Datuk Ir Dr Abdul Rahim Hashim (right) received the "Waqf chair" documents from Higher Education minister, Datuk Seri Idris Jusoh (left) witness by Sultan of Perak Sultan Nazrin Muizzuddin Shah.
KUALA LUMPUR: The Sultan of Perak has called for the formation of a formal governance structure for Malaysia's waqaf system.
Sultan Nazrin Muizzuddin Shah said he believed that strong governance and professionalism are necessary to gain public trust in the Islamic collective endowment system.
"This framework may include a clear indication of the roles and responsibilities of the waqaf trustee and the waqaf authority, as well as a code of conduct outlining the need for the trustees to act in good faith, with prudence and fiduciary care, and in the best interest of the donors and beneficiaries," he said during his keynote address at the Higher Education Forum 2018 Islamic Economics @4IR: Waqf Revival here on Thursday (Feb 22).
Sultan Nazrin said that waqaf authorities should also continuously engage with different stakeholders and establish an effective communication policy.
He added that transparency is very important to build trust with society.
"Perhaps the biggest impediment to the development of the waqaf system, however, is the perceived poor management of waqaf institutions, as a result of limited regulation and supervision mechanisms," he said.
Sultan Nazrin said that waqaf authorities should undergo regular training for asset management.
State Islamic Councils should also collaborate with the private sector to learn how they handle commercial property development.
The Perak Ruler added that most of Malaysia's waqaf properties are mosques, madrasahs and cemeteries, and very little waqaf land actually generates income.
He also said that current statistics show only 2% of Malaysia's 13,500 hectares of waqaf land has been redeveloped.
Sultan Nazrin said financial technology must be embraced to enhance the efficiency of waqaf collection and distribution.
"Technological advances are being made every day, and emerging breakthroughs in fields such as artificial intelligence, robotics, the Internet of Things, nanotechnology and biotechnology will no doubt further enhance the potential of the waqaf system in ways that we cannot imagine today," he said.
Also present was Higher Education Minister Datuk Seri Idris Jusoh.
He said that embracing waqaf is an important part of the ministry's efforts to redesign Malaysia's higher education landscape, with higher education institutions playing a key role.
Idris added that by embracing waqaf, higher education institutions can diversify their sources of income and achieve financial stability.
So far, he said, 14 public universities have set up waqaf units.
Last year, he added, only Universiti Putra Malaysia and Universiti Kebangsaan Malaysia had waqaf units.
"I believe that this noble effort will go towards students' scholarships and welfare as well as teaching, research and development endeavours," he added.
During the same event, Idris also announced the setting up of a Waqaf Chair in Universiti Malaya.
"This Waqaf Chair will witness greater development of knowledge in the field and is indicative of the importance of this endeavour for the society."
The two-day conference is a platform for collaboration, discussion and debate on how to "revive waqaf" for the fourth industrial revolution, he added.
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