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FINANCIAL ACCOUNTING 2
REFLECTIVE JOURNAL 1 :
Nur Dalila Bt Mohd Zamri
Vikneshwary a/p Veran
Nor Hazwani Fasihah Binti Mohammad Nazri
Norhadi Bin Ali
Nor Afiera Binti Mohammad Haji
Restricted for Invigilator only
PREPARED FOR :
MS SURAYA BINTI YOPE@YAHYA
Bank Muamalat Malaysia Berhad, the second Islamic bank that was fully operational and
established in Malaysia after Bank Islam Malaysia Berhad, is set to play its role in providing
products and services of Islamic banking to Malaysians regardless of race or religion. This will
definitely contribute to the development of modern Malaysia.
To deliver best value to the stakeholders.
To become the preferred Islamic financial services provider.
Care, Integrity, Innovative, Service Oriented and Respect.
Waqf (Islamic Endowment) is an act of virtue, highly encouraged in Islam. As one of the
mechanism for welfare, waqf is unique in that the asset that has been given as waqf is
not spent or expensed but rather the asset is maintained or held in kind but any benefits,
financial or otherwise, that is able to be derived from it can be used, expensed or
consumed. In contrast, any gifts or donations received can be spent directly. With its
beginnings more in the form of fixed assets, current trends of waqf are in the form of
cash. Through cash collected, a portion will be used to develop or purchase landed
properties or fixed assets and another portion will be invested in financial markets.
From the traditions of Islamic history and also the development of endowment in the
West, it is an important and necessary effort that waqf in the form of cash (liquid
assets) be urgently applied in various applications.
“Waqf” are one of the property there is the concept of giving in Islam. This concept is
based on the concept of charity. We can refer to a hadith narrated by Ibn Umar that when 'Umar
ibn al-Khattab wanted clarity piece of land, the Prophet has said, if you agree, withhold and remit
the property benefit (revenue) to charitable purposes. Umar then clarity produce of the land to
the poor, his relatives, the freeing of slaves and purpose to the way God provided the property
can not be sold, inherited, and given to others. When someone has endowed his property, he can
not have any right or interest in the property relations. For example if the property is a piece of
land donated the land owner may not sell, pledge or transfer the land. The asset is deemed to be
the rights of God. Charitable recipient is should utilize its assets in accordance with the conditions
of the waqf.
Islamic Council is the body responsible for the administration and management of the
endowment. This is the reference to Section 61 of the Administration of Islamic Law (Federal
Territories) Act 1993. By the endowment provider must make an application to the Islamic
Religious Council. The application must explain the purpose, the extent of the grant and
endowment recipients (if specific). Documents of title to the property should also be included.
The Council will conduct an investigation and make sure that the property is free from any
claims. Once you are sure that no such restrictions on the endowment can then see the
application approved. Waqf provider will complete the instrument (document) for the completion
of the endowment. This instrument will be provided by the Council. The instrument will specify the
details of the Waqf provider, witnesses, type of property like donated, and the percentage
distribution of the Waqf purposes. This is to ensure there are no doubts over how the Waqf will be
managed. Waqf providers must also provide a declaration sworn to represent and prove that the
endowment was done of his own accord and no element of compulsion. This is to avoid claims
arise from the beneficiary.
• “Waqf” are derived from the Arabic word 'waqafa' which means to stop or retained. Stops
construed as an owned property handed practices for the use or benefit of the public.
• “Waqf “ is a branch of worship because the fundamental purpose of waqf is to reach out and
Seek the blessing of Almighty God by spending way to Allah.
“Waqf” IN ISLAM
Endowments is a social tradition handed down by the Prophet where tradition is held strong by his
companions and followers. Waqf system gives immense benefit to those who are less fortunate
and created some of the leading thinkers and institutions of Islamic civilization.
Endowments is one charity that is highly demanded by Islam. It is not righteousness that will
reward unfailing God gave pewakaf for the donated property remains tapped. Examples of the
Prophet's practice at the time was when Umar Sayidina endowed a farm that was presented to
him so that the crops from the farm can be shared by the community at the time.
At another point, Sayidina Uthman b. Affan had bought a well known as Roman wells and then
into the water resources of the public at that time.
Since the Waqf continued to grow, when Muslims began endowed their land for mosque. Since
the mosque was a source of knowledge, then the endowment expanded into school construction,
residential, health and various other infrastructure until today.
Among the leading center of Islamic learning on waqf including Al-Azhar University in Egypt, AlQarawiyyin and Zaitouna. In terms of government, a new example of the implementation of Cash
Waqf for assistance for people is at the time of the Ottoman Empire in Turkey. Ottoman glory with
the help of extensive cash waqf to successfully reduce the time for the government to
complement its development efforts in the provision of facilities were educational services, health
care, scientific and Turkish society.
