Oil Palm Industry Economic Journal Vol. 20 (1) March 2020 p. 45-53

Obstacles of Waqf Institutions vis-à-vis Sustainable Oil Palm Management in Malaysia

Khairul Anwar Mohd Nor* and Mohd Adib Ismail*
Received: 3 Oct. 2019   Accepted: 18 Feb. 2020   Available Online: 25 March 2020


The total area of waqf land in Malaysia reached 11 091.82 hectares comprising general waqf and special waqf. The total land area of general waqf covered 4836.5 ha and the remaining 6255.32 ha were special waqf land as recorded by JAWHAR. In Malaysia, the administration and management of waqf property fall under the jurisdiction of the respective State Islamic Religious Council (SIRC). Realistically, to become a high- income nation by 2025, Malaysia requires waqf land in the context of the oil palm industry through the Shared Prosperity trajectory. The main problems facing the oil palm industry are the declining condition of the economy, nutritional deficiencies, decreasing productivity levels, and the unstable financial position of smallholders. To address these challenges, it is necessary to identify the obstacles faced by the waqf institutions in preserving the role of waqf as an Islamic financial instrument that provides financial assistance to those who are qualified. The question here is whether the government is only responsible to care for the oil palm industry in Malaysia. Hence, the objective of this study is to assess the strategy of waqf institutions in the development of the oil palm industry in Malaysia and to propose the methods of implementation. The findings showed that governance and sharing of responsibilities between the waqf institutions and the government are able to preserve the management of waqf land in Malaysia, especially in the care of their oil palm plantations.

Keywords: oil palm, waqf, management, plantation, smallholder.

About Post Author

* School of Economics,
Faculty of Economics and Management,
Universiti Kebangsaan Malaysia,
43600 UKM Bangi, Selangor, Malaysia.
E-mail: anwar_5149@yahoo.com