State Islamic Religious Councils Research Articles

Comparative Analysis of Government Website and Service Monitoring System Ratings among State Islamic Religious Councils (SIRCs) in Malaysia

This study explores the comparison of websites of various State Islamic Religious Councils (SIRCs) in Malaysia using the Government Website and Service Monitoring System known as SPLaSK ratings. SPLaSK, an initiative by the Malaysian government serves as a critical tool for monitoring and evaluating the performance of government websites and services. By focusing on the SIRCs, this study seeks to identify patterns, strengths, and areas for improvement in digital governance. Using qualitative content analysis and semi-structured interviews, the study analyzes SPLaSK ratings of SIRCs to understand how these councils utilize digital platforms to engage with the public, disseminate information, and provide services. Websites registered with SPLaSK are assessed based on six (6) dimensions, namely accessibility, ease of use, quality of content, privacy or security, responsiveness, and reliability. It has been disclosed that only 10 out of 14 SIRCs were registered with SPLaSK in 2023, with 40% achieving excellent ratings of above 80%. The overall scores of the websites also suggest that four (4) SIRCs have underperformed, receiving scores below 50, attributed to inefficient website management. The findings offer valuable insights into the effectiveness of SPLaSK in promoting transparency, efficiency, and user-friendliness in government digital services, thus contributing to the broader discourse on digital governance within government agencies in Malaysia

Homeownership through asnaf home financing in Malaysia: an empirical investigation

Purpose The purpose of this study is to examine asnafs’ acceptance of home financing in Malaysia. Design/methodology/approach This work developed and introduced the maqasid theory of consumer behaviour (MTCB) to examine the effects of educational programmes, mortgage welfare, consumer justice and Islamic debt policy on receptiveness. Data analysis involving 733 respondents was conducted using partial least squares (PLS), where SmartPLS4.0 software comes into play. Findings In the core model, the effects of the MTCB’s variables helped shape the development of asnaf home financing acceptance. Research limitations/implications This study was based on quantitative data and geographical constraints. Practical implications The findings provide valuable inputs for the Joint Committee Body (JCB), combining Islamic banks and State Islamic Religious Councils to develop action plans for improving the facility offered. Social implications This work functioned as a social benchmark for improving Islamic home financing that includes asnafs’ homeownership. Originality/value A new conceptual framework for asnaf home financing drawn from MTCB is developed in the context of asnafs’ homeownership.

Editorial

بسم الله الرحمن الرحيم In the Name of Allah, Most Gracious, Most Merciful Waqf: A Key Islamic Social Finance Instrument Waqf is a key tool of Islamic social finance that has been practised since Islam’s inception as part of Muslims’ religious obligations and benevolence to assist the needy and gain the pleasure of Allah (SWT). In the early years, Islamic social finance was not formally institutionalised within the Islamic economic system, except to a limited extent in a few Muslim-majority countries, which for instance, managed some Islamic social finance tools such as zakat and waqf at the state level. In the early 2000s, there were increasing discussions about the social responsibility of Islamic finance, questioning whether profit should be the sole business objective of Islamic financial institutions or whether they should also be attributed social roles in view of the Islamic philosophical foundations that underpin their establishments. As businesses’ corporate social responsibility (CSR) grew in importance in mainstream discussions, many Islamic financial institutions engaged in CSR-based activities on an ad-hoc basis, as a philanthropic exercise, as they became more profitable, viable and sustainable. This started the trend of mixing the practice of Islamic commercial finance with Islamic social finance. As Islamic finance evolved further, there was an increased realisation that the effectiveness and applications of Islam’s social and philanthropic instruments could be further strengthened by integrating Islamic social finance within mainstream Islamic commercial finance. Thus, there were unified efforts to establish cooperation between charitable instruments and the different sectors of the Islamic finance industry. The commercialisation objective of Islamic social finance instruments has been particularly visible in the waqf sector. Waqf has historically been limited to pursuing only the social interests of the donor, who sought reward in both this world and the afterlife by helping the poor and the needy. In the modern practice of waqf, the social objective is integrated with the profit motive so that the initial waqf capital generates more returns for the beneficiaries. Prominent developments in the modern practice of waqf include the following: · The modern concept of waqf is not limited to immovable assets (e.g., land, orchards, wells) and movable assets (e.g., jewellery, Qur’an, books, equipment) which are donated for charitable purposes. Innovative strategies are adopted today to develop waqf as an alternative asset class by using contemporary forms of wealth such as cash and financial securities. Latest waqf instruments include cash waqf, temporary cash waqf, waqf-banks, waqf-shares, waqf-unit trusts, waqf-venture capital funds, waqf-ṣukūk, and waqf-Islamic real estate investment trusts. Modern structures of waqf introduced professional management of waqf funds that ensures the sustainability of waqf assets and generates better returns to beneficiaries. Innovative and effective channels of investments through Islamic banks, the Islamic capital market and the takāful sector have been used to develop dynamic and progressive waqf projects. An example is the case of myWakaf in Malaysia which leverages on the synergy between the State Islamic Religious Councils (SIRCs) and a consortium of Malaysian Islamic banks to manage waqf investments and channel the investment returns into waqf projects. Utilisation of waqf proceeds are extended beyond the traditional sectors (e.g., mosques, cemeteries, Islamic schools) to provide a wider range of welfare services relevant to current societal needs (e.g., waqf qurban, waqf for funding impactful SMEs, reviving dormant or abandoned waqf assets into productive properties). Modern waqf management introduces good governance that increases transparency and accountability of waqf institutions. Application of technology in the management of waqf has widened the base of waqf donors/investors, thus expanding public participation and increasing the supply of waqf funding.