In the sector of medicine, one hospital built on waqf is Al Noorie Hospital in Damascus founded in
1145AD. It is the first hospital to adopt medical records which later became the medical school.
Many eminent physicians graduated at the medical center, including Ibn Nafis, a scholar who
discovered the theory of the respiratory system in the human lung.
The hospital operates up to 7 century and part of the hospital are still to this day. 2 Stops practice
encompasses all aspects of life, including construction of roads and bridges, providing water
supply for local residents, cash for property maintenance endowment, farm tools, books,
knowledge and so that can provide benefits to the local community.
“Dalil Pensyariatan” Waqf
• Waqf is a practice that has been prescribed, but it is one way to get closer to God.
• Among the evidences of revelation the foundation up to “pensyariatan berwakaf” practice is the
Word of „Allah S.W.T‟ :
“Kamu tidak sekali-kali akan dapat mencapai (hakikat) kebajikan dan kebaktian
(yang sempurna) sebelum kamu dermakan sebahagian dari apa yang kamu sayangi. Dan
sesuatu apa jua yang kamu dermakan, maka sesungguhnya Allah Mengetahuinya.”
(Surah Ali `Imran: 92)
• „Rasulullah S.A.W said, which means:
“Apabila seorang anak Adam mati, segala amalannya terputus, kecuali tiga perkara: iaitu
sedekah jariah, ilmu yang bermanfaat dan anak soleh yang mendoakannya”.
"Sedekah jariah " in this hadith, interpreted by scholars as waqf.
• Majority of Scholars of Syafie, Hanafi, Hanbali and Maliki requires Real Removable Stops based
on the fact that all property should be sold and can be beneficial and permanent essence, it can
• Waqf in cash is allowed in Islam.
(Council for the National Fatwa Committee for Islamic Religious Affairs Malaysia Ke-77 times its
meeting held on April 10 to 12 2007 at the Primula Beach Resort, Kuala Terengganu)
• As a result of Endowments Stock Selangor (Selangor Stops Transactions) shall be expended for
the purpose of purchase of fixed assets. While money Benefits Stops Selangor (Selangor Stops
Transactions) may be expended to provide assistance and other expenses deemed appropriate
by the MAIS.
(Selangor Fatwa Committee met on 5 September 2006)
• Tax Relief
• Donations given income tax relief under Section 44 (6) of the Income Tax Act 1967 (Reference
No. LHDN.01/35/42/51/179-6/5621) (Government Gazette No. 14369 dated 07.27.2004)
• Waqf Selangor-Muamalat is collaboration between the Corporation and the Maharashtra
Waqf Bank Muamalat Malaysia Berhad to manage endowment funds together through the
formation of the Joint Management Committee (JSC).
• BMMB the first banking institution carrying out cooperation in joint management of endowment
Waqf are divided into two main categories:
Absolute (GENERAL) - refers to the practice of their property without express charitable purposes
in the consecration of a property. The property can be developed for any purpose, as long as not
contrary to Islamic law.
Muqayyad (SPECIAL) - practice “pewakaf” endowed property which specifically states the purpose
of waqf during property. Waqf property shall be used only for the purposes specifically stated that.
For example waqf special land for the construction of mosques, prayer, burial and so forth.
Property To Be Endowed
Donated goods and property shall belong to perfect endowment donated in the form of the
A) Waqf Al-I'qar (Immovable Property) that the property can not be transferred as:
• Provide land for building or community activities that are useful for the growth of Islam.
• Provide for the use of school buildings, hospitals and so on.
B) Waqf Al-manqul (Real Portable)
That the property may be transferred as cash, books, books, desks, clothing, weapons,
agricultural tools, animals that can be taken paps and so on.
C) Al-musya Endowments'
According to most scholars to be endowed shared or owned property jointly with another person
that can not be divided like two people have the right to a home and a car. If one of the owners
thereof mewakaf, the waqf is valid.
D) Waqf Irtifaq Haq (Storey Building Ownership)
The Shafie and Hanbali this endowment requires that endowed one storey building consists of
several floors, as an endowed the upper floors of the building or floor. It can be done so without
endowed all buildings. Endowments are valid according to the Shafie and Hanbali sect.
E) Waqf Al-Irsod
That endowment made by the government to the public interest as a piece of land to be used as
schools, hospitals and so on according to Islamic law.
Property Condition Donated
The property must be taken anything that could benefit.
Property donated to recipients around the time endowment.
The donated property would benefit and long-lasting benefits.
Donated to a good cause and does not violate Islamic law.
Determined donated property type, form, place, area and volume.
Donated property that belonged to the “pewakaf” .
Conditions Of Endowed
Of age (puberty)
Sane (perfect common sense)
Member tasarruf / tabaruk
Own choice (optional)
Parties that donate.
Parties which received waqf
"Sighah" namely contract and qabul.
