South Asian Review of Business and Administrative Studies Vol. 3, No. 2, Dec 2021
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Volume and Issues Obtainable at Center for Business Research and Consulting
IBMAS, The Islamia University of Bahawalpur Pakistan
South Asian Review of Business and Administrative Studies
ISSN: 2710-5318 ; ISSN (E): 2710-5164
Volume 3, No.2, December 2021
Journal homepage: https://journals.iub.edu.pk/index.php/sabas
Waqf Conceptual Model: A Practical Implementation for a Private Specialist
Hospital
Shaharom Md Shariff, An-Nur Specialist Hospital, Malaysia
Siti Mashitoh Mahamood, University Malaya, Malaysia
ARTICLE DETAILS ABSTRACT
History
Revised format:
Nov 2021
Available Online:
Dec 2021
Keywords
Social insecurity,
healthcare expenses,
waqf conceptual model,
State Islamic Religious
Council (MAIN)
The aim of this paper is to propose a viable conceptual structure for
waqf model in a private specialist hospital setting which has yet to be
implemented through cooperation between Waqf Corporation of the
State Islamic Religious Council (MAIN) and An-Nur Specialist
Hospital (ANSH). There is certainly an urgent need to harness this
collaboration since the society is afflicted by all sorts of economic
and social insecurity and also due to the relatively high rising
healthcare expenses incurred especially in private specialist hospital.
This preliminary study is based on academic literature and also
institutional data documentation methods. Ever since ANSH moved
to its new premise at Section 15, Bandar Baru Bangi from June 2019,
the empirical data of its expenses and billing can currently be formed
as a basis for this study. This collaboration between a MAIN
institution and ANSH opens up a new dimension in the waqf
structure in Malaysia, especially the model for a private specialist
hospital. The findings are expected to further boost the involvement
of MAIN with other private specialist hospitals in waqf activities.
The outcome of the study can assist in improving the socio economy
of Muslims and non-Muslims especially in the aspects of healthcare.
© 2021 The authors, under a Creative Commons Attribution Non-
Commercial 4.0 international license
Corresponding author’s email address: shaharomshariff@gmail.com
DOI: https://doi.org/10.52461/sabas.v3i2.739
Introduction
In the glorious era of the Ottoman Empire, waqf institutions had a tremendous role in funding the
construction of public facilities for the benefit of the community . Various public facilities such as
roads, bridges, schools and hospitals were funded by waqf funds without involving allocation from
the government. The funds also provide employment opportunities to young people and help
improve socio-economic of Muslims. The fall of the Ottoman Turkish government had weakened
waqf institutions to continue to act as agents of national development. However, over the past three
decades until now has witnessed Muslims in several countries such as Turkey, Pakistan, Kuwait
and Malaysia strive to restore the great role played by the waqf institutions. The government and
also the private bodies in the countries concerned have been directly involved in managing and
administering existing waqf assets and developing new waqf programs.
https://journals.iub.edu.pk/index.php/sabas
mailto:shaharomshariff@gmail.com
https://doi.org/10.52461/sabas.v3i2.739
South Asian Review of Business and Administrative Studies Vol. 3, No. 2, Dec 2021
108
The concept of cash waqf is the current phenomenon which is becoming increasingly popular since
it forms the easiest medium for Muslims to perform waqf activities. This current cash waqf method
is another way for Muslim to contribute besides other waqf means involving land and buildings .
The current state of waqf activities has made it more easier for corporate entities to be involved in
aspects of management and development of waqf properties. There is a trend for corporate
companies to be involved in asset management and development of waqf as part of the companies’
corporate social responsibility, CSR. This is also known as corporate waqf which indirectly
signifies commendable ethical way of how corporate world is perceived as not just focused on
activities of sheer profit but also contribute back to the community activities. Most companies
which engaged in the waqf programs are involved in education, health and property management.
These activities enhanced further the corporate entity in discharging their CSR.
