Islamic Religious Council of Malacca (maim); an Approach to a Modern Islamic Monetary System
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Table of Contents Abstract IntroductionBaitulmal concept and historyHistory of treasury during early days of IslamBaitulmal contributions in MalaysiaFunctions of Baitulmal in IRCMFramework Background of waqf unit of MAIMDefinition of Waqf AssetsCategories of Waqf AssetsAnalysis of Waqf Assets in Malacca Development of Waqf Assets in MalaccaIssues and challenges of waqf assets in MalaccaLegislation Obstacle and ConstraintConclusion TOPIC: ISLAMIC RELIGIOUS COUNCIL OF MALACCA (MAIM); AN APPROACH TO A MODERN ISLAMIC MONETARY SYSTEMAbstract In this paper we will discuss about how the roles of Islamic religious council of Malacca can improve the social welfare and the economy of the state at large, as we know waqf and baitulmal are an important components of Islamic economic instrument which is strongly believed that it can solve the socio-economic problem mainly in the good attempt to eradicate poverty due to scarcity of income and employment. Although waqf had been implemented in Malaysia for many years, it has yet to give impact in contributing welfare of the people in this present day. Islamic religious council of Malacca is one of the religious institutions in this country that play a significant role in developing and managing Muslim Waqf in the state of Malacca. Lack of awareness, lack of knowledge and management skills of waqf and not getting enough funds beside other several challenges in waqf will be discussed further in this paper. Thus, this paper focuses more on the issues and challenges faced by MAIM during the implementation. Therefore this paper will conclude with recommendation and action plan that should be taken by IRCM to improve effectiveness and efficiency of waqf. IntroductionIslamic religious council of Malacca has undergone different stages of development. It was established on 28 September 1960, where it’s main responsible in assisting and consulting Seri Paduka Baginda Yang di-Pertuan Agong in any Islamic religious matters. Chief Minister that responsible of Chairman of MAIM. MAIM the main unit to all agencies and Islamic institutions in Malacca. IRCM is responsible to administrative and management of property of waqf in Malacca, that formal al-Mutawalli subject to Enactment Administrative of Islam State of Malacca 2002, Section 77 and Enactment Evidence Syariah law State of Malacca 2005, Section 32. (Zulkifli Hasan and Abdullah 2008), Rani, et al. 2014). Waqf plays a pertinent role as an Islamic public finance instrument that has a great potential mechanism to play as a significant role in generating a prominent source of financing for the state and for the needs of the Muslim ummah who are complex and growing. Although waqf had been implemented in Malaysia for many years, it has yet give impact in contributing welfare of the people in this present day. Recognizing the potential and role in the economic development of the waqf, Malaysian Government has established JAWHAR in 2004 to strengthen governance endowments across the country, while Yayasan Waqf Malaysia (YWM) established in 2008 acting as the lead agency in developing the waqf property. Both of these agencies have undertaken various initiatives including activities research, publication, coordination and development of waqf properties in throughout the country. At the state level, the development of waqf property Islamic Religious Council (Majlis Agama Islam Negeri-MAIN) implemented by (or in collaboration with other agencies) as a shareholder sole trustee. These three agencies above cooperating closely in develop waqf in Malaysia.
There are 14 State Islamic Religious Councils in this country with each aimed of making the administration of Waqf is systematic and effective for the benefit of ummah. Each institution is given power to manage Waqf properties with the best standard of practice and contemporary management system to project the excellence of Islam (Z. Hasan and Abdullah, M. 2008). Despite that, there are cases where waqf properties cannot be developed due to several reasons, which cannot be avoided. This issue needs to be addressed to safeguard the viability of waqf as income generators. This paper intends to discuss further the management of waqf in Malaysia focusing on waqf assets and in specifically in Melaka under the authorized of Majlis Agama Islam Melaka (MAIM).Baitulmal concept and historyIntroduction by language derived from the Arabic word of two words, namely Al-Bait Al-Mal and the first of which means “home” and the second means “treasure” or simply a treasure house (Treasur). This means “the house that receives a property and save them for distribution.”In reality Baitulmal is a form of property in Islamic financial institutions. It consists of various sources of revenue such as zakat, waqf, taxes (kharaj) and other resource collection and its use for the benefit of society and the state. Introduction in Islam has the concept of usage of a very broad and based on three fundamental philosophy that includes 3 key elements, namely:1. The concept of property – economy (Source)2. The concept of trust – administrative (process)3. The concept of social justice – the use (purpose)4.1 History of treasury during early days of IslamThe role of the state can only be well functioning, if there is an organization that will be given a trust and mandate to perform that tasks. In recognizing the importance of this organization, Baitul-Mal or public treasury, according to some view,  was founded by Prophet of Islam himself when he established Islamic state at Al-Madinah. But this view is not supported by majority of the scholars of Islamic history for the reason that in the reign of the Prophet the income of the state was meager which never exceeded its expenses and hence the need of Baitul-Mal was never felt. According to more current and dominant view, Baitul-Mal was first established during the reign of Abu Bakr who succeeded the Prophet in the year 632, A.D. as First caliph of the Islamic state. With the conquests of Iraq, Syria and other countries there was considerable increase in the revenues of the Islamic state which necessitated the establishment of public treasury.