Email this article WAQF-BASED CROWDFUNDING MODEL FOR ISLAMIC HERITAGE CONSERVATION IN MALAYSIA (Model Pendanaan Awam Berasaskan Wakaf untuk Pemuliharaan Warisan di Malaysia)
Abstract
ABSTRACT
This paper explores the potential of waqf-based crowdfunding as a means to obtain funds for conservation efforts related to Islamic heritage sites or materials in Malaysia. Over the period, several heritage sites, buildings, and materials, including Islamic heritage, have witnessed a lack of funding for conservation efforts, while the budget from the government is limited. Therefore, an alternative fund is needed, and Islamic crowdfunding has the potential to be applied to overcome this issue. This paper is based on conceptual explorations of literature on crowdfunding, waqf, and heritage conservation. As a result, its finding proposes a particular model of waqf-based crowdfunding fund for Islamic heritage conservation in this country. While several challenges are identified, including the potential failure to reach the target, and the lack of public awareness and approval from authorities, this study expands a new potential for the application of waqf. It provides a practical solution for Islamic heritage conservation in Malaysia.
ABSTRAK
Artikel ini meneroka potensi pendanaan awam berasaskan wakaf sebagai cara mendapatkan dana bagi usaha pemuliharaan tapak atau tinggalan warisan Islam di Malaysia. Sehingga kini, beberapa tapak warisan, bangunan dan tinggalan sejarah termasuk warisan Islam berhadapan kekangan dana untuk usaha pemuliharaan dan dalam masa yang sama, peruntukan kewangan daripada kerajaan semakin terhad. Oleh itu, dana alternatif diperlukan dan pendanaan awam Islamik berpotensi untuk diaplikasi dalam mengatasi masalah ini. Artikel ini berasaskan penerokaan secara konseptual menerusi literatur berkaitan pendanaan awam, wakaf, dan pemuliharaan warisan. Hasilnya, dapatan telah mencadangkan model khas pendanaan awam berasaskan wakaf untuk pemuliharaan warisan Islam di negara ini. Walaupun beberapa cabaran telah dikenal pasti, termasuk kemungkinan gagal dalam mencapai sasaran dana, kurang kesedaran dalam kalangan orang awam dan kelulusan daripada pihak berkuasa agama, kajian ini tetap memperkenal potensi baharu untuk aplikasi wakaf. Ia menyediakan penyelesaian praktikal untuk usaha pemuliharaan warisan Islam di Malaysia.
References
Abdul Rahim, R. A., Ismail, P., Abd Majid, M. K. & Md. Dahlal, N. H. 2010. Batu bersurat Terengganu: Satu tafsiran terhadap pelaksanaan syariah Islam. Jurnal Fiqh 7(1): 107-148. https://doi.org/10.22452/fiqh.vol7no1.6.
Abdullah, A. 2016. Crowdfunding as an emerging fundraising tool : With special reference to the Malaysian regulatory framework. Islam and Civilisational Renewal 7(1): 98-119. https://doi.org/10.12816/0027170.
Achsien, I. H. & Purnamasari, D. L. 2016. Islamic crowd-funding as the next financial innovation in Islamic finance: Potential and anticipated regulation in Indonesia. European Journal of Islamic Finance 5: 1-11. https://doi.org/10.13135/2421-2172/1771.
Aderemi, A. M. R. & Ishak, M. S. I. 2020a. Adopting Qard al-Hasan and Mudarabah crowdfunding for micro enterprise. International Journal of Islamic Economics and Finance Research 3(2): 26-38.
Aderemi, A. M. R. & Ishak, M. S. I. 2020b. Crowdfunding as an alternative mode of financing for micro and small enterprises: A proposed Qard-al-Hasan contract. International Journal of Islamic Economics and Finance (IJIEF) 3(3): 95-118. https://doi.org/10.18196/ijief.3235.
Aderemi, A. M. R., Maulida, S. & Maikabara, A. A. 2021. Prospects and challenges of crowdfunding as an alternative funding option in Nigeria. Muqtasid: Jurnal Ekonomi dan Perbankan Syariah 12(1): 17-31.
al-Qardawi, Y. 2005. Min Huda al-Islām al-Fatāwa al-Muʿaṣirah. Cairo: Dār al-Qalam.
