Comparative Study of Regulations, Governance, Management, and Innovation Models in the Development of Muhammadiyah Waqf with Malaysia and Brunei Darussalam

Awqaf properties in Malaysia have evolved over the years, from being in the nature of consumptive immoveable properties used for religious purposes like madrasahs, mosques and cemeteries, into productive and mixed-use type real estate properties, like hotels, office buildings and commercial type properties. The 2007 national fatwa permitting cash waqf in Malaysia brought about diversification of awqaf properties through the introduction of several cash waqf schemes by local banks, federal agencies as well as State Islamic Religious Councils (SIRCs). Further developments were seen with the development of the concept of ‘corporate waqf’ and waqf shares as well as innovative awqaf products in the takaful sector and the Islamic capital market. Another significant development occurred in 2015 with the introduction of the Labuan International Waqf Foundation (LIWF) by the Labuan International Business and Financial Centre (LIBFC). Through qualitative research and content analysis, this chapter traces these developments in Malaysia through the lenses of governance, reformation and transformation. Some of the issues that will be touched on are whether the regulatory framework for waqf in Malaysia has moved in tandem with these developments, innovative use of waqf for financial inclusion, as well as the intersection between waqf and the law of trust, if any and the use of online platforms to collect waqf funds.

Waqf is described as an act of dedicating a corpus of property or financial assets in perpetuity for the cause of Allah SWT. The ownership of the property or assets is transferred to Allah SWT, but the benefits are dedicated to the poor, sick, marginalized segments of society, or any other virtuous causes. Waqf institutions are among several instruments instituted in Islam to combat poverty and enhance societal welfare. Waqf provides the material infrastructure and creates a source of revenue for use in, among other things, social welfare enhancing activities, both at the family, community, and state levels. Corporate waqf is defined as a type of waqf where the mawqūf (waqf assets) are in the form of shares issued and managed by a corporate entity. Corporate waqf utilizes the application of waqf principles in a corporate setting.6 Corporate waqf is more than a charitable and philanthropic act by a business entity, but is an initiative to combine the concept of waqf and apply it to achieve business and corporate objectives. Consequently, it intends to redefine the role and function of business organizations in today’s society by ‘giving back’ and reaching out to the community. This study tries to gauge the level of awareness and willingness of State Economic Development Corporations (SEDCs) and State Islamic Religious Councils (SIRCs) to be involved in corporate waqf initiatives. The study found that, in general, the SEDCs are receptive of the idea of corporate waqf entities managing and enhancing the values of waqf assets and waqf properties; however, this must be done within the current legal framework. The study also found a lack of coordination between the SEDCs and SIRCs in making decisions on waqf related matters. It is suggested that the state government, through its departments/agencies, play a facilitative role in ensuring the efficient development of waqf assets or properties.

Waqf is described as an act of dedicating a corpus of property or financial assets in perpetuity for the cause of Allah SWT. The ownership of the property or assets is transferred to Allah SWT, but the benefits are dedicated to the poor, sick, marginalized segments of society, or any other virtuous causes. Waqf institutions are among several instruments instituted in Islam to combat poverty and enhance societal welfare. Waqf provides the material infrastructure and creates a source of revenue for use in, among other things, social welfare enhancing activities, both at the family, community, and state levels. Corporate waqf is defined as a type of waqf where the mawqūf (waqf assets) are in the form of shares issued and managed by a corporate entity. Corporate waqf utilizes the application of waqf principles in a corporate setting.6 Corporate waqf is more than a charitable and philanthropic act by a business entity, but is an initiative to combine the concept of waqf and apply it to achieve business and corporate objectives. Consequently, it intends to redefine the role and function of business organizations in today’s society by ‘giving back’ and reaching out to the community. This study tries to gauge the level of awareness and willingness of State Economic Development Corporations (SEDCs) and State Islamic Religious Councils (SIRCs) to be involved in corporate waqf initiatives. The study found that, in general, the SEDCs are receptive of the idea of corporate waqf entities managing and enhancing the values of waqf assets and waqf properties; however, this must be done within the current legal framework. The study also found a lack of coordination between the SEDCs and SIRCs in making decisions on waqf related matters. It is suggested that the state government, through its departments/agencies, play a facilitative role in ensuring the efficient development of waqf assets or properties.

