IAIS. 3 rd ICIHE - CORPORATE WAQF. - Its Relevance to - Institution CONCEPT, PRACTICE. Kuantan, Pahang, Malaysia. in the 21 st century

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1 IAIS CORPORATE WAQF - Its Relevance to AND Higher FUTURE Education ROLE - Institution CONCEPT, PRACTICE 3 rd ICIHE - Kuantan, Pahang, Malaysia in the 21 st century

2 INTRODUCTORY STATEMENTS: 1. Corporations rule the world. 2. Private Why sector CORPORATE interests crowding out waqf? people s interests everywhere!

3 INTRODUCTORY STATEMENTS: 1. Corporations rule the world. 2. Corporate Private sector REFORM reform Shareholder-centric interests to crowding Community-centric out people s interests Corporate everywhere! Waqf Shift system away from

family-owned Though highly profitable, only 6% lasted to

4 3. MUSLIMS ARE NO LESS ENTREPRENEURIAL THEIR BUSINESSES ARE NOT ORGANISED PWC (Mar 04): 95% of Mid-East businesses were family-owned Though highly profitable, only 6% lasted to third generation & only 2% survived beyond the 3rd generation!

5 A study of Johor Corporation s Corporate Waqf strategy. University of Oxford, December, there is a revival in interest in Waqf... Malaysia... is leading the way in terms of its innovative approach to Waqf....Corporate Waqf seems to be emerging as both an innovative and effective mechanism for the functional, practical delivery of benefits in line with the principles of Waqf.

6 CORPORATE WAQF LANDMARKS

7 CORPORATE WAQF JCorp endowed RM 200 million PLC shares NAV) 3 rd August, 2006

8 Waqf Asset Value Market at endowment date: RM250 million WAQF ASSET VALUE: (Market Cap, 31 Dec 2010) 2011) RM538.5 RM430.4 mill

9 CORPORATE WAQF ENDORSEMENTS National Islamic Ec. Congress (KEI3, Jan.2009) WANCorp-MAIJ MOA Oxford Univ. Study on WANCorp (Dec.2010)

10 A study of Johor Corporation s Corporate Waqf strategy. University of Oxford, December, the case study on JCorp revealed that Business Jihad, CORPORATE WAQF and intrapreneurship have been highly effective and have far exceeded what would have been likely achievable through using conventional development economic tools & known policydriven methods.

BUDGET 2013 28 September, 2012 Congress (KEI3, Jan.

11 CORPORATE WAQF ENDORSEMENTS Johor Islamic Council MALAYSIAN National Islamic Ec. BUDGET September, 2012 Congress (KEI3, Jan.2009) Corporate Waqf (Dec.2010) Oxford Study Masterplan National SIC Congress (State Islamic Councils - Sept.2011)

also involve cash Waqf, shares and equity, though these are currently less prominent.

12 EQUITY A study of vs Johor CORP. Corporation s WAQF Corporate Waqf strategy. In University practice, conventional of Oxford, December, Waqf may also involve cash Waqf, shares and equity, though these are currently less prominent. Corporate Waqf goes beyond this more narrow understanding of Waqf by involving an institutional entity - that is, a Waqf Corporation, which gives it both a Waqf and Mutawalli status, thus acting as Trustee and asset manager, and recognised as such by the relevant religious authority.

13 Corp Waqf mission: 1. Economic empowerment of the ummah through biz-driven & corporate methods 2. Making a success of Fi Sabilillah programs

14 Econ. Empowerment & Poverty Eradication WCorp as Corporate Wealthcreator in Trust for Ummah Business start-ups, mergers & acquisitions (M&A), JV, etc. A Waqf Venture Cap Agency Jobs & career opportunities Entrepreneur development.

