RESEARCH ARTICLE XXXXXXXXXXXXXXXXX

Copyright © 2015 American Scientific Publishers Advanced Science Letters

All rights reserved Vol. XXXXXXXXX
Printed in the United States of America

Transformation of the Role of Waqf in Malaysia

1 2
Suziana binti Mohamed Nor , Dr Noor Inayah Yaakub
1
Academic & International Relations, Universiti Islam Malaysia (UIM),
MKN Embassy Techzone Building, 63000 Cyberjaya Selangor, Malaysia.
2
Prof. Dato’, Universiti Islam Malaysia (UIM),
MKN Embassy Techzone Building, 63000 Cyberjaya Selangor, Malaysia.

This article aims to explain the dynamic transformation of the role of waqf in the economic development of Muslims and
society at large with a specific focus on the waqf for higher education. The concept of ownership is also defined in order to
understand the role of waqf in general and further elaborates the role and importance of waqf for education in the higher
learning institutions. Models of educational waqf for universities such as Universiti Putra Malaysia, International Islamic
University Malaysia, Universiti Kebangsaan Malaysia and Universiti Islam Malaysia will also be discussed.

Keywords: waqf, education, traditional endowment, transformation.

1. INTRODUCTION 2. TRADITIONAL ROLE OF WAQF

Waqf is a way of distribution of property granted to
certain parties with certain intentions and to be used
continuously. Jurists defines an endowment as holding
one's property to be used by others. Donated property
must be in good condition, everlasting and he did waqf
goal is to get closer to God and give virtue to others.
Giver also no longer have a right of property donated
(Al-Khatib al-Syarbini, 1997).
In the current era, the institution of waqf has a great
potential in developing the local economy. Efforts to
raise the waqf is an approach that is relevant and highly
dynamic in preparing the community and build
economic strength.
Waqf management in Malaysia is under the
responsibility of the Council states (MAIN). However,
the management of waqf in the states differs from each
other because of the law, enactment, jurisdiction and
responsibilities of each. Table 9 of the Federal
Constitution of Islamic affairs are under the authority
and responsibility of the King or Sultan.
1
There is no doubt that waqf property have great
potential to develop Muslims economy and finance
social and cultural activities of the Islamic community. It
also able to provide educational opportunities, fund
research activities, dissemination employment
opportunities and to reduce management expenses
incurred by government and reduce dependence on
government funds (Nurul Hilmiyah, Muhammad Hakimi
Mohd Shafiai, Sanep Ahmad, 2013).
Generally waqf is divided into two types: Waqf
Mutlak (general waqf) and also Waqf Muqayyad (special
waqf). Waqf Mutlak refers to the practice of submitting a
waqf with no particular destination in the waqf state
property. The property can be developed for any purpose
as long as they do not conflict with Islamic law. The
practice of dedicating property where donor states the
giving of waqf for specific purposes while dedicating
property and property ownership is to be used only for
the purpose stated by wakif known as the Waqf
Muqayyad.
In addition, there are two categories of property that
can be endowed of immovable and movable property.
The first category is immovable property consisting of
Adv. Sci. Lett. X, XXX–XXX, 2015
land and buildings. The second category is movable
such as books, prayer mats and even cash. The majority
of scholars' view that any property that can be traded can
be donated while the benefits can be enjoyed by the
recipient on an ongoing basis. (Sanep Ahmad and Nur
Diyana bt Muhamed, 2011).
Society generally considers that the waqf should be
managed by religious institutions and used as a
traditional donated his land for the construction of
mosques and schools. Thus the institution of waqf was
considered unimportant and fail to play a role in the
economic development of Muslims. People need to
realize that the existence of the institution of waqf be
used to benefit the general public. This is because the
institution can carry out the duties of waqf property is
formally donated to the more practical and viable.
3. TRANSFORMATION OF THE ROLE OF WAQF
IN MALAYSIA
Utusan Malaysia on June 13, 2014, written by
Prof. Dato 'Dr Noor Inayah Yaakub, entitled
Mencorakkan Kejayaan Wakaf Pendidikan where she
elaborated on the establishment of the Universiti Islam
Malaysia (UIM) through the Educational Waqf agenda.
UIM is a continuation of Malaya Islamic College (KIM),
1995, which is a class institution for the recognition of
university undergraduate academic quality ranking Al-
Azhar University, Egypt. In addition, a scholar from
Egypt, Dr. Ali Gomaah also linked waqf as source that
can bring balance and peace of the place of Islam.
