Management of cashwaqffund generation through the implementation ofistibdalin Kedah

Fathullah Asni, Afiffudin Mohammed Noor and Muhamad Husni Hasbulah

Qualitative Research in Financial Markets, 2023, vol. 16, issue 1, 60-86

Abstract: Purpose - The purpose of this study is to examine the management of cashwaqf fund generation through the implementation of istibdal in Kedah. Design/methodology/approach - The data are obtained through literature and empirical data. The authors first review the literature on the importance ofwaqffundraising, the implementation factors ofistibdal waqfand the relevance ofistibdalmethod as awaqffund generation medium to understand the extent to which the scholarly articles have discussed these topics. Furthermore, the authors conducted face-to-face interviews with two Kedah Islamic Religious Council (Majlis Agama Islam Kedah [MAIK]) officers, who were directly involved in the affairs ofistibdal waqfto obtain holistic information regarding implementingistibdal waqfproperties in Kedah. As a result, several themes are defined from the interview data before being analysed based on the content analysis method. Findings - The results of the study show twoistibdalimplementation processes outlined by the Kedah Islamic Religious Council (MAIK), namely, theistibdalimplementation process forwaqfland registered title deed, andwaqfland registered as reserve certificate for religious use like mosque and cemetery. The results also showed three factors in implementingistibdalin Kedah: the acquisition ofwaqfland by the state authority (PBN),istibdalapplication by the state education department (JPN) andistibdalapplication by the mosque committee. Out of eight cases ofistibdalimplementation, four have generated cash funds for MAIK through investment methods from the sale ofwaqflands and rental of replaced shophouses that are able to cover the expenses of managingwaqfproperties in Kedah. Several suggestions are also recommended for MAIK to improve itsistibdalpolicy, thus enabling the institution to generate cashwaqffunds at the maximum rate. Research limitations/implications - This study only focused on the implementation factors and the generation of cashwaqffunds throughistibdalin Kedah, while it can be expanded to other states like Terengganu, Kelantan and Penang. Furthermore, this study only interviewed officers who manage matters related to the affairs ofwaqfproperties, as the session can actually be extended to other respondents, such as those specialising in cash fund generation investments and others. Practical implications - This study proposed some improvements to the policy and guidelines ofistibdal waqfproperty to MAIK after a few shortcomings were identified throughout this study. If improved, these proposals will have a significant impact, especially on thewaqfproperties involved in the implementation ofistibdal, where it has the potential to bring cash generation and ensure the constant economic value ofwaqfproperties. Social implications - This study has a tremendous impact on society, in which their areas have cashwaqffunds that can be developed. It can benefit the needy and increase funds for the welfare expenditure of Muslims through rental income, investment and development. Progress onwaqfproperty provides a high indication of the efficiency of an organisation in managing thewaqfproperty. Thus, the public, especially the rich, is motivated to fulfil their charitable practices throughwaqfmechanism and share their wealth with the needy. Originality/value - This study contributes to comprehensive field data on the implementation factors and generation of cashwaqffunds through the implementation ofistibdalin Kedah. The results of this study are significant to be used bywaqfproperty management.

Keywords: Istibdal; Waqf; Kedah state; Cash fund; Shariah resolutions (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eme:qrfmpp:qrfm-03-2022-0048

DOI: 10.1108/QRFM-03-2022-0048

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