RM8 MLN IN WAQF COLLECTED AS PPZ-MAIWP EXPECTS RISE IN CONTRIBUTORS

KUALA LUMPUR, Dec 19 (Bernama) -- The Federal Territories Islamic Religious Council Zakat Collection Centre (PPZ-MAIWP) recorded waqf collections amounting to RM8 million last year, reflecting growing public awareness of the importance of the Islamic endowment.

PPZ-MAIWP deputy chief executive officer (Operations) Mohammed Hassan said the increase indicates that Muslims are beginning to view waqf as a vital instrument for socio-economic development, effectively reshaping the funding landscape for infrastructure projects in the Federal Territories.

He noted that the momentum aligns with the agency’s strategy to increasingly utilise waqf funds to finance long-term physical projects, thereby reducing reliance on zakat funds, which face distribution deficits.

“We recognise that zakat is primarily meant to address short-term welfare needs and must prioritise the asnaf (eligible recipients). Waqf, on the other hand, is more suitable for long-term development such as the construction of buildings and assets with lasting benefits.

“We are working to change this mindset, zakat for urgent needs, while waqf is to build sustainable socio-economic strength for the ummah over the next 10 or 20 years,” he told Bernama.

Mohammed acknowledged that awareness gaps remain, particularly misconceptions that waqf is only for those who own land or permanent assets, unlike sadaqah (charity), which is perceived as more accessible.

“Many think waqf is difficult, that one must donate land for a mosque or cemetery. At PPZ-MAIWP, we offer cash waqf starting from as low as RM10, enabling all segments of society to contribute to projects such as hospital equipment and educational needs,” he explained.

To address confusion arising from the growing number of waqf-collecting agencies and to rebuild public trust, Mohammed said PPZ-MAIWP has rebranded its waqf products from ‘Wakaf PPZ’ to ‘Wakaf Wilayah Persekutuan’.

He said the rebranding is more inclusive, reflecting that the funds collected are for the well-being of all residents of the Federal Territories, while also avoiding confusion over PPZ’s primary role, which is closely associated with zakat collection.

“The proliferation of collection agencies does raise public doubts. That is why at PPZ-MAIWP, we place great emphasis on transparency and credibility. For specific waqf contributions, we report back to donors once a project is completed so they can see the impact of their contributions,” he said.

Mohammed also highlighted the income tax incentives offered by the government to encourage cash waqf contributions.

He explained that cash waqf donations made through Wakaf Wilayah Persekutuan are eligible for income tax deductions of up to 10 per cent of aggregate income under Subsection 44(11D) of the Income Tax Act 1967.

“Many are unaware that besides zakat rebates, there are also tax deductions for cash waqf. This is a well-crafted legal instrument designed to encourage Muslims to give,” he said.

According to him, the accumulated waqf funds are currently being actively channelled into high-impact projects, including the provision of hospital beds, the use of smartboards in schools, and the development of Technical and Vocational Education and Training (TVET) centres for asnaf children.

He urged Muslims not to view waqf as a burden or something detached from daily life, but rather to seize it as an opportunity for continuous charity whose rewards never cease.

“We want to make waqf a culture. Imagine if one person contributes RM10 a month, the impact on the economic strength of the Muslim community would be tremendous.

“Waqf assets are perpetual in nature. Even after we are gone, their benefits will continue to flow to society for the next 50 or 100 years. That is our true legacy,” he said.

Muslims interested in contributing to waqf or seeking further information can visit wakafwilayah.com.my, call the hotline 1-300-885757 or follow @wakafwilayah on social media.

-- BERNAMA