Cash Waqf Management Offers Big Potential For Islamic Banking, Says Banker

By Massita Ahmad SINGAPORE, April 7 (Bernama) -- Cash waqf management is expected to be another growth driver for Islamic banking as it offers vast untapped potential especially in Malaysia, says Maybank Islamic Bhd's Group Head of Islamic Banking and Chief Executive Officer Muzaffar Hisham. However, he said, there is a need for proper regulation and governance before financial institutions could venture into the sector. "Malaysia's financial institutions are well-regulated by Bank Negara Malaysia (Malaysia's Central Bank) and the government, thus they should be allowed to tap into this sector which offers a potentially big future for Islamic banking," he said. Muzaffar was met by Bernama and Mediacorp on the sidelines of the two-day Islamic Banking & Investment Asia/Middle East Congress 2016, where he was one of the speakers, here recently. He said in Malaysia, the authorities had taken numerous efforts to enhance the depth and diversity of the Islamic financial system over the years which also extended into developing the waqf sector. However, said Muzaffar, the waqf sector could be further developed through a more supportive legislation and policy initiative. "Efforts are also needed to make waqf a self-supporting sector and economically viable which also require policy and law reforms," he said. Former Malaysian Prime Minister Abdullah Ahmad Badawi, who introduced the Islam Hadhari concept during his premiership, recently said that the potential of the waqf institution in improving the quality of Muslims' lives remains as relevant today as in the past. Based on media reports, waqf is also fast becoming a trend among Muslims with those of wealth opting to practise the waqf of their properties and monies to various institutions. --BERNAMA