The Understanding And Awareness Of Waqf Istibdal Application In Peninsular Malaysia

Abstract

Waqf is one of the important instruments in Islamic economic that benefit the development of socio-economic of a country. Among the waqf instruments that are innovative and practical is waqf Istibdal . Waqf Istibdal facilitates in developing underutilised waqf land that are small, scattered, difficult to develop and not beneficial to the economy. This indicates that if waqf Istibdal is managed appropriately, the development of waqf will be greater in promoting the socio-economic of ummah. It would be easier if Muslims themselves understand and aware on the application of waqf Istibdal . But question arise on how far Muslim specifically in Malaysia understand and aware about the concept and implementation of waqf Istibdal ? Hence, this paper aims to answer two objectives; first, to identify the level of understanding and awareness of Muslim in Malaysia on waqf Istibdal . Second, to analyse the demographic differences of Muslim in Malaysia towards waqf Istibdal . The data is collected through the distribution of questionnaire and the result is analysed through descriptive statistic. The result shows that the overall level of understanding and awareness of Muslim in Malaysia is moderate except for the dimension of State Islamic Religious Council (MAIN) activities. It is also found that the level of awareness of Muslim in Malaysia are at a prominent level. The differences in the awareness level are significant in the demographic factor such as gender, age, education level and income whereas the differences in the understanding level are significant in age and gender.

Keywords: Waqf Istibdalwaqf awarenesswaqf understanding

Introduction

The role of Waqf in Islamic economy is very significant, especially in developing the socio-economic of the ummah. One of the main innovation in the waqf development is the implementation of waqf Istibdal . Waqf Istibdal means the exchange of waqf property in the same form i.e land with land, selling and buying the waqf property in the same form, and eventually selling the waqf property then replace it with a purchased with new waqf property without altering the deceiver's intention (Meor Abd Malik, 2012; Bahari, 2013). Among the success stories of waqf Istibdal that has been done that is managed by respective mutawalli are in Penang, Malaysia and Singapore. Waqf Istibdal is significant in promoting the development of Islamic economy to develop the non-strategic land, low value of the waqf asset and lack of awareness and understanding towards waqf itself (Bahari, 2013).

In identifying the empirical studies of waqf that has been done in past research as well as literature, it shows that there is more study on waqf but none of them is focusing on analysing the understanding and awareness of waqf Istibdal . In the past research that has been conducted by Ahmed (2004), he found that the role of Istibdal as one of the best qualities waqf management to develop waqf other than the rest of waqf innovations. Whereas the study done by Ramli and Sulaiman (2006) revealed that waqf Istibdal implementation in Singapore is executed by converting potential waqf land to potential waqf property through WARESS4.

Furthermore, in Malaysia, there are few studies that had been done by scholars that are interested in developing abd expanding the knowledge of waqf. Mohamad, Abdul Kader and Ali (2012) has accomplished a study on the law of waqf Istibdal and its implementation in the Federal Territory of Kuala Lumpur. She found that waqf Istibdal practice has not yet expanding and more understanding and awareness need to be spread out. Moreover, Mat Rani (2010) research is focusing on the waqf Istibdal which is in line with the provisions of the special state enactment on the provisions of the National Land Code 1965 and the Land Acquisition Act 1960. His study involves the issue of pilfering waqf land by the State Authority which do not pay any compensation to the land as the replacement. In addition, the study by Rashid (2003) has reviewed the implementation of waqf Istibdal in Lot 334, Mukim of Kota Tinggi, Johor which involves a general waqf property which has no major pitfall towards it. A study done by Meor Abd Malik (2012) sees the implementation of waqf Istibdal in Penang since Penang is the earliest institution to carry out waqf Istibdal even though the it does not include in the state enactment. There are few cases of waqf Istibdal implemented in Penang. First, is the exchange on Teik Soon (Special Waqf Land) Maahad al-Mahsoor al-Islami with a 31 acres plot of land in Genting, Balik Pulau. Second, is the reclaim land at Lot 1066, Mukim 4 Seberang Perai Tengah with individual land in the Permatang Pauh Mosque.