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.

PurposeThis study aims to examine and compare the current waqf governance practices in waqf institutions in Malaysia.Design/methodology/approachThis paper reviews professional documents and literature to propose a new and practical waqf governance measurement. Waqf governance measurements were used to examine and compare the current waqf governance practices among waqf institutions in Malaysia. The annual reports of all waqf institutions under the State Islamic Religious Councils (SIRCs) were analysed using content analysis on the current waqf governance practices using binomial logic.FindingsOverall, the results indicate moderate waqf governance practices under three waqf governance categories, namely waqf governance policy, waqf governance board and waqf governance processes. This study also found a significant impact of corporatisation reformation of waqf institutions on waqf governance practices.Research limitations/implicationsThe findings indicate the need for all waqf institutions in Malaysia, especially for non-corporate waqf institutions, to enhance their waqf governance practices by disclosing all relevant information to the public. This is because the success of waqf fund management can be portrayed through the management’s transparency in waqf governance practices on how they deliver and use their resources to attain socio-economic objectives.Originality/valueTo the best of the authors’ knowledge, this study is among the first studies that examined and evaluated the current waqf governance practices in several waqf institutions in Malaysia.

Strategic integration in waqf real estate and zakat projects yields sustainable benefits generated by State Islamic Religious Councils (SIRCs) for asnaf development. Among Muslims, asnaf groups have been highlighted in Islam to be eligible to receive zakat funds. There are eight categories of asnaf that represent the basic needs of an individual in Islam. The Islamic philanthropy study takes place theoretically and empirically in many Muslim countries. In Malaysia, the operation of waqf and zakat systems in institutional form has been well developed. However, the potential significant utilization of waqf real estate and zakat fund integration for asnaf development is limited and as yet still untapped. This paper reviews the relevant literature on the integration of waqf and zakat and then developing and proposing a conceptual framework in synergizing waqf real estate and zakat through strategic integration for asnaf development. The paper identifies the appropriate components such as cash waqf, funds from Baitulmal and involvement from Corporate Social Responsibility (CSR) as the elements to strengthen the integration. In cognizance with this study, the government as policymaker, SIRCs, corporate bodies and Islamic charity organizations must collaborate to boost asnaf abilities in many areas.

The innovation of financial technology has emerged in the 21st century to impact different sectors and industries and their efficiency and effectiveness. Among the industries that adopted FinTech widely is the financial industry. Also, at the same time, the application of Islamic social finance is widely accepted around the world, especially in the Muslim countries. Cash Waqf is among the mechanisms that have been applied by Islamic institutions or organizations to sustain their financial funding. This paper proposes a conceptual framework for cash Waqf institutions applying FinTech for cash Waqf collections. It explains the roles of FinTech-based five concepts or constructs in the proposed model. In addition to that, the adoption of technology can increase efficiency but also expose the users to technology risks that can give negative impacts if not well mitigated, especially with the big data and Internet of Things (IoT) environment. The factors under investigation include the awareness, FinTech knowledge, relative advantages, social norms, and perceived trust as the independent variables and FinTech adoption as the dependent variable where risk mitigation is another independent variable. This model will provide benefits to cash Waqf institutions in Malaysia for their efficiency and policy decisions in enhancing cash Waqf collection. It is expected that the conceptual model will provide contributions in cash Waqf collection, efficiency, and transparency in Malaysia that directly help the State Islamic Religious Councils (SIRCs) and their subsidiaries, in resolving cash Waqf collection management issues.

