An Analysis of Legal Frameworks and Fatwas Governing Istibdal Waqf in Malaysia

Abstract

Waqf, a charitable endowment under Islamic law, plays a significant role in socio-economic development. In Malaysia, istibdal waqf, which means the exchange or substitution of waqf property, is a mechanism allowed for enhancing the utility of waqf assets. However, the legal frameworks and fatwas governing istibdal waqf differ across various states, leading to challenges in its implementation and management. Therefore, this study analyzes the legal structures and fatwas pertaining to istibdal waqf in Malaysia, and examines their effects on the management and sustainability of waqf assets. The problem stems from the inconsistent legal provisions across different states and varying fatwas issued by respective Islamic religious councils. These inconsistencies create barriers to the efficient use of waqf property, ultimately limiting the potential of waqf as a tool for economic development. The study employs a qualitative research methodology, including a review of statutory laws, fatwas, and guidelines from state Islamic authorities. The findings reveal that discrepancies in legal interpretation and fatwas significantly hinder the effective management of waqf assets, leading to delays in decision-making and underutilization of property. To address these issues, the study recommends the standardization of istibdal waqf regulations across states and a more unified fatwa issuance process to streamline the management and revitalization of waqf properties. This research contributes to a better understanding of the governance of waqf in Malaysia and offers practical solutions to improve its administration for greater socio-economic impact.