KUALA LUMPUR: The Waqf-Featured Funds (WQ-FF) has raised aggregate funds totalling RM46.7 million as of December 2022, according to the Securities Commission (SC).
Chairman Datuk Seri Awang Adek Hussin said although the amount might be a little small, it was undoubtedly a clear sign that the WQ-FF is moving in the right direction.
He added that six WQ-FFs have been issued following the launch of the WQ-FF Framework in 2020.
“The WQ-FF allows investors to give a portion of their dividends from unit trusts or wholesale funds to charity or charitable projects in the form of cash,” he said in his welcoming remarks at the Waqf and Islamic Capital Market Conference today.
Awang Adek said the framework was expanded last year to include Islamic Real Estate Investment Trusts (REITs) and Islamic exchange-traded funds to further deepen and broaden the choice of products.
He noted that the WQ-FF Framework has been able to promote greater collaborations between Islamic fund management companies and state Islamic religious councils.
“We are pleased with the development to-date. There has been an increase in efforts by all parties in exploring and identifying the potential of waqf assets development,” he said.
Awang Adek said Islamic social finance, especially waqf, has plenty of room for growth, benefiting from a wide range of Islamic capital market instruments available to support sustainability financing while addressing socio-economic imbalances and developments.
To optimise Islamic finance instruments, he said the SC and all stakeholders need to work towards a common goal with a common purpose, namely, putting Islamic social finance high on the national agenda, in line with the growing focus on environmental, social and corporate governance financing globally.
Meanwhile, Minister in the Prime Minister’s Department (Religious Affairs) Datuk Dr Mohd Na’im Mokhtar said waqf plays an important role in the development of the country’s economy and society.
“Waqf stands out as a dynamic and more flexible social financial instrument in terms of the specifications with regards to the contributors, recipients and its implementation.
“Therefore, waqf has the potential to be an alternative source of finance, especially among low-income community segments in the face of the high cost of living challenges,” he said in his speech.
In this context, Mohd Na’im said the SC should be recognised as a “thought leader” in the development and application of the waqf concept in the capital market industry.
He said the empowerment of Islamic financial instruments with waqf elements such as waqf bonds and shares, Shariah-compliant crowdfunding platforms, as well as the integration of the latest technology such as blockchain and fintech in the management of waqf funds – is an important stepping stone for the innovation and development of waqf in Malaysia.
He added that such instruments can enhance financial inclusion which is an important factor in actualising sustainable development goals such as poverty eradication and the creation of high-quality jobs.
“I believe that strategic collaborations between the SC and the State Islamic Religious Council (MAIN) will ensure the successful implementation of the plans in hand,” he said.
Mohd Na’im also announced that the SC will be collaborating with several stakeholders, including academicians, to publish the second edition of the SC waqf book which aims to strengthen and complement the upcoming National Waqf Masterplan, which will be the main source of reference for the development of waqf through the Islamic capital market in Malaysia. – BERNAMA
