Utilisation of zakah and waqf fund in micro-takaful models in Malaysia: an exploratory study

Abstract

This paper aims to investigate the utilisation of both zakah and waqf fund as external resources to ensure micro-takaful services are delivered to underserved communities in an effective and sustainable manner. It also addresses Shari'ah issues related to the zakah- and waqf-based model. 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 Shari'ah concepts in developing the zakah- and waqf-based micro-takaful model. It is discovered throughout the investigation of attributes of beneficiaries of zakah and waqf institutions as well as micro-takaful 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 zakah and waqf which form part of the Islamic ecosystem from the micro-takaful model makes it less effective and sustainable.