CONTEMPORARY SHARI'AH STRUCTURING FOR THE DEVELOPMENT AND MANAGEMENT OF WAQF ASSETS IN SINGAPORE

Abstract

The institution of waqf proves to bring about social, economic and religious benefit to mankind. It is a vehicle for financing society as a whole (Hodgson, 1974). However, of late there has been a pervasive underdevelopment of waqf assets in the world (Kahf, 1998; Kuran, 2004). One of the reasons cited by Kuran for this underdevelopment is the issue of perpetuity and the inalienability inherent in the features of waqf ( 2004). The other reason, as cited by Kahf and Cizakca (2000; 1998) is the issue of mismanagement and the nationalisation of waqf . However a plethora of reasons can be advanced for the underdevelopment of waqf which includes the entire administration, management, financing and development of waqf. This research therefore aims at indentifying factors needed for the contemporary shari’ah compliant structuring of waqf assets in Singapore and how this can be achieved. The factors and gaps that have been identified include legal, financing, management structure, perception of stakeholders and the shari’ah issues in managing the waqf assets which form the largest group of assets managed by the Islamic Religious Council of Singapore (Muis). The research utilised the semi-structured interview of the various stakeholders and expert opinion relating to waqf. In addition, secondary sources from the case study analysis of Majlis Ugama Islam Singapura (Muis) provide an important and useful insight in understanding the management of waqf in Singapore. The study revealed some interesting findings such as the attitudes towards and the perception of non-shari’ah compliant activities carried out in waqf management, the possibilities of the various instruments that can be used to develop waqf assets and the polar shari’ah interpretation of investment and financing of the waqf assets. All issues are presented with real case study in this thesis. The research will then conclude by offering the possible new structuring of waqf assets using the instruments of Real Estate Investment Trust (REITs) and the various policy changes required to move waqf to the next level of its management in order to realise its full potential