{"id":224,"date":"2025-08-05T07:26:00","date_gmt":"2025-08-05T07:26:00","guid":{"rendered":"https:\/\/usmanandpartners.com\/blog\/?p=224"},"modified":"2026-03-19T08:10:15","modified_gmt":"2026-03-19T08:10:15","slug":"giving-for-eternity-waqf-wakaf-and-its-establishment-in-malaysia","status":"publish","type":"post","link":"https:\/\/usmanandpartners.com\/blog\/giving-for-eternity-waqf-wakaf-and-its-establishment-in-malaysia\/","title":{"rendered":"Giving for Eternity: Waqf (Wakaf) and Its Establishment in Malaysia"},"content":{"rendered":"\n

Among the instruments of Islamic philanthropy and estate planning, waqf occupies a unique place. Unlike hibah, which transfers ownership of an asset to a specific recipient, or faraid<\/em>, which distributes an estate among heirs, waqf involves the permanent dedication of an asset to a charitable or religious purpose. The asset is removed from private ownership entirely, its benefits flowing in perpetuity to the designated beneficiaries or purposes. In Islamic history, waqf endowments have funded mosques, schools, hospitals, wells, and entire systems of public welfare across the Muslim world for centuries.<\/p>\n\n\n\n

In Sabah, waqf is now governed by a dedicated piece of legislation \u2014 the Wakaf (State of Sabah) Enactment 2018 [No. 7 of 2018]<\/strong> \u2014 which came into operation on 1 January 2019 and provides a comprehensive framework for the creation, registration, administration, and enforcement of waqf in the state. This article explains what waqf is, how the Enactment governs it, and what families in Sabah need to know about establishing a waqf.<\/p>\n\n\n\n

\n\n\n\n

What Is Waqf?<\/h2>\n\n\n\n

Waqf (\u0648\u0642\u0641) is an Arabic term meaning to hold, confine, or dedicate. In Islamic jurisprudence, waqf is the dedication of an asset by its owner (waqif<\/em>) for a specified charitable or religious purpose, with the asset held in perpetuity by a trustee and its benefits flowing to the designated beneficiaries.<\/p>\n\n\n\n

The essential characteristics of waqf under the Enactment are:<\/p>\n\n\n\n

Perpetuity<\/strong> \u2014 A waqf, once validly established, is permanent. Under Section 10(2) of the Enactment, a waqf which has come into effect cannot be sold, charged, transferred, or endowed as hibah by the waqif<\/em>, nor can it be inherited by any person.<\/p>\n\n\n\n

Irrevocability<\/strong> \u2014 Once the conditions for creation are fulfilled and the waqf commences, it is irrevocable. The waqif<\/em> cannot reclaim the dedicated asset.<\/p>\n\n\n\n

Charitable purpose<\/strong> \u2014 The waqf must be for a purpose that is consistent with Hukum Syarak<\/em> and devoted to Allah. A waqf made for an immoral purpose, for self-benefit, or for a purpose inconsistent with Hukum Syarak<\/em> is invalid under Section 14 of the Enactment.<\/p>\n\n\n\n

\n\n\n\n

The Legal Framework in Sabah<\/h2>\n\n\n\n

Waqf in Sabah is governed by the Wakaf (State of Sabah) Enactment 2018 [No. 7 of 2018]<\/strong>. This is a dedicated state enactment \u2014 the Wakaf (State Territories) Act 2010, which applies in the Federal Territories, does not extend to Sabah.<\/p>\n\n\n\n

Under Section 3 of the Enactment, Majlis Ugama Islam Negeri Sabah (MUINS)<\/strong>, established under the Enakmen Majlis Ugama Islam Negeri Sabah 2004 [No. 5 of 2004]<\/strong>, is the sole trustee of all mawquf<\/em> (waqf assets) situated in Sabah. No private party may administer or manage waqf assets independently of MUINS or the Board without written permission.<\/p>\n\n\n\n

The Enactment also establishes a Wakaf Management Board (State of Sabah)<\/strong> (the Board), set up under the Establishment of Wakaf Management Board (State of Sabah) Order 2018. The Board operates under MUINS’s direction and is responsible for the day-to-day administration and management of waqf assets, including the appointment of the Chief Registrar of Wakaf<\/strong> and Registrar of Wakaf<\/strong> who maintain the Register of Wakaf.<\/p>\n\n\n\n

Where waqf involves immovable property registered under the Land Ordinance (Sabah Cap. 68)<\/strong>, vesting of the property in MUINS requires registration under the Land Ordinance. Section 4(3) of the Enactment provides that all mawquf<\/em> situated in Sabah shall vest in MUINS, and in the case of immovable property, this takes effect upon registration under the Land Ordinance.<\/p>\n\n\n\n

