Exploring the economic of the management of cash Wagf: Implication on Poverty Eradiction

• Main Authors: Rosita Katherine Chong @ Rosidawati, Syed Othman Alhabshi
• Format: Research Report
• Language: English
• Published: Universiti Malaysia Sabah
• Subjects: HC Economic history and conditions
• Online Access: https://eprints.ums.edu.my/id/eprint/22851/1/Exploring%20the%20economic%20of%20the%20management%20of%20cash%20Wagf.pdf; https://eprints.ums.edu.my/id/eprint/22851/

The study provides some very interesting findings on the assessment of the impacts of cash waqf on the life of the respondents in this study. In Malaysia, corporate waqfcame into existence when the investment arm of Johar state that is Johar Corporation collaborated with the Johar State Islamic Religious Council to set up a corporate waqf, whereby members can contribute a certain percentage of their shares or equity in the company. The returns from these investments are used to finance the medical treatments for the poor at the waqf hospital and clinics as well as providing cash waqfto small businesses. At the same time, a fund under the name of dana niaga waqf or waqf business fund was also established with the objective to assist small businesses in securing financing to start businesses. The small businesses are given Qard ul Hasan (Benevolent loan). It is a micro credit that is interest free. The findings of the study reveal that there is a positive impact of waqfbusiness fund on the life of the recipients of the fund. The analysis also suggests that there is a significant difference in the life of the waqfbusiness fund recipients before and after they have received the fund. In term of the impact of waqf hospital and clinics, findings on users of the services in the hospital and clinics have also indicated that the quality of life of these users has improved, in term better quality of health as well as the overall aspect of their life. The study has demonstrated.that cash waqf is a useful economic tool in the endeavour to alleviate poverty. Previous studies and this study itself have proven that the cash waqf has affected the life of the poor by allowing them to participate in business with the availability of waqf business fund. At the same time, cash waqf also provide funding to develop various facilities to benefit poor such as mosques, a place not only for worship but a centre of knowledge. The model of cash waqf management and monitoring system is proposed in order enable a person who wants to donate has an avenue to donate and be assured that the money that donated is not misused. It also allows funds that were donated to be invested and the proceeds be distributed to the deserving poor.