KUALA LUMPUR: Bank Muamalat Malaysia Bhd has managed more than RM20 million of waqf fund to-date under its MyWakaf initiative launched last year.
Chief Executive Officer Datuk Mohd Redza Shah Abdul Wahid said most of the waqf fund has been channelled to Wakaf Selangor Muamalat for the time being.
“We are also dealing with the Selangor Islamic Religious Council, Negeri Sembilan Islamic Council and the Kelantan Islamic Affairs and Malay Customs Council, and we will also be channelling the fund to another state religious council.
“We have been getting very good response from the state religious councils in terms of waqf management, and they understand the terms of a smart partnership under the MyWakaf initiative,” he said after the Islamic Wealth Management: Opportunities in Corporate Waqf for Sustainable Development seminar here today.
The seminar was organised by the Labuan International Business and Financial Centre (Labuan IBFC).
Mohd Redza said the collaboration between financial institutions and state religious councils under the MyWakaf initiative has been proven to be the right move in managing cash waqf fund.
He said waqf contributors could contribute by going to more than 500 MyWakaf authorised bank branches, or do it via the online banking facilities, adding that the funds would be utilised for education, health as well as entrepreneurship purposes, where it is used to help petty traders.
However, Mohd Redza noted that public awareness of waqf contribution was still low due to lack of exposure and understanding on contribution methods and waqf fund management.
“They are more inclined to the obligatory zakat payment which is done once a year, compared with waqf contributions which can be done indefinitely,” he said.
Meanwhile, Labuan IBFC’s Chief Executive Officer Farah Jaafar-Crosby said that waqf institutions played an important role in Islamic finance, prospering and providing for both Muslim and non-Muslim communities.
“Fourteen out of 20 public universities in Malaysia have a waqf unit which collected a total of close to RM30 million in contributions and another RM1.8 billion more in endowments.
“Start-up companies also utilise waqf-based technology to collect waqf contributions through crowdsourcing, and these funds are channelled towards feeding the poor, providing educational assistance and other humanitarian actions,” she added.