New Straits Times – BPMB signs technical study agreement with Islamic Development Bank, Yayasan Waqaf Malaysia
KUALA LUMPUR, 22 July 2022
Bank Pembangunan Malaysia Bhd (BPMB) signed a technical study agreement with Islamic Development Bank (IsDB) and Yayasan Waqaf Malaysia (YWM) for the establishment of Awqaf Properties Investment Fund (APIF).
BPMB chairman Tan Sri Nazir Razak said IsDB had undertaken many waqaf projects in countries like Saudi Arabia, Bangladesh, and the United States.
He said the bank wants to draw on IsDB's experience and skill sets to do the same in Malaysia.
"By exploring the untapped potential of waqf assets, we believe this collaboration will have a significant developmental impact on the nation and benefit lower-income beneficiaries.
"The first step is this technical study to assess the market feasibility of waqf development, in partnership also with YWM," he said.
Meanwhile, IsDB president and chairman Muhammad Al Jasser said the bank is delighted to onboard BPMB on this initiative in support of the establishment of APIF-Malaysia.
"Together with BPMB, we hope this technical study will unlock the value and potential of the significantly large portion of waqf land in Malaysia that remains idle and has yet to be developed.
"This will be the first APIF partnership in Southeast Asia," said Muhammad.
YWM chief executive officer Amir Shaharuddin said this collaboration is timely as it helps enable access to the land and credit market.
Amir said the collaboration could be a potential developmental opportunity for Islamic financial institutions to explore.
"Waqaf development is a means of sustainable welfare and is integral in building the socio-economic conditions for the masses.
"We look forward to unlocking the potential of these waqf assets and regenerating wealth for the benefit of the underserved and endeavouring to narrow the social and income disparity," he said.
Following the signing, a technical study will ensue to assess the feasibility of waqf development in Malaysia, followed by the establishment of APIF.
Based on IsDB's experience and insights into waqf asset development, this collaboration marks BPMB's first step toward financing waqf developments.
This technical study agreement is a unique collaboration initiated by the IsDB Centre of Excellence in Kuala Lumpur and is expected to benefit Malaysia's development landscape.
The IsDB Centre of Excellence in Kuala Lumpur is committed to supporting initiatives in line with Malaysia's development priorities and experience.