Cooperative-waqf model: a proposal to develop idle waqf lands in Malaysia
Purpose – Waqf (Islamic endowment) in the form of cash is important to address the problem of developing idle waqf lands. Although there are various existing models of cash waqf, there is still a need for innovative cash waqf models. This paper aims to offer an alternative mode of financing for de...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English English English |
| Published: |
Emerald Publishing Limited
2018
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/66831/ http://irep.iium.edu.my/66831/ http://irep.iium.edu.my/66831/ http://irep.iium.edu.my/66831/7/66831_Cooperative-waqf%20model_SCOPUS.pdf http://irep.iium.edu.my/66831/8/66831_Cooperative-waqf%20model.pdf http://irep.iium.edu.my/66831/9/66831_Cooperative-waqf%20model_WOS.pdf |
| Summary: | Purpose – Waqf (Islamic endowment) in the form of cash is important to address the problem of developing
idle waqf lands. Although there are various existing models of cash waqf, there is still a need for innovative
cash waqf models. This paper aims to offer an alternative mode of financing for developing idle waqf lands
using the concepts of cooperatives and waqf.
Design/methodology/approach – The present study first evaluates relevant literature on financing
issues faced by waqf institutions in developing idle waqf lands as well as existing models of cash waqf. Based
on the prevailing gap in cash waqf models, the study proposes a hybrid model of cooperative-waqf to finance
idle waqf lands in Malaysia.
Findings – The proposed model is unique owing to the new dimension of membership being embedded into
the waqf project. It considers donors as members of the waqf project, which is funded through the cash waqf
collected, and thus, donors are given the privilege to receive benefits from the commercialised projects that are
developed on the waqf lands. The existing models of cash waqf use traditional methods in which donors
merely contribute cash waqf without any awareness of how the contributions are utilised. Usually, this
problem occurs due to the lack of reciprocal communication between cash waqf donors and waqf institutions.
Research limitations/implications – The present study examines the case of waqf land development
in the context of Malaysia only. Secondly, the paper does not contain any empirical analysis, and the development of the paper is based on existing literature that discusses various models of cash waqf practised in Muslim-majority and -minority countries. Future research can conduct surveys of donors and other stakeholders on the practicality of the model.
Practical implications – It is expected that the proposed cooperative-waqf model will be able to create a synchronised relationship between cash waqf donors and waqf institutions and hence boost participation in
developing waqf lands.
Originality/value – The present study adds to the existing literature in the area of waqf and cash waqf
models, especially the application of this instrument in the context of Malaysia. It also offers a new hybrid
model to the State Islamic Religious Councils (SIRCs) – Malaysia’s sole trustee of waqf assets management –
such that the implementation of the proposed model could boost the collection of cash waqf in developing
commercial projects on idle waqf lands. |
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