Alshehaby, F. 2020. Cultural heritage protection in Islamic tradition. International Journal of Cultural Property 27(3): 291-322. https://doi.org/10.1017/ S0940739120000259.
Araki, A. M. 2005. The cultural heritage in Islamic jurisprudence. The Doha Conference of Ulama on Islam and Cultural Heritage. Doha: UNESCO.
Ariffin, S. A. I. S. 2005. Architectural Conservation in Islam: Case Study of the Prophet’s Mosque. Penerbit UTM.
Azganin, H., Kassim, S. & Auwal Adam, S. 2021. Proposed waqf crowdfunding models for small farmers and the required parameters for their application. Islamic Economic Studies 29(1): 2-17. https://doi.org/10.1108/IES-01-2021-0006.
Beaulieu, T., Sarker, S. & Sarker, S. 2015. A conceptual framework for understanding crowdfunding. Communications of the Association for Information Systems 37(1): 1.
Budiman, M. A. 2011. The role of waqf for environmental protection in Indonesia. Aceh Development International Conference (ADIC). 880-888. Malaysia: UKM.
Gharib, R. 2017. Policies for the Preservation of Built Heritage in Islamic Contexts. Edinburgh: Akkadia Press.
Gierczak, M. M., Bretschneider, U., Haas, P., Blohm, I. & Leimeister, J. M. 2016. Crowdfunding: Outlining the new era of fundraising. FGF Studies in Small Business and Entrepreneurship. January: 7–23. https://doi.org/10.1007/978-3-319-18017-5_2.
Golfomitsou, S. 2017. The conservation and presentation of Islamic religious objects in museums. In R. Lababidi & F. Ravaioli (Eds.), Heritage Preservation in Islamic Contexts, pp. 31-42. Akkadia press.
Guinnane, T. W. 2001. Cooperatives as information machines: German rural credit cooperatives, 1883-1914. Journal of Economic History 61 (2): 366-389. https://doi.org/10. 1017/S0022050701028042.
Harun, F. M., Possumah, B. T., Shafiai, M. H. B. M. & Nor, A. H. M. 2016. Issues and economic role of waqf in higher education institution: Malaysian experience. Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah 8(1): 149-168.
Hasbullah, N. A. & Ab Rahman, A. 2021. Endowment and waqf funds in Malaysian higher education: A conceptual study. Jurnal Syariah 29 (1): 127-154. https://doi.
org/10.22452/js.vol29no1.6.
Hassan, K. & Basri, G. 2005. The Encyclopedia of Malaysia (Religions and Beliefs). Kuala Lumpur: Didier Millat.
Hendratmi, A., Sukmaningrum, P. S., Ryandono, M. N.H & Ratnasari, R. T. 2019. The role of Islamic crowdfunding mechanisms in business and business development. Global J. Bus. Soc. Sci. Review 7(1): 1–7.
Idrus, A., Khamidi, F. & Sodangi, M. 2010. Maintenance management framework for conservation of heritage buildings in Malaysia. Modern Applied Science 4(11): 66-77. https://doi.org/10.5539/mas.v4n11p66.
Ishak, M. S. I. & Kamaruddin, M. H. 2021. Heritage conservation through public donation in Malaysia : A potential for Islamic Crowdfunding. The Journal of Management Theory and Practice 3(3): 10-16.
Ishak, M. S. I., Kamaruddin, M. H. & Aderemi, A. M. R. 2021. Mudharabah based crowdfunding as an alternative source of funding book publications in Malaysia. Journal of Islamic Marketing. https://doi.org/10.1108/JIMA-05-2020-0147.
Ishak, M. S. I. & Rahman, M. H. 2021. Equity-based Islamic crowdfunding in Malaysia: a potential application for mudharabah. Qualitative Research in Financial Markets 13(2): 183-198. https://doi.org/10.1108/QRFM-03-2020-0024.
ISRA. 2018. Islamic Economics: Principles & Analysis. Kuala Lumpur: ISRA.
