Constructive Collaboration in Ensuring The Sustainability Of Waqf Fund in Malaysia: A Case Study of myWakaf Initiative

Abstract

This study explores the sustainability of Waqf funds in Malaysia by analyzing the myWakaf initiative, a pioneering model in Waqf management that integrates collaborative governance and innovative financial tools. myWakaf, a partnership between Islamic banks and State Islamic Religious Councils (SIRCs), exemplifies a structured approach to Waqf sustainability, leveraging financial expertise from banks and regulatory oversight from SIRCs to enhance accountability, transparency, and operational efficiency. The study employs a qualitative case study approach, drawing from interviews with key stakeholders and analysis of policy and financial documents to identify five major themes in myWakaf’s framework: governance, financial innovation, transparency, socio-economic impact, and alignment with Sustainable Development Goals (SDGs). Findings reveal that myWakaf’s financial innovations—such as Cash Waqf Linked Sukuk (CWLS) and Waqf-featured unit trusts—provide a sustainable funding model, drawing a broader base of donors by combining social impact with financial returns. However, the initiative faces challenges, including regulatory fragmentation across states, limited public understanding of investment-based Waqf, and occasional inter-organizational friction. To maximize Waqf’s potential in supporting Malaysia’s socio-economic goals, the study recommends a standardized regulatory framework, enhanced transparency, and expanded public-private partnerships. These reforms would enable Waqf to more effectively contribute to poverty alleviation, education, healthcare, and environmental sustainability, aligning with national and global development objectives.