The incorporation of corporate elements in the management and administration of assets in its
governance, accountability and transparency are very important aspects to be given strong
attention by these waqf institutions especially to establish public confidence to contribute to waqf
institutions.
It is more pertinent when handling cash waqf which requires deep experience and expertise to
ensure the efficient and sustainability of such programs . As for this study, it will be focussing on
the conceptual model of how ANSH can provide waqf activities in collaboration with the role
played by MAIN which is responsible in establishing and incorporate the waqf Institutions. For
the moment it is limited to ANSH since the empirical data is based on ANSH.
This collaboration between MAIN and ANSH may foster public confidence in contributing the
positive aspects of the corporate world in waqf management which in turn will add communities’
confidence in waqf institutions besides indirectly increasing waqf funds for the benefits of the
ummah.
Problem Statement
Healthcare expenses have seen an annual increase of about 15% . The increase has created a gap
for more ways of providing alternative in subsidizing these expenses. Whilst the public hospital
received tremendous pressure to clear backlog list of patients waiting for their turns, the private
sectors are still free to render services to patients. However due to the high expenses, not many
can afford to pay the private hospital fees unless they have insurance or takaful coverage or their
companies underwrite their fees.
The initiative undertaken by ANSH and collaboration with waqf institution is a step towards
pioneering cooperation between private healthcare providers and Islamic financial institutions that
will eventually help to subsidise partially the healthcare expenses. This will allow many patients
to be able to afford a private hospital treatment which in normal circumstances not affordable to
them.
Objectives
Among the primary objectives of this study are: 1. To analyse the governance structure of the
conceptual model. 2. To propose the subsidies model between waqf institution and healthcare
provider. 3. To propose the appropriate percentage of benefits gained from the fees of the corpus
for the participating agencies.
Scope and Limitation
The study is confined on ANSH data since the modelling is based on data collected after more than
two years of operation. The modeling works well based on the empirical data collected over more
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109
than two years as a tertiary specialist hospital. The data collected on the invoices of suppliers, the
percentage of cash patients versus panel patients and also data includes the cost of maintenance of
the medical equipment and the rental of the building. These empirical works had been done by
institutional data documentation method within the ANSH itself and thus, it is very meaningful as
one of the authors of this article is the CEO of the institution. The data was collected from Chief
Financial Officer of ANSH in early 2021.
Literature Review
There is still minimum literature on waqf for healthcare services especially private specialist
hospital. A study earlier by Norizah (2015), on Waqf An Nur Hospital initiated by KPJ Corp has
gone through a major success with the formation of Waqf AnNur Corporation Berhad,
WANCORP. However WANCORP has diversified more than just healthcare into other sectors
example charitable programs for mosque, education and other flood relief programs. Hence it is
no more limited to just healthcare.
This section will discuss the literature highlights related to waqf from Islamic law perspective and
the current development of the Malaysian waqf institutions as well as developments of corporate
waqf practically.
Waqf Concept
From the view point of language, waqf is viewed as means to withhold or refrain. Waqf definition
according to Islamic law is a form of giving a gift where the physical of the asset remains while
the benefits derived from the asset are channeled to the recipient subject to the conditions set by
the waqf. Physical retention of waqf assets means that any property that has been endowed will
not be sold, inherited, gifted, or any other way for ownership. The distribution of the benefits of
waqf properties refers to the provision of revenue generated from the assets involved to the
recipient as determined by the waqf without expecting financial remuneration. Thus, technically
waqf can be interpreted as a form of surrender the property that may be used for a particular
purpose with the condition of the asset must be permanent and non-transferable as well as benefits
or revenue obtained from the assets involved are channeled to charitable activities in obtaining the
pleasure of Allah.
Waqf is usually associated with immovable properties like land and buildings since it provides
perpetuity and applies to non-perishable types of properties whose benefits may be taken without
the property being consumed. Books, agricultural machinery, cattle, shares, stocks, and cash
money, on the other hand, are all waqf. Although the concept of waqf is as ancient as mankind,
Muslim jurists say that the first Waqf ever existed at the sacred edifice of Ka'abah in Makkah,
which is referenced in the Quran as the first place of worship for Allah.
