RHB Islamic Bank Bhd has partnered with Tabung Baitulmal Sarawak (TBS) to drive waqf (Islamic endowment) funds forward as part of its MyWakaf initiative. The initiative is in support of Bank Negara Malaysia’s strategic thrust, which brings together Association of Islamic Banking Institutions Malaysia (AIBIM) members on a collective basis with State Islamic Religious Councils (SIRCs) to establish, collect, manage and invest in waqf-based funds.
The MyWakaf fund initiative will see six Islamic banking institutions collaborating to facilitate banking services for contributors to channel cash endowments for the development of waqf projects.
The main aim of this waqf strategic collaboration is to promote financial inclusion by maximising the value of waqf and to provide channels to collect and manage waqf funds efficiently in the country.
Waqf is a voluntary, permanent, irrevocable dedication of a portion of one’s wealth, be it in cash or kind, that will be assigned to deserving causes within the community. Open to Muslims and non-Muslims, waqf is an Islamic charitable endowment, a recurring charity where the benefits of the charitable act flows to the needy repeatedly.
Under this partnership, RHB Islamic Bank will be the lead bank for Sarawak and will take on the roles of a collection agent and a joint manager, whereby TBS will open and maintain a collection account with RHB Islamic Bank and manage the waqf fund together via a joint management committee. RHB Islamic Bank will provide TBS with the necessary banking channels and services to enable effective and efficient fund collection activities.
“RHB Islamic Bank Bhd is pleased to be part of this waqf initiative to support community development and national interests. It has always been the bank’s prerogative to nurture future generations and to contribute towards nation-building. Through this initiative, we hope to strengthen our relationship with TBS and SIRCs across the country, so that we can increase our participation in waqf projects and demonstrate greater support towards building a community with strong values,” said Dato’ Adissadikin Ali, Managing Director, RHB Islamic Bank.
Adissadikin, who is also the president of AIBIM, added, “RHB Islamic’s role in this initiative is to promote and encourage contributions towards waqf funds among the public and private sectors, via collection points. These funds will then be channeled to support viable projects in education, health, economic empowerment and investment, approved by a joint management committee comprising representatives from participating banks and SIRCs.”
The waqf funds will be collected via online channels only such as JomPAY and Internet billers. JomPAY is Malaysia’s national bill payment scheme, established under the auspices of Bank Negara Malaysia with the participation of banks and large billers.