Waqf Institutions Sustainability Through Corporate Governance, Marketing, Technology, And Legislation

Waqf Institutions Sustainability Through Corporate Governance, Marketing, Technology, And Legislation

Maryam Jameelah Mohd Hashim, Mohd Rahim Khamis

Faculty of Business and Management, Universiti Teknologi MARA(Uitm), Cawangan Selangor, Kampus Puncak Alam,Selangor, Malaysia.

DOI: https://doi.org/10.51244/IJRSI.2025.12060087

Received: 04 June 2025; Accepted: 10 June 2025; Published: 10 July 2025

ABSTRACT

As the most rapidly growing waqf institution in Malaysia, its charitable endowment entity raises concerns regarding the sustainability of managing waqf institutions. Thus, this paper aims to address concerns about Muslim development in relation to the nonprofit nature and growth potential of Islamic Social Finance by identifying the constraints affecting the sustainability of waqf institutions. To undertake this study, the author investigated marketing, technology, legislation, corporate governance, and other related factors that contribute to the sustainability of waqf institutions and their interrelations. Restrictive quantitative methods were employed through the distribution of a structured survey questionnaire to a wider audience using Google Forms. A total of 203 responses were collected and deemed valid, signifying that the responses could address the study gaps. The data were processed using Multiple Regression Analysis via SPSS statistical software. The findings indicated that while corporate governance, technology, and legislation significantly impacted waqf institution sustainability, the impact of marketing was minimal and statistically insignificant, suggesting that further exploration into its contextual and operational relevance is warranted. Numerous facilities registered within the governance index indicated that marketing is the least contributing element towards the sustainability of waqf institutions. Governance emerged as the strongest determinant in supporting sustainable waqf institutions. To strategically manage waqf properties through improved maintenance over time, it is recommended that standard operational procedures (SOPs) be established for waqf institutions. Furthermore, active engagement in income-generating activities should be prioritised to ensure that waqf assets are put to productive use. It is essential to emphasise that researchers must set goals aimed at building socio-economic awareness of waqf to enhance public marketing and, consequently, the sustainability of waqf.

Keywords: Sustainability, Waqf, Corporate Governance, Technology, Legislation

INTRODUCTION

The term ‘waqf‘, or its plural ‘awqaf‘, literally means ‘hold, confinement, or prohibition’. Technically, it refers to ‘holding certain property and preserving it for the confined benefit of specific philanthropic purposes, and prohibiting any use or disposition of it outside that objective’. It is generally divided into four elements: waqif (the individual who donates waqf), mauquf (the property of waqf), mauquf alaihi (the benefactor), and sighah (the statement of waqf). Unlike cash waqf, zakat, or almsgiving, is contributed through monetary gifts used to build schools, hospitals, and orphanages, offering more flexibility in how resources can be utilised. Waqf has three fundamental traits: perpetuity, meaning never-ending; irrevocability, meaning it cannot be changed; and inalienability, meaning it cannot be transferred. Family waqf (waqf ahli), which benefits family members like children and grandchildren, and charitable waqf (waqf khairi), dedicated to public welfare and further divided into nazir waqf and special waqf khairi, are two broad categories. Islamic legal frameworks embody the practices of charitable giving, shaped by the Qur’an and Hadith. Waqf is the endowment of movable and immovable property, tangible or intangible assets, to Allah with the anticipation that its utilisation would mitigate suffering among the needy. As waqf signifies surrendering possession to Allah, a waqf deed is deemed perpetual. Concerning waqf property, it is considered Allah’s property; hence, no individual can claim it for self-serving purposes.

Waqf plays a pivotal role in empowering the Muslim ummah as it fulfils the principles of socio-economic justice. Muhammad (peace be upon him) endorsed waqf through the example of Umar ibn al-Khattab, who bought land in Khaybar. When discussing how it should be utilised, the Prophet suggested: “Tie up the original property and devote its usufruct to humankind. It should neither be sold, given as a gift, nor bequeathed.” This was the basic principle of waqf. It was structured to ensure that the principal investment grew over time, served the needy perpetually for God’s sake, and was spent in a manner that guaranteed perpetual benefit. Islamic endowments or waqf can significantly support Islam’s socio-economic development within Muslim communities.

Nevertheless, the use and implementation of novel and creative funding strategies are evident (Abdullah, 2020). The evolution of waqf institutions, particularly through innovative cash waqf provisions, reduces dependency on government aid for education, healthcare, and poverty alleviation, thereby improving resource mobilisation (Mohsin, 2013). Historically, waqf has significantly enhanced community welfare by supporting social, educational, and healthcare services, and infrastructure development, traditionally funded by the government, thus meeting societal needs (Khairi et al., 2014). Waqf is regarded as one of the invaluable Islamic legacies that allows people to give charity ceaselessly through the deployment of private resources allocated for public good (Yuspin & Fauzie, 2018). To ensure economic progress among the Muslim population, waqf institutions need to remain active and accessible.

The strategic management of waqf can enhance socio-economic conditions and help alleviate poverty and social problems (Ali et al., 2018). Waqf also has socio-economic impacts through financing major community welfare projects, addressing the needs of the poor, supporting religious observance, and promoting civil society growth. Beyond religious objectives, waqf properties are also utilised for socio-economic development, urbanisation, and archaeological site planning. Despite being underutilised, these properties hold great potential to address funding gaps for infrastructure and socio-infrastructure projects (Nafar, 2019). The ability of waqf institutions to achieve sustainable development can be strengthened by addressing contemporary challenges through proper governance frameworks and alternative funding methods (Khairi et al., 2014).

Waqf institutions must identify and address critical barriers to performance and operational sustainability to achieve optimal results (Ali et al., 2018; Bello, 2009). A contemporary review of waqf institutions in different countries suggests that they can learn from previous management mistakes and address waqf assets professionally within modern administrative structures (Yuspin & Fauzie, 2018). A dominant challenge appears to be the misallocation of waqf assets due to inadequate transparency, poor utilisation, and under-diversified investment portfolios (Ardiyansyah & Kasdi, 2021; Kusumaningtias, 2019). Enhanced functionality in waqf institutions is possible, as documented by studies showing improved community participation alongside governance and investment strategy. Achieving sustainable growth and lasting impact requires innovative administrative governance, targeted investment, and optimised waqf management planning. Currently, optimal socio-economic returns are not realised due to static management practices and a lack of dynamic governance (Rashid, 2018).