The transformation of waqf for education is very
desirable among university leaderships to enable them to
control the blend of intellectual and policy through waqf
for education. Waqf property development have to go
through a neat and organized management system so
that a positive impact on society and the preparation of
laws and regulations to implement HLins waqf.
According to Muhammad Ali Hashim (2012), it is
necessary to transform the institution of waqf to be more
appropriate and relevant to the Muslim community. The
main message conveyed is that the potential waqf is
used as an instrument of economic empowerment of
Muslims through corporate and business methods,
thereby transforming business and corporate activities to
be handled in a more Islamic than the existing practices.
Therefore, people need to understand that the
transformation of the role of the waqf is one way to help
the community in an effort to improve the economy
thereby helping those who cannot afford to ease their
burden.
Waqf in Malaysia have been discussed from the
point of administration and management to make sure
that it runs smoothly and in accordance with the legal
provisions set out under the responsibility of the State
Islamic Council. From an administration point generally,
the administration of waqf property was placed under
the jurisdiction of the Islamic Council of each state with
different approaches between states. For waqf
management, it is administered through small units
under the treasury. For this purpose, enactments of
RESEARCH ARTICLE
Administration of Muslim of particular states have
allocated enough power to function as the sole trustee of
all property ownership in each state (Hailani Muji Tahir
and Sanep Ahmad, 2009).
Cash waqf is one of the instruments to transform the
role of the trustees. Cash waqf also is an alternative that
can make waqf more productive and it is a tool to
generate and expand the endowment benefit to the
maximum level.
Dr. Murat Cizakca in his article titled A History of
Philantrophic Foundations: The Islamic World From
The Seventh Century to the Present states that during
the reign of Turkey Ottoman, cash waqf practice has
managed to alleviate the expense of the state in
providing education, health, municipal and so on to
society. He also mention that logically, if cash waqf are
practiced nowadays it should also be able to play the
same role as it did in the days Ottoman and help realize
the goals of modern macroeconomics which is to reduce
government spending, reduce the budget deficit and
reduce the government's dependency debt instruments
or loans to finance development projects (Muhammad
Hisyam Bin Mohamad, 2013).
Paper titled Parameter Syariah untuk Wakaf Tunai
have talked about Shariah analysis on the status of cash
as waqf property. Jurists earlier discussed the necessity
or invalidity dinar or dirham as waqf property refers to
money itself is not any assets to be purchased
subsequently. Therefore, the majority of jurists Shafi'i
and Hanbali jurists did not allow waqf dinar and dirham
(now refers to cash) because of the nature of the
property that did not sustain (Muhd Fitri Ellias
Ramadan, Ahmad Firdaus Muhamad Nasir Kadir and
Haron. 2015). Meanwhile, the current ruling bodies
such as the International Fiqh Academy (Majmak Fiqh
Islami) requires a cash waqf at its meeting in 2004 also
clearly said that the amount of money dedicated itself
regarded as waqf property.
In Malaysia, cash waqf approach already adopted by
a number of state Islamic religious councils and private
companies. It also implemented by several state Islamic
religious councils (MAIN) like Selangor Islamic
Religious Council (MAIS) known as Skim Saham
Wakaf.
Through this concept, MAIN will act as trustee and
participants must buy the shares of waqf (saham wakaf)
earlier and then they endow it. The money from that
shares will be collected under a special fund and will be
channeled to economic, educational and social programs
dependent on the choices made by the participants.
Through cash waqf instrument, it can be expanded
to include educational waqf. Educational Waqf among
Muslims in Malaysia also have been executed since the
arrival of Islam to Malaysia and it can be considered as
a positive tradition which need to be developed.
Educational Waqf there in various forms and nature of
the property that has been waqf which is endowment of
scholarships, remuneration and etc.
In Malaysia, the practice of educational waqf are
mostly starting at the school level either primary or
secondary (Wafa Syed Mohd Ghazali. 2010). It also
2
 RESEARCH ARTICLE
underscores the vote Waqf in Malaysia in general
education (Maffuza Salleh, Noor Syahida Abdul
Rahman. 2014).
Some examples of educational waqf have been
established in Malaysia as Islamic Colleges (KIM)