Waqf is often viewed in Muslim countries, including Malaysia, as a beneficent tool for promoting socioeconomic well-being and reducing inequality. However, its performance is heavily reliant on effective and transparent governance. Waqf governance in Malaysia continues to face persistent challenges such as suboptimal asset management, lack of efficiency, and limited accountability. Inconsistent, incomplete, and unclear legal provisions, as well as state-specific governance processes, all have a role. The State Islamic Religious Councils (MAIN) are designated as the exclusive trustees of waqf. However, variations in standards and methods have resulted in discrepancies and ambiguities in governance implementation. This study addresses governance standards, procedures, and accountability practices in relation to two major frameworks. Public Sector Governance (PSG) principles and Shariah governance (SG) principles. It employs a qualitative methodology, relying on content analysis of policy papers and semi-structured interviews with experts from selected MAINs. Findings indicate that while waqf governance in Malaysia aligns with PSG principles such as accountability, transparency, and efficiency, implementation is inconsistent and frequently lacks systematic monitoring, risk management, and preventive mechanisms. The study proposes a Waqf Governance Framework that integrates PSG and SG, with emphasis on dual accountability—to Allah (SWT) and to stakeholders—underpinned by principles of integrity, ethical leadership, and the Maqasid al-Shariah. The suggested framework provides MAIN with practical, organized, and operational direction to improve governance effectiveness, enhance trust, and assure the sustainability of waqf assets. This study advances policy and practice by demonstrating how governance integration can protect waqf, provide long-term benefits, and encourage socioeconomic growth.

This research aims to explore innovations in Islamic philanthropy to enhance the inclusiveness of cash waqf in Indonesia. This research method employs a descriptive qualitative approach, utilizing data collection techniques that include interviews with five resource persons: the head of the institution, the cash waqf manager, the digital administrator, the waqf nadzir who collaborates with the foundation, and the waqif. Additionally, observation and documentation techniques were employed in this study. Data analysis was conducted using data reduction, field data presentation, and conclusion drawing. The results showed that, first, the importance of innovative and sustainable efforts in managing cash waqf. The innovation of access to cash waqf services in Yayasan Edukasi Wakaf Indonesia (YEWI) is demonstrated through various features and excellent programs, including collective, endowment, term, and tabarru' waqf, as well as Nazir Incubator Services, which enable communities to become part of the official waqf system. Second, the implementation of digitalizing cash waqf at YEWI has been carried out systematically and structurally through the Pasifamal.id platform, which encompasses the processes of collecting, managing, and distributing cash waqf. This digitalization makes transactions easier, faster, more transparent, and accountable. The platform offers a range of modern payment methods, including bank transfers, QRIS, and e-wallets, as well as real-time data on fund collection and comprehensive financial reports. This research gap demonstrates the importance of digital-based waqf, sustainable innovation, and collaboration in building an inclusive concept within Islamic philanthropy. These factors can build public trust and expand the reach of waqif to various levels of society.

Cash waqf is one of the methods used to help people with various activities and overcome challenges such as poverty reduction. As a result, it is vital to have an institution that can handle cash waqf effectively and optimally. BMT Bima Magelang is one of the cash waqf institutions that can correctly manage its cash waqf assets in order to increase social welfare. The goal of this study was to determine excellent and proper cash waqf administration in line with Sharia and the standards of good waqf governance, in order to increase social welfare, particularly in Baitul Maal Wa Tamwil Bima Magelang. Because BMT Bima Magelang is one of the waqf institutions that has been successful in managing cash waqf with effective waqf governance in order to increase social welfare. This study employs qualitative research, with data gathered through structured interviews, passive participation observation, and recording. After that, the data was examined using qualitative descriptive analysis. The qualitative descriptive research approach describes the features of phenomena in the field and explains the study object. The findings of this study show that Baitul Maal Wa Tamwil Bima Magelang uses waqf management with the mudhorobah system, with mudhorobah financing allocated to goat farmers and Micro, Small and Medium Enterprises (MSMEs), and that in the management of cash waqf BMT Bima Magelang implements good waqf governance, which improves social welfare through social programs. Profits from the finance are then utilized to fund businesses and make loans. The revenues from the mudhorobah finance are then utilized for financing (scholarships) for BMT members, financing for child circumcision, and rehabilitation of locals' houses that are unsuited for habitation. These several factors indicate that BMT Bima Magelang's cash waqf management is in conformity with cash standardization, good waqf governance, and sharia management.