“Lo! The first Sanctuary appointed for mankind was that at Baitullah, a blessed place, a guidance
to the peoples”. ( Surah Al-Imran Ayat 96)
There are three types of waqfs, according to Habibollah (2010) : Waqf for mosques and religious
schools is referred to as religious waqf. 2. Humanitarian waqf: profits are distributed to serve
society and encourage social activities under humanitarian waqf. The library, educational facilities,
and hospital, for example, are all examples. Waqf from the parents to their children and heirs is
referred to as family waqf. Alias (2012) also added a sort of waqf known as cash waqf, which is
described as a waqf established by a founder with the goal of having the corpus or principle
maintained by a trustee in order to create an income that may be used for the creator's specified
charitable objectives.
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110
Waqf Institutions in Malaysia
As stated in Item 1 of the Ninth Schedule, List 2, State List of the Federal Constitution of Malaysia,
all matters pertaining to waqf property are administered under the jurisdiction of the State Islamic
Religious Council (MAIN). MAIN, as the sole trustee of waqf assets, has the ability to select any
individual or organisation as its representative for the purposes of administering waqf assets and
developing waqf assets to generate rental and dividend income. Melaka, Negeri Sembilan,
Selangor, Perak, Terengganu, and Sabah have specific waqf enactments: Wakaf (State of Malacca)
Enactment 2005, Wakaf (State of Negeri Sembilan) Enactment 2005, Wakaf (State of Selangor)
Enactment 2015, Wakaf (Perak) Enactment 2015, Wakaf (Terengganu) Enactment 2016 and
Wakaf (State of Sabah) Enactment 2018. These laws outline the legal features of waqf as well as
the rights and responsibilities that the State Islamic Religious Council have when it comes to
managing waqf assets.
In recent years, there has been a lot of positive change in Malaysia's waqf administration and
development. The federal government has led the way in establishing institutions at the federal
level and allocating funds to develop abandoned properties around the country in order to enhance
and streamline the waqf administration apparatus. The modern notion of cash waqf, which is
widely popular and adopted in various countries, has prompted parties authorised by waqf to
develop cash waqf programmes that allow people and waqf organisations to contribute at a very
low cost. Involvement of business companies in waqf matters, often known as corporate waqf, is
a new step to increase public's interest in philanthropic operations like waqf.
Due to the increase interest in waqf activities, issues of governance, integrity and practices relating
to waqf property need to be analysed. The paper by Masruki & Shafii (2013) concludes that
accounting could improve the best practice in waqf institutions. It is an ideal mean to discharge
the accountability of trustee (mutawalli). However, the absence of accounting standards for waqf
is the main reason for dissimilarities of waqf accounting practice. An Islamic dual accountability
is the most suitable element to elaborate the concept of Islamic accountability in waqf institutions.
For that reason, the mutawalli should discharge accountability to various stakeholders like giver
(waqif), waqf board and beneficiaries. This will create greater confidence for waqif to be more
benevolent to contribute to waqf institution.
Healthcare Services in Malaysia
Government public hospitals, privately owned hospitals, and non-profit private hospitals are the
three categories of ownership that characterise hospitals in Malaysia. Government-funded public
hospitals and charitable non-profit private hospitals have both existed for many years. Many
private hospitals have sprung up in most emerging nations as a result of the advent of privatisation
in healthcare services. Governments have built and funded public hospitals to provide virtually
all types of treatment for free or at subsidised rates, in keeping with the concept and spirit of public
facilities development. Since most of these private hospitals have increasingly started to operate
for higher profits, the philanthropic segment of private hospitals has been small in monetary terms.
This is due to the fierce competition in the healthcare business. Attractive remuneration packages
are offered to the healthcare staff in order to retain doctors, nurses, and technologists.