Keperluan Mengenalpasti Risiko Dalam Proses Istibdal Harta Wakaf

Waqf is the dedication of assets by a Muslim for any purpose recognised by Islamic law as religious, pious, or charitable. Therefore, careful management of waqf properties is vital to prevent potential exposure to threats and issues that could hinder the achievement of waqf objectives. Comprehensive identification and management of risks in the istibdal process of waqf property can contribute to enhancing the reputation of the waqf institution and fostering trust among waqf donors. This can also help reduce disputes arising from a lack of understanding about the istibdal process within the community. Therefore, this study examines the need to identify risks in the istibdal process of waqf assets in Malaysia, using qualitative methods to analyse secondary data from journal articles, reports from State Islamic Religious Councils (SIRC), and websites, according to the theme of this study. The assessment of potential risks can inform the implementation of control actions, ensuring a reasonable level of assurance in achieving waqf goals. This will assist the waqf institution in making decisions related to istibdal waqf, reducing risks, and ensuring the sustainability of waqf assets. These efforts can strengthen the public's confidence in participating in waqf activities and maintaining the reputation and accountability of waqf institutions.

IMWI 4 Tahfiz Agripreneurcation: A sustainability model for private Tahfiz Schools in Malaysia

This article presents (i) the potential of waqf and ijarah instruments in economic development and (ii) proposes a model for the integration of waqf and ijarah for the sustainability of Tahfiz institutions. The study used a structured interview method with several founders of Private Tahfiz Schools (PTS), State Islamic Religious Councils (MAIN), and State Islamic Departments (JAIN). The study results present an "IMWI 4 TAHFIZ AGRIPRENEURCATION" model that integrates waqf and ijarah instruments, combines smart strategic partners, and involves several sectors of the country, including education, agriculture, entrepreneurship, and tourism.

Examining the Legal Procedures of Waqf Implementation in Higher Education Institutions (HEIs) in Malaysia and Turkey

Any higher education institutions (HEIs) in Malaysia intending to implement waqf must obtain approval from the State Islamic Religious Councils (SIRCs) as the sole trustee of waqf. Meanwhile, in Turkey, the consent of the Directorate General Foundation (DGF) is required to establish a foundation university. The study aims to analyze the legal framework in both countries for waqf implementation in HEIs. This research utilized a doctrinal approach and fieldwork study to gain in-depth data. The findings reveal that waqf implementation in HEIs in both countries is unique and implemented in diverse ways as they adhere to their legal frameworks.