In the opposite, the study in finding the understanding and awareness about waqf in general is still lacking, especially study that emphases on the understanding and awareness of waqf Istibdal . However, there are studies that had been conducted in the Islamic finance sector that are focusing on understanding and awareness of consumer. Ridzwan and Shahwan (2007), found that the understanding and awareness of the staffs from the Centre for International Islamic University Matriculation on credit cards are still low. Likewise, the study that had been conducted by Rosly and Abu Bakar (2003) found that the understanding of the principles of shariah banking are minimal and unsatisfactory.

In other few findings on the understanding and awareness in Islamic banking research, Fatimah (2006) and Karim and Affif (2005) found that the awareness of the existence of shariah banking is high among Indonesian but the understanding of the shariah banking system and its products and services is still low. In the takaful sector, Mohd Zain (2000) and Salamon and Saad (2010) had conducted a study on understanding on takaful and awareness to measure the knowledge of the society towards the takaful products and services. Mohd Zain (2000) found out that the studying the understanding is at a moderate level based on his study on the understanding of Universiti Utara Malaysia staff towards takaful. In contradictory, this study is not focusing on the understanding and awareness of Islamic banking or takaful sector, but strictly emphasis on the understanding and awareness of waqf Istibdal in Malaysia.

Although the implementation of waqf Istibdal has already exists and it is showing a success in the development of the waqf asset as well as the escalation of the waqf benefits. But it turns out to be there is a lot of waqf asset that have yet to implement the waqf Istibdal practice. This is due to the position of the waqf land, low economy value and the awareness and understanding of the Muslim community in Malaysia is still at a minimal level. On the other hand, other reason of the under developing of waqf asset is the understanding of the Muslim towards the State Islamic Religious Council (MAIN) mutawalli in managing and developing the waqf asset. Normally, Muslims only identified waqf asset on several understandings based on waqf Mosques, cemetery, schools and prayer rooms. Thus, before reaching on the acceptance and implementation of waqf Istibdal , this research aims to focus on identifying the understanding and awareness of waqf Istibdal in Malaysia.

Problem Statement

According to Kamus Dewan dictionary third edition (1994), understanding means knowing something that has been learned and discussed whereas awareness carries out the meaning of knowing something that has been learned and wanting to implement it. Once an individual has a prominent level of understanding and awareness, the individual will behave in a better way. This shows the act of acceptance by the individual. Synchronising with the execution and implementation of waqf Istibdal by MAIN to succeed, it is necessary to see the understanding and awareness of the Muslim community especially in Malaysia where 60.2% of its majority population are Muslims. Knowing the understanding and awareness level are pertinent because when the Muslim community understand and aware of the concept and implementation of waqf Istibdal , this will precede the acceptance of the community. Therefore, it would be tranquil to MAIN to develop the waqf assets and to upsurge the waqf assets. Upon the successful of this, there will be less criticism towards the implementation of the procedure and mechanism of waqf Istibdal . (Al-Ghazali, 1980, p.17, as cited in Kamus Dewan dictionary third edition, 1994) mentioned that the aspect of understanding is a determinant in behaviour that is usually influenced by the degree of knowledge it possesses. This understanding will then create awareness for individuals to act which may be different based on their respective demographic factors. The following questions are likely to have the level of understanding and awareness of different Muslim societies in terms of demography, such as gender, education, age and income.

Hence, this paper aims to identify the level of understanding and awareness of the Muslim community in Peninsular Malaysia as well as to analyse the demographic differences in the aspects of understanding and awareness of waqf Istibdal of Muslims community in Peninsular Malaysia. This paper will be divided into several sections. The first part of the introduction; Second, the workshop, the third, the methodology, the fourth, the analysis of the study and finally the formulation of the study.