The management of waqf faces issues relating to Shariah compliance, governance and legal frameworks, administrative inefficiencies, organisational mismanagement, and financial viability. The historical strength of their institutional framework is exemplified by waqf scholarly endowments, which yield less than their Western counterparts – although Western endowments originated from the waqf institution (Abdullah, 2023). Developing waqf assets is hindered by a lack of innovative strategies, which impedes the liquidity of necessary funds (Haron et al., 2021). Many waqf establishments demonstrate the need for strategic investment in liquid financial resources to capture the full economic value of assets under the prevailing “asset-rich, cash-poor” condition (Sulaiman et al., 2019). The vision of waqf institutions as catalysts for sustainable growth can be realised by utilising underdeveloped policy resources, mobilising stakeholders’ intellectual assets, and reforming collaborative policy frameworks (Rashid, 2018; Haron et al., 2021; Senjiati et al., 2020).

Previous studies have identified various factors that support institutional sustainability. However, there remains a gap in the literature concerning the sustainability of waqf institutions (Iqmal & Kamaruddin, 2018), as most previous research has focused on their functions and impacts. A notable example is the pioneering study by Adeyemi, Ismail, and Hassan (2016), which examined awareness of cash waqf among Muslims in Malaysia. Therefore, this study focuses on governance, marketing, technology, and legal frameworks as sustainability tools for waqf institutions.

LITERATURE REVIEW

Waqf Institutions and Sustainability

The impact of waqf institutions on socio-economic development is critical and stems from the conservative Islamic approach to managing charitable assets (Abdullah, 2020). This ensures perpetual benefits for the community due to its enduring nature (Mohsin, 2013). The term waqf itself implies the redirection of private resources towards public utility, serving the religious, social, and humanitarian needs of society at large (Khairi et al., 2014). Traditionally, waqf institutions have fulfilled community-enabling functions through financing mosques, schools, hospitals, and more sophisticated infrastructure (Khairi et al., 2014; Yuspin & Fauzie, 2018). For waqf institutions to be effective, they must ensure sustainability. In the context of waqf, sustainability refers to the institution’s capacity to maintain financial independence, operational efficiency, and social impact over an extended period (Ali et al., 2018). This necessitates modern management frameworks, technological advancement, and improved governance systems. Waqf institutions can contribute to reducing socio-economic disparities and improving the conditions of underprivileged groups (Nafar, 2019).

In aligning waqf goals with the Sustainable Development Goals (SDGs) and global development initiatives, waqf institutions hold substantial potential (Bello, 2009). In terms of governance and waqf administration, certain institutions exhibit poor governance practices that have resulted in stagnation or regression in economic growth. Good governance involves managing waqf based on trust and ethical standards, which, in turn, promotes economic progress and encourages further contributions (Khairi et al., 2014). Effective marketing is equally important in expanding waqf outreach, as it enhances donor and beneficiary participation and service delivery. Implementing such measures can improve waqf service provision, streamline processes, and enhance operational efficiency. Waqf also functions within a legal jurisdiction, governing the rights and obligations associated with property endowment (Ardiyansyah & Kasdi, 2021). To fully realise and sustain the economic value of waqf assets, effective management is essential (Kusumaningtias, 2019). Optimal management of both waqf and zakat can significantly uplift the socio-economic standing of Muslims by providing financial support for poverty alleviation and community income generation (Kusumaningtias, 2019).

The growing challenges in waqf management have prompted efforts for resolution. However, enhancing the effectiveness and efficiency of waqf institutions requires comprehensive management reform. As a means of upholding Islamic principles, the governance determinants of waqf management—comprising policies and legislation, human capital development programmes, entrepreneurial financing, infrastructure, and governance frameworks—must be addressed. Although multiple proposals have been put forward to resolve sustainability concerns, comprehensive reform remains necessary to enhance waqf institutions’ sustainability. This paper seeks to address the sustainability of waqf by examining alternative sources of economic development and analysing how these variables contribute to waqf sustainability and enhanced economic outcomes.

Theoretical Frameworks of Sustainability

The concept of sustainability has been theorised from multiple perspectives, including long-term endurance and ethical obligations. One widely accepted theory is the Triple Bottom Line, which posits that sustainability comprises economic, social, and environmental achievements (Rashid, 2018). In the context of waqf institutions, this translates into ensuring fiscal solvency (economic), social engagement, and environmental responsibility. Another influential theory is Stakeholder Theory, which emphasises the importance of addressing the interests of all stakeholders—donors, beneficiaries, employees, and the public. Resource Dependence Theory highlights the necessity for organisations to secure control over critical resources essential for survival and growth. Institutional Theory underlines adherence to prevailing norms, values, and regulations to gain institutional legitimacy and support. The Theory of Planned Behaviour explains how awareness and participation in waqf activities can be enhanced (Abdullah, 2023). Meanwhile, the Dynamic Capabilities Framework focuses on innovation and adaptability to change within waqf institutions.

Agency Theory aims to resolve conflicts of interest among waqf managers, donors, and beneficiaries by implementing accountability systems based on delegated authority. According to Trust Theory, organisational culture thrives on collaboration and mutual confidence. Resilience is also vital, enabling waqf institutions to absorb shocks and adapt to change. Collectively, these theories provide valuable insights for improving the preservation and functioning of waqf institutions. Their application offers practical strategies to enhance sustainability and broaden impact. Through the lens of the Triple Bottom Line, waqf institutions can assess economic productivity, social value creation, and environmental conservation. The growth of waqf institutions depends on active stakeholder participation and trust in resource management. With adequate resources and compliance with societal norms, waqf institutions can operate independently of benefactors and gain social approval and recognition.

Corporate Governance and Waqf Sustainability

Corporate governance is a fundamental determinant of an organisation’s strengths and weaknesses. It facilitates the assessment of operations and value creation. Good governance should provide the board and management with informed insights and relevant advice to achieve institutional goals and maintain robust control systems. According to the OECD Principles of Corporate Governance, governance encompasses the relationships among management and various stakeholders, including the Board of Directors, principal shareholders, minority shareholders, and other stakeholders. This wide range of definitions underscores the importance of aligning governance policies with effective governance systems. Gramling et al. (2004) identified four major components of corporate governance: management, boards of directors, internal audit functions, and external audit. These components play an invaluable role in ensuring good governance.