developed on the basis of waqf and donations have set a
good example. Sultan Hisamuddin Alam Shah marked
the history when he announced the decision to waqf his
palace in Klang to be a building for Islamic Colleges
(Prof. Madya Dr. Ahmad Zaki b. Hj. Abdul Latiff, Dr.
Norzaidi b. Mohd Daud and Che Zuina bt. Ismail.
2008).
Malaysian society should be aware that higher
education is very important to the development of the
community and people should not be too dependent on
the government to provide education for all children.
The example of institutes of higher education which
generate income through endowment funds is Universiti
Islam Malaysia. (Mokthar Hj. Ismail, Mohd. Isa Mohd.
Deni, Muna binti Sulaiman and Hairullfazli bin
Muhammad Som. 2015).
Universiti Islam Malaysia (UIM)
The establishment of the Universiti Islam Malaysia
(UIM), located in Cyberjaya is based on waqf. UIM
history began in 1948 through the establishment of
zakat and waqf committee seeks to establish Islamic
College of Malaya (KIM). On 8 April 1955, KIM
campus was officially launched by His Majesty the
Sultan of Selangor. Also present at the ceremony were
representatives of the Malay Rulers, the Speaker of the
National Assembly and representatives of the British
High Commissioner to Malaya. This date is vital in
which for the first time an institution of higher
education established in the country under the Council
of Rulers.
The rapid expansion of Islam and the quality of
higher education offered by KIM has attracted many
within or outside the country. In 1961, Sheikh of Azhar
and President of Al-Azhar University paid a visit to
Malaysia and then to the KIM. The results of the visit,
all first degree offered by KIM recognized as equivalent
to a first degree from the University of al-Azhar. This is
an achievement to be proud. KIM has moved to a new
campus which is also a donated land in Jalan Universiti,
Petaling Jaya in 1966.
During the period from 1966 to 1970, various
events have occurred. Many proposals to strengthen
KIM proposed either by the public or the Government
itself. For example, the proposal to upgrade KIM to
Universiti Malaya Islamic College in 1969 and a
proposal to merge with the National University of
Malaysia which was newly established at that time
(1970). However, the proposal was not granted and the
upgrading of KIM has been suspended in 1971. The
postponement was prolonged until 1995. In 1996, the
annual general meeting of the Association of Former
Graduate KIM (PBSKIM) has approved a resolution to
reactivate the KIM.
3
XXXXXXXXXXXXXXXXX
KIM finally reactivate as a private university in the
name of Universiti Islam Malaysia on 13 July 2014.
Many charitable donations received during the struggle
to reestablish KIM as a UIM.
For example, in 2012, UIM receive a cash waqf fund
contributions amounted to RM5.18 million.
4. EDUCATIONAL WAQF CONTRIBUTION TO
ECONOMIC DEVELOPMENT.
In economics, cooperation attitude in distributing
wealth to others is very important to achieve economic
development of a country. Therefore, waqf should be
seen as one of the mechanisms of sharing one's wealth
with others.
Waqf has a close relationship with economic and
education development. Educational waqf is an
important investment in producing quality human. From
economic perspective, these investments will generate
graduates which is qualified and quality in physical
resources, financial and time and so on can be beneficial
for the economic development of a country in the
future.
Educational waqf including in the waqf charitable
endowments which are intended to help the poor and
contribute to any activities that benefit the general public
such as the construction of libraries, research centers,
education centers, health services, etc. Financial
management or endowment funds is the backbone of the
success of the educational institution of waqf. Three
main things that need to be addressed in the
management of endowment funds education in institutes
of higher education is the supply of funds for physical
development, operating costs and program academic
excellence. Institutions of higher education should be
able to be independent and not depend on grants and
government assistance in managing their operations.
(Najibah Mustaffa and Mohd Zamro Muda, 2014).
The concept of educational waqf is to help develop
an educational institution through donations obtained.
Educational institution run governance, helping
operating costs, build human capital and raising the level
of education of Muslims through the endowment
received (Raja Nor Ashikin bt. Raja Ramli and Nor
‘Adha bt. Abd Hamid. 2014).
In the article of Waqf Financing for Higher
Education:Contemporary Funding Applications in Some
Selected Countries (Siti Mashitoh Mahamood & Asmak
Ab Rahman. 2014) it discusses challenges in financing
the cost of higher education in which students rely on