One of the branches of zakat in Islam is Business Zakat. In Brunei Darussalam, the department responsible for zakat matters is the Department of Zakat, Waqaf, and Baitulmal, the Ministry of Religious Affairs (JUZWAB). Business zakat payers and collections are generally ranked third after zakat on savings and zakat on gold. The number of business zakat contributors are relatively small compared to the total number of registered companies in Brunei Darussalam. This will be elaborated and analyzed, particularly regarding the trends in muzakki (zakat payers) and business zakat collected from 2019 to 2023. The objectives of this study are to provide the number of muzakki and the amount of business zakat collected in Brunei Darussalam and analyzes the trends in the number of muzakki and the amount of business zakat collected in Brunei Darussalam. This study is a qualitative research and data used in this study is obtained from JUZWAB. The findings of this study indicate an increase in the number of business zakat contributors from the 50s to the 70s between 2019 and 2023 and the annual amount collected from business zakat does not follow a consistent pattern and may fluctuate year by year. This paper recommends that JUZWAB identify the factors causing some Muslim traders not to pay business zakat and provide appropriate recommendations to address these issues.

This research paper investigates Malaysians' attitudes toward cash waqf contributions based on Ahmad Tarusan's research. To supplement the scant previous literature in this area of research, a survey questionnaire was administered to Malaysians regardless of gender, age, racial background, or study field. The questionnaires were developed and digitally circulated using convenience sampling techniques. The samples consisted of 107 Malaysians, and the data was analyzed using SPSS. This study was represented by Malay women majoring in Islamic Studies who are under 30 years old. However, mean statistics showed otherwise; Malay males tend to have a positive attitude toward cash waqf. This study implied that anyone could contribute and enjoy the benefits of waqf regardless of gender, age, race, and educational background; therefore, future research in Malaysia is required to expand their study to reach respondents from non-Muslim communities and those who are from secular backgrounds in understanding their attitude toward cash waqf. It is predicted that if Malaysians are convinced of the benefits of cash waqf and have a favorable attitude, the government and regulators will find it much simpler to implement through policy interventions. The research's findings will further enrich the existing literature on attitudes toward cash waqf, especially for the unique waqf development in Malaysia. It is because cash waqf in Malaysia may have been operated differently from the one during the Prophetic era.

Research aims: This study examines the factors that influence the intention of cash waqf for the state civil apparatus of the Ministry of the Religion of the Banjarnegara district by examining the influence of accountability, transparency, crowdfunding platform security, and reputation of the Indonesian waqf agency.Design/Methodology/Approach: This study involved the state civil apparatus of the Ministry of Religion in the Banjarnegara district. Hypotheses were tested using SEM-PLS techniques.Research findings: The results showed that transparency and accountability did not significantly affect state civil servants' intention to endow money. At the same time, the security of the crowdfunding platform and the reputation of the Indonesian waqf agency have a significant positive effect on the intention to endow money.Theoretical contribution/Originality: The novelty of this research is to exploreand comprehensively analyze how the influence of accountability, transparency, and crowdfunding platform security reputation of the Indonesian waqf agency builds cash waqf intentions for state civil apparatus at the Ministry of Religion.Practitioner/Policy implication: Based on this insight, it is hoped that building cash waqf intentions for the state civil apparatus is not only in the Ministry of Religion but is comprehensive for all ministries and city/district governments Indonesian waqf agencies as managers of cash waqf funds can carry out all tasks by considering accountability, transparency, crowdfunding platform security a reputation on.Research limitation/Implication: The implementation of transparency, accountability, and crowdfunding platform security and reputation, the primary purpose of which is to build intention to donate money, is still insufficiently implemented. In addition, the underlying process of how Badan Wakaf Indonesia collects and presents cash waqf information is crucial.

