muhammad, and he sought advice regarding the land. The Prophet

(PBUH) advised that the land should be made absolute and the profit given to charity. Therefore,

waqf is perceived as a permanent dedication by a Muslim of any property for a good faith

purpose that is recognized as being pious or charitable.

The first form of waqf in Islam was in the form of land. The Quba mosque in Madinah,

which is still standing tall until today, was the first institution in Islamic history that was waqf

oriented. Others notable waqf land include the Al Azhar University in Egypt, the University of

Cordova Spain, and the Al Noori Hospital in Damascus. In Malaysia, JCorp has played and is

still playing its significant role in practicing waqf for the betterment of the ummah. Kumpulan

Waqf An Nur Bhd. establishment with the management support by KPJ Healthcare Bhd. to

manage a chain of waqf An Nur Clinics and Malaysias first waqf hospital in Pasir Gudang,

Johor, are among the success stories of Malaysian waqf practiced by JCorp (Hashim, 2009).

Instead of waqf land, the other prominent and potential waqf is a cash waqf, which has

developed considerably since the time of Prophet Muhammad (PBUH). Cash waqf has become


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increasingly well-known due to its flexibility, which allows distribution of the waqfs potential

benefit to the poor anywhere (Mannan, 1999). However, cash waqf is not aggressively practiced

nowadays due to a certain conceptual argument concerning perpetuity and inalienability .

Waqf is a sincere gift in the form of private possession to the state or person of authority

for the good of all Muslims so long as the wealth is used in compliance with Islamic

requirements.Waqf property can contribute the development of the socio-economics of ummah

like building commercial projects such as hotels, business centers, and social projects like

orphanage, caring centers and many others so long as it is not in contrast with shariah.

Supportive evidence and rewards to giver

AllahS.W.T said;

"The likeness of those who spend their wealth in Allahs way is as the likeness of a grain which

growth seven branches, in every branch contains of hundred seeds, and (remember) Allah will

give increase manifold to which he will and Allah is All Embracing and All Knowing".

(Surah al-Baqarah: verse 261)

Hadith riwayat Muslim ;

Reported by Muslim from Abu Hurairah r.a that Prophet (P.B.U.H) said; when a son of Adam

dies, so does their deeds except for three things: alms giving, or benefited knowledge, or pious

son who pray for them.

Waqf is divided into 2 types:


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1. Family Waqf (Waqf Ahli)Waqf for immediate family members that include children, grandchildren, etc. Example;

"I endowed all of my wealth to my son and grandson and to my entire heritage forever".

2. Charitable Wafq (Waqf Khairi)It is designated only for charity. It is divided into: General;

Wealth that can be used for any legal activity that benefits the community. For

instance, when a person endowed a piece of land for charity. In this type of endowment,

Nazir Waqf (endowment ownership) has to govern the land in any form of development

that could provide benefits without any ties to the types of charity or in the form of

development itself. While the benefits should be given to the community in any form of

charity so that the ownership will continuously gain rewards.

Special;Wealth specified by giver to be used for specific purposes and functions, e.g. land

for mosque, school, cemetery, business centres, house, etc.

Waqf (Islamic Endowment) is an act of virtue, highly encouraged in Islam. As one of the

mechanism for welfare, waqf is unique in that the asset that has been given as waqf is not spent

or expensed but rather the asset is maintained or held in kind but any benefits, financial or

otherwise, that is able to be derived from it can be used, expensed or consumed. In contrast, any

gifts or donations received can be spent directly. With its beginnings more in the form of fixed

assets, current trends of waqf are in the form of cash. Through cash collected, a portion will be

used to develop or purchase landed properties or fixed assets and another portion will be invested

in financial markets. From the traditions of Islamic history and also the development of


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endowment in the West, it is an important and necessary effort that waqf in the form of cash

(liquid assets) be urgently applied in various applications. Taking the que from the institutions of

zakat, this development of cash waqf can be expedited through the formation of formal

organizations at the state and federal level.

