Integrating Waqf Mu'aqqat and Equity Crowdfunding for the Sustainable Development of Idle Waqf Land (PLANNING MALAYSIA)

Summary

• An estimated 17% of waqf land in Malaysia remained undeveloped in 2024, and agricultural use could generate up to RM18,000 per hectare annually.p.1
• A 0.4-hectare waqf plot in Terengganu growing okra and eggplant generates about RM5,000 per month for the farmer, against an annual rent of RM 400.p.6
• Nine of 14 Malaysian states have specific waqf enactments, and the remaining five are expected to follow.p.10
• Securities Commission Malaysia's Capital Market Masterplan (2026-2030) promotes market-based financing such as equity crowdfunding and P2P lending over traditional bank loans.p.13
• Equity crowdfunding in Europe began with Crowdcube (UK) and Seedmatch (Germany), whose first successful campaigns launched in 2011.p.8
• The study proposes combining equity crowdfunding with waqf muaqqat (temporary waqf) to finance the development of idle waqf land.p.3

Key insights

1. The biggest barrier to developing idle waqf land is a lack of adequate investment capital.p.2
2. All interviewed experts agreed that funding is the main challenge, and funding from JAWHAR is limited.p.12
3. Most interviewees argued that donation-based crowdfunding alone is not sufficient, and were reluctant about bank financing because of repayment obligations.p.12
4. State Islamic Religious Councils are recognised as the sole trustees managing waqf property in their states.p.10
5. Equity crowdfunding spreads risk across many small investors, which makes it suited to financing idle waqf land for sustainable agriculture.p.13
6. Under the proposed model the platform needs approval from the Securities Commission, and also from the relevant State Islamic Religious Council if it uses the term waqf.p.15
7. In the proposed framework the Council contributes idle land through waqf muaqqat, investors fund the project through the platform and entrepreneurs run the agricultural operations.p.16