The health system in Malaysia is facing increasingly challenging issues which can affect its
performance and sustainability. Private sector services also serve as a challenge to the public sector
because of its capabilities attracting professionals to leave the public sector. This has caused a
shortage of professional manpower and increasing workload amongst healthcare practitioners as
well as congestion due to high number of patients in the public health sector.
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111
Health-care costs have risen dramatically over the years. Increased services due to changes in
disease patterns, demographic patterns of the population, and increased health awareness among
the population are among the contributing factors to this cost increase. Patients had to pay a high
price for limited health services if there was no solution to the rising health-care costs. Waqf is a
method of alleviating societal burdens by establishing a health-care system based on people's
contributions. Waqf is a special type of charity according to Islamic teachings because it is a form
of worship that includes spiritual elements. Waqf instruments play a significant role in the
community's provision of services such as education, health, municipalities, and charitable
programmes from a socioeconomic perspective.
There appears to be a general lack of urgency among healthcare workers to complete their clinical
procedures, while bureaucracy appears to be causing bottlenecks in public hospital administration.
Patients had to wait weeks or months for an appointment with a specialist, and surgery
cancellations were common. While private-sector services and care are excellent, the same cannot
be said for public-sector hospitals. Because most hospitals are overcrowded, finding a bed in one
of them can be difficult. Healthcare providers in public hospitals are not held to a high standard of
accountability, and the majority of services are provided by junior doctors or doctors in training.
Patients are frequently at the mercy of healthcare providers, and the majority of Malaysians prefer
to receive their treatment in a private practise. Unfortunately, paying out of pocket for private
healthcare in Malaysia is prohibitively expensive for locals. Because all private healthcare is for
profit, medical services and surgeries are extremely expensive. As a result, access to private
healthcare is limited to the wealthy or those with private health insurance.
Takaful And Insurance Policy for Healthcare
Malaysia's health-care financing system is a mix of public and private. Private health insurance is
optional in the private sector, with variable premiums based on the individual's health status, type
of insurance, and level of coverage. Employers in the private sector can choose to provide welfare
and health benefits to their employees, and they usually negotiate packages with Managed Care
Organizations (MCOs) and private insurance companies to provide medical insurance coverage.
The Ministry of Finance allocates annual health budgets to the Ministry of Health, which fund
public health care services through general taxation. The National Budget allocates a percentage
of general revenue to Ministry of Health functions each year. Additionally, the formally employed
workforce contributes monthly to an Employee Provident Fund (EPF), a mandatory savings
scheme that provides a measure of retirement security and disburses supplementary benefits to
members for medical expenses as well as capital purchases such as the family home.
All private sector formal workers earning less than RM 3,000 per month are required to pay a
minimum contribution to the Social Security Organization (SOCSO), a scheme that provides
medical benefits for members injured at work. SOCSO and EPF payments, on the other hand, do
not account for a significant portion of healthcare spending due to the small contribution and
coverage provided.
Employees and their families in the public sector have free access to public medical services, and
some have private insurance or medical care benefits. A Muslim believes that any disaster that
befalls him, his family, or society is fated and is referred to as qada' and qadar from Allah,
according to Islamic perspectives on insurers who purchase insurance/takaful policies (The
Almighty). The Prophet (Pbuh) always emphasised the importance of remaining patient in the face
of adversity and remaining resilient, both spiritually and physically, through faith. Muslims, on
the other hand, have always been taught to avoid or minimise the likelihood of such events if at all
possible, as well as to be financially prepared. As the well-known hadith points out,
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112
‘‘The Prophet (pbuh) told a Bedouine Arab who left his camel untied to the will of Allah: Tie the
camel and then leave it to Allah’s will’’ (As reported by both Al-Tarmidzi and Ibn Majah)
As a result, insurance, also known as takaful, is a noble activity in which members of society pool
their resources to compensate one another after a loss. This, in turn, provides financial assistance
in the event of an unforeseen future loss, thereby contributing to poverty reduction, mutual
cooperation, and the spread of the brotherhood spirit. Modern economies rely heavily on the
uniqueness of insurance/takaful products. The cost of medical care is covered by medical or health
insurance/takaful.
