Business Today - Bank Pembangunan On Potential Establishment Of Awqaf Properties Investment Fund
KUALA LUMPUR, 23 July 2022
Bank Pembangunan Malaysia Berhad has signed a technical study agreement with Islamic Development Bank and Yayasan Waqaf Malaysia for the establishment of an Awqaf Properties Investment Fund in Malaysia.
Upon the feasibility of waqaf development in Malaysia, BPMB will embark on its first step toward setting up the fund.
BPMB Chairman, Tan Sri Nazir Razak shared that “There are substantial waqaf real estate assets throughout the Muslim world that remain underutilised and Malaysia is no exception. It is estimated that only about 13% of this land has been deployed for development purposes. This is largely attributed to the lack of technical expertise and financial resources which hinder the development of these assets.”
“IsDB has undertaken many waqaf projects in countries like Saudi Arabia, Bangladesh and the United States and we want to draw on their experience and skill sets to do the same here. By exploring the untapped potential of these 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 the development, in partnership also with YWM,” Nazir added.
“This will be the first APIF partnership in Southeast Asia,” shared H.E Dr. Muhammad Al Jasser, President and Chairman of IsDB Group. Prof Dr Amir Shaharuddin, Chief Executive Officer of YWM said that “Waqaf development is a means of sustainable welfare and is integral in building the socio-economic for the masses. We look forward to unlocking the potential of these waqaf assets and regenerating wealth for the benefit of the underserved and endeavour to narrow the social and income disparity.”
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. BPMB said its potential venture into waqaf financing aligns with Bank Negara Malaysia’s aspirations of Value-Based Intermediation by offering Islamic social finance in mainstream banking.