International Best Practices in Existing Corporate Waqf Models: A Retrospective – Introduction, Chapter Content, Best Practices

International Best Practices in Existing Corporate Waqf Models: A Retrospective – Introduction, Chapter Content, Best Practices

Noor Suhaida Kasri (International Shariah Research Academy for Islamic Finance (ISRA), Malaysia) and Muhammad Hasan Hilmi (International Shariah Research Academy for Islamic Finance (ISRA), Malaysia)
DOI: 10.4018/978-1-7998-1245-6.ch011

Abstract

Waqf is being introduced and implemented in a number of innovative structures with contemporary movable asset class. Despite that, there is still a demand for waqf to be more effectively organised and managed. This chapter studies the contemporary establishment of corporate waqf, as exemplified by Waqaf An-Nur Corporation Berhad, Larkin Sentral Property Berhad, and Wareef Endowment Fund. These models are analyzed from the angles of governance, sustainable investment strategy, risk management, and social impact. These mini case studies are benchmarked against the leading Harvard Endowment Fund. The analysis sheds light on their levels of efficiency and effectiveness as well as their issues and challenges. This chapter proposes recommendations for consideration, especially to policy makers and waqf market players. This chapter adopts a qualitative research methodology by using textual and documentary analysis together with semi-structured interviews and discussions with the relevant stakeholders.
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3. What Is Corporate Waqf?

Corporate waqf is an initiative that combines classical waqf concept and corporate business efforts (Saad, Sarif, Osman, Hamid and Saleem, 2017). According to Ibrahim, Noor, Shariff and Rusli (2016), the term ‘corporate waqf’ was popularized by Johor Corporation (JCorp) in 2006 when it launched its first corporate waqf scheme, Waqaf An-Nur Corporation Berhad. Meanwhile Securities Commission of Malaysia (2014) describes corporate waqf as a type of corporate instrument where liquid asset like shares or securities endowed as waqf assets and thus enabling the waqf institutions to benefit from the dividend that can finance any welfare project or initiative.

According to Tan Sri Ali Hashim, a trailblazer in the Malaysian corporate waqf industry, there are six models of corporate waqf that could be structured which includes: business entity or corporation, banking and financial institutions, universities, foundations, cooperatives, and hospitals or clinics (Jalil and Ramli, 2014). There are already corporations establishing corporate waqf based on those structures for example Johor Corporation, Koc Holdings, Social Investment Bank of Bangladesh, Tabung Haji Properties, Bank Muamalat Berhad, Larkin Sentral Sdn Bhd, Alinma Investment Bank. Three corporate waqf structures namely WANCorp, Larkin Sentral and Alinma Wareef have been selected for this chapter as they are considered as among the latest and innovative corporate waqf models around.

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