Waqf Hospitals in the Glorious Days of Islam
During the glorious days of Islam, there were many hospitals supported by waqf. Ibn Tulun
Hospital, located near the mosque in Cairo, Egypt, is one of them. Furthermore, Badr Ghulam
Hospital in Baghdad, Baghkami Hospital in Turkey, Ikshidid Hospital in Egypt, a hospital built by
Muizzuddawala ibn Buwayh in Baghdad, Marakish Hospital in North Africa, Adudi Hospital in
Baghdad, Nuri Hospital founded by Raja Nur al-Din Zanji, and Mansuri Hospital founded by al-
Mansur ibn Qulawun in Cairo are among the first hospitals built (1276 AD). In the golden age of
Islam, hospitals had their own waqf properties to support the doctors on duty. This section of the
waqf is overseen by a nazir, who is typically worn by heads of state or caliphs.
The Concept of Corporate Waqf for Private Hospital
Waqf assets in the form of movable property, such as cash, company shares, and dividends, are
managed entirely by corporate entities or in collaboration between corporate companies and waqf
authorities under the corporate waqf umbrella. Waqf assets are one of the most important aspects
of the corporate waqf structure, while waqf trustees, or corporate companies, are both mutawallis
and waqf property recipients.
The Johor Corporation (JCorp) was the first to use the term corporate waqf when it established
one in 2006 by endowing RM200 million in shares in its subsidiaries Kulim (M) Berhad, KPJ
Healthcare Berhad, and Johor Land Berhad. Waqaf An-Nur Corporation (WANCorp), a JCorp
subsidiary, has been entrusted with managing corporate waqf that focuses on health through the
Waqaf An-Nur Clinic network and Waqaf An-Nur Hospital. Patients seeking treatment at the
clinic and hospital are charged a minimum of five ringgit, with Muslims and others among the
patients. Waqf property management has been undertaken by corporate companies in a number of
countries, particularly in the education and health sectors.
In September 2012, Bank Muamalat Malaysia Berhad (BMMB) collaborated with Perbadanan
Wakaf Selangor (PWS) to launch Waqf Selangor Muamalat, the first cash waqf scheme in
Malaysia. BMMB and PWS are now joint managers of waqf assets acquired through the purchase
of cash waqf certificates at any BMMB branch. Waqf contributions can also be made via internet
banking, monthly deductions, or periodic payment instructions.
It's also worth noting that corporate involvement in management and waqf administration can help
improve society's perception of waqf institutions. Within the management of waqf assets, the
image has been deemed to have ineffective governance. The sole trustee of waqf property in the
states, the State Islamic Religious Council (MAIN), was found to be lacking in trained and
experienced staff to manage large amounts of waqf assets
Waqaf An-Nur Corporation Berhad, WANCORP
In 2006, Johor Corporation Berhad (JCorp) introduced the concept of "Corporate Waqf," involving
the transfer of 12.35 million unit shares in JCorp Kulim (M) Bhd, 18.60 million unit shares in KPJ
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Healthcare Bhd, and 4.32 million unit shares in Johor Land Bhd to Waqaf An-Nur Corporation
Bhd as trustee. This concept is a key institutional strategy for achieving the company's "Business
Jihad" corporate mission. As evidence, JCorp pledged to devote 25% of its annual dividend payout
from shares transferred into waqf as part of its corporate waqf agenda, which was announced in
2007. As a result, the dividend can be used to organise various activities for Muslims and non-
Muslims, as well as charitable and religious activities that benefit and meet the needs of the entire
society.
