The IDB collaborates with INCEIF to strategize the development of Malaysian Waqf properties - IFN

The IDB collaborates with INCEIF to strategize the development of Malaysian Waqf properties

Daily Cover

MALAYSIA: The IDB has carried out a roundtable discussion with INCEIF to discuss potential strategies for the development of Malaysian Waqf properties in order to maximize the benefits to their rightful beneficiaries. At an estimated RM1.2 billion (US$358.88 million), the country is home to a large number of Islamic endowments and stands to benefit from a concerted effort to develop the properties to their full potential. Issues that were raised include the various forms of Waqf property development, financing requirements, management of the developed Waqf properties and suggestions on ensuring perpetuity of benefits to its beneficiaries. Four main proposals were highlighted during the discussion. They were: (1) the establishment of a national committee of industry experts to formulate a Waqf development plan to be implemented on a national level; (2) to create a national database containing details such as location and usage of the properties, in order to accelerate the development of each Waqf asset; (3) the setting up of an entity with functions similar to Cagamas for the securitization of Waqf properties; (4) to directly link the development of Waqf assets with mainstream economic development to ensure an effective mobilization of the capital. Waqf assets in Malaysia are currently under the purview of the state Islamic religious affairs councils of each state. The Majlis Agama Islam (state religious authorities) is the sole trustee to manage any Waqf asset in the interest of the founder. Due to the lack of standardization and expertise to deal with Waqf, industry observers have voiced out their concerns. In September last year, Malaysian bankers have called for a comprehensive legal framework to enable Waqf assets to be managed in a commercial manner. Industry players are keen to act as professional Waqf managers and applying Waqf assets as a component of the Islamic financial market. According to Malaysian prime minister Najib Razak, the Malaysian Wakaf Foundation will be turned into a corporate entity to derive more value from assets held by the trust. Over the years, the IDB has played a significant role in the development of Waqf properties across various Muslim countries. The organization has accumulated vast experiences in finding solutions in various jurisdictions where Waqf property development face challenges.