Potential of Cash Waqf Linked Sukuk (CWLS) Model as Financing Tool in Malaysia

Cash waqf-linked sukuk (CWLS) is an innovation of Islamic social finance and an Islamic capital market instrument that has been introduced in Indonesia for various purposes, including social and economic contributions. Based on Indonesia’s experience and success in implementing CWLS for the benefit of society and Indonesia's economy, it seems to be a practical practice in Malaysia as well. This is because Malaysia and Indonesia have similarities in their communities and landscapes. Besides, Malaysia is quite familiar with and popular in implementing cash waqf and sukuk in general. Hence, the introduction of CWLS stands a chance to be accepted and practice in Malaysia in future. This financing tool aims to ease the collection of cash waqf funds, and act as an alternative for waqf assets to be developed, instead of focusing on the traditional practice. Therefore, this conceptual paper aims to discuss the potential of practising CWLS in the Malaysian context by conducting a document and content analysis. In the end of the research, it can be concluded that there are possibilities for CWLS to be implemented in Malaysia, which then assists in overcoming the issue of society, specifically in financial segment, and how this is in-line with Malaysia’s commitment in achieving Sustainable Development Goals (SDGs).

Cash Waqf Linked Sukuk (CWLS)

1. Abdul Khalim, M., Masruri, M., Wan Yusoff, W. Z., Fattah, M., & Hashim, M. S. (2025). Integration of Waqf and Modern Financial Instruments for Evaluating Their Impact on Social and Economic Development. International Journal of Research and Innovation in Social Science, IX(VII), 4313–4325. https://doi.org/10.47772/IJRISS.2025.907000349 [Google Scholar] [Crossref]

2. Armen, R. E., Kuswendah, N. F., & Lubis, A. (2022). MANAGEMENT OF PRODUCTIVE WAQF IN ACHMAD WARDI EYE HOSPITAL OF BWI-DD IN SERANG BANTEN. Imara: JURNAL RISET EKONOMI ISLAM, 6(1), 39. https://doi.org/10.31958/imara.v6i1.4936 [Google Scholar] [Crossref]

3. Hosen, M. N., Maulana, A., Farhand, M. Z., & Fudhail Rahman, M. (2022). Evaluating the Fundraising Process of the World’S First Cash Waqf-Linked Sukuk in Indonesia. Qudus International Journal of Islamic Studies, 10(1), 175–214. https://doi.org/10.21043/qijis.v10i1.8161 [Google Scholar] [Crossref]

4. Cahyono, E. F., & Hidayat, S. E. (2022). Cash Waqf and The Development: A Case Study of Cash Waqf Linked Sukuk in Indonesia. El-Barka: Journal of Islamic Economics and Business, 5(1), 150–182. https://doi.org/10.21154/elbarka.v5i1.3713 [Google Scholar] [Crossref]

5. Muhamad, N. (2024, 8 8). databoks. Retrieved from Mayoritas Penduduk Indonesia Beragama Islam pada Semester I 2024: https://databoks.katadata.co.id/demografi/statistik/66b45dd8e5dd0/mayoritas-penduduk-indonesia-beragama-islam-pada-semester-i-2024 [Google Scholar] [Crossref]

6. Khamim, Asyharul Muala, & Muhammad Lutfi Hakim. (2023). Cash Waqf Linked Sukuk for Islamic Social Welfare and National Development: Evidence from Indonesia. Global Journal al Thaqafah, 13(1), 16–34. https://doi.org/10.7187/GJAT072023-2 [Google Scholar] [Crossref]

7. Info Finansial. (2025, 8 18). Retrieved from CWLS SWR006 dan Sukuk Ritel Diluncurkan, Pilihan Investasi Syariah: https://infofinansial.com/cwls-swr006-dan-sukuk-ritel-diluncurkan-pilihan-investasi-syariah/ [Google Scholar] [Crossref]

8. Laila, N. (2024, 12 28). Universitas Airlangga . Retrieved from Cash Waqf-Linked Sukuk (CWLS), Inovasi Keuangan Islam untuk Kesejahteraan Sosial: https://unair.ac.id/cash-waqf-linked-sukuk-inovasi-keuangan-islam-untuk-kesejahteraan-sosial-di-indonesia/ [Google Scholar] [Crossref]

9. Ismal, R. (2022). IDENTIFYING THE OPTIMAL CASH WAQF LINKED SUKUK: INDONESIAN EXPERIENCE. Hamdard Islamicus, 45(3), 9–27. https://doi.org/10.57144/hi.v45i3.500 [Google Scholar] [Crossref]

10. Gadot, N., Syuhada Bt Yahya ii, N., Rilizam Bin Rosli iii Penasihat Majlis Agama Islam Negeri Johor, M., Bahru ii Pegawai Unit Saham Wakaf Johor, J., Agama Islam Negeri Johor, M., Bahru, J., & Penolong Pengarah Wakaf, iii. (n.d.). KONSEP SAHAM WAKAF JOHOR DAN PERKEMBANGANNYA DI MALAYSIA THE CONCEPT OF SAHAM WAKAF JOHOR AND ITS ADVANCEMENT IN MALAYSIA. 16(2). www.jfatwa.usim.edu.my [Google Scholar] [Crossref]