Waqaf An-Nur Hospital was established as the first waqf hospital in Johor, with the goal of
completing health development efforts. Johor Corporation Berhad (JCorp) through KPJ Healthcare
Berhad, in collaboration with the Johor Islamic Religious Council, established Waqaf An-Nur
Hospital as a charitable and non-profit hospital (MAIJ). Waqaf An- Nur Hospital focuses on
providing health care to underserved members of the community. In1999, a firm called JCorp
created a waqf clinic in Pasir Gudang, which preceded the development of the Waqf An-Nur
Hospital. Because of the increased demand from the people of Pasir Gudang, the clinic was
elevated to a hospital in2006, and it later became the country's first waqf hospital. His Majesty
Sultan Iskandar ibn al-Marhum Sultan Ismail laid the foundation stone for the hospital on April
21, 2006. From year to year, the total number of patients treated in hospitals by this waqf has risen.
In2012, a total of 43,624 patients were treated at HWAN, compared to 35,665 patients in 2008.
The RM 225,050 spent on healthcare services was reported in the WANCORP Annual Report
2020.
The objective of Waqf An-Nur Hospital is to give and provide medical facilities to the community
especially the low-income regardless of race and religion. Ideas for establishing WANH was born
out of efforts to expand healthcare services and treatment project by JCorp. The mission of this
waqf hospital is to provide medical care to all patient regardless race and religion at a minimal rate
especially to the class underprivileged society. Meanwhile, the vision of this hospital is to ensure
the community especially the income group low around Pasir Gudang can enjoy medical services
which is perfectly on par with other government or private clinics.
An-Nur Specialist Hospital
An-Nur Specialist Hospital (ANSH) was established in September2005, originally as an outpatient
department, and subsequently as a secondary hospital in February2006, offering health care
services to the Bandar Baru Bangi population. The institution was first housed in a shoplot building
in Medan Pusat Bandar1, Section 9. There were 30 beds at the hospital. On June10, 2019, the
hospital moved to a newly constructed building in Section 15 with 104 beds. The hospital serves
the fast-growing city of Bandar Baru Bangi as well as nearby areas such as Putrajaya, Nilai,
Serdang, Kajang, Bandar Bukit Mahkota, Bandar Seri Putra, and South Ville with affordable, high-
quality healthcare.
In May2015, ANSH became the first private hospital to receive MS1900:2014, with the accolade
naming ANSH as the first private Shari'ah-compliant Hospital, SCH. Islamic terms such as
Shariah Advisory Council, Shariah Compliance, Fiqh, Shariah Compliance Unit, Halal, Quran,
Hadith, Sunnah, al-Ijma, and Fatwa are written in standard in MS 1900. This Shari'ah-compliant
certification will have an impact on the health management system and the overall operation of
hospital services in the hospital setting. As a result, incorporating Islamic values into the service
process necessitates an all-encompassing approach.
Since its move to the new premise ANSH has started its charitable program known as Dana
Rahmah . It provides subsidized fees for unaffordable patients to enjoy private hospital healthcare
services at much lower bill charges. Since January 2021 till to August 2021, Dana Rahmah has
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114
spent more than RM 107,224.04 to about 23 patients. The fund has been contributed by
Consultants and also staff of ANSH. ANSH has applied to transfer into a registered non-profit
organization, Company Limited By Guarantee, CLBG named Medik Nur Rahmah Berhad, MNRB
so as to spread the fund to other public for contribution. This move is towards forming
collaboration with MAIN to authorize MNRB as waqf mutawalli (waqf manager) and also
recipient of waqf for healthcare patients.
Analysis of the Proposal
This concept will be the second corporate waqf in Malaysia for healthcare services which involves
cooperation between a state government-owned waqf institution (MAIN) and a private specialist
hospital, An-Nur Specialist Hospital, Bandar Baru Bangi (ANSH). The cooperation established
between the two institutions involved indeed with different backgrounds in developing waqf assets
through corporate waqf strategies is very interesting to study. Further discussion will revolve
around the analysis of the Proposal which consists of three main aspects namely governance
structure, financial structure, implication and funds allocation to various agencies from the benefits
of the corpus. The proposal will allow ANSH to receive any waqf items either cash or material
from any donors who wish to contribute to the nominated waqf agency which according to the
state enactment not possible unless MAIN has permitted.
