WIEF-IDB AWQAF
ROUNDTABLEJakarta, Indonesia
5 JUNE 2014LE MERIDIEN JAKARTA,
INDONESIA
“Beyond Charity: Harnessing Waqf for Economic Prosperity”
Management Challenges of Awqaf Assets
Role Players:Tan Sri Muhammad Ali Hashim, President, Malaysian Islamic Chamber of Commerce, MalaysiaMr. Husain Benyounis, Secretary General, Awqaf New Zealand
Moderator:Mr. Riawan Amin, Chairman, Supervisory Board, Association of Islamic Bank Indonesia (ASBISINDO)
WIEF-IDB AWQAF
ROUNDTABLEJakarta, Indonesia
WIEF-IDB AWQAF
ROUNDTABLEJakarta, Indonesia
Tan Sri Muhammad Ali Hashim President
Malaysian Islamic Chamber of Commerce, Malaysia
“ Management- challenges of
- awqaf assets.”
WIEF-IDBAWQAF ROUNDTABLE
5th June, 2014, Jakarta, Indonesia
• 8 PLC, inc Kulim Malaysia Bhd, KFC Holdings, KPJ Healthcare,
& New Britain Palm Oils, PNG. NBPOL listed on London StockX • Group PBT 2010: RM962 mill.
• More than 280 cos. with morethan 65,000 employees
Market Cap. Dec 2010: RM18.1 billion.Market Cap. Dec 2012: RM20.9 billion.IMAGINE JCORP AS A
WAQF ENTITY!
JOHOR CORPORATION
INTRODUCTORY INTRODUCTORY STATEMENTS:STATEMENTS:
1. “ Corporations rule the world.”
2. Private sector interestscrowding outpeople’s interests everywhere!
CORPORATE waqf?
WhyCORPORATE
“ The culture & institutions of the Wall Street economy cultivate & reward our capacity for individualistic greed,
David C Korten, “Agenda For a New Economy, From Phantom Wealth To Real Wealth: Why Wall Street Can’t Be Fixed and How to Replace It.” pp 91.
hubris, deceit, ruthless competition, & material excess.
”
ReformingReformingBusiness waysBusiness waysWALL STREET CULTURE
everywhere!
INTRODUCTORY INTRODUCTORY STATEMENTS:STATEMENTS:
1. “ Corporations rule the world.”
2. Private sector interestscrowding outpeople’s interests
to Community-centricto Community-centric
Corporate reformREFORMCorporate WaqfCorporate Waqf
Shareholder-centricShift system away from
“ A study of Johor Corporation’s Corporate Waqf strategy.”
University of Oxford, December, 2010.
“...Corporate Waqf seems to be emerging as both an innovative and effective mechanism for the functional, practical delivery of benefits in line
with the principles of Waqf.”
Corporate WaqfCorporate WaqfMgt challengesMgt challenges
•-Corporate Waqfbenefit delivery
concept•-Entrepreneurship
•-Ownership
structure
Sold Bodyshop
US$ 1.1 billion
The Economist, September 15-21, 2007, “Business and society”.
ANITA RODDICK
to L’Oreal in 2006
= RM3.3 billion
JCorp’s intrapreneur Principal Bizs:
23 Specialist hospitals in Malaysia 2 Sp. Hospitals in Jakarta, Indonesia
Started with 1 Hospital
& 6 Specialists
in Johor Bahru
in 1981D.P. Siti Sa’diah
Sheikh BakirManaging Director
1 Waqf Hospital & 21 Waqaf An-Nur clinics in 6 states in Malaysia
1 Kolej Universiti, N.S
KPJ HEALTHCARE BHDFeb 2012:
> 800 Specialists, >2 mill patients
IPO valuation: (Nov 94) 276 mill.-Market Cap
Dec 2012: -
AMANAH Entrepreneur
RM3.9 Billion
2013 Sales: RM2.3 bil, PBT RM158 mill
W’out privatisation,MBO or Stock Options!
Integratingamanah intocorporate practice
Intrapreneur JCorp Bisnes utama:
23 Hospital pakar di Malaysia 2 Hospital pakar di Jakarta, Indonesia
Bermula dpd 1 Hospital
& 6 doktor pakar di Johor Bahru
pada
1981
D.P. Siti Sa’diah Sheikh Bakir
Pengarah Urusan
1 Hospital Waqaf dan 21 Klinik Waqaf An-Nur di 6 negeri di Malaysia
1 Kolej Universiti, N.S
KPJ HEALTHCARE BHDFeb 2012:
> 800 Specialists, >2 juta pesakit
Nilai Modal IPO: (Nov 94) 276
juta--“Market Cap” Dis 2012:
-RM3.9 Bilion
2013 Sales: RM2.3 bil, PBT RM158 juta
JIHADBUSINESS
AMANAH Entrepreneur
W’out privatisation,MBO or Stock Options!