Human Governance Index for State Islamic Religious Councils in Malaysia

State Islamic Religious Council (SIRCs) in Malaysia were established for the social welfare under the purview of state enactments in an Islamic setting. Despite the absence of a profit motive, accountability must be upheld as it is set up to be the guardian of resources so that the trust of stakeholders could be obtained. SIRCs are expected to uphold their ethics and values in their overall operations. However, a number of negative cases of SIRCs were reported in the local media which has tarnished the image of SIRCs. Thus governors of SIRCs should managed their human assets well. Human governance is the governors’ commitment to improve employees’ values and ethical behavior in the organization through their leadership, integrity fostered in the organization, training that the governors’ attended and internal control that has been put in place. The objective of the study is to examine whether Human Governance Index (HG INDEX) could be applied to SIRCs. HG INDEX comprise of 4 components which are (i) BOD Leadership, (ii) Level of Integrity Index, (iii) BOD Quantity of Training Index, and (iv) Quality of Internal Control System Index . Thirteen(13), 2019 annual reports of SIRCs were used as a basis for data collection. Based on the findings, Quality of Internal control and Level of Integrity were found to be the highest disclosed index. Overall, HG index was found to be low for SIRCs. Thus Governors of SIRCs can use the findings of the study to increase their transparency and accountability to stakeholders by focusing on HG in order to gain the public trust.

Transformational leadership: a qualitative study from waqf institutions in malaysia

This study entails an exploratory investigation of transformative leadership in the context of waqf institutions. In analysing the transformational leadership style, the study interviewed the heads of the State Islamic Religious Councils in charge of waqf institutions in Malaysia. The best practices in the two waqf institutions were found to fall under four areas related to transformational leadership: idealised influence, inspirational motivation, intellectual stimulation, and individualised consideration. The four categories were generated from three sub-categories, bringing the overall total to 12 sub-categories. The findings demonstrate the applicability of transformational leadership in waqf institutions, where it fosters employee inspiration, contentment, and creativity. In addition, this study adds to the body of knowledge as there are not many previous investigations on transformational leadership in the setting of waqf institutions. Waqf sector leaders can use this study's practical application to comprehend, apply, practice and evaluate transformational leadership in accomplishing the objectives of their respective waqf institutions.

Exploring Shariah audit practices in zakat and waqf institutions in Malaysia

PurposeThis study aims to explore the current Shariah audit practices in zakat and waqf institutions in Malaysia.Design/methodology/approachA focus group discussion (FGD) with 38 zakat and waqf officers from 17 different zakat and waqf institutions in Malaysia was conducted. For reporting purposes, this study used a single-case study approach. The FGD was conducted and completed at the end of June 2021 via an online approach through Microsoft Teams.FindingsThe finding highlights the existing Shariah governance practices especially in terms of Shariah supervision roles, Shariah audit implementation in terms of Shariah audit scopes and common findings, Shariah audit competency, Shariah audit effectiveness especially the need for external Shariah audit function and Shariah audit issues and challenges faced in the implementation of Shariah audit practices.Practical implicationsThe study findings and recommendations are useful for zakat and waqf institutions as well as the State Islamic Religious Councils to enhance Shariah audit practices in Malaysia.Originality/valueThis study is among the pioneer studies that explore Shariah audit practices in zakat and waqf institutions in Malaysia.

Preliminary Study on Website Disclosures for Sustainability Reporting of Islamic Religious Institutions