\n\n\n\n

Who May Create a Waqf<\/h2>\n\n\n\n

Under Section 9A of the Enactment, a person is eligible to create a waqf if they:<\/p>\n\n\n\n

    \n
  • Have attained the age of 18 years<\/strong>;<\/li>\n\n\n\n
  • Are of sound mind<\/strong>;<\/li>\n\n\n\n
  • Are not declared a bankrupt<\/strong>; and<\/li>\n\n\n\n
  • Are willing<\/strong> to do so.<\/li>\n<\/ul>\n\n\n\n
    \n\n\n\n

    Types of Waqf Recognised in Sabah<\/h2>\n\n\n\n

    Under Section 9B of the Enactment, the types of waqf that may be created are:<\/p>\n\n\n\n

    Wakaf am (general waqf)<\/strong> \u2014 A waqf created for a general charitable purpose in accordance with Hukum Syarak<\/em>. The benefits flow to a general cause \u2014 the construction or maintenance of a mosque, a school, a hospital, or the support of the poor and needy.<\/p>\n\n\n\n

    Wakaf khas (specific waqf)<\/strong> \u2014 A waqf created for a specific charitable purpose. Importantly, under Section 11 of the Enactment, a wakaf khas<\/em> made after the Enactment’s commencement is void and invalid<\/strong> unless the permission of MUINS is obtained, or it is made by a waqif<\/em> in a state of marad al maut<\/em> (fatal illness) who subsequently dies from that illness, and the waqf was made by sighah<\/em> before two witnesses. Anyone contemplating a wakaf khas<\/em> must therefore obtain MUINS’s approval first.<\/p>\n\n\n\n

    Wakaf saham (share waqf)<\/strong> \u2014 Expressly provided for in the Enactment, share waqf involves the creation of waqf through the issuance of shares which are subsequently endowed as a waqf to MUINS by the purchaser. The Board may accept shares endowed by any person, society, or institution provided the business is consistent with Hukum Syarak<\/em>. This makes waqf accessible to those who do not own land or property but wish to contribute through smaller financial amounts.<\/p>\n\n\n\n

    Wakaf ta’liq (conditional waqf)<\/strong> \u2014 A waqf which comes into effect only upon the fulfilment of conditions specified by the waqif<\/em>. Where a wakaf ta’liq<\/em> is made to take effect after the waqif<\/em>‘s death, it is valid only to the extent of one-third of the waqif<\/em>‘s property.<\/p>\n\n\n\n

    Other forms<\/strong> \u2014 The Enactment also recognises wakaf irsod<\/em> (waqf of land by government or institutional bodies), wakaf muabbad<\/em> (waqf in perpetuity), wakaf musyak<\/em> (waqf of an undivided right in jointly owned property), and wakaf musytarak<\/em> (consolidation of several waqf).<\/p>\n\n\n\n

    \n\n\n\n

    How a Waqf Is Created in Sabah<\/h2>\n\n\n\n

    Under the Enactment, the pillars of a valid waqf are the waqif<\/em>, the mawquf ‘alaih<\/em> (recipient of benefits), the mawquf<\/em> (the dedicated asset), and the sighah<\/em> (declaration).<\/p>\n\n\n\n

    Step 1 \u2014 Declaration (sighah<\/em>)<\/strong> \u2014 Under Section 9D, a waqf must be created by way of sighah<\/em> before two witnesses<\/strong> pursuant to Hukum Syarak<\/em>. The declaration may be oral, written, or by sign.<\/p>\n\n\n\n

    Step 2 \u2014 Application to the Chief Registrar of Wakaf<\/strong> \u2014 Under Section 9C, any person who intends to dedicate their property as waqf must apply to the Chief Registrar of Wakaf<\/strong> for approval, in the form determined by the Board. For wakaf khas<\/em>, MUINS’s permission must be obtained under Section 11 before the waqf is created.<\/p>\n\n\n\n

    Step 3 \u2014 Registration<\/strong> \u2014 Upon creation, the Chief Registrar of Wakaf registers the mawquf<\/em> in the Register of Wakaf and issues a certificate of registration. Importantly, Section 12(6) provides that a waqf does not become invalid solely because it has not been registered \u2014 but registration provides the strongest legal certainty and is essential for immovable property.<\/p>\n\n\n\n

    Step 4 \u2014 Transfer of immovable property<\/strong> \u2014 Where the mawquf<\/em> is land, the title must be transferred to and registered in the name of MUINS under the Land Ordinance (Sabah Cap. 68). A civil solicitor familiar with Sabah land law is needed to handle this alongside the Syariah process.<\/p>\n\n\n\n

