nep-isf New Economics Papers
on Islamic Finance
Issue of 2023‒02‒20
one paper chosen by
Rachita Gulati
IIT Roorkee

  1. Towards Developing a Shariah Governance Framework for Waqf Institutions: A Case of Majlis Agama Islam Melaka By Syed Ahmed Salman

  1. By: Syed Ahmed Salman (Lincoln University, Petaling Jaya, 47301, Malaysia Author-2-Name: Rusni Hassan Author-2-Workplace-Name: IIUM Institute of Islamic Banking and Finance, Gombak, 53100, Malaysia Author-3-Name: Nur Atiqah Maulad Murat Author-3-Workplace-Name: IIUM Institute of Islamic Banking and Finance, Gombak, 53100, Malaysia Author-4-Name: Adnan Yusoff Author-4-Workplace-Name: Universiti Tenaga Nasional, Kajang, Selangor, 43000, Malaysia Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: " Objective - Since Islam, Waqf, known as the Islamic endowment, has played a significant role in reforming and developing the economy. Like zakat (compulsory charity) and sadaqah (optional charity), Waqf has also been considered an essential means of poverty alleviation and upliftment. In Malaysia, each state's jurisdiction, called the State Islamic Religious Council (SIRCs), supervises waqf properties' governance. However, recently, it has been reported that the SIRC responsible for managing waqf properties has been unable to manage and operate effectively. To devise a well-designed strategy that can strengthen governance within the waqf institutions. Moreover, restoring Waqf as a mechanism for socio-economic development may be necessary for waqf institutions to develop their formal governance framework. Therefore, this paper aims to conduct a qualitative study of current Shariah governance practices in Waqf institutions at Majlis Agama Islam Melaka (MAIM). Methodology – The qualitative research method was used for this investigation. The interviewees are chosen using a selection process that is a hybrid of convenience sampling and purposeful sampling. Both content and descriptive analysis were utilized in analyzing the outcomes of the interviews. To obtain information on waqf governance in MAIM, an interview was conducted with various officers from the organization. A total of six experts in the field of Waqf from MAIM participated in this study and were interviewed for this research. Findings – The current practices of Shari'ah Governance in Waqf Institution in Majlis Agama Islam Melaka (MAIM) have been examined through interviews and brochures from interviewees. Several gaps were found in the organization's structure; Board of Directors, Shariah Committee, Shariah Audit, Shariah Review, and Shariah Risk Management. Based on findings extracted from the analysis, researchers provide several recommendations. Novelty – This study is unique because there was no study conducted on the current practices of Shari'ah Governance in Waqf Institution in Majlis Agama Islam Melaka (MAIM). The officers and board of directors will benefit significantly from this research in both an educational and a guiding capacity. Type of Paper - Empirical"
    Keywords: Waqf; Shari'ah governance; Majlis Agama Islam Melaka; and Malaysia
    JEL: A12 Z12 Z19
    Date: 2022–12–31

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