Financial Performance and Sustainability in Malaysian Waqf Institutions

Asia Proceedings of Social Sciences, 6(2), 169-173

5 Pages Posted: 23 Jun 2020

See all articles by Mustafa Hanefah

Mustafa Hanefah

Universiti Sains Islam Malaysia (USIM) - Faculty of Economics and Muamalat

Muhammad Iqmal Hisham Kamaruddin

Universiti Sains Islam Malaysia (USIM)

Rosnia Masruki

Universiti Sains Islam Malaysia

Fuadah Johari

Universiti Sains Islam Malaysia (USIM)

Aimi Fadzirul Kamarubahrin

Universiti Sains Islam Malaysia (USIM)

Date Written: 2020

Abstract

The article was design to measure the financial performance and sustainability in selected Malaysian institutions. Examining its performance and sustainability could be useful to assess waqf perpetual existence. Besides that, waqf institutions frequently compare actual performance with standards or expectations to enhance the organizations’ achievements. Thus, by using ratio analysis, this study examines five years (2014-2018) annual reports of waqf private entity administered by Pusat Wakaf Majlis Agama Islam Wilayah Persekutuan Sdn. Bhd (PWMSB) and two waqf corporations which are Pusat Wakaf Selangor (PWS) and Wakaf An-Nur Corporation (WANCorp). The findings indicate that in all seven components only one waqf institution has been financially performed and sustained. The results provide valuable insights into the financial performance and sustainability of waqf institutions, and highlight the need for policy makers in Malaysia and other Muslim countries due attention to the systemic accountability to ensure the systematic revival of waqf institutions. It is hoped that the study's findings and recommendations will allow these institutions to report financially and to be accountable at a higher level.

Keywords: Financial Performance, Financial Sustainability, Waqf

JEL Classification: M41

Suggested Citation

Hanefah, Mustafa and Kamaruddin, Muhammad Iqmal Hisham and Masruki, Rosnia and Johari, Fuadah and Kamarubahrin, Aimi Fadzirul, Financial Performance and Sustainability in Malaysian Waqf Institutions (2020). Asia Proceedings of Social Sciences, 6(2), 169-173, Available at SSRN: https://ssrn.com/abstract=3612465

Mustafa Hanefah

Universiti Sains Islam Malaysia (USIM) - Faculty of Economics and Muamalat

N.Sembilan
Malaysia

Muhammad Iqmal Hisham Kamaruddin (Contact Author)

Universiti Sains Islam Malaysia (USIM) ( email )

Bandar Baru Nilai
Nilai, 71800
Malaysia

Rosnia Masruki

Universiti Sains Islam Malaysia ( email )

Bandar Baru Nilai
Nilai, 71800
Malaysia

Fuadah Johari

Universiti Sains Islam Malaysia (USIM) ( email )

Bandar Baru Nilai
Nilai, Negeri Sembilan 71800
Malaysia

Aimi Fadzirul Kamarubahrin

Universiti Sains Islam Malaysia (USIM) ( email )

Bandar Baru Nilai
Nilai, Negeri Sembilan 71800
Malaysia

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