Pondok Pesantren Matholi’ul Anwar Lamongan merupakan lembaga pendidikan Islam yang menyediakan layanan pendidikan formal dan non formal bidang Agama Islam. Sejak tahun 2009 telah melaksanakan aktivitas penghimpunan dan pemberdayaan wakaf, dan sejak tahun 2017 telah menjadi nazir wakaf uang. Jenis wakaf yang dikelola ada 4 jenis wakaf yaitu wakaf aset, wakaf polis asuransi, wakaf Toko Basmalah, dan wakaf uang. Wakaf aset saat ini berupa tanah pertanian seluas 5.546 m2, tanah wakaf untuk gedung asrama dan sekola serta masjid seluas 4.501 m2, dan 3 unit mobil untuk operasional pondok pesantren, serta 1 unit mobil pick up dan 1 unit viar untuk operasional usaha KSPPS Mawar. Wakaf polis asuransi sebesar Rp 3.784.890.000,00, yang hasil investasi atas wakaf polis asuransi tersebut digunakan untuk operasional pondok pesantren. Sedangkan wakaf Toko Basmalah adalah wakah atas hasil usaha dari Toko Basmalah senilai Rp 103.920.000,00, dan wakaf uang senilai Rp1.702.491.600,00. Hasil pengelolaan investasi wakaf uang dan Toko Basmalah selain untuk operasional juga digunakan untuk memberikan beasiswa kepada santri yang kurang mampu. Dengan potensi wakaf tunai yang besar dan memperbaiki kondisi tata kelola wakaf yang masih kurang baik, maka kegiatan pengabdian masyarakat ini memberikan solusi perbaikan yaitu dengan pelatihan tata wakaf tentang standar tata kelola wakaf, menyusun tata kelola pelaporan keuangan wakaf, menyusun tata kelola manajemen aset wakaf, menyusun tata kelola pengawasan internal. Kegiatan pengabdian masyarakat ini akan dilakukan secara pelatihan dan pendampingan menyusun standar tata kelola wakaf kepada pengelola wakaf di Pondok Pesantren Matholi’ul Anwar Lamongan. Kegiatan pengabdian masyarakat di Pondok Pesantren Matholi’ul Anwar Lamongan akan dilaksanakan oleg Tim Dosen Departemen Ekonomi Syariah, Fakultas Ekonomi dan Bisnis Universitas Airlangga (FEB Unair). Hasil pelatihan tata kelola wakaf kepada para pengelola wakaf di Pondok Pesantren Matholi’ul Anwar adalah adanya harapan agar setelah kegiatan pengabdian masyarakat ini tata kelola wakaf di Pondok Pesantren Matholi’ul Anwar Lamongan menjadi lebih baik sehingga dapat menghasilkan informasi yang berguna bagi perencanaan pengembangan wakaf serta meningkatkan penghimpunan wakaf dan pendayagunaan manfaat wakaf.

Waqf is a voluntary charity that cannot be disposed of and the ownership cannot be transferred once it is declared as waqf assets. Waqf institutions play an important role in helping the development of Muslims ummah through wealth distribution. State Islamic Religious Councils (SIRCs) in Malaysia are the sole trustee that manage and develop waqf assets. Based on selected input and output, the intermediary approach assumes that cash waqf received as output while total expenditure of SIRCs as input. Under this approach SIRCs act as intermediary between waqif (giver) and beneficiaries. Thus, this paper attempts to analyze the efficiency of waqf institutions in Malaysia by using Data Envelopment Analysis (DEA) method under output-orientation using Variable Return to Scale (VRS) assumptions. Four SIRCs were selected as decision making units (DMU) for the period of 2011 to 2015. The result indicates that changes in average technical efficiency for every year is contributed by both pure technical and scale. However, inefficiency of Malaysian waqf institutions is mostly contributed by pure technical efficiency aspects rather than scale. 2012 showed the highest average technical efficiency with 73.9% as most of the institutions operated in optimum level of input to produce output. Thus, the result suggests that both technical and scale efficiency should be improved to achieve the most efficient and productive level of performance in order to fulfill objectives of the institutions as an intermediary between waqif and beneficiaries.