Effective corporate governance integrates independent boards, active audit committees, and internal audit functions, alongside systemic mechanisms that support seamless management operations. Kyere and Ausloos (2020) outlined core principles of corporate governance, including accountability, transparency, fairness, and responsible management. Growing public interest in these principles has emerged due to numerous high-profile corporate scandals. Mallin (2016) noted that such scandals have spurred greater commitment from the public, policymakers, scholars, and both private and public sectors to pursue improved governance. From the perspective of investors, a firm’s governance standards are revealing indicators of ethical direction and business integrity. Corporate governance addresses the interests of investors, employees, consumers, and the public, enabling their engagement in shareholders’ meetings. It thereby contributes to a market’s ability to maintain long-term financial and economic stability while providing sustainable investment opportunities. As a result, governance systems in many firms have experienced significant improvement.

The enforcement of waqf institutions has been increasingly associated with corporate governance, which ensures sustainability by promoting transparency, accountability, and ethical practices (Sulaiman et al., 2019). Self-donors engaging with waqf administrative units governed by corporate principles can secure ongoing donor participation, incentivise involvement, and foster trust (Khairi et al., 2014). Good governance enhances the efficient utilisation of resources by improving decision-making processes, risk evaluations, performance reviews, and the enforcement of waqf asset disbursements. To minimise conflicts of interest and strengthen accountability, the clear division of authority and responsibility is essential.

Advisory boards and audit committees also provide commendable oversight by monitoring the integration of waqf’s mission, vision, and values into daily operations. Strong internal control systems and effective asset and risk management mechanisms are critical for safeguarding assets and preventing operational fraud, misappropriation, and malfeasance.

To combat fraud, waste, and misconduct, accurate reporting and disclosure are vital, as accountability fosters public trust (Senjiati et al., 2020). Good governance is particularly important for managing waqf property, as it ensures a balance between asset utilisation and fund expenditure (Abdulloh et al., 2021). Oversight ensures that waqf governance operates in accordance with resource allocation expectations established by the donor’s terms of reference, aiming to fulfil campaign objectives (Ayub, 2018). In transforming waqf institutions, ethical leadership emerges as a key influence on sustainable change frameworks. The conclusion drawn is that corporate governance plays a vital role in the sustainability of waqf institutions. To examine this relationship, the study will test a hypothesis regarding governance frameworks in waqf institutions as follows:

H₁: There is a significant relationship between corporate governance and the sustainability of waqf institutions for social and economic development.

Marketing and Waqf Sustainability

The marketing of any business, whether for-profit or non-profit, is highly critical. Businesses create value and engage with customers over time to derive some value in return (Kotler & Armstrong, 2010). A non-profit organisation, similarly, must devise a marketing plan that enhances employee commitment to the organisation’s mission (Carlos Pinho, Paula Rodrigues, & Dibb, 2014). The marketing of non-profit services is already practised among local government authorities, churches, museums, universities, political parties, zoos, public hospitals, mosques, and other such institutions. Most often, fundraising drives are organised to achieve a specific objective and raise the necessary funds. Forward-looking non-profit organisations understand that marketing enables them to operate sustainably, grow, address institutional gaps, and strategically position themselves for long-term success (Shafer, 2015).

The marketing or promotion of waqf is an issue that warrants serious attention. A lack of awareness has led to persistent misunderstandings regarding waqf, largely due to poorly executed marketing or promotional initiatives (Latif, Din, & Mustapha, 2018). To effectively promote waqf funds, fund managers must utilise modern electronic, print, and social media marketing tools to attract contributions from Muslims (Mustaffa & Muda, 2014). Later developments, as outlined by Hussain, Bakar, and Bakar (2021), show that subsidiaries collaborated with stakeholders—including banks and state-owned enterprises—to specifically market cash waqf. In some cases, there were no marketing expenditures, as their partners sponsored the campaigns. The focus was on bulk marketing of cash waqf to reach individuals beyond Malaysia’s borders. Moreover, advertising plays a pivotal role in cultivating waqf institutions, attracting donor interest, and maintaining long-term engagement with beneficiaries.

Embracing the marketing paradigm is likely to improve understanding and increase concern for waqf within society, encouraging broader participation from individuals and institutions. Digital marketing tools such as social media, websites, and online donation platforms enable waqf institutions to improve donation facilitation. Community donor segments can be targeted through customised campaigns to maximise outreach. Many of the challenges facing waqf institutions can be addressed by highlighting the exceptional talents within waqf, thus appealing to prospective donors. The purpose of such storytelling is to demonstrate the tangible benefits of contributions for intended beneficiaries. Fundraising communication is most effective when conducted personally; one-on-one engagement enhances pledge fulfilment and follow-up donations. Trust in waqf institutions can be strengthened through partnerships with reputable local leaders and relevant organisations. To build this trust, waqf must set clear objectives, develop a consistent brand identity, and communicate specific goals.

Market research and analysis of prospective donors’ spending patterns can improve advertising and fundraising initiatives, thereby fostering trust. At present, waqf institutions actively promote their activities through social networking platforms. These platforms help facilitate economic empowerment, and marketing plays a crucial role in achieving self-sustainability (Syamsuri et al., 2021). Institutions that rely on waqf as a primary revenue source are in a position to finance advertising efforts, making marketing a key factor in integrating waqf institutional sustainability. This study seeks to evaluate whether the following marketing hypothesis (H₂) holds:

H₂: There is a significant relationship between marketing and the sustainability of waqf institutions for social and economic development.

Technology and Waqf Sustainability

Technology is essential in all spheres of life, including the home, workplace, and public services. It supports learning, communication, air and land travel, online shopping, manufacturing, and data protection. Technology is defined as a process involving tools, materials, systems, and steps that yield specific outcomes. Like many other tools, technology has both advantages and disadvantages. When used appropriately, its benefits are substantial; conversely, misuse can result in harm. Despite potential drawbacks, the public and waqf institutions stand to gain significantly from technology. In waqf management, technology enables modernisation and streamlining of administrative processes (Zakariyah et al., 2022). Improved asset management and increased donor engagement through financial technology (Fintech) contribute to greater institutional efficiency (Bello et al., 2020). The automation of processes such as collection, registration, and benefit distribution eases the workload for both donors and beneficiaries. Waqf institutions that adopt digital tools often experience reduced administrative costs while expanding their outreach (Zakariyah et al., 2022).

