Analysis of issues and solutions on the implementation ofistibdalwaqf property in states of Peninsular Malaysia

Purpose - This paper aims to analyse the implementation ofistibdalwaqf property in several states of Peninsular Malaysia. To achieve this objective, this study identified the amount of waqf property ‘am (general) and waqf property khas (special) which were involved in the process ofistibdalin each state, the factors that have caused theistibdalto be implemented, the rate ofistibdalinvolved for each lot of waqf lands and the type of property replacement performed. Design/methodology/approach - This study used the qualitative method, whereby the researchers had collected secondary data consisting of documents related to waqf from the State Islamic Religious Council (MAIN). The type of documents obtained were public records. The data collected were analysed using the content analysis techniques. Findings - The results showed that there are several factors involved in the implementation ofistibdal, namely, the acquisition of waqf land by the State Authority, applications by external parties for a particular interest and the initiatives taken by the MAIN on waqf property which is problematic and uneconomical to generate waqf fund. This study also found some Shariah and management issues, which were identified in the implementations ofistibdal, whereas some cases ofistibdalwere only carried out on a small part of the waqf lands and there were also cases of the implementation ofistibdalwhich have not been replaced with fixed assets as authorised by theistibdalparameter. This study suggests some improvements to the issues identified in the implementation ofistibdalfor waqf managers in Malaysia. Research limitations/implications - The limitation of this study is that it analyses only the documents that record the implementation ofistibdalin the states managed by MAIN. Thus, the analysis performed was limited to the documents obtained without involving empirical data. Practical implications - This study suggests some improvements to the implementation ofistibdalwaqf in the states studied. Therefore, these recommendations can be used by waqf property managers to improve the process of implementing waqf propertyistibdalso that it can be used to its maximum potential. Social implications - If the recommendations in this study can be implemented, the Muslim community will benefit greatly from the waqf property because it is being developed through the method ofistibdal. This impact can increase the confidence of the Muslim community towards MAIN in managing waqf property and encouraging the Muslim community to contribute to waqf property for the welfare of the ummah. Originality/value - This study involved data on a larger waqfistibdalimplementations that involved several states in Peninsular Malaysia, which to the best of the authors’ knowledge, the analysis involving such large research data have not been implemented before.