Corporate Waqf for Healthcare: An Innovative Islamic Social Finance Instrument to Support Healthcare System in Malaysia for B40 an

Corporate Waqf for Healthcare: An Innovative Islamic Social Finance Instrument to Support Healthcare System in Malaysia for B40 an

Khairul Fikry Jamaludin (Institute of Islamic Banking and Finance, International Islamic University Malaysia, Malaysia) and Rusni Hassan (Institute of Islamic Banking and Finance, International Islamic University Malaysia, Malaysia)
DOI: 10.4018/978-1-7998-6811-8.ch009
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Abstract

Nobody can deny the fact that health is a nucleus to the lives of the nation. The absence of it can create disharmony for an individual and society at large. Recent phenomena of the COVID-19 outbreak has penetrated the lives of masses. This chaotic event causes an adverse effect on the health and wellbeing of people. Funds are always needed to mitigate or deal not only for such pandemic but for other types of diseases as well. Wealth and health have interrelationships that can hardly be separated. This chapter primarily aims to discuss how corporate health waqf can be an alternative means to revive and sustain the good health and wellbeing of people. In addition, this chapter also aims to provide a new model of waqf instrument to realize the concept of Islamic social finance in the healthcare system in Malaysia. The concept of fairness and justice in corporate health waqf is used in this research paper. The concept is crucial in distributing wealth and resources for the betterment of the health and wellbeing of the masses, especially among the B40 and M40. This chapter provides solutions and suggestions for the health institutions to be supported by waqf institutions. This chapter provides an idea to establish the concept of corporate health waqf in order to establish security in health and economics for social wellbeing.
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Introduction

According to Kahf (2003), waqf means to hold property and preserve it in order to benefit the beneficiaries and it is prohibited to be disposed other than specified objectives detailed by the donor (waqif). The definition of waqf given by Kahf can be inferred that waqf is essentially a perpetuity philanthropic instrument where the benefit shall be extracted from it and disseminated to the beneficiaries. Its perpetuity can neither be relinquished nor decreased although the action of istibdal (exchange) is executed by the authority, in some cases, for the public interest. Traditionally, waqf was practiced mainly through the involvement of immovable properties such as land, mosque, and buildings. However, waqf is not only confined to such types of properties, but rather it also embraces movable properties such as books, livestock, shares, stocks, and cash.

The history of waqf in Malaysia is believed to come into existence ever since more than eight hundred years ago. It was introduced by the Arab traders who came into Malay Land (Tanah Melayu) for trading purposes. At that time, Sultan Umar, who was the ruler of Terengganu developed the waqf system and it was evidenced by a waqf deed executed by him. The Sultan regarded waqf as an instrument to disseminate knowledge and promote education to the people (Yaacob, 2013). During this era, waqf was executed through verbal communication between a man and a leader of a village which was known as penghulu. Since it was only verbal communication, problems would commonly occur especially in the event of penghulu’s death. It rises due to the absence of records between the waqif and the nazir (trustee) (Yaacob, 2013).

After modernization took place in Malaysia, this country has developed more systematic laws governing the waqf administration. Federal Constitution, which is the highest law in Malaysia, has outlined matters pertaining to Islamic laws that are put under the jurisdiction of State List specifically in the Ninth Schedule List II of the Federal Constitution. By virtue of the law, the King or the Yang Di Pertuan Agong becomes the head of religious affairs in every state. State Islamic Religious Council (SIRC) is established in every state in order to ensure the efficiency in administering Islamic law which includes waqf. The institution of SIRC will act as sole nazir in managing all the waqf assets in the interest of waqif specified in the foundation deed (Yaacob, 2013).

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