According to Ismail and Rasool (2021), technology serves a pivotal role in cash waqf collection. Presently, the average contribution per Muslim is RM0.28, which is lower than expected. In their view, cash waqf is a vital tool in Islam. Both governmental and non-governmental organisations are intensifying efforts to better utilise cash waqf. With advancements in IT, the government recognises the significance of transparency and trust in waqf disbursement. By 2020—long envisioned as a milestone year—technology was expected to aid in promoting cash waqf. The adoption of digital tools broadens the usage and appeal of cash waqf, attracting more contributors and increasing fund volumes. Blockchain technology enhances waqf management by securely recording transactions, providing tamper-proof transparency. Data analytics can identify trends, track assets, and optimise investment strategies. Artificial intelligence (AI) improves administrative functions such as donor relationship management, system enhancement, and strategic decision-making. The integration of technology into waqf management accelerates data collection, refines analysis, and enhances long-term planning.

Given the sensitive nature of waqf data, robust cyber protection is necessary to guard against fraud and threats. Emerging technologies foster operational efficiency, transparency, and access for both donors and recipients. Zakat institutions, supported by relevant fatwas and government regulations, also contribute to the development of technology-based services (Utami & Basrowi, 2021). Therefore, technology is a vital component of waqf sustainability. To determine the validity of this claim, the study will test the following hypothesis (H₃):

H₃: There is a significant relationship between technology and the sustainability of waqf institutions for social and economic development.

Legislation and Waqf Sustainability

A robust legal framework strengthens waqf governance by providing clarity, security, and enforceability of waqf arrangements. Comprehensive legislation is necessary to prevent misappropriation, misuse, and illegal encroachment upon waqf assets. The law must clearly define the responsibilities of fund managers, waqf institutions, and other relevant stakeholders with respect to transparency and accountability. Such provisions are essential for preventing or resolving disputes concerning waqf properties and their administration. The law should also define what constitutes waqf assets, including real estate, cash, and other holdings. Laws governing the registration and protection of waqf properties would help prevent land grabbing and misuse, thereby ensuring long-term protection. Restrictions on tax-exempt grants may discourage donations, but safeguards must ensure that waqf funds are spent in alignment with the donor’s intent (Bello, 2009). Regulations should also define the operational limits of waqf institutions to prevent misuse. As noted by Hadi (2020), waqf legislation provides avenues for economic development aimed at social welfare. Global collaboration in sharing laws and best practices could improve legal frameworks and promote international waqf sustainability.

Reviewing waqf legislation offers critical insights into asset management strategies essential for revitalisation (Rashid, 2018). However, current waqf R&D efforts remain fragmented, lacking an integrated approach to legal reform and governance (Rashid, 2018). In Malaysia, waqf administration falls under the State Islamic Religious Council (SIRC) of each state, which has authority over waqf governance (Mustaffa et al., 2023). This results in a complex scenario involving 13 states and federal territories, each with distinct waqf laws (Mustaffa et al., 2023). Many waqf lands in Malaysia remain idle due to governance and management challenges (Ismail et al., 2015; Mustaffa et al., 2023; Sulaiman et al., 2019). Local economic development efforts must address the needs of surrounding communities (Suhaimi & Suhaimi, 2020). Assessing waqf sustainability is an interdisciplinary matter requiring integrated frameworks that include governance, marketing, technology, and legal dimensions.

These issues, compounded by weak enforcement, diminish rental income and reduce the value delivered to intended beneficiaries (Bello et al., 2020). Where such systems function effectively, waqf institutions can better achieve social responsibility and economic goals. Waqf is one of the most powerful socio-economic instruments in the Muslim world, contributing to infrastructure development in sectors such as education, health care, national defence, transport, food, and employment (Nafar, 2019). The economic return and sustainability of waqf institutions are largely determined by effective governance and adherence to Shariah-compliant policies.

Waqf properties must be modernised and integrated with contemporary technologies (Haron et al., 2021). As Sulaiman et al. (2019) note, a substantial portion of Malaysia’s waqf land remains undeveloped, despite its value. Mismanagement has led to an increase in neglected waqf assets that yield low income and high rental defaults (Bello et al., 2020). While some waqf properties remain accessible to the underprivileged, business development is stagnant (Suryanto et al., 2020). A reconfiguration of the waqf model is urgently needed to encourage new donors and increase accessibility for beneficiaries (Susiatin & Haji-Othman, 2023). Suhaimi and Suhaimi (2020) emphasised the importance of collaboration between federal and state governments in waqf property management. As discussed, the government should create more flexible frameworks for socio-economic development. Based on this, legislation is deemed a key determinant of waqf institutional sustainability. This study will test the following hypothesis (H₄) to assess this assumption:

H₄: There is a significant relationship between legislation and the sustainability of waqf institutions for social and economic development.

METHODOLOGY

Primary data were obtained through survey questionnaires distributed among 400 participants aged 21 to 65 years, utilising a quantitative research method. Respondents were selected using simple random sampling from various districts within the Klang Valley, which offered demographic diversity and convenience. Based on Krejcie and Morgan’s table formula, a sample size of 384 respondents was identified, with each response treated as a separate unit of analysis. Surveys were conducted both online and face-to-face, thereby broadening access and improving the representativeness of the sample. The structured questionnaire comprised six distinct sections. In Section 1, respondents provided demographic information; Section 2 focused on the sustainability of waqf institutions; Section 3 addressed corporate governance and its impact on the sustainability of waqf institutions; Section 4 explored marketing and the sustainability of waqf institutions; Section 5 examined technology’s relationship with the sustainability of waqf institutions, while Section 6 dealt with legislation and its impact on the sustainability of waqf institutions. Adaptations from previous studies were made to measure each variable, as presented in Table 1 below.

The measurement items and variables in this research include the sustainability of waqf institutions as the dependent variable, alongside four independent variables: corporate governance, marketing, technology, and legislation. In the questionnaire, a 5-point Likert scale was adapted (1 = strongly disagree, 2 = disagree, 3 = neutral, 4 = agree, and 5 = strongly agree) to measure all variables. This approach was employed to collect data and gain deeper insights into the true nature of the relationship between the variables and the sustainability of waqf institutions. Data analysis was conducted using SPSS, incorporating descriptive statistics, reliability analysis, correlation analysis, ANOVA, and multiple regression analyses to assess the relationships among corporate governance, marketing, technology, legislation, and the sustainability of waqf institutions.

