WIEF-IDB
AWQAF
ROUNDTABLE
Jakarta, Indonesia
“Beyond Charity: Harnessing
Waqf for Economic Prosperity”
5 JUNE 2014
LE MERIDIEN JAKARTA,
INDONESIA
WIEF-IDB
AWQAF
ROUNDTABLE
Jakarta, Indonesia
Management Challenges of Awqaf Assets
Role Players:
Tan Sri Muhammad Ali Hashim, President, Malaysian
Islamic Chamber of Commerce, Malaysia
Mr. Husain Benyounis, Secretary General, Awqaf New
Zealand
Moderator:
Mr. Riawan Amin, Chairman, Supervisory Board,
Association of Islamic Bank Indonesia (ASBISINDO)
WIEF-IDB
AWQAF
ROUNDTABLE
Jakarta, Indonesia
Tan Sri Muhammad Ali Hashim
President
Malaysian Islamic Chamber of Commerce, Malaysia
WIEF-IDB
AWQAF
ROUNDTABLE
th
5 June, 2014, Jakarta, Indonesia
“ Managementchallenges of
- awqaf assets.”
MALAYSIA:
VISIT BY
SAUDI
GUESTS
CORPORATE
(11
April,
2014)
-
WAQF
CORPORATE WAQF
JOHOR CORPORATION

Integrating waqf
principles into
-
corporate practice
- reform business.
to
JOHOR CORPORATION
• More than 280 cos. with more
than 65,000 employees
• 8 PLC, inc Kulim Malaysia Bhd,
KPJ Healthcare, KFC Holdings,
IMAGINE
JCORP
AS
NBPOL
&
New
listed
Britain
on
Palm
London
Oils,
StockX
PNG.
Market Cap. Dec2012: RM20.9 billion.
• Group PBT 2010: RM962 mill.
Market Cap. Dec2010: RM18.1 billion.
A WAQF ENTITY!
INTRODUCTORY
STATEMENTS:
1. “ Corporations
rule the world.”
2. Private
sector
Why
interests
CORPORATE
waqf?
crowding out
people’s interests
everywhere!
Reforming
Business
ways
WALL
STREET CULTURE
“ The culture & institutions
of the Wall Street economy
cultivate & reward our
capacity for individualistic
greed, hubris, deceit,
ruthless competition,
&
material
excess.
”
David C Korten,
“Agenda For a New Economy, From Phantom Wealth To
Real Wealth: Why Wall Street Can’t Be Fixed and How to Replace It.” pp 91.
INTRODUCTORY
STATEMENTS:
1. “ Corporations
rule the world.”
2.Corporate
Private
sector
Corporate
Waqf
reform
REFORM
interests
Shift
system away
crowding
out from
Shareholder-centric
people’s interests
to Community-centric
everywhere!
“ A study of Johor Corporation’s
Corporate Waqf strategy.”
University of Oxford, December, 2010.
“...Corporate Waqf seems to be
emerging as both
an innovative and
effective mechanism
for the functional, practical
delivery of benefits in line
with the principles of Waqf.”
Corporate Waqf
Mgt challenges
wnership
•-Ostructure
E
ntrepreneurship
•-concept
Corporate Waqf
•-benefit
delivery
ANITA RODDICK
wnership
•-Ostructure
ANITA RODDICK
Sold Bodyshop
to L’Oreal in 2006
US$ 1.1 billion
= RM3.3 billion
The Economist, September 15-21, 2007,
“Business and society”.
ANITA RODDICK
Fourth richest
woman in Britain
Datin
Paduka SITI
SA’DIAH
ANITA
RODDICK
82
Malaysian CEO,
KPJ
Bhd
KPJ:Healthcare
RM3.86 billion
KPJ HEALTHCARE
BHD
JCorp’
s intrapreneur
AMANAH
Entrepreneur
 Principal
Bizs:
Feb
2012:
Started
with
IPO valuation:
231Specialist
hospitals
Hospital
&
Integrating
>276
(Nov 94)
mill.in800
Malaysia
6Specialists,
Specialists
amanah
into
2Market
Sp. Hospitals
in
Cap
in
Johor
Bahru
corporate
Jakarta,
Indonesia
>2
mill
Dec
2012:
in 1981
 1 Kolej
Universiti, N.S
patients
practice
RM
3.9
Billion
 1 Waqf Hospital &
W’out privatisation,
D.P. Siti Sa’diah
21 Waqaf An-Nur clinics
in 6 states in Malaysia
MBO or Stock Options!
Sheikh Bakir
Managing
Director
2013 Sales: RM2.3 bil, PBT
RM158
mill
AMANAH
Entrepreneur
KPJ
HEALTHCARE
BHD
Intrapreneur
JCorp
 Bisnes
utama:
Nilai
IPO:
FebModal
2012:
Bermula
dpd
231Hospital
pakar
Hospital
&
(Nov 94)
juta>di276
800
Malaysia
6
doktor
pakar
BUSINESS
Specialists,
2“Market
Hospital- pakar
di
Cap”
dJakarta,
i JohorIndonesia
Bahru
>2
juta
Dis
2012:
pada
1981 N.S
 1 Kolej
Universiti,
pesakit
RM
3.9
Bilion
 1 Hospital Waqaf dan
JIHAD
W’out
privatisation,
KPJ shares
waqfed:
D.P. Siti Sa’diah
MBOmillion
or Stock(14.3%)
Options!