WAQF INSTITUTION

1.STATE(STATE RELIGIOUS COUNCIL)

a) MAJLIS AGAMA ISLAM DAN ADAT MELAYU TERENGGANUCash waqf scheme concept

In this concept, Cash Waqf Scheme is a scheme to encourage people (Muslims) to

contribute and invest in charity deeds without a minimum limit for the interest, welfare and

well-being of the Muslims as a whole. Anyone who is a Muslim can participate in this

scheme. Cash Waqf scheme makes it easier for Muslims to keep the corpus of their assets in

cash as not all Muslims in this country in particular and Malaysia in general, have any assets

or property to remain as land, buildings and so on.

The introduction of a simple cash Waqf scheme is therefore hoped that all Muslims in

this country can contribute and make investments for their Hereafter. Cash

donations collected will be incorporated into a special account funds in cash and cash shall

be converted to assets or property to remain a named substitute or replace

the money. This conversion is made in the form of: -

1. Property development

2. The development of the existing waqf properties.

3. Purchase and construction of office building / shop / religious school / nursing


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homes / orphanages.

4. Development of farming / agriculture / farming and manufacturing.

Property made in the form was named Waqf Musytarak or Waqf clusters.

2.CORPORATION

a) SELANGOR WAQF CORPORATIONSelangor Waqf Corporation, one of the subsidiaries of the Selangor Islamic

Religious Council (MAIS) is fully operational recently at the office of Sultan Idris Shah

Building. Selangor Waqf Corporation has been declared its inception on January 11,

2011. The objective of Selangor Waqf Corporation is to revive and expand waqf

culture within the Muslim community

I. Promote waqf movable and immovable property to the development ofwaqf properties existing, new projects economically viable and socially.

II. Using the waqf property and exploiting it in optimum and effective, meetthe intent and desire waqif.

III. Ensure that property is not abandoned.Selangor Waqf Corporation Program :

Contributions from the will be gathered to share in a group of funds called the Selangor

Waqf Corporation Fund and will be distributed to community development programs as follows:

a. The development of lands with potential for development.


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b. Financing the construction of religious institutions such as mosques, prayer, religious schools,

public community Islam, maintenance of buildings and religious institutions, etc.

c. Sources of financing social assistance to communities such as help orphans, the poor, human

development, treatment cost, rehabilitation and probation, etc.

d. Source of financing for commercial development as the development of property for business,

buying lots of properties with potential for housing projects or agriculture

e. Purchase property of bumiputras lot quota for private or government housing projects.

f. Development of farming, livestock and manufacturing.

Among the projects that used by Selangor Waqf Corporation are:

a) 5 units that have been purchased using funds from Selangor Waqf Corporation(PWS) shares of RM1.05 million.

b) Development of Sekolah Rendah Agama in Pulau Indah, with a portion of the sharesof funds of RM 2 million by Selangor Waqf Corporation.


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b) WAQF AN-NUR CORPORATION

Corporate Waqf is a totally unprecedented entity, and such new, unfamiliar and

innovative change can be unsettling and even perceived as threatening by some. Thus

there was obviously a need to incrementally develop, introduce and explain the merits of

the concepts to everyone involved for them to buy into the ideas and take ownership for

their successful adoption.There was also a need to introduce the rationale and explain the

logic of such concepts, especially the Corporate Waqf entity, to the Johor Islamic

religious authorities. For it is obviously legally impossible to turn such ideas into reality

without their full support, cooperation and endorsement.


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JCorp was fortunate in having two successive Johor Muftis who were daring and

farsighted enough to recognise the merits of both its Business Jihad and Corporate Waqf

innovations. Alhamdulillah, the two distinguished Muftis, namely the late Allahyarham

Dato Haji Ahmad Awang for the first phase, and Dato Haji Nooh Gadot in the more

significant Corporate Waqf second phase, had given unreserved support and commitment

towards the materialization of both concepts.

Finally, JCorp owes it to the bold wisdom and farsightedness of its Board of

Directors under the Chairmanship of Dato Haji Abdul Ghani Othman, the Menteri Besar

of Johor. Without the Boards encouragement and formal approval nothing would have

been achieved. JCorps Business Jihad journey on the Corporate Waqaf route had fivemajor defining milestones. These are steps deliberately and carefully taken, firstly to

familiarize JCorps own people with both the Business Jihad and Corporate Waqf

concepts.

i. Conventional waqfCorporate Waqaf, being totally unprecedented, had also to be established

in stages, as JCorp had to carefully introduce the new concept to the Johor

Religious Authorities as well. More so with the fact that, in order for it to

succeed, management responsibility for the assets thus transferred to

waqaf had to be vested back to JCorp, or to be precise, to Waqaf an Nur

Corporation Bhd, the special entity created for it by JCorp.