Collaboration Structure between Various Agencies
State Islamic Religious Affair (MAIN) and ANSH will have a collaboration agreement to facilitate
the operation of the waqf program. In the initial stage a joint committee will be set up to manage
operation of waqf through the establishment of Company Limited By Guarantee, CLBG or direct
management by the MAIN agency.
Figure 1 shows the various agencies proposed that involved in the collaboration framework. The
various agencies’ functions are explained in the next paragraph to clarify each scope of work. The
scope of work of each agency has to be fully understood to ensure a proper accountability in order
to gain public confidence.
Waqf Corporation, WC
Waqf Corporation is responsible to manage the fund collected from the public through various
channels available ie Banks or Waqf office set up by States Religious Council. The main function
will be to ensure efficient disbursement of the fund collected from public. Since its function covers
other sectors example education and place of worship surau or mosques. The maintenance of the
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115
healthcare facilities is very much more efficient to be taken care by another focused entity through
setting up a Company Limited By Guarantee, CLBG.
Establishment of CLBG
WC is responsible for channeling all related waqf funds for healthcare collected from public and
also through the model arrangement with the healthcare provider. This is to carry out the waqf
projects, helping waqf beneficiaries especially in healthcare, and investing part of the waqf
proceeds for future usage. The main function of CLBG is the management of fund in term of
disbursement to eligible beneficiaries. CLBG will also carry out the maintenance of building and
medical equipment of the hospital owned by WC. Through proper maintenance of the building and
equipment, the healthcare provider is able to provide efficient and high productivity services to the
patients. Medik Nur Rahmah Berhad has been established to undertake the role of the CLBG.
Financial and Operational Structure
From Figure 2 explains the financial structure and operations of WC and the hospital operator
based on the Scope of works.
Waqf Corporation, WC
Waqf funds are obtained through the contributions of individuals as well as institutions that can
deposit cash as waqf asset. The minimum contribution for individuals is as low as RM10 while for
institutions is as low as RM100 and no limit is set. In term of fund management, WC will have a
target to raise RM50 million within two years as an example.
The initiative will start with waqf contribution from WC and the waqf fund collected will be
channeled to CLBG. The funds are used to purchase medical assets example medical equipments
for the hospital. The waqf assets will be considered in the patients bill for patients to enjoy the
discounts related to those assets.
Hospital Operator
The hospital operator will run as a normal private hospital except the cash patients will enjoy direct
discount of the fees charges. For normal panel or insured /takaful patient, the fees will be as normal
but the saving obtained because of the waqf portion will be contributed back to CLBG.
Hospital Operator Wakaf Corporation Agency
Building
Medical Equipment
Doctors
Nurses
&
Staff
Medicines
&
Disposables
Figure 2 Show the Scopes of Work Between Wakaf Agency and Hospital Operator
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116
From the empirical data collected for two years the 60 % of the patients are panel whilst 40% are
cash patients. From the Table 1 and Table 2, it can be clearly seen that on average from the two
sample bills, there is a discount of about 23% when waqf facilities were disbursed. There can be
two options based on 1. Building and Medical Equipment Capital Cost 2. Bed Occupancy rate and
equipment cost.
In this sample bill for Cataract procedure, the normal bill is RM 4,999 whilst the discounted rate
with the waqf facilities will only cost RM 3,744 with a discount of 25%. In the Table 2, the discount
is about 22%. Hence this rate can be used as a guide for the discount rate.
