Financial sustainability of waqf properties in Singapore and Selangor, Malaysia

Financial sustainability refers to the ability of the waqf agency to have financial capacity in the short and long run to perform its role in managing their waqf assets and, at the same time, utilizing the assets to generate benefits distributed to the beneficiaries as prescribed in the waqf deed. Its significance permeates through the overall administration and management of waqf assets, and is pivotal to the successful operation of a waqf agency. Nevertheless, waqf in Malaysia is challenged by a large hectarage of undeveloped waqf land. Many waqf agencies face difficulties in generating higher income due to inefficient use of waqf land. Growing costs of maintaining the undeveloped waqf land and identifying profitable investments add pressures to funding the operation of waqf agencies. Thus, financial sustainability lends an alternative premise for the waqf agencies to address the problem. Despite wide coverage of financial sustainability in a non-profit organization, there are limited studies done in the waqf area which adopts the Islamic perspective. Therefore, this study explores financial sustainability practices in two prominent waqf agencies in Malaysia and Singapore which contributes the idea of financial sustainability in the waqf area. Purposive sampling was used in this study to gather the data from the two prominent and experienced waqf agencies. The selected waqf agencies were Perbadanan Wakaf Selangor in Malaysia and WAREES Investment Pte. Ltd. in Singapore. Qualitative case study was used to obtain vast information on the actual implementation by using in-depth interview, observation and document review methods. The study found that both waqf agencies need to find appropriate properties development strategies, such as having strong team management and expert, proper planning for short and longterm, appropriate financing method, proper properties management and maintenance, concentration on income generation, proper financial management and accounting, and demonstrating value and accountability to the public. The results of the study provide the model of financial sustainability practices within Islamic perspective for the State Islamic Religious Council in order to improve their waqf properties management and the benefits generated for the people.

Text FEP 2019 55 IR.pdf Download (1MB)

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