Waqf sector in Malaysia is now set to move towards digitalisation and financial technology (FinTech) inclusion, said Minister in the Prime Minister’s Department Datuk Seri Dr Mujahid Yusof Rawa.
He said while working on the Waqf Act, the government is also working with experts in the information technology (IT) space to discuss the possibility to incorporate waqf with artificial intelligence (AI) and blockchain.
Recent developments in the digital economy, Mujahid said, can play a crucial role in addressing the issue of transparency and trust in implementation of waqf.
“We are taking into consideration all these as our components in the Act. As it involves money, we need a regulatory body to manage it. Together with this regulation, we are also moving towards the digitalisation and using blockchain technology and AI, within our Islamic agencies,” he told reporters after the launch of waqf report by World Bank, International Centre for Education in Islamic Finance (INCEIF) and International Shari’ah Research Academy for Islamic Finance (ISRA), here, today.
Mujahid said there is currently a lack of professional management culture among waqf administrators, and the lack of transparency in managing waqf funds in a number of jurisdictions.
Another critical challenge is the collection of cash waqf through online platforms as there is still no regulatory framework to ensure transparency and integrity of such collections vis-à-vis the stakeholders.
“We, the policy maker, in addition to the establishment of JAWHAR which collaborates with the State Religious Councils on zakat, hajj and waqf, would continue to work on building the ecosystem that encourages and nurtures the waqf development,” he said.
Meanwhile, World Bank Group Representative to Malaysia and country manager Dr Firas Raad said achieving the sustainable development goals by 2030 will require an estimated US$5 trillion to US$7 trillion of annual investment across sectors and industries.
He said with just 11 years left to the 2030 deadline, waqf structures can play an important role to bridge financing gaps.
“At the World Bank, we therefore see a role for waqf institutions in our efforts to achieve the Twin Goals of eradicating extreme poverty and boosting shared prosperity. We are happy to partner with the Malaysian government in unleashing the full potential of waqf solutions to promote greater sustainable development,” he said.
Source New Strait Times