Contemporary Integration Of Waqf And Unit Trust: Recent Application In Malaysia

With the appropriate structure and strategy, waqf can support many spheres of life, including the growth of the mainstream economy. The historical evidence has demonstrated the enormous contribution of waqf institutions to the advancement of the Muslim community. The waqf concept has been integrated into a variety of financial assets, including Shariah-compliant investment vehicles like unit trusts, as Islamic finance has developed in modern times. This paper aims to highlight the recent development of waqf-linked unit trust funds within the Malaysian context. The current study employed a qualitative research approach, which was designed through the use of document analysis of policy documents, journal articles, books, and online resources. The paper concludes that the waqf-linked unit trust fund, which upholds strong governance and a robust investment framework can contribute to the sustainable development of the Islamic community’s socio-economy. Waqf managers are urged to fully embrace the digital agenda in tandem with the Financial Sector Blueprint 2022-2026 in order to enable a digitalised ecosystem and fintech inclusion in managing waqf funds. This will improve the effectiveness of good governance and integrity in the waqf sector.