18.6
Sheikh Bakir
21 Klinik Waqaf An-Nur
di 6 negeri di Malaysia
Pengarah
Urusan
2013 Sales: RM2.3 bil, PBT
RM158
juta
- Waqaf An Nur Corp:
 Realising “Biz Jihad”
objectives through
Corporate Waqf’s role
as a “Mother Corp.”
- Spawning business
and entrepreneurial
opportunities for all!
AMANAH Entrepreneur
Waqf venture capital funding
CAPAIAN
ASPIRASI
Sdn
Bhd
for entrepreneurs
without
capital
Ustaz Ismail Mat Ali
B.A. Hons (Al Azhar U)
- Shariah Islamiah
GM-Minority shareholder
Capaian Aspirasi Sdn Bhd
Subsidiary
Waqf
Nur Corporation
Ustaz
IsmailofMat
Ali,An
General
Manager
AMANAH
Entrepreneur
Intrapreneur
WAQAF AN NUR CORORATION BHD
CAPAIAN ASPIRASI Sdn Bhd
Biz: Agency (Zakat/
Wasiat + Mutawwif)
Paid-up Capital:
RM100,000 (25%IMA)
Loss2006:(RM100,000)
PBT 2010: RM511,000
2011: RM600,000
PBT 2012:
RM557,640
Dividend 2011: 400%
5 staff + 80 agents
Intrapreneur Ustaz Ismail Mat Ali
JOHOR CORPORATION’S
CORPORATE CONCEPT
An entrepreneurial corporate
organisation generating
sustainable businesses
under leadership of
(AMANAH
entrepreneurs)
JCORP’S INTRAPRENEURS
JCorp’s Intrapreneurs:
Equity up to 25%.
‘TEAM INTRAPRENEURS’
JCORP’S INTRAPRENEURS
JCorp INTRAPRENEURS
offered equity up to 25%.
‘TEAM INTRAPRENEURS’
‘TEAM INTRAPRENEURS’
JCORP’S INTRAPRENEURS
JCORP’S INTRAPRENEURS:
With equity up to 25%.
JCORP
5 intrapreneurs
are today
MILLIONAIRES!
• Lebih 280 syarikat dan lebih
65,000 warga kerja Kumpulan
• 8 PLC, spt Kulim Malaysia Bhd,
KPJ Healthcare, KFC Holdings,
& New
Britain Palm
Oils, PNG.
NBPOL
tersenarai
di London
SX
• Group PBT 2010: RM962 juta
Market Cap. Dec2012: RM21.0 billion.
TRANSFORM
BUSINESS
JCORP
JIHAD
INTO
WAQF
“CORPORATE WAQF”
CORPORATE WAQF LANDMARKS
2006:RM 200 million
PLC
(@
NAV)
2007:
+
RM50
million
3rdshares
August,
2006
•
•Waqf Asset Value
Market
at endowment date:
RM250 million
WAQF ASSET VALUE:
2010)
(Market Cap, 31 Dec 2012)
RM575.9
RM430.4 mill
WAQAF AN-NUR CORPORATION
No. of
Treatments
(1998-2013):
961,148
RM5
NonMuslims:
69,690
21 CLINICS + 1 HOSPITAL (Dec 2013),
in Johor, Perak, Negri Sembilan,
Selangor, Sarawak and Penang.
WIEF-IDB
CONCLUSION
AWQAF
ROUNDTABLE
th
5 June, 2014, Jakarta, Indonesia
“ Managementchallenges of
- awqaf assets.”
CORPORATE WAQF
• Corporate
capacity building
using Islamic motivational
•
•
force & spiritual energy for
business-driven success;
A “Mother Corporation” for
entrepreneur development,
management talent and
human capital development;
Wealth-creating institution
to reduce economic divides
& bridge social disparities;
CORPORATE WAQF
• spawning
A “Mother Corporation”
new enterprises,
•
creating biz opportunities
for marginalised groups;
Over the long run, through
critical mass, an institution
that will renew economic
system, shifting it from one
that is ‘shareholder-centric’
to a ‘community-centric’
and more equitable system.
WIEF-IDB
AWQAF
ROUNDTABLE
Jakarta, Indonesia
Mr. Husain Benyounis
Secretary General
Awqaf New Zealand
Simple Global Model
Management Challenges of Awqaf Assets
Winner
Islamic Economy Award 2013
Muslim Minority Prospective
Turning unused charitable Resources into Awqaf Revenues
Presented by: Husain Benyounis
Secretary General – Awqaf New Zealand
Established in Feb 2011 & have been Run By Volunteers
Understanding The Basics
“But Allah has permitted trade
and has forbidden interest” 2-275
َّ ‫َي ْم َح ُق‬
ِ ‫ص َد َقا‬
‫ت‬
َّ ‫الر َبا َو ُي ْر ِبي ال‬
ِّ ُ ‫ّللا‬




‫َوأَ َحل َّ ه‬
‫الر َبا‬
ِّ ‫ّللا ُ ا ْل َب ْي َع َو َح َّر َم‬
“Allah destroys interest and
gives increase for charities” 2-276
Identified a gap between the Profit & Non-Profit sectors.