Public sector organizations play an essential role in supporting the government’s commitment to sustainable development. These organizations are expected to disclose more social and environmental information than private companies due to public contracts. Malaysian State Islamic Religious Councils (SIRCs) is one of the government agencies responsible for distributing and disseminating adequate and accurate information to various stakeholders, especially the public. These SIRCs frequently organize sustainability-related activities as part of their corporate social responsibility agenda and have a vast potential to contribute by disseminating sustainability-related information on their websites. However, the extent of sustainability website reporting by the SIRCs remained largely unaddressed. Drawing from the literature, this preliminary study proposes a website disclosure index for sustainability reporting by the SIRCs in Malaysia. A content analysis on three SIRCs websites representing three regions in Malaysia have been performed. A total of sixty-seven disclosure items were used as indicators during the website content analysis. Key findings indicate that more effort needs to be initiated by SIRCs in supporting a unified digital reporting that promotes accountability and transparency among government agencies. Nevertheless, the proposed website disclosure index may assist in formulating policies to encourage the use of SIRCs’ websites to report sustainability information to the public. This study provides valuable input in supporting the government’s aspiration to develop future strategies for achieving Sustainability Development Goals (SDGs) and adds to the limited literature on the website sustainability reporting by the public sector. Future research may use a larger sample of SIRCs to validate the disclosure index proposed in this study.

Towards Developing a Shariah Governance Framework for Waqf Institutions: A Case of Majlis Agama Islam Melaka

The practice of Waqf is deeply rooted in the history of Malaysia, going as far back as the 15th century during the Malaccan Sultanate. Waqf, at the time, became popular amongst Muslims in the Malay Peninsula. It brought about remarkable changes to the communities and the standard of living, and the world's outlook on the inhabitants (Mahamood, 2006). The building of mosques like the Kg. Hulu Mosque in Malacca, the Sultan Abu Bakar Mosque in Johor, and the Kg Laut Mosque in Kelantan are momentous examples of the early and firm establishment of Waqf in Malaysia (Sayin, 1994a). During the early stages of Waqf in the Malay states, the community organizers were responsible for managing the waqf assets' trusteeship. The trustees were responsible for the organization, its control, and Waqf management to benefit the beneficiaries. However, the purchases were not documented or evidenced to be used for Waqf. The lack of proper documentation caused different issues, like claims made by the heirs over the asset after the asset owner passed away, leading to the inability to use the asset for Waqf. Waqf properties during the colonization period from 1511 to 1946 witnessed many changes in their development. A notable difference was that waqf management's responsibility gradually shifted to the respective Majlis Agama Islam Negeri or State Islamic Religious Councils (SIRCs). Keywords: Waqf, Shari'ah governance, Majlis Agama Islam, and Malaysia

Religious Practices of Land Endowment: Examining Reform and Dispute Resolution Alternatives of Land Waqf in Indonesia and Malaysia

The research aimed to analyze the land waqf dispute resolution mechanisms in Indonesia and Malaysia to provide the Indonesian government with ideas regarding land waqf dispute resolution laws. The approach adopted was a comparative study that highlights the mechanisms and models of waqf dispute resolution in Indonesia and Malaysia. The results show that the Indonesian waqf dispute resolution mechanism comprises two approaches: juridical and sociological. The juridical approach is based on Waqf Law No. 41 of 2004, Article 62. Meanwhile, the sociological approach is based on local wisdom and policies derived from Islamic law. In comparison, the mechanism for resolving waqf land disputes in Malaysia consists of two routes: the non-litigation channel, which consists of negotiation, mediation, and arbitration, and the litigation path, via the sharia court. In the Malaysian mediation pathway, the mediator and the advocacy institution are State Islamic Religious Councils (SIRCS), assisted by waqf managers and experts. An arbitration mechanism is often chosen because the management of waqf land is, for about 40 percent, associated with business, commerce, industry, and property. The similarities between the two countries are that they are committed to resolving waqf land disputes based on applicable law, the concept of justice, and the desire to protect human rights, minimize expenses, build good relationships after disputes, and provide advocacy for the rescue of the donated land assets.