Way To Endowed
• Customers can endowed through:
- Grants from the customers account “ Wadi'ah” BMMB
- Periodic payments Directive (IEP)
- Debit from your savings or current
- Check the internal / local
Use of Waqf Funds
Infrastructure development health & education
Funding for equipment health & education
Health care costs & fees / scholarships education
Fund health research & education
Raising funds through authorized investment
Differences Between Waqf And Charity
• Alms given to the needy while endowment intended for use by the whole community in general,
despite the needy given priority.
• Charity is something that can be transferred. A property once it has been donated, pewakaf
have no right and no interference in the property.
• Offerings can be given in any manner while the endowment is restricted to a property where the
property is likely to work or generate more benefit continuously or form results can be stored.
1. As one way to worship God
2. Paving the way for the faithful who love to give endowment and charity and
hope for reward.
3. Continuous reward to pewakaf after death as long as the waqf property remains tapped.
4. For the benefit of Islam, such as building cemeteries and so on.
5. Help reduce the burden on the poor and needy and orphans.
Endowment adoption in Malaysia
Waqf is a form of charity with special features that has permanence and continuity. The
beneficiaries can benefit from the waqf property for years, generations or even centuries. The
ownership of waqf is withdrawn from the owner and returned to Allah for the benefit of His
subjects to whom the property has been bequeathed. Waqf is a form of worship to Allah and has
significant contribution to economic development as it plays an important role as wealth
redistribution mechanism. In common tradition, properties given out for waqf purpose are namely
mosque, land for Muslim cemeteries, business premises, agriculture lands, religious schools, etc.
In the modern times, majority of Muslim scholars accept cash waqf, share of waqf, waqf of shares
and takaful waqf as form of waqfs. This article aims to discuss the role of waqf in achieving the
hike in economic development focusing on the human welfare among the Malaysian society. Waqf
plays a vital role in poverty alleviation, health services, education, orphanage centre,mosques and
residences for the needy society. Traditionally waqf in Malaysia is in the form of land, mosques
and surau, and religious schools and equipment once. Currently efforts are being made to
developing a general endowment land with development potential. Kingdom Center, in order to
enrich the practice of Endowments, established the Endowment Department, Zakat and Hajj
(JAWHAR) to assist in the state. Of funds JAWHAR channeled through several development
projects have been carried out. Besides, a National Endowment Foundation was also established
as a result harness the State Islamic Council with JAWHAR. The first project or product is the
Foundation Endowments Cash.
In Malaysia, endowment funds and property that there is in the form of a mosque and a
cemetery, mosque, school and educational booths, agricultural farms, gardens, orchards and
fields, the rents, vacant land, buildings (shops,dwellings, residential), building rental revenue,
endowment cash, shares endowment, endowment shares, endowment feet, jemba endowment,
corporate endowment, schemes / plans takaful endowment and other movable property
(hemodialysis machine etc..) properties introduced such contemporary waqf endowment shares,
endowment, cash endowment and endowment Takaful is a form of consecration in out of the
ordinary practices of the Muslim community. There are some states that has introduced a share
endowment of Selangor, Penang, Malacca, Pahang, Johor and Da'wah Foundation Malaysia.
Prudential Assurance Malaysia also introduce takaful endowment in 1997 that is a form of
endowment cash. However, beginning 1 February 2009 takaful endowment was stopped .
Stock endowment means creating an endowment musytarak (cluster) through donations received
from the community to in an endowment trust fund which will be converted into property remain
a named substitute or replacement money. The conversion is made in forms of real estate
development, land development and existing endowment various socio-economic development
activities are planned from time to time to the welfare and interests of Islam and Allah, forever.
Consecration through this endowment share schemes show a success the Muslims because of the
money collected through this endowment share scheme that the money could be used for various
development projects economy without any limitations or constraints as endowment in the form of
immovable property. Money is transferred to the immovable property and may more widely
distributed and not confined to a particular place and so.
Waqf property developed with a variety of projects that can bring economic benefit to the Muslims
directly or indirectly. Building rental revenue endowment and other charitable projects to be
distributed for the welfare and interests of the Muslims. For example, like giving assistance to
people who are in-recipients of zakat recipients; help because construction, management and the
mosque, mosque, madrasa, clinics, hospitals and others; assistance to people involved in the
disaster God, accident, medical, orphans, people in detention; educational assistance, and help
improve the spread of Islam to developing countries and others regarding the importance and
welfare of the Muslims.
Economic development projects undertaken in Malaysia is the use of waqf property itself,
yields from property endowment funds or stock funds from the endowment. The projects impact
on economic development directly or indirectly to the Muslim community. Based on the analysis of
Waqf undertaken since early Islam and its implementation in Malaysia, it can be concluded that
endowment can be instrumental in economic development in providing needs of the Muslim