UTILISATION OF ZAKĀH AND WAQF FUND IN MICRO-TAKĀFUL MODELS IN MALAYSIA: AN EXPLORATORY STUDY

Purpose – This paper aims to investigate the utilisation of both zakāh and waqf fund as external resources to ensure micro-takāful services are delivered to underserved communities in an effective and sustainable manner. It also addresses Sharīʿah issues related to the zakāh- and waqf-based model.

Design/methodology/approach – The study is a qualitative-based research. It uses both focus group and content analysis approach to gather primary data and identify and interpret relevant secondary data and Sharīʿah concepts in developing the zakāh and waqf-based micro-takāful model.

Findings – It is discovered throughout the investigation of attributes of beneficiaries of zakāh and waqf institutions as well as micro-takāful scheme that all share commonalities in terms of social securities and socio-economic support to low-income households in societies. The study also finds that the disintegration of zakāh and waqf which form part of the Islamic ecosystem from the micro-takāful model makes it less effective and sustainable.

Originality/value – This study appears as a primitive attempt to discuss and develop a zakāh and waqf based micro-takāful model with reference to Malaysian jurisdiction.