Islamic chamber proposes law to boost corporate waqf

KUALA LUMPUR: The Islamic Chamber of Commerce Malaysia has proposed the enactment of a law to allow business or corporate waqf (Islamic endowment) to be implemented at the federal and state levels to spur the economy.

Its president, Tan Sri Muhammad Ali Hashim, said this would boost waqf activities and enable more bodies to approve the endowment activities.

“We need to encourage waqf institutions to grow so that property ownership can last a long time and can be shared together, unlike corporations that are usually owned by individuals.

“This will help improve the income of the less fortunate, thus empowering the Muslim community financially and economically,” he told reporters after delivering a keynote address at the Malaysia’s Islamic Capital Market Seminar, here yesterday.

At present, waqf or Islamic endowment contributions are given only to state Islamic religious councils.

In his speech, Muhammad Ali also proposed to the government to consider the participation of waqf institutions in the privatisation of government-linked companies to ensure the continuity of corporate ownership being fairly distributed in the society.

“Priority should be given to waqf institutions, if there is any, as it will contribute directly to the economic development of the country besides safeguarding public interest.

“The government should also explore the possibility of allocating shares to waqf institution as a condition for IPOs ,” he said. – Bernama