15 FI SABILILLAH PROGRAMS Healthcare for the Poor & marginalised

16 WAQAF AN NUR CORPORATION BHD 16 CLINICS +1 HOSPITAL (Dec 2011), in Johor, Negri Sembilan, Selangor, Sarawak & Perak Total no. of Treatment (Up to Dec 2011): 815,611 RM5 Non- Muslims: 50,883

17 FI SABILILLAH PROGRAMS Healthcare for the Poor & marginalised Establishing universities & investing in human cap.

18 INCEIF IQRA CONCEPT, Fdn CORPORATE WAQF CONCLUSION - DIALOGUE PRACTICE,-- ON & - FUTURE ROLE CORPORATE WAQF

19 CORPORATE WAQF: IMMEDIATE IMPACT - Address Leakages in share ownership

20 CORPORATE WAQF: Principal source of ownership YES! NO erosion: TO UMMATISATION PRIVATISATION PRIVATISATION!

21 CORPORATE WAQF: LONG TERM IMPACT MUSLIM POVERTY & MARGINALISATION Imagine having Muslim-owned Waqf MNCs bridging divides!

22 COMPETITIVE 6 USUL DPIM ADVANTAGES: 1. Kekalkan peranan aktif Kerajaan dalam ekonomi Corp. Longevity Not Business Exclusive Total Buy-in. Ketengahkan GLC bantu/perkasa JIHAD! GLC PKS. Ketepikan Jayakan institusi Penswastaan Waqaf Korporat Ec. Khalifahship. Perjuangkan JihadBiz Spiritual Energy

the financial needs of the service sector,

23 Islamic Capitalism and Finance. Prof. Murat Cizakca, Throughout history it was the waqf system which provided education and health --in Islamic countries.... with the waqf providing the bulk of the financial needs of the service sector, there would be a substantial reduction in the govt s expenditure for the provision of services.

24 CORPORATE WAQF: TURKEY VEHBI KOC Foundation Cumulative Launched : 10,000 in Waqf 1969 Koc spending shares 1993: US120 mill (US297m) on 1999: education: US187 mill US$600m. (US762m) 2009: US1.2 billion (40yrs) Turkey 2010: >50 waqf unis. Established 38 institutions: 27 Education; 6 Healthcare, 5 Cultural.

25 KOC FOUNDATION vs WAQF AN-NUR CORP NOT EXACTLY THE SAME: Koc: The waqf entity is perpetually dependent on Koc Corporation. WANCorp: The waqf entity is itself a selfsustaining corporation.

IMAGINE JCORP AS Market Cap. Dec 2011: RM19.

26 JOHOR CORPORATION More than 280 cos. with more than 65,000 employees 8 PLC, inc Kulim Malaysia Bhd, KPJ Healthcare, KFC Holdings, NBPOL & New listed Britain on Palm London Oils, StockX PNG. Market Cap. Jun 2012: RM21.8 billion. IMAGINE JCORP AS Market Cap. Dec 2011: RM19.9 billion. Group PBT 2010: RM962 mill. A WAQF ENTITY! Market Cap. Dec 2010: RM18.1 billion.

Corporate Waqf: WANCorp RM 200 million (NAV) endowed on 3rd August, 2006 RM13 mill

67% KPJ-H Islamic Institutions WAQAF ANNUR Corporation Bhd (Co. Ltd by Gurantee) 9.

PLC shares Registered in WANCorp s name - Public membership, Transparent, Acctable

28 Corporate Waqf: WANCorp RM 200 million (NAV) endowed on 3rd August, 2006 RM13 mill RM 142mil RM45 mill. JLB 3.54% KULIM PLC Shares 4.67% KPJ-H Islamic Institutions WAQAF ANNUR Corporation Bhd (Co. Ltd by Gurantee) 9.25% Conceptual Framework & Waqf Deed: 1. PLC shares Registered in WANCorp s name - Public membership, Transparent, Acctable 2. Dividend Distribution: (70% Reinvested in New Bizs or Expand existing + HRD & IP) 3. 25% Waqaf An-Nur Clinics, Mosques + Islamic Institutions; & 5% for MAIJ.

WAQF AND ITS ROLE IN SOCIO- ECONOMIC DEVELOPMENT

WAQF AND ITS ROLE IN SOCIO- ECONOMIC DEVELOPMENT Mazrul Shahir Md Zuki* I. INTRODUCTION Waqf is an important institution in the Islamic socio-economic system. It has played a key role throughout Islamic