KPJ shares waqfed:
18.6 million (14.3%)
Realising “Biz Jihad”objectives Corporate Waqf’s
role - Spawning business
as a “Mother Corp.”
- Waqaf An Nur Corp:
and entrepreneurial
through
opportunities for all!
CAPAIAN ASPIRASI Sdn Bhd
AMANAH Entrepreneur
Ustaz Ismail Mat Ali, General Manager
Ustaz Ismail Mat Ali B.A. Hons (Al Azhar U) - Shariah IslamiahGM - Minority shareholder
Capaian Aspirasi Sdn Bhd Subsidiary of Waqf An Nur
Corporation
Waqf venture capital fundingfor entrepreneurs without capital
CAPAIAN ASPIRASI Sdn Bhd
Biz: Agency (Zakat/
Loss 2006:
(RM100,000)PBT 2011: RM600,000Dividend 2011:
400%
Paid-up Capital:
PBT 2010: RM511,000
Intrapreneur Ustaz Ismail Mat Ali
PBT 2012: RM557,640
5 staff + 80 agents
Wasiat + Mutawwif)
RM100,000 (25%
IMA)
IntrapreneurWAQAF AN NUR CORORATION BHD
AMANAH Entrepreneur
JOHOR CORPORATION’SCORPORATE CONCEPT
An entrepreneurial corporate organisation generating sustainable
businesses under leadership of
(AMANAH entrepreneurs)
JCORP’S INTRAPRENEURS
JCorp’s Intrapreneurs: Equity up to 25%.
JCorp’s Intrapreneurs: Equity up to 25%.
‘TEAM INTRAPRENEURS’
JCorp INTRAPRENEURS offered equity up to 25%.
JCorp INTRAPRENEURS offered equity up to 25%.‘TEAM
INTRAPRENEURS’‘TEAM
INTRAPRENEURS’
JCORP’S INTRAPRENEURS
JCORP
JCORP’S INTRAPRENEURS: With
equity up to 25%.
JCORP’S INTRAPRENEURS: With
equity up to 25%.
MILLIONAIRES!
5 intrapreneursare today
JCORP’S INTRAPRENEURS
• 8 PLC, spt Kulim Malaysia Bhd, KPJ Healthcare,
& New Britain Palm Oils, PNG. NBPOL tersenarai di London SX • Group PBT 2010: RM962 juta
• Lebih 280 syarikat dan lebih 65,000 warga kerja Kumpulan
KFC Holdings,
Market Cap. Dec 2012: RM21.0 billion.
JIHADBUSINESSTRANSFORMJCORP
INTO WAQF
“CORPORATE WAQF”
PLC shares (@ NAV)3rd August, 20062007: + RM50 million
2006:RM 200 million
CORPORATE WAQF LANDMARKS
• Market
WAQF ASSET VALUE: (Market Cap, 31 Dec 2010)
RM430.4 mill
• Waqf Asset Value at endowment date: RM250 million
WAQF ASSET VALUE: (Market Cap, 31 Dec 2012)
RM575.9 mill
RM5
No. of Treatments
(1998-2013):
961,148Non-
Muslims: 69,690
21 CLINICS + 1 HOSPITAL (Dec 2013), in Johor, Perak, Negri Sembilan, Selangor, Sarawak and
Penang.
WAQAF AN-NUR CORPORATION
“ Management- challenges of
- awqaf assets.”
WIEF-IDBAWQAF ROUNDTABLE
5th June, 2014, Jakarta, IndonesiaCONCLUSIO
N
CORPORATE WAQF • Corporate capacity
building using Islamic motivational force & spiritual energy for business-driven success;
• Wealth-creating institution to reduce economic divides & bridge social disparities;
• A “Mother Corporation” for entrepreneur development, management talent and human capital development;
spawning new enterprises,
• Over the long run, through critical mass, an institution that will renew economic system, shifting it from one that is ‘shareholder-centric’
creating biz opportunities for marginalised groups;
• A “Mother Corporation”
to a ‘community-centric’ and more equitable system.