Research Questions

To accomplish the research objectives, two focal research questions are developed. This study is focusing in answering the following research questions:

Purpose of the Study

This study generally focuses on finding the understanding and awareness of waqf Istibdal application in peninsular Malaysia. Thus, this study aims to answer the following objectives:

• To identify the level of understanding and awareness of Muslim in Malaysia on waqf Istibdal

• To analyse the demographic differences of Muslim in Malaysia towards waqf Istibdal

Research Methods

The research design used in this study is a descriptive research design with the type of application research. The data used in this research is from quantitative data collection with the analysis using descriptive and inferential statistics. Random sampling method is use in this study based on the two main cities of each state in the Peninsular Malaysia with the proposition of 1000 Muslim respondents. Respondents are divided into four zones which are the Northern Zone (Perak, Penang, Alor Setar and Perlis); Central Zone (Selangor, Federal Territory of Kuala Lumpur and Negeri Sembilan); South Zone (Johor and Malacca), East Coast Zone (Kelantan, Terengganu and Pahang). The data are collected using questionnaire instrument consisting of contracts, dimensions and items. The analysis is done using SPSS Software (Statistical Package for Social Sciences) version 20 in order to analyse the descriptive statistics and inference for the purpose to identify the phases of understanding and awareness of Muslim community as well as demographic differences in the level of understanding and awareness of waqf Istibdal . Questionnaire created for this study is with the purpose that includes demographic factors and the elements of understanding and creating awareness of waqf Istibdal .

The questionnaire used in this study is part of the results of the discussion with the team of researchers in the waqf Istibdal Application group under the Research University Team (RUT) (The questionnaire can be obtained based on application and permission of RUT) . However, 1000 questionnaires were distributed throughout the chosen major towns in the peninsula but only 979 were return back with filled information and the rest are considered as filled with missing data. Before the actual study, a pilot study was conducted and found that the validity and reliability of the test could be accepted for the study.

Findings

Before analysing the differences in demographic factors on the understanding of waqf, the analysis must be pre-requisite. The first step is to make sure the normality analysis of data for the scores of waqf understanding is reviewed from two aspects. First, through graphs such as histogram and normal probability plot (this result is not shown in this research). Second, through Kolmogorov-Smirnov test.

Conclusion

The overall result of the study shows that in the overall the level of understanding of the waqf Istibdal application in Peninsular Malaysia is moderate. This is because waqf management is entrust in the enactment of the state Islamic council. In the opposite, the level of awareness of the waqf Istibdal application in Peninsular Malaysia is at a high level. This high level of awareness shows that most of the people in Peninsular Malaysia have gain the interest in the responsibility of waqf especially in waqf Istibdal in developing the waqf property as well as the socio-economics of Malaysia.

The differences in the level of understanding based on the gender, age, level of education and income level shows that the level of understanding is moderate. The understanding based on age pattern especially for the teenager and youth as well as those who earn less than RM1500 per month need to be develop by providing more waqf related activities and awareness activities. Education plays an important role in creating more understanding that will ensure the objective of waqf application is understood by all Muslim. Even though the level of awareness of waqf Istibdal is significant, more waqf based awareness activity via social-media and promoting through all mean that are available to expand the information of waqf especially on the waqf Istibdal application.

The significant of this study is to create more understanding and awareness of waqf Istibdal and providing an overview for the needed development to undertake in promoting waqf to the community. In addition, this study also can be used as the basis in waqf education in creating extra added knowledge on the waqf application in peninsular Malaysia. Waqf education is also needed to be taught at the level of secondary school as well as universities. It is pertinent to educate the community to show the important of waqf and its mechanism

Acknowledgments

Greastest appreciation to Universiti Sains Malaysia for the financial support through the Research Grant University Team 1001/CISDEV/856001 - part of the research cluster on Aplikasi Istibdal Wakaf Dalam Pembangunan .

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