Funding higher education through waqf: a lesson from Malaysia

PurposeThis paper aims to highlight the importance of waqf in financing higher educational institutions (HEIs) and its potential as an alternative source of generating additional funds for the HEIs, and discourses on waqf practice, fundraising, waqf management and utilisation of waqf income for the development of higher education in Malaysia.Design/methodology/approachThis paper is based on the information gathered through interviews with 12 participants who are actively engaged in waqf in different capacities. The participants can easily be classified into three expert groups; personnel of waqf-based universities, personnel of the respective State Islamic Religious Councils (SIRCs) and waqf practitioners. In addition, archival records, relevant documents and library sources have been used in the research.FindingsThe study learnt that waqf in Malaysia is centralised and exclusively controlled by the SIRCs, which are, as a rule, sole trustees of all categories of awqaf in the respective states; hence, any form of private trusteeship is considered illegal. It is a prerequisite for the establishment of a waqf fund to obtain permission from the respective SIRCs, and bring it under the purview of the council prior to setting up a waqf. The ministry of higher education has taken some initiatives to encourage HEIs to use waqf as an alternative source of generating funds. Subsequently, numerous public universities have set up waqf funds and developed a comprehensive mechanism for raising the fund through traditional and modern methods and technologies. A major chunk of the waqf funds is collected in the form of cash, but the amount falls short of reaching critical mass to enable the waqf to become self-sustaining. The study found that the universities also involved themselves in various social welfare programmes, especially in health care, and some income-generating projects besides seeking support from the waqf fund for their academic and educational activities.Practical implicationsThe paper brings out the fact that waqf offers the best features as an alternative fiscal instrument to finance projects of public good, including higher education at three selected waqf-based universities in Malaysia.Social implicationsThe study’s findings will be helpful to the ummah in general and Malaysia in particular. It can help policymakers, legislators and academicians in formulating new strategies for the common good and sensitize the countries facing a huge fiscal deficit and lack of development to the viability and potential of waqf as a catalyst for progress and economic activity.Originality/valueThe paper shares the experience of Malaysia’s waqf-based universities, waqf fundraising, management and income utilisation. It accentuates the fact that waqf can help finance academic activities at universities and sheds light on some useful examples of waqf-based universities founded in earlier periods of Islamic civilisation.

Challenges and prospects in waqf reporting practices in Malaysia

PurposeThis study aims to explain the justification behind the current weak waqf reporting practices in waqf institutions in Malaysia and also investigates the factors affecting the good waqf reporting practices.Design/methodology/approachA series of interviews with four waqf officers who are involved with waqf reporting process from four different waqf institutions in Malaysia were conducted.FindingsThe findings show a number of reasons for the current weak waqf reporting practices including the absence of standardised waqf reporting standards, no reporting or disclosure awareness by the waqf management, limited reporting channels from the state authorities to the national authorities, diversification in the governance structure and reluctance of waqf administration to disclose waqf reporting. The findings also identified several factors contributing to good waqf reporting practices. This includes leadership, good cultural setting within the institution, political will as a push factor, limited qualified personnel as well as sustainability issues and finally, the visibility of the waqf report itself.Practical implicationsThe study findings and recommendations are useful for the State Islamic Religious Councils and waqf institutions in Malaysia to enhance the waqf reporting practices in Malaysia.Originality/valueThis study is among the few studies that identify the reasons and factors affecting the good waqf reporting practices in Malaysia.

Stakeholder expectations of the accountability of Malaysian State Islamic Religious Councils (SIRCS): to whom and for what?

PurposeThis paper aims to examine stakeholders’ expectations of accountability in non-profit organisations (NPOs) in general, and State Islamic Religious Councils (SIRCs) in particular.Design/methodology/approachAn online survey was used to collect data, which was then analysed descriptively. Furthermore, the differences between stakeholder groups were evaluated using the Mann–Whitney and Kruskal–Wallis tests.FindingsThe findings indicate that NPOs generally and SIRCs specifically need to clarify the meaning of accountability to meet the expectations of their stakeholders, especially the public, and to address accountability inquiries.Research limitations/implicationsThe research method was a limitation of this study. The data was collected using a survey. Generally, surveys contain restricted numbers and types of questions that the authors have outlined. Consequently, respondents might be constrained in their choice of how they perceive accountability. So, surveys used to collect respondents’ opinions may have an adverse effect on their responses. In addition, a number of respondents may also give superficial answers, particularly if they are required to answer a number of questions over a long period of time. Finally, the data collected using surveys might show what respondents think about accountability, but they do not show the actual practice.Practical implicationsOwing the highest accountability to the Board of Directors is akin to the practices of corporations. The findings of this study could assist their top officials to understand the accountability chain within SIRCs. This is consistent with the findings regarding accountability within SIRCs, whereby they perceived that they are responsible to their board for performance. Therefore, this should encourage the reporting of performance to both internal and external stakeholders.Originality/valueOverall, perceptions on accountability are an ongoing debate, and they depend on the role of the organisation and expectations of stakeholders. Identifying a clear accountability chain is essential to develop the best reporting practices for SIRCs. The paper contributes to the literature by addressing two questions on accountability for NPOs: to whom and for what.

