Proposed improvements to Istibdal implementation management in the state of Penang

Purpose - This study aims to examine the factors of implementing istibdalwaqfand generating cashwaqffunds through istibdal in Penang. This study was based on the previous problem statements, stating thatwaqfproperty could not be developed due to lack of cash funds. This has allowed the study to explore the factors for implementing istibdalwaqfproperty and the extent to which the istibdal method can generate cashwaqffunds in Penang. Design/methodology/approach - This study adopted a qualitative method by conducting semi-structured interviews to achieve its research goals. Semi-structured interviews were conducted to comprehensively understand the current practice on istibdal cases in Penang State Islamic Religious Council (MAINPP) through official institutions concerned withwaqfmanagement practices in Penang. This research relied on purposive sampling to select the informants. It is a sampling strategy to select the informants in advance based on the research question. To achieve the purpose of this study, two officers from MAINPP were selected based on their working experience and specialisation criteria. As a result, several themes were successfully defined from the interview data before being analysed based on the content analysis method. Findings - The results present three istibdal implementation processes outlined by MAINPP, namely, the istibdal implementation process forwaqfland involved in the acquisition by state authorities (PBN), non-productivewaqfland and istibdal applications from certain parties. The results also reveal two factors in implementing istibdal in Penang: the acquisition ofwaqfland by PBN and the application of istibdal for cemeteries by the Islamic Centre of Universiti Sains Malaysia. From the point of cash fund generation, no case of istibdal implementation records the generation of cash funds to MAINPP. Thus, this study ends with proposals for improving the process and implementing istibdal in Penang to generate cash funds to help MAINPP managewaqfproperties. Research limitations/implications - The study only focused on implementing factors and generating cashwaqffunds through istibdal in Penang. At the same time, it can be expanded to other states like Terengganu, Johor and Kelantan. This study only interviewed officers who manage matters related to the affairs ofwaqfproperties. Therefore, it is believed that the study can be extended to other respondents, such as experts in cash fund generation investments and others. Practical implications - This study proposed improvements to the policy and practice of istibdalwaqfproperty to MAINPP after the shortcomings were identified throughout this study. If improved, these proposals will significantly impact thewaqfproperties involved in implementing istibdal, where it can generate cash and ensure the constant economic value ofwaqfproperties. Social implications - This study has great implications for society through the development of a cashwaqffund that can provide great benefits to the needy, in addition to increasing funds for the welfare expenditure of Muslims through rental income, investment and development. Progress and significant impact onwaqfproperty can provide a high indicator of the efficiency of an organisation in managingwaqfproperty. This can attract the interest of the public, especially the wealthy, to always fulfil welfare through thewaqfmechanism and share the wealth with the needy. Originality/value - This study contributes to comprehensive field data on the implementation of istibdal in Penang. The data analysis results are significant to be used by thewaqfproperty management.