Development of an Innovative Model to Empower Wakaf Authorities in the

 DEVELOPMENT OF AN INNOVATIVE MODEL TO EMPOWER WAKAF AUTHORITIES IN THE PROVISION OF AFFORDABLE HOUSING

Khairuddin Abdul Rashid, et al.1

International Islamic University Malaysia

ABSTRACT

Malaysians, especially needy Muslims and their families are facing a variety of hardships to meet ends, including access to or owning affordable housing. Wakaf can be an instrument that could be utilized to help them. However, few have been done by the wakaf authorities, on a large scale, in addressing the problem of having access to or owning affordable housing faced by needy Muslims, their families and others. This study was undertaken with the aim to empower wakaf authorities in the provision of affordable housing for needy Muslims, their families and others. The methodology adopted was: 1) extensive literature review, 2) questionnaire survey, 3) interviews, and 4) face-to-face discussions. The findings from this study suggest that wakaf is permitted to develop affordable housing; and some wakaf authorities have already undertaken such initiatives. Wakaf authorities are capable in terms of funding, availability of suitable land and to work in collaboration with private proper developers. However, the wakaf authorities are still lacking in terms of expertise and post-completion capabilities. Thus, to empower wakaf authorities in the provision of affordable housing, 4 procurement models have been developed, validated and herein proposed. They are ranked in order of importance: 1) Joint-venture (JV); 2) Buy existing stocks; 3) In-house by the Majlis Agama Islam Negeri-negeri (MAIN); and 4) Public-Private-Partnership (PPP) via Concession.

Keywords: Affordable Housing, Development, Economics, Endowment, Poverty, Wakaf