Durham E-Theses WAQF DEVELOPMENT IN MALAYSIA AND SINGAPORE: A COMPARATIVE STUDY HAJI-MOHIDDIN, HAJAH,MAS,NOORAINI How to cite: HAJI-MOHIDDIN, HAJAH,MAS,NOORAINI (2015) WAQF DEVELOPMENT IN MALAYSIA AND SINGAPORE: A COMPARATIVE STUDY , Durham theses, Durham University. Available at Durham E-Theses Online: http://etheses.dur.ac.uk/11118/ Use policy The full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that: • a full bibliographic reference is made to the original source • a link is made to the metadata record in Durham E-Theses • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders. Please consult the full Durham E-Theses policy for further details. Academic Support Oce, Durham University, University Oce, Old Elvet, Durham DH1 3HP e-mail: [email protected] Tel: +44 0191 334 6107 http://etheses.dur.ac.uk 2 i ACKNOWLEDGEMENT Alhamdulillah, all praise to Allah, the most gracious and the most merciful for the guidance and blessing in realising my goal to achieve this success in my studies. I would like to express my deepest appreciation to many people and organisations for their willingness to assist me in the process of completing this thesis. Firstly, I would like to dedicate a special thanks to my supervisor Prof Habib Ahmed for his guidance, assistance, support, patience and motivation throughout my study in Durham University. The amount of knowledge and experience that were gained are invaluable. He is very understood of difficulties and challenges that I have faced in completing this study. Without his guidance and persistent help this thesis would not have been completed. I also would like to dedicate my special thanks and appreciation to my sponsor; Universiti Islam Sultan Sharif Ali (Sultan Sharif Ali Islamic University) for giving me this golden opportunity and for their financial support. In addition, the thanks should also be extended to waqf directors from Johor and Singapore for their supportive and cooperation and also for all respondents in Johor and Singapore whose willing provide me input for this study. This study will be incomplete without their cooperation and although it is consider as a small contribution but it means a huge for me in order to achieving the target. Most of all, my special gratitude to all my family members especially to my husband; Haji Rosli, my children; Mohammad Hilmi, Nur ‘Abqarah ‘Alya and Nur ‘Afiqah ‘Aliyah for their understanding and helping me survive all the stress throughout the study. For my beloved mother; Hajah Siti Hosnah and my late father; Haji Mohiddin who really want to see his children reach into this level. This strength and capability is come from you and for you. They have supported me with their endless love, moral support, prayers and encouragement. Last but not least, many thanks to all my friends and family in Durham who made our life during my study is enjoyable. May Allah always give His blessings to them in this world and the hereafter. Ameen. ii DECLARATION I hereby declare that no portion of the work that appears in this study has been used in support of an application of another degree in qualification to this or any other university or institutions of learning STATEMENT OF COPYRIGHT The copyright of this thesis rests with the author. No extract from it should be published without his prior written consent, and all information derived from it should be acknowledge iii ABSTRACT Waqf Development in Malaysia and Singapore: A Comparative Study Hajah Mas Nooraini Haji Mohiddin Waqf or endowment as an institution begins with a pious intention to do good deeds for the benefit of one and others. In other words, waqf is a dedication made by one person for the benefit of others, with the intention that the dedicator be entitled to a continuous reward from Allah the Creator throughout the period of the endowment. Once the waqf is declared by the person it will effect a transfer of the property which is the subject matter of the dedication to Allah Almighty. However the benefit derived from the use of property will be given in accordance with the founder’s intention. Historically, waqf played a key role in the development of Muslim societies. Waqf served the Muslim community (ummah) in almost all fields, such as religion, education, medicine and other socio-economic activities. However, nowadays waqf has become dormant and less popular in Muslim countries. Waqf no longer serves the needs of the ummah due to problems, such as mismanagement, waqf laws and awareness of it in Muslim society. The status of waqf has deteriorated to such an extent that in some countries waqf assets have