CORPORATE WAQF
WIEF-IDB AWQAF
ROUNDTABLEJakarta, Indonesia
Mr. Husain Benyounis Secretary General
Awqaf New Zealand
Simple Global ModelManagement Challenges of Awqaf Assets
Presented by: Husain BenyounisSecretary General – Awqaf New Zealand
Established in Feb 2011 & have been Run By Volunteers
Turning unused charitable Resources into Awqaf RevenuesMuslim Minority Prospective
Islamic Economy Award 2013
Winner
Understanding The Basics QهSالل Wل YحYأ YوYيعYا البYب cالر Yم Wر YحYو
“Allah destroys interest and gives increase for charities” 2-276
يQربgي Yو بYا cالر QهWالل Qق YمحYيgات YقYد Wالص
“But Allah has permitted trade and has forbidden interest” 2-275
TradeCharity
EconomyIslamic
Identified a gap between the Profit & Non-Profit sectors. Found the possible reason for this gap. Introduced Awqaf Sukuk that links the 2 industries. Developed a Model that Bridges this gap and
Helps overcome challenges such as taxations, cross boarder relations, transparency, efficiency and Shariah compliance in
one simple model based on simple fundamentals.
The balance issue was well covered in Dr Sami Ibrahim Al Suwailem’s book “Entrance of Islamic Economy Fundamental”
اإلسالمي التمويل أصول إلى //:)مدخل . / -6http suwailem net BooksDetails )
Elements of Awqaf EngineeringAimProjectNeedsAvailableChallengeLegislationDevelopmentModel
Maximum utilisation of our charitable resources Turn wasted charitable resources into Awqaf Revenues Take Awqaf from Local to Global with minimum risks Adahi/Qurbani of Muslims in the West (5 million Sheep/year) Establish Awqaf farms to supply 5 million sheep a year Waqf, Donor, issuance & beneficiary in different countries Establish Global Awqaf Research Centre (GARC) NZ & UAE Innovate Global Awqaf Sukuk and Awqaf Certificates
New Types of Awqaf AssetsEstablishing Awqaf Farms and associated industries to supply
Livestock to the Adahi/Qurbani & Relief industries for the Muslim in the west with estimated value of $750 million/year (advance level of development).
Zakat Al Fattier packaged food with estimated value of $500 million/year only for the western Muslims (under early stage of development). This could also be extended to all Muslim world.
Proposed Model Based on Cash WaqfProject Prospectus
Awqaf Certificate or Sukuk
ApprovedNo
Amended
Awqaf BankInternational Awqaf Bank
World Awqaf Qard Fund Services (WAQF-S)
A Waqf OrganisationHas a Sharia Board
Has International StatusNon Governmental (independent)
Specialize in Qard Al Hasan & AwqafHas the authority to Issue Awqaf
Certificate & Sukuk
A small amount of the Adahi/Qurbani wool
is sufficient to fund the operation of WAQF-S
Cash Waqf
Yes Name
Rules
Fund
Name
Rules
Fund
WAQF-S
Issue the Awqaf Certificate or Sukuk
Qard Hassan given to Awqaf
Success
Buy the asset
Finish
Payment
Stop
SellAsset
Yes
Transfer ownership to Awqaf Org.Replicate the model somewhere else
No
Annual Payment
No
Yes
WAQF-SProposed Members
Revenues generated from the Wasted
charitable resources continue feeding
WAQF-S
The wasted value of the Adahi/Qurbani wool of the Muslims in the west is estimated at
50$ million/year
Turning bone into Halal Galatian
IdeallyWorld Waqf Foundation
Islamic Development Bank (2001)
Awqaf South Africa (2001)
Awqaf New Zealand (2011)
Awkaf Australia (2012)
Awqaf USA (2013)
Awqaf Fiji (2013)
Awqaf Canada (2014)
Awqaf Muslim Minorities
WAQF-S “Waqf Al Sukuk”
Balance the Islamic Economy Enhance efficiency of Non-Profit Sector Revive and apply the Sunnah of Qard Al Hassan Develop new Islamic Finance Tools for the Non-Profit Sector Provide secured infrastructure to globalize the Awqaf Industry Recycle the Awqaf Sukuk by replicating the model over & over Safe structure for the profit to invest in the Non-Profit Sectors Ensure high degree of transparency via Awqaf Sukuk instrument Encourage innovation through Engineering the Awqaf Industry
Most importantly becoming a
Communication Platform
Between the Profit & Non-Profit Sectors
WAQF-S not only bridge the Gap between the Profit & Non-Profit Sectors but also help develop both sectors in many ways as:
CONCLUSIONSWe invite you to assist Awqaf NZ
develop, establish & operate
WAQF-S
We will easily & efficiently overcome the current & future Management Challenges of Waqf Assets.
We are in talks with a Ministry of Awqaf to host WAQF-S.We expect to launch WAQF-S in 6 - 12 months Insh-Allah.
The Scope is Huge, The Cost is Low & The Opportunities are Endless
Thank You