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Proposed improvements to Istibdal implementation management in the state of Penang

Afiffudin Mohammed Noor (Academy of Contemporary Islamic Studies, Universiti Teknologi MARA, Perlis, Malaysia)
Fathullah Asni (Shariah Department, Faculty of Islamic Studies, Kolej Universiti Islam Perlis, Perlis, Malaysia)
Muhamad Husni Hasbulah (Kolej Universiti Islam Perlis, Perlis, Malaysia)
Muhamad Rozaimi Ramle (Department of Islamic Studies, Universiti Pendidikan Sultan Idris, Tanjung Malim, Malaysia)

Qualitative Research in Financial Markets

ISSN: 1755-4179

Article publication date: 16 May 2024

101

Abstract

Purpose

This study aims to examine the factors of implementing istibdal waqf and generating cash waqf funds through istibdal in Penang. This study was based on the previous problem statements, stating that waqf property could not be developed due to lack of cash funds. This has allowed the study to explore the factors for implementing istibdal waqf property and the extent to which the istibdal method can generate cash waqf funds in Penang.

Design/methodology/approach

This study adopted a qualitative method by conducting semi-structured interviews to achieve its research goals. Semi-structured interviews were conducted to comprehensively understand the current practice on istibdal cases in Penang State Islamic Religious Council (MAINPP) through official institutions concerned with waqf management practices in Penang. This research relied on purposive sampling to select the informants. It is a sampling strategy to select the informants in advance based on the research question. To achieve the purpose of this study, two officers from MAINPP were selected based on their working experience and specialisation criteria. As a result, several themes were successfully defined from the interview data before being analysed based on the content analysis method.

Findings

The results present three istibdal implementation processes outlined by MAINPP, namely, the istibdal implementation process for waqf land involved in the acquisition by state authorities (PBN), non-productive waqf land and istibdal applications from certain parties. The results also reveal two factors in implementing istibdal in Penang: the acquisition of waqf land by PBN and the application of istibdal for cemeteries by the Islamic Centre of Universiti Sains Malaysia. From the point of cash fund generation, no case of istibdal implementation records the generation of cash funds to MAINPP. Thus, this study ends with proposals for improving the process and implementing istibdal in Penang to generate cash funds to help MAINPP manage waqf properties.

Research limitations/implications

The study only focused on implementing factors and generating cash waqf funds through istibdal in Penang. At the same time, it can be expanded to other states like Terengganu, Johor and Kelantan. This study only interviewed officers who manage matters related to the affairs of waqf properties. Therefore, it is believed that the study can be extended to other respondents, such as experts in cash fund generation investments and others.

Practical implications

This study proposed improvements to the policy and practice of istibdal waqf property to MAINPP after the shortcomings were identified throughout this study. If improved, these proposals will significantly impact the waqf properties involved in implementing istibdal, where it can generate cash and ensure the constant economic value of waqf properties.

Social implications

This study has great implications for society through the development of a cash waqf fund that can provide great benefits to the needy, in addition to increasing funds for the welfare expenditure of Muslims through rental income, investment and development. Progress and significant impact on waqf property can provide a high indicator of the efficiency of an organisation in managing waqf property. This can attract the interest of the public, especially the wealthy, to always fulfil welfare through the waqf mechanism and share the wealth with the needy.

Originality/value

This study contributes to comprehensive field data on the implementation of istibdal in Penang. The data analysis results are significant to be used by the waqf property management.

Keywords

Acknowledgements

Erratum: It has come to the attention of the publisher that the article, Afiffudin Mohammed Noor, Fathullah Asni, Muhamad Husni Hasbulah and Muhamad Rozaimi Ramle “Proposed improvements to Istibdal implementation management in the state of Penang”, published in Qualitative Research in Financial Markets, Vol. ahead-of-print No. ahead-of-print, was published with incorrect affiliation information for Afiffudin Mohammed Noor. The correct affiliation information is Academy of Contemporary Islamic Studies, Universiti Teknologi MARA, Perlis, Malaysia. The error was introduced in the editorial process and has now been corrected in the online version. The publisher sincerely apologises for this error and for any inconvenience caused.

This research was supported by Ministry of Higher Education (MoHE) of Malaysia through Fundamental Research Grant Scheme (Ref: FRGS/1/2022/SSI13/UITM/02/25). The authors also thank the management of Universiti Teknologi MARA for supporting the research work.

This research was supported by Ministry of Higher Education (MoHE) of Malaysia through Fundamental Research Grant Scheme (Ref: FRGS/1/2022/SSI13/UITM/02/25). The authors also thank the management of Universiti Teknologi MARA for supporting the research work.

Citation

Mohammed Noor, A., Asni, F., Hasbulah, M.H. and Ramle, M.R. (2024), "Proposed improvements to Istibdal implementation management in the state of Penang", Qualitative Research in Financial Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/QRFM-04-2023-0082

Publisher

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Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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