Jani, M. H. G. @ M., Sumrahadi, A. & Mohamad, B. 2018. The role of state and newspaper in conservation of historical sites: The case of Penang. International Journal of Law, Government and Communication 2(6): 101-113.
Jelinčić, D. A. & Šveb, M. 2021. Financial sustainability of cultural heritage: A review of crowdfunding in Europe. Journal of Risk and Financial Management 14(3): 101. https://doi.org/10.3390/jrfm14030101.
Johar, S., Tawil, N. M., Tahir, M. M., Abdullah, N. A. G. & Ahmad, A. G. 2011. Key conservation principles of old traditional mosque in Malaysia 2 conservation and the importance. WSEAS Transactions on Environment and Development 7(4): 93-102.
Kamaruddin, M. H. & Ishak, M. S. I. 2020. Islamic crowdfunding platform as an alternative book fundraising in Malaysia. International Journal of Islamic Economics and Finance Research, 3(2): 11–25. https://ijiefer.kuis.edu.my/ircief/article/view/39.
Kraus, S., Richter, C., Brem, A., Cheng, C. F. & Chang, M. L. 2016. Strategies for reward-based crowdfunding campaigns. Journal of Innovation and Knowledge 1 (2016): 13-23. https://doi.org/10.1016/j.jik.2016.01.010.
Mahdy, H. 2019. Is conservation of cultural heritage halal? Perspectives on heritage values rooted in Arabic-Islamic traditions. Values in Heritage Management: Emerging Approaches and Research Directions, 127.
Mahmood, N. A., & Mohd Shafiai, M. H. 2013. Potensi wakaf korporat kepada pemilikan ekuiti Muslim: Kajian di wakaf An-Nur corporation. Prosiding Perkem VIII.
Manchanda, K. & Muralidharan, P. 2014. Crowdfunding: A new paradigm in startup financing. Global Conference on Business and Finance Proceedings 9(1): 369–374.
Marzban, S., Asutay, M. & Boseli, A. 2014. Shariah-compliant crowdfunding : An efficient framework for entrepreneurship development in Islamic countries. Eleventh Harvard International Islamic Finance Form, Boston.
Massolution, C. L. 2015. Crowdfunding industry report. Http://Reports. Crowdsourcing. Org/Index. Php.
Mohd Thas Thaker, M. A. Bin. 2018. Factors influencing the adoption of the crowdfunding-waqf model (CWM) in the waqf land development. Journal of Islamic Marketing 9(3): 578-597. https://doi.org/10.1108/JIMA-05-2016-0043.
Mohd Thas Thaker, M. A. Bin, & Allah Pitchay, A. 2018. Developing waqf land through crowdfunding-waqf model (CWM): the case of Malaysia. Journal of Islamic Accounting and Business Research 9(3): 448-456. https://doi.org/10.1108/JIABR-05-2016-0062.
Mohd Thas Thaker, M. A., Mohd Thas Thaker, H., A.Pitchay, A. & Khaliq, A. 2019. A proposed Integrated Zakat-Crowdfunding Model (IZCM) for effective collection and distribution of zakat fund in Malaysia. International Journal of Zakat and Islamic Philanthropy 1(2): 1-12.
Mollick, E. 2014. The dynamics of crowdfunding: An exploratory study. Journal of Business Venturing 29 (2014: 1-16. https://doi.org/10.1016/j.jbusvent.2013.06.005
Muhamad, A. 2009. Arkeologi dalam kerja pemuliharaan: Cabaran terhadap masa depan negara. SARI: Jurnal Alam Dan Tamadun Melayu 27: 185–197.
Muliawati, T., & Masya, F. 2019. Fundraising and donation application system. International Research Journal of Computer Science 6 (06): 639-653. https://doi. org/10.26562/IRJCS.2019.JNCS10084.
Muslim, M. bin H. 2000. Ṣahīh Muslim. Darussalam.
MyWakaf. n.d. MyWakaf. https://www.mywakaf.com.my/
Nizam Abd Ghani & Muhammad Shahrul Ifwat Ishak. 2021. Pendanaan awam Islamik sebagai sumber kewangan alternatif untuk kelestarian tapak warisan sejarah di Malaysia [Islamic crowdfunding as an alternative fund for the sustainability of historical heritage sites in Malaysia]. QALAM International Journal of Islamic and Humanities Research 1(4): 67-81.