Political risk and portfolio performance: Implications for Shariah-compliant ‎investors

The COVID-19 pandemic has forced the Malaysian economy into a recession, with GDP plummeting to negative growth for the first time since the 1998 Asian Financial Crisis. Fiscal and monetary tools are inevitable during this crisis. Businesses have been forced to close shops due to a series of Movement Control Orders (MCO), resulting in massive layoffs and a rise in the unemployment rate, which is a red flag for the economy. On the other hand, zakat has emerged as a poverty alleviation tool in the Islamic economy landscape and is particularly relevant during an economic crisis. However, there is a lack of literature discussing the impact of macroeconomic indicators on zakat. Therefore, this study was conducted to examine whether the unemployment rate explains the trend in zakat collection. Time series data from the period between 2006 and 2020 was utilized, and linear regression analysis was conducted. An interesting finding is that the zakat collection trend by State Islamic Religious Councils (SIRCs) and the movement of the unemployment rate are not statistically significant. This indicates that zakat collection is not affected by high unemployment in the labor force market and remains strong even during an economic slump, thanks to increased digitalization efforts and FinTech adoption.

WAQF LAND DEVELOPMENT APPROACHES AND PRACTICES IN THE STATE ISLAMIC RELIGIOUS COUNCILS

Waqf land is a religious property that is provided as a charity act by a donor and placed under the jurisdiction of the State Islamic Religious Councils (SIRCs). The SIRCs are the sole trustees in charge of governing, managing, and developing these properties. SIRCs have been working to develop waqf lands through a variety of projects and ways that adhere to best practices and a sound management system. However, the waqf's potential for greater outcomes is yet to be optimised. This research has reviewed the literature of waqf land development approaches and practices in Malaysia and it has tabled the significant development approaches that can be implemented by the SIRC. These approaches and practices may overcome the issues and challenges faced by the SIRCs in developing waqf land.

Revitalising the Management of Family Waqf: A Way Forward

This research proposes a few models of legal authority (hereinafter referred to as al-Wilayah) over the practice of Family Waqf in Malaysia. The research adopted a comparative case study based on the theory of al-Wilayah over the management of waqf. Five selected State Islamic Religious Councils (SIRCs) have been chosen: SIRC of Perak, Pulau Pinang, Kelantan, Terengganu, and Johore, prominent with Family Waqf. The author proposed models that broaden the involvement of many parties in waqf management based on the amalgamation of Wilayah Asliyyah and Wilayah Fariyyah in waqf affairs. These are models of the religious council, third-party model, and model of the subsidiary body. The contribution of this research was to provide more compatible models in the management of Family Waqf operationalized harmoniously with the Malaysian waqf jurisdiction. These models were expected to improve the current situation of Family Waqf in Malaysia, which was deemed incompatible with being managed by the SIRC alone. Based on the researcher’s best knowledge, there were no case studies that empirically investigated the current practice of Family Waqf according to the theory of al-Wilayah. Therefore, it was necessary to acquire an up-to-date situation of Family Waqf from the vantage point of al-Wilayah to assist the researcher in developing the model based on the actual loophole in its practice.

An Investment Portfolio Strategy for Waqf Assets in Malaysia: A Study At Selected State Islamic Religious Councils

An Investment Portfolio Strategy for Waqf Assets in Malaysia: A Study At Selected State Islamic Religious Councils

An empirical investigation on waqf governance practices in waqf institutions in Malaysia

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.