The Integration of Micro Takaful and Temporary Waqf for the Underserved Population In Malaysia?

Micro takaful has become a critical strategy to mitigate risks and overcome poverty among low-income populations in a community. However, micro takaful's low penetration rate seems worrying due to the recommendation to minimise its management costs. This paper aims to develop a financing model/framework by integrating micro takaful and temporary waqf to benefit the underserved population in Malaysia. This research uses the content analysis method from relevant literature to derive a suitable financing framework based on temporary waqf applications. As a result, this study suggests an integrated micro takaful and temporary waqf financing framework to solve the existing problems. It is hoped that this work will benefit the development of micro takaful financing strategies and boost its offerings in the future.