    \n\n\n\n

    Waqf by Way of Will<\/h2>\n\n\n\n

    The Enactment provides for waqf by way of will (wasiat<\/em>) under Part VII. Key points:<\/p>\n\n\n\n

      \n
    • A waqif<\/em> may create a waqf in favour of an heir, but where the waqif<\/em> is in a state of marad al maut<\/em>, the consent of all heirs is required.<\/li>\n\n\n\n
    • A waqf by way of will to a non-heir<\/strong> must not exceed one-third<\/strong> of the waqif<\/em>‘s estate after deducting debts and liabilities, unless all heirs consent.<\/li>\n\n\n\n
    • A wasi<\/em> (executor of the will) is responsible for executing the waqf by way of will after the waqif<\/em>‘s death.<\/li>\n<\/ul>\n\n\n\n
      \n\n\n\n

      Waqf as an Estate Planning Tool<\/h2>\n\n\n\n

      Beyond its role as an act of worship, waqf has practical estate planning dimensions:<\/p>\n\n\n\n

      Removing assets from faraid<\/em><\/strong> \u2014 A validly completed waqf removes the dedicated asset from the waqif<\/em>‘s estate. The asset will not be subject to faraid<\/em> distribution upon the waqif<\/em>‘s death.<\/p>\n\n\n\n

      Perpetual benefit<\/strong> \u2014 Unlike a bequest under a wasiat<\/em>, which transfers an asset to a beneficiary who may then deal with it freely, a waqf preserves the asset in perpetuity for its designated purpose.<\/p>\n\n\n\n

      Spiritual reward<\/strong> \u2014 In Islamic teaching, waqf is considered a form of sadaqah jariyah<\/em> \u2014 a continuous charity whose reward continues to flow to the waqif<\/em> even after death, for as long as the waqf continues to benefit its purpose. This dimension of waqf cannot be captured in legal analysis, but for many Muslim families it is its most important attribute.<\/p>\n\n\n\n

      \n\n\n\n

      Practical Considerations<\/h2>\n\n\n\n
        \n
      • MUINS is the mandatory sole trustee<\/strong> for all waqf in Sabah. Administering or managing waqf without the written permission of MUINS or the Board is a criminal offence under Section 42 of the Enactment, carrying a fine of up to RM5,000 or imprisonment of up to three years or both.<\/li>\n\n\n\n
      • Wakaf khas requires MUINS permission<\/strong> \u2014 without it, the waqf is void and invalid.<\/li>\n\n\n\n
      • The irrevocability<\/strong> of waqf means that the decision must be made with full understanding of its permanence. Legal and Syariah advice before executing any waqf is essential.<\/li>\n\n\n\n
      • Where land is involved, both a Syariah-qualified adviser<\/strong> and a civil solicitor familiar with Sabah land law<\/strong> must be engaged to ensure the waqf is valid and the title properly transferred under the Land Ordinance.<\/li>\n\n\n\n
      • The waqif<\/em> must apply to the Chief Registrar of Wakaf<\/strong> and follow the Board’s prescribed forms and procedures.<\/li>\n<\/ul>\n\n\n\n
        \n\n\n\n

        This article is intended for general informational purposes only and does not constitute legal advice. Waqf establishment involves complex questions of Islamic jurisprudence, state Islamic religious law, and civil property law. Individual circumstances vary considerably. Readers are encouraged to seek qualified legal and Syariah advice specific to their situation. Nothing in this article is intended as advertising or solicitation of legal services, in compliance with the Sabah Advocates Ordinance.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

        Among the instruments of Islamic philanthropy and estate planning, waqf occupies a unique place. Unlike hibah, which transfers ownership of an asset to a specific recipient, or faraid, which distributes an estate among heirs, waqf involves the permanent dedication of an asset to a charitable or religious purpose. The asset is removed from private ownership […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-224","post","type-post","status-publish","format-standard","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/usmanandpartners.com\/blog\/wp-json\/wp\/v2\/posts\/224","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/usmanandpartners.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/usmanandpartners.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/usmanandpartners.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/usmanandpartners.com\/blog\/wp-json\/wp\/v2\/comments?post=224"}],"version-history":[{"count":2,"href":"https:\/\/usmanandpartners.com\/blog\/wp-json\/wp\/v2\/posts\/224\/revisions"}],"predecessor-version":[{"id":242,"href":"https:\/\/usmanandpartners.com\/blog\/wp-json\/wp\/v2\/posts\/224\/revisions\/242"}],"wp:attachment":[{"href":"https:\/\/usmanandpartners.com\/blog\/wp-json\/wp\/v2\/media?parent=224"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/usmanandpartners.com\/blog\/wp-json\/wp\/v2\/categories?post=224"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/usmanandpartners.com\/blog\/wp-json\/wp\/v2\/tags?post=224"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}