Table 1: Total of Scale Items and Sources

No	Variables	Sources
1	Sustainability of waqf Institutions (S)	Siraj and Ismail (2015)
2	Corporate Governance (G)	Arshad et al. (2018) and Mahamood and Ab Rahman (2015)
3	Marketing (M)	Sapuan (2021)
4	Technology (T)	Puad, Rafdi and Shahar (2014)
5	Legislation (L)	Asuhaimi et al. (2017) and Siraj and Ismail (2015)

FINDINGS

Descriptive Analysis

As illustrated in Table 2, the demographic profile of the sample reveals that respondents were predominantly female at M = 51.7%, and male at 48.3%. The modal age group was between 43 and 53 years, representing 27.59% of participants. The least represented age group was those above 65 years, accounting for only 13.30% of the sample. Respondents came from various districts within the Klang Valley. Klang had the highest proportion at M = 26.10%, followed by Gombak (24.63%), Hulu Langat (18.72%), Petaling (17.73%), Sepang (12.32%), and Kuala Langat, with the lowest, at 0.5%. In terms of occupation, the private sector comprised the largest group at M = 48.38%, while respondents from NGOs were the fewest at 5.42%. A significant proportion of respondents held a bachelor’s degree (53.69%) or a master’s degree (23.15%). Interestingly, the sample also included respondents with only UPSR-level education. The majority of respondents reported a monthly household income exceeding RM10,959 (38.92%), while only 5.19% earned less than RM2,500.

Table 2: Respondents’ Demographic

Classification		Total Respondents	%
Gender	Male	98	48.30
	Female	105	51.7
Age	21-31 years old	28	13.79
	32-42 years old	45	22.17
	43-53 years old	56	27.59
	54-64 years old	47	23.15
	65 years old and above	27	13.30
District	Petaling	36	17.73
	Klang	53	26.10
	Gombak	50	24.63
	Hulu Langat	38	18.72
	Sepang	25	12.32
	Kuala Langat	1	0.50
Marital Status	Single	75	36.95
	Married	124	61.08
	Divorced	4	1.97
Occupation	Public Sector	50	24.63
	Private Sector	89	43.84
	Self-Employed	32	15.76
	Non-Government Organisation (NGO)	11	5.42
	Unemployed	21	10.34
Education Level	No formal education	0	0
	UPSR	2	0.99
	PT3/PMR/SPM/SPMV/SMA	34	16.75
	Matriculation/ Foundation/ STPM/STAM	11	5.42
	Diploma/ Bachelor’s Degree	109	53.69
	Master’s Degree/PhD	47	23.15
Monthly Household Income	Less than RM2,500.00	12	5.91
	RM2,501.00 – RM4,849.00	37	18.23
	RM4,850.00 – RM10,959.00	75	36.95
	More than RM10,959.00	79	38.92

Reliability Analysis

In this study, a reliability assessment was conducted through internal consistency evaluation using Cronbach’s Alpha. Cronbach’s Alpha is a reliability coefficient that measures the degree of positive correlation among items within a construct. It is derived from the average intercorrelations of items that reflect the same concept. Internal consistency reliability improves as Cronbach’s Alpha approaches 1. A model achieves excellent indicator reliability when each item’s loading is 0.7 or higher and statistically significant at the 0.05 level. Each of the five constructs—waqf institution sustainability, corporate governance, marketing, technology, and legislation—comprised five items. As illustrated in Table 3, waqf institution sustainability achieved a Cronbach’s Alpha value of 0.886, corporate governance 0.876, marketing 0.899, technology 0.896, and legislation 0.857. All these values exceeded the accepted threshold of 0.80, indicating good to excellent reliability. This confirms that the measurement items in this study are reliable and consistent with their respective constructs.

Table 3: Reliability Analysis

Construct	Number of items	Cronbach’s Alpha
Waqf institution sustainability	5	0.886
Corporate governance	5	0.876
Marketing	5	0.899
Technology	5	0.896
Legislations	5	0.857

Pearson Correlation

Pearson’s correlation was applied in this study to assess the relationships between different variables. A value of +1.0 indicates a perfect positive correlation, while -1.0 denotes a perfect negative correlation. Correlation values between 0.90–1.00 are considered excellent, 0.70–0.90 very good, and 0.60–0.70 good. The correlation results are summarised in Table 4 below.

Table 4: Pearson Correlation

Correlations		WSDP	CGIV1	MKIV2	TNGIV3	LGSIV4
Pearson Correlation	WSDP	1.00
	CGIV1	.91*	1.00
	MKIV2	.85*	.88*	1.00
	TNGIV3	.82*	.83*	.84*	1.00
	LGSIV4	.82*	.87*	.85*	.86*	1.00

**. Correlation is significant at the 0.01 level (2-tailed)

CGIV   : Corporate Governance

MKIV2: Marketing

TNGIV3: Technology

LGSIV4: Legislation

The Pearson correlation results indicate that all independent variables exhibit a very strong correlation with the dependent variable, with all values above 0.80. Corporate governance demonstrated the highest correlation at 0.91, followed by marketing (0.85), and both technology and legislation at 0.82.

Analysis of Variance (ANOVA)

The F-test was employed to evaluate the overall model fit and determine whether the independent variables are linearly related to the dependent variable. As shown in Table 5, the model was statistically significant with F = 280.380 and p < 0.001, indicating that the linear model is appropriate for predicting the sustainability of waqf institutions.

Table 5: Analysis of Variance (ANOVA)

Model		Sum of Squares	df	Mean Square	F	Sig.
1	Regression	60.912	4	15.228	280.380	.001
	Residual	10.754	198	.054
	Total	71.665	202

Multiple Regression Analysis

The purpose of the multiple regression analysis was to assess the relationship between four independent variables—corporate governance, marketing, technology, and legislation—and the dependent variable, waqf institution sustainability. As presented in Table 6, the model yielded a correlation coefficient (R) of 0.922, indicating a very strong positive association among the variables. The R-squared value was 0.850, suggesting that 85% of the variance in waqf institution sustainability could be explained by the independent variables. The adjusted R-squared value was 0.847, and the Durbin-Watson statistic was 1.931, indicating no autocorrelation.

