An empirical investigation on waqf governance practices in waqf institutions in Malaysia

Abstract

Purpose

This study aims to examine and compare the current waqf governance practices in waqf institutions in Malaysia.

Design/methodology/approach

This paper reviews professional documents and literature to propose a new and practical waqf governance measurement. Waqf governance measurements were used to examine and compare the current waqf governance practices among waqf institutions in Malaysia. The annual reports of all waqf institutions under the State Islamic Religious Councils (SIRCs) were analysed using content analysis on the current waqf governance practices using binomial logic.

Findings

Overall, the results indicate moderate waqf governance practices under three waqf governance categories, namely waqf governance policy, waqf governance board and waqf governance processes. This study also found a significant impact of corporatisation reformation of waqf institutions on waqf governance practices.

Research limitations/implications

The findings indicate the need for all waqf institutions in Malaysia, especially for non-corporate waqf institutions, to enhance their waqf governance practices by disclosing all relevant information to the public. This is because the success of waqf fund management can be portrayed through the management’s transparency in waqf governance practices on how they deliver and use their resources to attain socio-economic objectives.

Originality/value

To the best of the authors’ knowledge, this study is among the first studies that examined and evaluated the current waqf governance practices in several waqf institutions in Malaysia.

Citation

Kamaruddin, M.I.H. and Hanefah, M.M. (2021), "An empirical investigation on waqf governance practices in waqf institutions in Malaysia", Journal of Financial Reporting and Accounting, Vol. 19 No. 3, pp. 455-473. https://doi.org/10.1108/JFRA-03-2020-0055