KUALA LUMPUR: Six Islamic banks in Malaysia inked the Waqf fund strategic collaboration agreement to advance the value-based intermediation function of the Islamic banking industry within the Waqf segment.
The banks — Affin Islamic Bank Bhd, Bank Islam Malaysia Bhd, Bank Muamalat Malaysia Bhd, Bank Kerjasama Rakyat Malaysia Bhd, Maybank Islamic Bhd and RHB Islamic Bank Bhd yesterday signed the Waqf Fund Strategic Collaboration Agreement, witnessed by Datuk Mohd Redza Shah Abdul Wahid, president of the Association of Islamic Banking Institutions Malaysia (AIBIM).
Mohd Redza in his opening speech said, “Islamic banks are aware that waqf has great potential in developing the Muslim economy. There are many potential waqf parcels of land for development and generous members of society who are willing to contribute.
“The Islamic banks, with the existing infrastructure, risk and banking expertise will join forces to generate positive and sustainable impact to the economy, community and environment.
“Islamic banks that intend to support the efforts of the State Islamic Religious Council (MAIN) as the sole trustee of waqf by jointly identifying high-impact projects to be developed and maximising the use of banking channels for customers can participate by contributing funds to develop the identified projects,” he said.
“The focus areas of the waqf projects will be around four sectors — economic empowerment, education, health and investment.
“Currently, eight MAINs have agreed to participate in this initiative and together, the Islamic banks and MAINs will establish a joint management committee to closely monitor the project.
In this strategic partnership, participating Islamic banks have agreed to allow their banking channels to be used by their customers to contribute to their preferred projects,” said Mohd Redza.
The signing ceremony which was held at the AIBIM office was attended by the senior management officers and representatives of AIBIM’s council members.
Mohd Redza added, “To ensure good governance in this initiative, AIBIM will issue a Code of Governance and Administration as guiding principles to be adhered by participating banks.
“This includes disclosure on requirements and reporting to donors and funders, comparable to those of other Islamic banking operations.”
This initiative is targeted to be launched in the fourth quarter of this year, after which Malaysians will have the opportunity to use the banking channels of the six Islamic banks and participate in the development of identified waqf projects.