Table 6: Summary of Regression Analysis

Model Summaryb
Model	R	R Square	Adjusted Square	R Std. Error of the Estimate	Durbin-Watson
1	.922a	.850	.847	.23305	1.931

From the regression coefficient calculations in Table 7, corporate governance showed the strongest positive effect with a β value of 0.659. Technology (β = 0.181) and marketing (β = 0.135) also contributed positively, though to a lesser extent. Interestingly, legislation had a slightly negative coefficient (β = -0.019), though it remained statistically significant.

Corporate governance significantly supported waqf institution sustainability, with a t-value of 9.811 and a p-value < 0.01. This indicates that governance—comprising accountability, transparency, fairness, and responsibility—is a fundamental driver of waqf sustainability. Therefore, the first hypothesis (H1) is accepted.

Conversely, marketing showed a t-value of 2.073 and a p-value of 0.039, making it statistically insignificant at the 0.01 level. As a result, the second hypothesis (H2) is also accepted, indicating that current marketing efforts do not significantly influence sustainability. Technology proved to be a key predictor, with a t-value of 3.013 and a p-value < 0.01, confirming that the use of modern platforms and systems enhances institutional efficiency and donor engagement—thus supporting the third hypothesis (H3).

Finally, although legislation yielded a negative β coefficient, it remained significant with a p-value of 0.005. This suggests that the mere existence of legal frameworks is positively linked to sustainability, thereby supporting the fourth hypothesis (H4). Overall, corporate governance and technology were identified as critical for waqf institutional sustainability. Legislation had a mixed, yet relevant, impact, whereas marketing was found to be less effective and may require either a fundamental rethink or radical re-examination.

Table 7: Summary of Regression Coefficient

Coefficients
Model		Unstandardized Coefficients		Standardized Coefficients	t	Sig.
		B	Std. Error	Beta
1	(Constant)	.088	.045		1.938	.054
	CGIV1	.620	.063	.659	9.811	.000
	MKIV2	.122	.059	.135	2.073	.039
	TNGIV3	.164	.055	.181	3.013	.003
	LGSIV4	-.019	.066	-.019	-.286	.005
a. Dependent Variable: WSDP

DISCUSSION AND CONCLUSION

This research was conducted to investigate the impact of waqf management factors on the multi-perpetual sustainability of waqf institutions in Malaysia. The issue of waqf management in Malaysia is one that warrants serious consideration. An emerging school of thought suggests that effective waqf management contributes significantly to institutional success and financial health. Improved performance benefits the expanding Muslim community in various domains, including economic, educational, religious, and social spheres. However, poor performance results in mismanagement, incompetence, disorganisation, and ineffectiveness. These concerns were highlighted by Mutalib and Maamor (2018), who argued that such inefficiencies would persist without stronger internal controls and institutional reforms. Ineffective control over waqf contributes to institutional weaknesses that could be mitigated through enhanced internal control frameworks.

The research findings confirmed that sustainability in waqf institutional practices is fundamentally linked to the paradigm of good governance. Performance and operational efficiency—both critical elements of institutional success—derive from an effective system of corporate governance, which encompasses managerial accountability, transparency, ethics, and responsibility. This suggests that social trust in a well-governed waqf diminishes when resources are not strategically allocated towards social, economic, and environmental sustainability in a manner that holistically benefits the Muslim ummah. Although marketing was found to be statistically insignificant in the regression analysis, its potential value should not be dismissed. Effective advertisement could attract more contributors and enhance the institution’s reputation over time. Ultimately, waqf institutions could strengthen public engagement and financial support by implementing targeted outreach strategies.

Laws and policies are crucial for achieving sustainability. A well-designed legal structure ensures proper stewardship of resources and regulates the relationships between waqf donors and managers. This indicates that national legislation plays an essential role in the governance of waqf institutions. Another critical factor for sustainability is technological advancement. Modern technologies can significantly improve accessibility for both donors and institutions. With the use of contemporary tools, the contribution process becomes quicker and more convenient, thereby increasing donor satisfaction.

The objectives of this study were achieved by identifying and analysing the key factors that affect the sustainability of waqf institutions in Malaysia. Based on the findings, corporate governance, legislation, and technological development were found to be crucial to institutional sustainability. Although marketing demonstrated a statistically minimal impact, its role in raising awareness remains vital for enhancing community perception and involvement. Community engagement is essential for the effective administration of waqf resources. Therefore, stakeholder actions must be aligned with clearly defined operational guidelines and procedural standards. From the donors’ perspective, technology is indispensable for promoting engagement, efficiency, and timely response from charitable institutions.

These research findings are valuable to waqf sponsors, recipients, and administrators in improving existing institutional systems. Emphasis must be placed on refining human capital, cultivating entrepreneurial values, and enhancing governance infrastructure to boost institutional performance (Kamarubahrin et al., 2019). As an additional recommendation, waqf governance should be aligned with the principles of Maqasid al-Shariah, aimed at achieving the socio-economic objectives of nation-building. Community empowerment should be prioritised to promote sustainable public appreciation of waqf.

In conclusion, the aims of this paper have been met by examining and analysing the factors that influence the sustainability of waqf institutions and their potential as alternative sources for the development of Muslim communities. This research has focused on factors affecting the sustainability of waqf institutions in Malaysia. To maintain moral integrity and accountability in waqf governance, most respondents agreed that the development of effective policies and guidelines is necessary for ensuring long-term viability. Additionally, technology plays a pivotal role in modern waqf sustainability. Staying abreast of technological trends, including the use of social media, can significantly enhance waqf institutional performance. This is because users today highly value systems, applications, or devices that enable task completion with ease and speed. Consequently, waqf institutions must continue improving their systems to facilitate seamless waqf contributions.

