Cash waqf can solve poverty issues in Malaysia, says Hamzah

SEPANG: Cash waqf has been identified as one of the major tools that could solve the issues of poverty in Malaysia, said Domestic Trade, Cooperatives and Consumerism Minister, Datuk Seri Hamzah Zainudin (pix).
He said to ensure the participation of the general public, an important prerequisite was to educate them on the importance and potential role of cash waqf in socio economic development.
"Another form of utilisation of cash waqf is linking the cash waqf institutions to the agriculture sector by channelling it to buy farming equipment and machinery that would result in the empowerment of poor farmers and the less privileged," he said in his speech at the launch of the International Shariah Scholar Roundtable (iSHAR) here today.
Besides job opportunities, Hamzah said the link between the cash waqf institutions and the agriculture sector would also widen the accessibility of the less privileged to good quality food.
The Malaysian government had played a very positive role in improving and managing waqf and a testament to this was the introduction of waqf as an economic tool in the country in the Ninth Malaysia Plan.
"In an economic sense, waqf can be defined as diverting funds and other resources from current consumption and investing them into productive and prospective assets which generate revenue for future consumption by individuals and society at large," he added.
The text of his speech was read by Bank Rakyat Chairman, Tan Sri Shukry Mohd Salleh.
The two-day iSHAR roundtable organised by Bank Rakyat was attended by 30 local and international scholars aimed at discussing issues related to waqf and the role of Islamic financial institutions which contribute to the betterment of the socio-economic status of the Muslim community worldwide.
Meanwhile, at a media conference, Shukry said the establishment of Waqf Fund project, led by the Association of Islamic Banking Institutions Malaysia (Aibim) and spearheaded by six banks including Bank Rakyat, reflected the awareness of these Islamic financial institutions that waqf has great potential in developing the economy.
"For the Waqf Fund, Bank Rakyat is currently in discussions with a State Religious Council which cannot be named here yet until the discussions have been concluded," he said.
He added that through the Waqf Fund, the six banks would focus on four areas, namely economy, education, health and development of small entrepreneurs.
"For each waqf project, we aim to raise up to RM5 million maximum fund depending on the size and targeted impacts of the project," he added. — Bernama