This is an absolute departure from the conventional waqf norm. All

conventional waqfs had traditionally been fully vested for trust ownership


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to be directly managed by the Waqf Department of the Religious

Authorities. Corporate Waqf, however, had admittedly to be treated

differently, as the Religious Authorities are totally unprepared and

unequipped to manage such business-related assets.

Thus the first familiarization step was taken simply through the

establishment of a mosque, namely Masjid An Nur, Plaza Kotaraya, that

had been built earlier, in 1992, by JCorp. The key step was taken when the

mosque was registered as JCorps conventional waqaf, in October, 2000..

JCorp had been able to convince the religious authorities for the mosque to

be staffed, managed and funded fully by it. This conventional waqf move,

was also intended to establish a working relationship with, and hence gain

the total confidence of the religious authorities of JCorps Business Jihad

and Corporate Waqf future plans and intentions.

ii. Corporate Mosques

Apart from these mosques, Waqaf An-Nur also monitors mosques

and suraus built in plantations owned by Kulim (Malaysia) Berhad, a

JCorp subsidiary company.


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iii. The Establishment Of Chain Of Waqaf An-Nur Clinics As Jcorps IslamicCSR Program

The establishment of the network of Waqaf clinics has had a

tremendous impact, especially in benefiting the poor, as the clinics, staffed

by qualified doctors and nurses, charge only a nominal RM5 for every

treatment, inclusive of medicine. All clinics are also equipped with

dialysis centers to cater to patients with kidney disorders.

Locating Waqaf Clinics at mosque premises is also intended to

widen the scope and role that mosques play and expand it beyond just

being a spiritual center and for Islamic congregational prayers only. The

Waqaf An-Nur Clinics and Dialysis Centers have turned mosques to

become more people and community-friendly institutions that also serve to

address real problems faced by the community they serve.


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iv. Equity WaqafThe next critical move on the Corporate Waqaf route was taken on

11 July 2005. On that date, Johor Corporation had transferred into waqaf

75 percent of itss equity stake in a private limited company, namely Tiram

Travel Sdn Bhd, a subsidiary of JCorp established on 22 February

1982.Choice of Tiram Travel was deliberate, as its core business is the

handling of Hajj pilgrimage and Umrah travel packages, a business not

only familiar to the Religious Authorities, but one that also has direct link

to one of Islams 5 pillars.

v. Establishment Of The Worlds First Corporate WaqafOn 3rd August 2006, Johor Corporation made history when it took

the bold, definitive step towards transforming itself into a full-fledged

Trust Corporate Institution via the Islamic waqf approach.ThisCorporate Waqf move involved the transfer to Waqf RM200 million (on

Net Asset Value basis) of JCorps shareholdings.

Performance of Company with Waqaf Shares (at end

June,2009)


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SUGGESTIONS TO IMPROVE WAQF MANAGEMENT

Role of Local ManagementThe local administrator such as the mosque management or mosque must be alert and

play their role to have activities that can benefit the space of the waqf property.Many projects

conducted can benefit the local Muslim community. For open space around the mosque which is


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not used, it can be developed into a few business premise and the rental can be used for the local

community. It will also help the mosque financially and not depend on grants and donation from

Religious Departments/Offices/Majlis Agama Islam Negeri or even state government. As an

example, a mosque in Pulai, Baling Kedah, the management of the mosque has succeeded in

preparing a few units of business premise space to let and now receiving rental every month.

Standardised Waqf Management In The Whole Of MalaysiaUntil now, its known that waqf properties are under supervision of each States Majlis

Agama Islam.This will create a gap in waqf management. To overcome this issue, maybe there is

a need to establish a waqf management net that is effective for all states in Malaysia. The method

Benchmarking must be executed by the state waqf management in other states in and out of the

country. It also can give more exposure and improve the quality of waqf management.

Therefore, there is a need to establish a board at federal level which manages and report

every information received from each states concerning waqf. This board also makes analysis

about the economic development of the Muslim community as a whole and investment

opportunities towards waqf properties that has potential to increase in value. These boards also

supervise matters pertaining to state waqf.

waqf writing asemen ungs

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