REFERENCES

1. Abdullah, M. (2020). Islamic endowment (Waqf) in India: Towards poverty reduction of Muslims in the country. Journal of Research in Emerging Markets, 2(2), 48.
2. Abdullah, A. (2023). Re-Examining the Role of Selected Waqf and Western Academic Endowments: Issues and Challenges. Journal of King Abdulaziz University-Islamic Economics, 36(1), 3. https://doi.org/10.4197/islec.36-1.1.
3. Abdullah, M. (2017). Waqf, Sustainable Development Goals (SDGs) and maqasid al-shariah. International Journal of Social Economics, 45(1), 158. https://doi.org/10.1108/ijse-10-2016-0295
4. Abdullah, R., & Ismail, A. G. (2017). Taking stock of the waqf-based Islamic microfinance model. International Journal of Social Economics, 44(8), 1018. https://doi.org/10.1108/ijse-06-2015-0176
5. Abdulloh, M., Habibah, I., Sukardi, A. S., & Qomar, Moh. N. (2021). Cash waqf linked sukuk as an instrument of national-scale community economic empowerment based on a functionalist sociology perspective. Annual International Conference on Islamic Economics and Business (AICIEB), 1, 338. https://doi.org/10.18326/aicieb.v1i0.34
6. Abd Mutalib, H., & Maamor, S. (2018). Investigating issues and challenges in utilising waqf property. International Journal of Engineering & Technology, 4(4.19), 158-160.
7. Adeyemi, A. A., Ismail, N. A., & Hassan, S. S. B. (2016). An empirical investigation of the determinants of cash waqf awareness in Malaysia. Intellectual Discourse, 24.
8. Ali, E. M. T. E., Nordin, N., Adam, F., & Halim, M. S. A. (2018). Waqf Assets Management: Harnessing Tool for Muslims’ Welfare. International Journal of Academic Research in Business and Social Sciences, 8(11). https://doi.org/10.6007/ijarbss/v8-i11/4907
9. Al-Ayubi, S., Herindar, E., & Perdana, M. N. (2023). Maqasid Sharia in Tabarru’ Contract Laws. Jurnal Al-Dustur, 6(1), 28. https://doi.org/10.30863/aldustur.v6i1.4194
10. Ardiyansyah, R., & Kasdi, A. (2021). Strategies and Optimizing the Role of Productive Waqf in Economic Empowerment of the Ummah. ZISWAF Jurnal Zakat Dan Wakaf, 8(1), 61. https://doi.org/10.21043/ziswaf.v8i1.9871
11. Arshad, R., Zain, N. M., Urus, S. T., & Chakir, A. (2018). Modelling Maqasid Waqf performance measures in Waqf Institutions. Global Journal Al-Thaqafah, 157-169.
12. Asuhaimi, F. A., Shafii, Z., Ahmad, N., & Alias, M. H. (2017). A study on the willingness of State Islamic Religious Council to support waqf development in Higher Education. The Journal of Muamalat and Islamic Finance Research, 39-53.
13. Ayub, M. (2018). Institutionalising ‘waqf’for realising the shared development objective by Islamic banks and financial institutions. Journal of Islamic Business and Management, 8(2).
14. Bello, D. A. (2009). Poverty Alleviation through Zakah and Waqf Institutions: A Case for the Muslim Ummah in Ghana. MPRA Paper. https://mpra.ub.uni-muenchen.de/23191/1/poverty_alleviation_through_zakah_and_waqf_institutions-a_case_for_the_muslim_ummah_in_ghana.pdf
15. Bello, H., Ayob, M. F., & Sarkawi, A. A. (2020). Preliminary Study on the Maintenance Level of Waqf Properties: Federal Territory, Kuala Lumpur. UMRAN – International Journal of Islamic and Civilizational Studies, 7(3), 87. https://doi.org/10.11113/umran2020.7n3.443
16. Carlos Pinho, J., Paula Rodrigues, A., & Dibb, S. (2014). The role of corporate culture, market orientation and organisational commitment in organisational performance: The case of non-profit organisations. Journal of management development, 33(4), 374-398.
17. Daud, D. (2019). The role of Islamic governance in the reinforcement waqf reporting: SIRC Malaysia case. Journal of Islamic Accounting and Business Research, 10(3), 392. https://doi.org/10.1108/jiabr-01-2017-0008
18. Gramling, A. A., Maletta, M. J., Schneider, A., & Church, B. K. (2004). The role of the internal audit function in corporate governance: A synthesis of the extant internal auditing literature and directions for future research. Journal of Accounting literature, 23, 194.
19. Gumiri, E. R., & Alghifari, A. (2020). Manajemen Aset Produktif untuk Memberdayakan Mustahik: Analisis Pendistribusian Zakat berdasarkan Fatwa MUI Nomor 14 Tahun 2011. Management of Zakat and Waqf Journal (MAZAWA), 1(2), 162. https://doi.org/10.15642/mzw.2020.1.2.162-183
20. Hadi, S. (2020). Dimensi Ekonomi Produktif dalam Regulasi Wakaf di Indonesia. TAWAZUN Journal of Sharia Economic Law, 3(2), 189. https://doi.org/10.21043/tawazun.v3i2.7887
21. Haron, M. S., Rahaman, W. M. A. F. W. A., & Yaacob, S. E. (2021). An Investment Portfolio Strategy for Waqf Assets in Malaysia: A Study at Selected State Islamic Religious Councils. International Journal of Academic Research in Business and Social Sciences, 11(5). https://doi.org/10.6007/ijarbss/v11-i5/8738
22. Hussain, M. N. M., Bakar, N. A. A., & Bakar, A. A. (2021). External Restructuring: Challenges to Waqf Institutions in Malaysia. Academy of Strategic Management Journal, 20, 1-8.
23. Ismail, W. K. W., & Rasool, M. S. A. (2021). Roles of Technology Usage in Cash Waqf Contribution: Factors to Enhance Collection of Cash Waqf in Malaysia. International Journal of Academic Research in Business and Social Sciences, 11(8), 1-14.
24. Ismail, M., Ismail, S., Mohamad, M. S., Suyurno, S. S., & Hashim, F. (2023). A Conceptual Framework of Cash Waqf Awareness in Malaysia Using Theory of Planned Behavior. International Journal of Academic Research in Business and Social Sciences, 13(1). https://doi.org/10.6007/ijarbss/v13-i1/16245
25. Ismail, C. Z., Salim, N. J., & Hanafiah, N. J. A. (2015). Administration and Management of Waqf Land in Malaysia: Issues and Solutions. Mediterranean Journal of Social Sciences. https://doi.org/10.5901/mjss.2015.v6n4s2p613
