[ms] Literature Review on Implementation of Cash Waqf in Malaysia

Abstract

The waqf sector is growing in Malaysia, especially after the concept of cash waqf or waqf through ringgit currency was introduced. The authorised organizations in the waqf sector, namely, State Islamic Religious Councils, Waqf Department, Zakat and Hajj Department (JAWHAR) and Waqf Foundation of Malaysia (YWM), use the waqf approach to encourage Muslims to make endowments. This development is in view of this concept having a vast prospect in dealing with current economic problems afflicting the environment of Muslim society, particularly in Malaysia. Hence, the purpose of this research is to observe the contribution of the waqf sector to the empowerment of the Muslim economy, besides analysing the potential and direction of the Muslim economy in Malaysia. Thus, the objective of implementing cash waqf can be completely achieved. Hence, this literature highlight is to identify and examine the level of cash waqf implementation under the management of authorised bodies in Malaysia. This qualitative research is designed using a content analysis approach. Facts and arguments obtained from primary and secondary sources are examined, evaluated and descriptively analysed. The result of literature review shows the level of understanding among Muslims relating to cash waqf is still low. However, after the Waqf Foundation of Malaysia was founded, in addition to new schemes introduced by other bodies managing waqf, the response for cash waqf increased even though the target level is not yet achieved. Thus, this research focuses on aspects of implementation and potential of cash waqf in order to sustain the Muslim economy in Malaysia.