Nilson, T. & Thorell, K. 2018. Cultural Heritage and Preservation. In Learning from Megadisasters: Lessons from the Great East Japan Earthquake (Issue 24). https://doi.org/ 10.1596/978-1-4648-0153-2_ch35.
Nurwajihah Ajlaa, A. & Ruzian, M. 2020. The challenges in implementing cash waqf in Malaysia. Journal of Contemporary Islamic Studies: 1-8. https://jcis.uitm.edu.my/journal/ volume6/issue2/1. The Challenges In Implementing Cash Waqf In Malaysia.pdf.
Pierrakis, Y. & Collins, L. 2014. Crowdfunding: A New Innovative Model of Providing Funding to Projects and Businesses. SSRN Electronic Journal: 1–23. https://doi.org/10.2139/ssrn. 2395226.
Ramos, J. & Stewart, J. 2014. Crowdfunding and the Role of Managers in Ensuring the Sustainability of Crowdfunding Platforms. In JRC Scientific and Policy Reports. https://doi.org/10.2791/76003.
Said, S. Y., Aksah, H. & Ismail, E. D. 2013. Heritage Conservation and Regeneration of Historic Areas in Malaysia. Procedia - Social and Behavioral Sciences 105: 418-428. https://doi.org/10.1016/j.sbspro.2013.11.044.
Salarzehi, H., Armesh, H. & Nikbin, D. 2010. Waqf as a Social Entrepreneurship Model in Islam. International Journal of Business and Management 5(7): 179-186. https://doi.org/10.5539/ijbm.v5n7p179.
Securities Commission & The World Bank Group. 2020. Islamic finance: A catalyst for financial inclusion. Securities Commission Malaysia: 3-116.
Suhaili, N. A. & Palil, M. R. 2017. Crowdfunding: A Collaborative Waqf Based Internet Platform. Kuala Lumpur International Islamic Studies and Civilisations Conference: Al Maqasid As -Syariah as the Guiding Principles of the Past, Present and Future Life.
Sulaiman, S., Hasan, A., Mohd Noor, A., Ismail, M. I. & Noordin, N. H. 2019. Proposed models for unit trust waqf and the parameters for their application. ISRA International Journal of Islamic Finance. https://doi.org/10.1108/IJIF-02-2018-0019.
Suleiman, H. 2016. Crowdfunding and the Opportunity presented in American Islamic Home Financing Product 12(4): 122-137.
Laws of Malaysia: Federal Constitution, Government of Malaysia 1 (2009).
Vien, C. L. 2015. Crowdfunding brings new opportunities for CPAs. Journal of Accountancy 220(4): 38-42.
Wheat, R. E., Wang, Y., Byrnes, J. E. & Ranganathan, J. 2013. Raising money for scientific research through crowdfunding. Trends in Ecology and Evolution 28(2): 71-72. https://doi.org/10.1016/j.tree.2012.11.001.
Yaakob, A., Mahzir, N., Supaat, D. I., Zakaria, M. Z., Wook, I. & Mustafa, M. 2017. Waqf as a means of forest conservation: Alternative for Malaysia. Advanced Science Letters 23(5): 4860–4864. https://doi.org/10.1166/asl.2017.8928.
YWM. n.d. Yayasan Wakaf Malaysia. https://www.ywm.gov.my/
Zhang, Y. 2012. An empirical study into the field of crowdfunding. Economic Policy 34: 231-269.
DOI: http://dx.doi.org/10.17576/JH-2022-1401-06
Refbacks
- There are currently no refbacks.
ISSN: 1985-6830
eISSN: 2550-2271
JURNAL HADHARI: AN INTERNATIONAL JOURNAL
Institut Islam Hadhari
Universiti Kebangsaan Malaysia
43600 UKM Bangi
Selangor, MALAYSIA.
Phone: +603-8921 7187/7176/6994
Fax: +603-8921 6990
Email: jhadhari@ukm.edu.my
Web: ejournals.ukm.my/jhadhari