Waqf Utilization and Governance Practices

Abstract

There has been an increased public interest and awareness in waqf practices which is one of the most effective social finance instruments in Islam. History has proven that good governance practices affect the effective use of waqf property which has become one of the mechanisms for wealth creation in a country. Unfortunately, most of institutional mutawalli are facing challenges in their governance practices, leaving the waqf properties not fully utilized for the benefit of society. Thus, this chapter aims to examine in-depth the utilization of waqf property and governance practices of an institutional mutawalli under State Islamic Religious Councils (SRIC) in Malaysia. A qualitative method applied in this case study where formal and semi-structured interview conducted on a focus group involving those in leadership positions such as CEO and the top management of the institutional mutawalli. The first part of discussion is on governance practices of the institutional mutawalli, followed by discussion on their experiences and current execution in utilizing the use of waqf properties. This study identified the crucial characteristic in the waqf property. Several recommendations are made on how to improve the effective use of waqf property and best governance practice that can be implemented to help the institutional mutawalli attain their growth performance.