Found the possible reason for this gap.
Introduced Awqaf Sukuk that links the 2 industries.
Developed a Model that Bridges this gap and
Trade
Economy
Islamic
Helps overcome challenges such as taxations, cross boarder
relations, transparency, efficiency and Shariah compliance in
one simple model based on simple fundamentals.
The balance issue was well covered in Dr Sami Ibrahim Al Suwailem’s book
“Entrance of Islamic Economy Fundamental”
)http://suwailem.net/BooksDetails-6( ‫مدخل إلى أصول التمويل اإلسالمي‬
Charity
Elements of Awqaf Engineering
 Aim
 Maximum utilisation of our charitable resources
 Project
 Turn wasted charitable resources into Awqaf Revenues
 Needs
 Available
 Take Awqaf from Local to Global with minimum risks
 Adahi/Qurbani of Muslims in the West (5 million Sheep/year)
 Challenge
 Establish Awqaf farms to supply 5 million sheep a year
 Legislation
 Waqf, Donor, issuance & beneficiary in different countries
 Development  Establish Global Awqaf Research Centre (GARC) NZ & UAE
 Innovate Global Awqaf Sukuk and Awqaf Certificates
 Model
New Types of Awqaf Assets
Establishing Awqaf Farms and associated industries to supply
 Livestock to the Adahi/Qurbani & Relief industries for the Muslim in the west
with estimated value of $750 million/year (advance level of development).
 Zakat Al Fattier packaged food with estimated value of $500 million/year
only for the western Muslims (under early stage of development). This could
also be extended to all Muslim world.
Proposed Model Based on Cash Waqf
The wasted value of the Adahi/Qurbani wool of
the Muslims in the west is estimated at
$50 million/year
Project Prospectus
Awqaf Certificate or Sukuk
Approved
Name
Cash
Waqf
Awqaf Bank
International Awqaf Bank
World Awqaf Qard Fund Services (WAQF-S)
WAQF-S
Issue the Awqaf
Certificate or Sukuk
WAQF-S
Proposed Members
Awqaf South Africa (2001)
Amended
Yes
Revenues generated
from the Wasted
charitable resources
continue feeding
WAQF-S
Ideally
World Waqf Foundation
Islamic Development Bank
(2001)
No
Turning bone into
Halal Galatian
Rules
Sell
Asset
Qard Hassan
given to Awqaf
Annual
Payment
Buy the
asset
Awqaf New Zealand (2011)
Success
Awkaf Australia (2012)
No
Stop
Yes
Awqaf USA (2013)
Payment
Awqaf Fiji (2013)
Awqaf Canada (2014)
Awqaf Muslim Minorities
No
A Waqf Organisation
Has a Sharia Board
Has International Status
Non Governmental (independent)
Specialize in Qard Al Hasan & Awqaf
Has the authority to Issue Awqaf
Certificate & Sukuk
Finish
Yes
Transfer ownership to Awqaf Org.
Replicate the model somewhere else
Fund
A small amount of the
Adahi/Qurbani wool
is sufficient to fund the
operation of WAQF-S
WAQF-S “Waqf Al Sukuk”
WAQF-S not only bridge the Gap between the
Profit & Non-Profit Sectors but also help
develop both sectors in many ways as:
 Balance the Islamic Economy
 Enhance efficiency of Non-Profit Sector
 Revive and apply the Sunnah of Qard Al Hassan
 Develop new Islamic Finance Tools for the Non-Profit Sector
 Provide secured infrastructure to globalize the Awqaf Industry
 Recycle the Awqaf Sukuk by replicating the model over & over
 Safe structure for the profit to invest in the Non-Profit Sectors
 Ensure high degree of transparency via Awqaf Sukuk instrument
 Encourage innovation through Engineering the Awqaf Industry
Most importantly becoming a
Communication Platform
Between the Profit & Non-Profit Sectors
CONCLUSIONS
We invite you to assist Awqaf NZ
develop, establish & operate
We will easily & efficiently overcome the current & future
Management Challenges of Waqf Assets.
We are in talks with a Ministry of Awqaf to host WAQF-S.
We expect to launch WAQF-S in 6 - 12 months Insh-Allah.
The Scope is Huge, The Cost is Low &
The Opportunities are Endless
Thank You
WIEF-IDB
AWQAF
ROUNDTABLE
Jakarta, Indonesia
Session End
10th World Islamic Economic Forum
28 - 30 October 2014
Madinat Jumeirah Conference Centre, Dubai
Thank You,
See you in Dubai!