sponsorship from the government. An Act of the
National Higher Education Fund Corporation Act 1997
(Act 566) is one of the strategies to help students by
providing educational loans for their education to higher
levels.
In addition, this article also discusses the history of
the initial waqf in education starting from teaching in
mosques to the Al-Azhar University, Egypt. Similarly,
the waqf model for education that has been done by the
Higher Learning Institutions in Malaysia such as Dana
Wakaf Ilmu (UPM), Islamic Endowment Fund (IEF) di
Adv. Sci. Lett. X, XXX–XXX, 2015
UIAM and UKM Cash Waqf Scheme and UKM Waqf
Takaful Scheme, UKM. Also mentioned in this article on
the sole trustee-related waqf is Islamic Council states
and all matters relating to the waqf will be decided by
the Islamic Religious Council of the States.
It can be conclude that educational waqf can
contribute the economic development of the country
which is from this instrument, the burden of government
are reduced because the institutes of higher education
can generate their own income and it also can ease the
burden of students to continue their studies to a higher
level. Accordingly, the graduates who succeed through
education of waqf will produce workers who can assist
in developing the national economy. Therefore, the
public should know that the transformation of the role
of waqf is the way to help community to improve the
economy of the country.
5. CONCLUSION
Waqf as an important instrument in enhancing the
socioeconomic especially in attempt to eradicate
poverty for the well-being of the Muslim ummah. Waqf
also able to assist in advancing the education system
over the years and a lot of positive factors contributing
to the sustainability of the country's educational
institutions. Now, serious role should be carried out by
all parties to ensure that the waqf can be implemented
first and relevant.
Thus, the transformation of the role of the waqf in
education helps to improve the economy and bring
awareness to the community about the importance of
waqf especially in its new function.
REFERENCES
[1] Ahmad Zaki b. Hj. Abd. Latiff, NorZaidi b. Mohd Daud, Che
Zuina bt. Ismail. 2008. Pengurusan Harta Wakaf dan Potensinya
ke arah Kemajuan Pendidikan Umat Islam di Malaysia. Jurnal
Pengurusan JAWHAR. Putrajaya: JAWHAR.
[2] Al-Khatib al-Syarbini. 1997. Mughni al-Muhtaj, Jld. 2. Beirut:
Dar al-Ma‘rifah.
[3] Hailani Muji Tahir, Sanep Ahmad. 2009. Fiqh Muamalat dalam
Sistem Kewangan Islam. Shah Alam: Pusat Penerbitan
Universiti (UPENA).
RESEARCH ARTICLE
[4] Maffuza Salleh, Noor Syahida Abdul Rahman. 2014. Wakaf
Pendidikan di Malaysia: Satu Tinjauan. International Research
and Innovation Conference 2014. Kuala Lumpur.
[5] Mohd Zamro Muda, Mohd Ridzuan Awang, Abdul Basir
Mohamad, Md. Yazid Ahmad. 2008. Undang-undang dan
Pentadbiran Pusaka, Wasiat dan Wakaf Orang Islam di
Malaysia. Bangi: UKM.
[6] Mokthar Hj. Ismail, Mohd. Isa Mohd. Deni, Muna binti
Sulaiman and Hairullfazli bin Muhammad Som. 2015. Model
Operasi Wakaf Pendidikan di Malaysia. International
Conference on Cash Waqf 2015 (ICCW2015). 28, 29 & 30 May
2015, Sepang.
[7] Muhammad Hisyam Bin Mohamad. Wakaf Tunai : Pendekatan
Terbaik Untuk Mewakafkan Harta Masa Kini. Berita Harian, 17
Mac 2013.
[8] Muhd Ramadhan Fitri Elias, Ahmad Firdaus Kadir, Muhamad
Nasir Haron. Parameter Syariah untuk Wakaf Tunai.
www.maybank2u.com.my. Retrieved on [21 Jun 2015].
[9] Najibah Mustaffa, Mohd Zamro Muda. 2014. Pengurusan
Wakaf Pendidikan di Institusi Pengajian Tinggi Malaysia: Satu
Sorotan Literatur. International Journal of Islamic and
Civilization Studies. UTM Press.
[10] Noor Inayah Yaakub, Mencorakkan Kejayaan Wakaf
Pendidikan. Utusan Malaysia, 13 Jun 2014.
[11] Nurul Hilmiyah, Muhammad Hakimi Mohd Shafiai, Sanep
Ahmad. 2013. Wakaf Produktif dalam Pembangunan
Pendidikan: Kajian di Pondok Moden Darussalam Gontor,
Indonesia. Prosiding PERKEM VIII, Jilid 3, ISSN: 2332-962X.
[12] Raja Nor Ashikin bt. Raja Ramli, Nor ‘Adha bt. Abd Hamid.
2014. Kelestarian Wakaf dalam membangunkan Institusi
Pendidikan: Kajian Awal. International Conference on
Potgraduate Research 2014.
[13] Sanep Ahmad and Nur Diyana bt Muhamed. 2011. Institusi
Wakaf dan Pembangunan Ekonomi Negara: Kes Pembangunan
Tanah Wakaf di Malaysia. Prosiding Persidangan Kebangsaan
Ekonomi Malaysia ke VI. Melaka 5 – 7 June 2011.
[14] Siti Mashitoh Mahamood & Asmak Ab Rahman. 2014. Waqf
Financing for Higher Education: Contemporary Funding
Applications in Some Selected Countries. Pelestarian Institusi
Wakaf Memperkasa Pendidikan Tinggi Negara. UKM : Bangi.
[15] Syed Mohd Ghazali Wafa. 2010. Pembangunan Wakaf
Pendidikan di Malaysia. Seventh International Conference –
The Tawhidi Epistemology: Zakat and Waqf Economy.
[16] Tan Sri Muhammad Ali Hashim, Wakaf bukan Amalan untuk
Mati sahaja. Sinar Harian, 9 Julai 2012.