26. Iqmal, M., & Kamaruddin, H. (2018). A Case Study on Waqf Reporting Practices for Governance, Performance and Socio-Economic Impact in Malaysia. International Journal of Management, Accounting and Economics, 5(9)
27. Kamarubahrin, A. F., Mohammed, A., Ayedh, A., & Khairi, K. F. (2019). Accountability Practices of Waqf Institution in Selected states in Malaysia: a critical analysis. International Journal of Economics, Management and Accounting (Vol. 27, Issue 2).
28. Khairi, K. F., Aziz, M. R. Ab., Laili, N. H., Nooh, M. N., Sabri, H., & Basah, M. Y. A. (2014). Share Waqf (Corporate Waqf) as an Alternative Financial Instrument in Improving the Communities and Nation Welfare. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2448122
29. Kotler, P., Armstrong, G., & Armstrong, G. M. (2010). Principles of marketing. Pearson Education India.
30. Kusumaningtias, R. (2019). The Role of Waqf in Social Development. KnE Social Sciences, 3(11), 348. https://doi.org/10.18502/kss.v3i11.4018
31. Kyere, M., & Ausloos, M. (2021). Corporate governance and firm’s financial performance in the United Kingdom. International Journal of Finance & Economics, 26(2), 1871-1885.
32. Latif, S. A., Din, N. M. N., & Mustapha, Z. (2018). The role of good waqf governance in achieving sustainable development. Environment-Behaviour Proceedings Journal, 3(7), 113-118.
33. Mahamood, S. M., & Ab Rahman, A. (2015). Financing universities through waqf, pious endowment: is it possible?. Humanomics, 31(4), 430-453.
34. Mallin, C. A. (2019). Corporate governance. Oxford university press.
35. Mohsin, M. I. A. (2013). Financing through cash-waqf: a revitalization to finance different needs. International Journal of Islamic and Middle Eastern Finance and Management, 6(4), 304-321.
36. Mustaffa, J., Isa, M. Y. B. M., & Mohammed, Z. (2023). Governance Structures: Dependability and Efficiency of The Waqf Institutional System in Malaysia. JEBA (Journal of Economics and Business Aseanomics), 7(2), 58. https://doi.org/10.33476/jeba.v7i2.3415
37. Mustaffa, N., & Muda, M. Z. (2014). Pengurusan wakaf pendidikan di institusi pengajian tinggi Malaysia: Satu sorotan literatur. International Journal of Management Studies, 21(2), 63-81.
38. Nafar, N. (2019). The Investment of Waqf Properties and Infrastructure Development. In Springer eBooks (p. 285). Springer Nature. https://doi.org/10.1007/978-3-030-18445-2_14
39. Norwani, N. M., Zam, Z. M., & Chek, I. T. (2011). Corporate governance failure and its impact on financial reporting within chosen companies. International Journal of Business and Social Science, 2(21).
40. Priyadi, U., Achiria, S., Imron, M. A., & Zandi, G. R. (2022). Waqf management and accountability: Waqf land financing models for economic wellbeing. Asian Economic and Financial Review, 13(1), 74. https://doi.org/10.55493/5002.v13i1.4696
41. Puad, N. A. M., Rafdi, N. J., & Shahar, W. S. (2014). Issues and Challenges of waqf instrument: A case study in MAIS. In E-proceedings of the Conference on Management and Muamalah (CoMM 2014) (pp. 26-27).
42. Rashid, S. K. (2018). Potential of Waqf in Contemporary World. Journal of King Abdulaziz University-Islamic Economics, 31(2), 53. https://doi.org/10.4197/islec.31-2.4
43. Sapuan, N. M., & Zeni, N. A. M. (2021). The determinants of waqf sustainability in malaysia: A pls-sem analysis. International Journal of Business and Society, 22(1), 102–118. https://doi.org/10.33736/IJBS.3164.2021
44. Senjiati, I. H., Malik, Z. A., Ridwan, I. L., & Irwansyah, S. (2020). Management of Waqf Assets at Waqf Institutions in Indonesia. In 2nd Social and Humaniora Research Symposium (SoRes 2019) (pp. 297-302). Atlantis Press.
45. Shafer, W. E. (2015). Ethical climate, social responsibility, and earnings management. Journal of Business Ethics, 126, 43-60.
46. Siraj, S. A., & Ismail, Y. (2015). Strategic planning and accountability of Waqf management in Malaysia. In 4th International Conference on Inclusive Islamic Financial Sector Development.
47. Sulaiman, S., Hasan, A., Noor, A. M., Ismail, M. I., & Noordin, N. H. (2019). Proposed models for unit trust waqf and the parameters for their application. ISRA International Journal of Islamic Finance, 11(1), 62. https://doi.org/10.1108/ijif-02-2018-0019
48. Suhaimi, F. M., & Suhaimi, A. F. M. (2020). Development of Waqf Land for Economic Development: Is A Hotel A Viable Project? Malaysian Journal of Syariah and Law, 8(1), 25. https://doi.org/10.33102/mjsl.v8i1.190
49. Suryanto, A., Rahmat, B. Z., & Marlina, L. (2020). Islamic Philanthropy: Waqf Empowerment of Madina Minimarket in Tasikmalaya – Indonesia. IKONOMIKA, 5(1), 1. https://doi.org/10.24042/febi.v5i2.5315
50. Susiatin, S., & Haji-Othman, Y. (2023). Optimization of Cash Waqf Development Through Sharia Life Insurance. International Journal of Academic Research in Business and Social Sciences, 13(9). https://doi.org/10.6007/ijarbss/v13-i9/18368
51. Syamsuri, S., Putri, E. R., Zein, A. R., & Handayani, R. (2021). Sukuk Waqf for the Development Of Islamic Educational Institutions. ISLAMICONOMIC: Jurnal Ekonomi Islam, 12(1). https://doi.org/10.32678/ijei.v12i1.267
52. Utami, P., & Basrowi, B. (2021). Sharia Marketing Mix: A Model of Digital Marketing Management Strategy of Zakat. Mabsya Jurnal Manajemen Bisnis Syariah, 3(1), 44. https://doi.org/10.24090/mabsya.v3i1.4688
53. Yuspin, W., & Fauzie, A. (2018). Administrative Challenges of WAQF Institution in the Contemporary World: Future Prospects. The Journal of Social Sciences Research, 6, 294. https://doi.org/10.32861/jssr.spi6.294.299
54. Zakariyah, H., Salaudeen, A. O., Othman, A. H. A., & Rosman, R. (2022). Enhancing waqf management through fintech in Malaysia A Conceptual Framework on the Technology Acceptance Model (TAM). Journal of Emerging Economies and Islamic Research, 10(2), 62. https://doi.org/10.24191/jeeir.v10i2.17953