been neglected and abandoned. As a result of colonialism, Malaysia and Singapore adopted western laws, which precede Islamic laws including those dealing with waqf. Despite this, Johor and Singapore still provide the best models of the successful development of waqf. Therefore, it is interesting to compare the different environments and situations of the two states in order to identify the challenges faced by waqf institutions in both states. Based on a comprehensive literature review of issues affecting waqf in the two states, the following major themes were identified; legal issues, perceptions, management and operation. The importance of the legal system is basically to support and protect waqf in areas such as registration or amending the deeds. Any change in contemporary law does not necessarily mean it is against Shariah principles, as long as the state regulation upholds Shariah principles, in order to protect the waqf while catering for the current situation. Generally, both quantitative and qualitative data support the theory that many people still believe that waqf is only for religious purposes. The data obtained from both states also show that national differences play an important role in the variation of knowledge and awareness of waqf. In managing waqf, there are problems or challenges that have to be faced. The problems that can be detected are from three kinds, namely; development, management and public awareness. However, lack of awareness amongst the public becomes problematic when there is a need to increase and iv improve waqf assets. Based on the empirical analysis presented in this thesis, the last chapter’s purpose is to highlight policy recommendations with respect to improving waqf development and increasing public awareness. This small contribution not only fulfils the research requirement but hopefully also helps to make my beloved small country Brunei Darussalam more aware of and concerned with this important institution. v TABLE OF CONTENTS Page ACKNOWLEDGMENTS ii DECLARATION iii ABSTRACT iv TABLE OF CONTENTS vi LIST OF TABLES xii LIST OF FIGURES xvii GLOSSARY xviii ABBREVATIONS xxiii Chapter 1: Introduction 1.1 Introduction 1 1.2 Statement of the Problem 2 1.3 Rationale and Significance of the Study 3 1.4 Research Aim and Objectives 4 1.5 Research Questions 4 1.6 Research Methodology 5 1.7 Structure of Research 6 Chapter 2: Non-profit Organisation: Organisational, Format, Operation and Management 2.1 Introduction 10 2.2 Concept and Principle of Non-profit Organisation 11 2.3 The History of NPOs and Endowments 14 2.4 The Role and Function of NPOs 17 2.5 Law and NPOs 19 2.5.1 Management & Operation 20 vi 2.5.2 Different Types of NPOs 26 2.5.3 Source of Funds 26 2.6 Waqf Institutions 28 2.7 Relation between Waqf, Trust & Endowment 29 2.8 State Law’s Impact on Waqf Application 32 2.9 Philanthropic Behaviour/Motivation 33 2.10 Conclusion 35 Chapter 3: Waqf in Islam 3.1 Introduction 36 3.2 Waqf and Other Related Concept: Infaq, Sadaqah and Donation 36 3.3 Concept and Principles 39 3.4 Types of Waqf 43 3.4.1 Objective 44 3.4.2 Tenor 45 3.4.3 Assets Utilisation 45 3.5 Waqf History 48 3.5.1 Waqf in Pre-Islamic Times 48 3.5.2 Waqf in Early Islam 49 3.5.3 Development of Waqf after the Prophet Era 51 3.6 The Origin and Practice of Waqf 53 3.7 Waqf Legal Conditions 56 vii 3.5.1 Process of Establishment a Waqf 56 3.5.2 Founder or Creator 58 3.5.3 Waqf Asset 59 3.5.4 Beneficiaries (Outcomes) 61 3.8 Waqf Management & Administration 62 3.9 Legal Characteristics of Waqf 68 3.10 Ownership of Waqf Property 69 3.11 Waqf Output/Beneficiaries 70 3.11.1 Religion 71 3.11.2 Education 71 3.11.3 Medical 72 3.11.4 Socio-Economic Support 73 3.12 Waqf Development on Contemporary Era 74 3.12.1 Waqf Development in Muslim Countries 75 3.12.2 Waqf Management in Non-Muslim Countries 76 3.13 Conclusion 79 Chapter 4: Waqf in Johor, Malaysia and Singapore 4.1 Introduction 80 4.2 Background of Singapore and Johor 81 4.3 The History of Waqf in Malaysia 83 4.4 Waqf Development in Malaysia 88 4.5 Waqf in Johor 92 4.5.1 The Provision of Waqf in Johor Legislations 92 4.5.2 The Administration of Waqf in Johor 94 viii 4.6 The Origins and Development of Waqf in Singapore 103 4.6.1 The Provision of Waqf in Singapore 105 4.6.2 The Administration of Waqf in Singapore 107 4.7 The Impact of Waqf in Various Fields in Johor and Singapore 117 4.8 Conclusion 119 Chapter 5: Research Methodology 5.1 Introduction 120 5.2 Research Aim, Objectives and Questions 120 5.3 Research Methodology 121 5.4 Research Process 123 5.5 Research Approach, Strategy and Purpose 126 5.5.2.