11. Inceif. (2025). Financing Waqf Land: Significant waqf contribution in Islamic world. Retrieved from Inceif University: https://inceif.edu.my/financing-waqf-land-significant-waqf-contribution-in-islamic-world/#:~:text=In%20fact%2C%20it%20is%20an,funds%20for%20the%20restoration%20process. [Google Scholar] [Crossref]

12. Sulistyowati, Sukmana, R., Ratnasari, R. T., Ascarya, & Widiastuti, T. (2022). Issues and challenges of waqf in providing healthcare resources. Islamic Economic Studies, 30(1), 2–22. https://doi.org/10.1108/IES-09-2021-0034 [Google Scholar] [Crossref]

13. Najmuddin, I. N., Ishak, A. H., & Mohamad, S. N. A. (2025). Privatization Of Waqf Institutions: Benefits And The Neccessities. Al-Qanatir: International Journal of Islamic Studies, 34(04), 66–77. https://doi.org/10.64757/alqanatir.2025.3404/1211 [Google Scholar] [Crossref]

14. SCM. (2023, 7 20). Welcome Remarks at the Waqf and Islamic Capital Market Conference. Retrieved from Securities Commission Malaysia: https://www.sc.com.my/resources/speeches/welcome-remarks-at-the-waqf-and-islamic-capital-market-conference [Google Scholar] [Crossref]

15. Jalaluddin, Majid, M. S. Abd., & Agustina, M. (2023). The Role of Waqf in Islamic Life Insurance: The Dual Benefits of Insurance and Investment in View of Fatwa of Indonesian Ulema Council. 2023 International Conference on Sustainable Islamic Business and Finance (SIBF), 271–275. https://doi.org/10.1109/SIBF60067.2023.10380044 [Google Scholar] [Crossref]

16. Jalil, A. (2023, 7 20). SC's Waqf-featured fund framework raised RM46.7 million as at end-2022. Retrieved from New Straits Times: https://www.nst.com.my/business/2023/07/932779/scs-waqf-featured-fund-framework-raised-rm467-million-end-2022 [Google Scholar] [Crossref]

17. SCM, S. C. M. (2014). Waqf Assets: Development, Governance and The Role of Islamic Capital Market. Securities Commission Malaysia. https://www.sc.com.my/api/documentms/download.ashx?id=a0b2d65d-07ac-4932-a956-70004a93650c [Google Scholar] [Crossref]

18. AIBIM. (2017). Code of Governance and Transparency for Waqf Fund. [Google Scholar] [Crossref]

19. Bernama. (2023, 8 7). New Straits Times. Retrieved from Economist: Waqf can complement fiscal policy gap: https://www.nst.com.my/news/nation/2023/08/939596/economist-waqf-can-complement-fiscal-policy-gap [Google Scholar] [Crossref]

20. Mian, H. R., Hewage, K., & Sadiq, R. (2024). Responsible financing and investment: identification, development, and assessment of Environmental, Social, and Governance (ESG) metrics. Sustainable Futures, 8, 100246. https://doi.org/10.1016/j.sftr.2024.100246 [Google Scholar] [Crossref]

21. Badan Wakaf Indonesia. (2025). Retrieved from Indonesian Wakaf Movement: https://www.new.bwi.go.id/ [Google Scholar] [Crossref]

22. Affairs, D. o. (2025). The 17 Goals. Retrieved from United Nations : https://sdgs.un.org/goals [Google Scholar] [Crossref]

23. YWM. (31 10, 2025). Portal Rasmi Yayasan Waqaf Malaysia. Retrieved from Waqf in Malaysia: https://ywm.gov.my/pengenalan-wakaf [Google Scholar] [Crossref]

24. Ajlaa Ali, N., & Markom, R. (2020). The Challenges in Implementing Cash Waqf in Malaysia. Journal of Contemporary Islamic Studies. [Google Scholar] [Crossref]

25. Kachkar, Omar, Alfares, & Marwa. (2022). Waqf sukuk as instruments of sustainable development and challenges of issuing them a field study in Malaysia. UM Research Repository , 12(2), 29–52. [Google Scholar] [Crossref]

26. Badan Wakaf Indonesia, Bank Indonesia, Kementerian Keuangan, Kementerian Agama, Universitas Islam Internasional Indonesia, & RS Mata Ahmad Wardi. (2021). Annual Report Cash Waqf Linked Sukuk 2021. [Google Scholar] [Crossref]

• Data Integration in Malaysian Syariah Courts: A Study of Challenges and Solutions
• The Concept of Family Well-Being from the Perspectives of Islam, Western Thought and Malaysia Madani
• Leveraging AI Tools for Islamic Scholarship: Podcast and eBook Innovations in Teaching the Sunni Intellectual Tradition
• Cryptocurrency and Shariah: Analyzing the Implications of Islamic Jurisprudence on Bitcoin and its Ethical Framework
• Islamic Credit Card and its Value-Based Proposition: A Perspective from Maqasid Al-Shariah