The peripheral ummah is the community that is excluded socially and economically from the market system. The inaccessibility to the market makes them poor which later creates the vicious and spiral problem of poverty. This study aims to propose a mechanism using waqf to eradicate the causes of the problem and let them be accessible to the market. Taking into consideration of altruist behaviour of other mainstream communities and good coordination between government and non-government organizations, waqf mechanism is proposed as source of fund to finance the actions to include the peripheral ummah into the mainstream community. The mechanism focuses on wealth creation activities. The waqf mechanism is effective as its characteristics are irrevocability, perpetuity and inalienability. Therefore, partial influence from the government or the community regarding the management of the waqf fund can be avoided.

The rapid development of payment technology and internet network throughout the world make crowdfunding to be used widely as mechanism for funding. Generally, the crowdfunding adapts the concept of microfinancing and crowdsourcing, but it has unique characteristics of its own. This present paper is aimed to investigate the potentials crowdfunding and proposes a crowdfunding model which is complies with Shariah using permissible contracts namely sadaqah and qard al-hasan. The present study was conducted using qualitative method through library research. The study found that the crowdfunding has been employed in various models; donation-based and investment-based models. It was also found that it is permissible for the crowdfunding to be incorporated with the Shariah complied contract of sadaqah in order to mobilize the fund from the community. Therefore, this study proposed a sadaqah-based crowdfunding model. The model has main roles to provide microfinancing for entrepreneurial projects and set up health care fund for the treatment costs of the needy.

The ageing population trend is a problem for almost all countries in the world. In Malaysia, the issue is exacerbated by insufficient employee savings to face retirement. The majority of Malaysian employees have savings no more other than mandatory savings of the Employees Provident Fund (EPF) account. On the other hand, waqf has many roles in the country’s economic development as it helps to improve welfare of the community. This paper aims to connect the gap between pension and waqf issues through a new proposed Waqf Based Pension Model. This study uses descriptive analysis to propose a Waqf Based Pension Model. This study employs library research approach to collect secondary data from journal articles, books, reports, and websites that contain existing pension schemes and waqf. This new model improves weaknesses in the existing pension scheme using annuity-based calculations. This study finds that productive waqf assets may be used to generate greater profits. In addition, waqf funds are then allocated to build the infrastructure needed by the community such as health services, education, housing, transportation and religious facilities. The new Waqf Based Pension Model is expected to be supported and applied by the government and the community.