ASSESSMENT OF GOOD GOVERNANCE PRACTICE IN SELECTED CORPORATE WAQF INSTITUTIONS IN MALAYSIA

Rusni Hassan; Fatimah Mohamad Noor

doi:10.53840/ijiefer219

Authors

Rusni Hassan IIUM Institute of Islamic Banking and Finance International Islamic University Malaysia Gombak 53100 Kuala Lumpur
Fatimah Mohamad Noor IIUM Institute of Islamic Banking and Finance International Islamic University Malaysia Gombak 53100 Kuala Lumpur

DOI:

https://doi.org/10.53840/ijiefer219

Keywords:

Good governance, Waqf governance, Corporate waqf in Malaysia

Abstract

Waqf plays a vital role in addressing various social and economic challenges in communities across the world. Nevertheless, the problem with poor governance of waqf institutions has impeded the development of waqf properties including in Malaysia. One of the main problems is the complexity of the waqf regulatory framework in every state of Malaysia. It is believed that the involvement of corporate entities in managing waqf institutions in Malaysia is seen as an alternative to address this issue by outsourcing waqf management under the corporate entities which were claimed to have an effective governance system. However, there has been a lack of empirical studies to discover its governance practice to prove the claim. Therefore, this empirical study aims to assess good governance practices in selected corporate waqf institutions in Malaysia. The study involves qualitative research whereby a case study research was conducted to allow for more rich and comprehensive data. For this purpose, Waqf An-Nur Corporation (WANCorp) was selected as a case study due to its remarkable impact and contribution towards socio-economic development through waqf innovations. Data were obtained through semi-structured interviews and document analysis. The study revealed several important findings related to the governance structure and process of the case. The findings revolve around board composition, monitoring and controlling, policies and procedures, transparency, reporting, and information disclosure. The study’s contribution to knowledge and practical implication lies in its rigorous assessment of the good governance concept in the context of corporate waqf, and its practice.

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