Boost for syariah savings and wakaf assets

KUALA LUMPUR: Assets under the Employees Provident Fund’s (EPF) syariah savings will be totally separated from other kinds of investments beginning next year, says Datuk Seri Anwar Ibrahim.

The Prime Minister said the EPF syariah savings, introduced in 2017, are invested alongside syariah-compliant assets in conventional savings.

“Starting from 2024, the assets under syariah savings will be completely segregated to give competitive returns to 1.25 million syariah account holders,” he said when tabling Budget 2023 yesterday.

EPF’s syariah – or Simpanan Shariah – is a savings option managed and invested by the EPF in accordance with syariah principles.

Meanwhile, Anwar said in line with the Madani framework, the wakaf (endowment) approach is one of the wealth distribution mechanisms that can contribute to the wellbeing of the people.

He said the registered wakaf land stood at 3,500ha, adding that more effort should be made to develop these land and wakaf assets.

“The government has received a commitment from the private sector to set up Wakaf Madani (trust), with assets worth RM1bil.

“These assets consist of land, mosques, buildings as well as health and education facilities that will be optimised to benefit the hardcore poor, lower income and other vulnerable groups,” he said.

Anwar said the government will also form the National Wakaf Land Committee with the objective of contributing 20% to the development of the social Islamic finance sector by this year.

“To ensure that this objective is met and to show the seriousness of the government, I will chair this national committee myself,” he added.