Empirical investigation on awqaf and its socio-economic impact in Malaysia

Abstract

The absence of the bottom line in the not-for-profit organisations, including waqf institution, restrains the rendering of accounts. Therefore, the accountability of such faith-based institution is crucial towards achieving their outcome and socio-economic impact. Waqf institutions are established for social well-being; thus their outcome and impact on social benefits are essential, in addition to governance aspects. This is also in line with the National Blue Ocean Strategy (NBOS) and the Outcome-Based Budgeting (OBB) in the Malaysian public sector that has been announced, which concerns on the impact of programs and activities conducted, rather than focused on expenses and outputs. Indeed, this chapter aims to investigate disclosure practices for waqf, concerning their socio-economic impact. In order to achieve the stated research objective, case study approach is adopted through focus group discussion, by interviewing waqf accountants and managers to understand on waqf socio-economic impact. The findings indicate that the current waqf socio-economic impact disclosed by selected waqf institution is still in moderate level. Several recommendations are also provided in order to enhance accountability and promote transparency towards sustainability of waqf institutions in Malaysia.