Table 1: Cost Saving for Cataract Procedure
( Source : Courtesy An-Nur Specialist Hospital )
ITEMS FEES
WI/OUT
WAKAF
(RM)
ITEMS FEES
WITH
WAKAF
ITEMS
( RM )
CONSULTANT FEE 1,960 CONSULTANT FEE 1,960
DEVICE : LENS 600 DEVICE : LENS 600
HOSPITAL
EQUIPMENT
EXPENSE
755 WAKAF AIN ;
EQUIPMENT
0
OPERATING THEATRE
USAGE
500 WAKAF AIN:
BUILDING
0
NURSING
PROCEDURE FEES
1,184 NURSING
PROCEDURE FEES
1,184
4,999 3,744
A saving of RM 1.255 to Patient or 25 %
ITEMS FEES
WI/OUT
WAKAF
((RM )
ITEMS FEES WITH
WAKAF
( RM )
CONSULTANT
FEES
4,980 CONSULTANT
FEES
4,980
ICU WARD 2,345 WAKAF AIN :
BUILDING
0
LAB TEST 2,186 LAB TEST 2,186
HOSPITAL
EQUIPMT
900 WAKAF AIN:
EQUIPMT
0
CATH LAB 2,000 WAKAF AIN
:EQUIPMNT
0
MEDICAL
DEVICE
10,000 MEDICAL
DEVICE
10,000
MEDICATION
AND
DISPOSABLE
3,134 MEDICATION
AND
DISPOSABLE
3,134
NURSING
PROCEDURE
3,095 NURSING
PROCEDURE
3,095
RADIOLOGY
SERVICES
3,669 RADIOLOGY
SERVICES
1,669
32,309 25,064
A Saving of RM 7,245 or 22%
Table 2: Cost Saving on Angioplasty Procedure
( Source: Courtesy of An-Nur Specialist Hospital )
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117
The system offered two Options. Option 1 is based on revenue per month with a discount of 20%
when the building, equipment and hospital infrastructure cost contributed by waqf. Option 1 is a
fully funded hospital where all the assets are waqf based. Hence 20% discount is based on the
revenue generated from the bills. In this case, patients who pay through cash basis will enjoy the
20% discount whilst for panel patients, there will be no discount to the payer. However, the
discounted amounts contributed due to waqf assets, supposedly awarded to payer will be
transferred to the CLBG. A total of RM 14.4 million will be collected and then it will be distributed
to various parties as shown in Figure 4.
In the case Option 2, it is based on bed and medical equipment which is much less than Option 1.
From Figure 3, Option 2 provides Bed and Equipment rental with a total of about RM 2 million.
With 20% discount of RM 2 million per month, RM 500,000 per month will be collected for waqf.
Here a total of RM 3.6 million is collected yearly and distributed with similar rate as Option 1.
Although the distribution of discounted amount is viewed as much less, however the direct benefits
are enjoyed by those who paid on cash basis about RM 2.4 million annually in Option 2 whilst
Option 1 the direct benefits on cash basis is RM 9.6 million annually.
Benefits From the Waqf Activities For the Ummah
The high healthcare expenses at private specialist hospital had compelled many patients to seek
medical treatments at public hospitals. However due to Covid patients are being treated at most
public hospital especially in Klang Valleys, many had avoided their normal treatment at public
Figure 4 :Monthly Return from Panel Discount for Option 1: Building &
Equipment and Distribution of Fund to Various Agencies
( Source: Courtesy of An-Nur Specialist Hospital )
Rm 2mil
(RM 24 mil
Per Year)
60%
Panel
RM1.2mil
( RM 14.4 mil
per year)
40% Cash
RM800K
( RM 9.6 mil
per year)
10% Majlis Agama Islam/PWS
(RM 1.44 mil)
15% Mangement of CLBG
(RM 2.16 Mil)
15% Hospital Operator
(RM 2.16 Mil)
60% CLBG Maintenance
(RM 8.64 Mil)
*PWS : Perbadan Wakaf Selangor
Figure 5 :Monthly Return from Panel Discount for Option 2: Bed &
Medical Equipment and Distribution of Fund to Various Agencies
( Source: Courtesy of An-Nur Specialist Hospital )
Rm 0.5 mil
(RM 6.0 mil
Per Year)
60%
Panel
RM 0.3mil
( RM 3.6mil
per year)
40% Cash
RM0.2 mil
( RM 2.4 mil
per year)
10% Majlis Agama Islam / PWS
(RM 0.36 mil)
15% Management of CLBG
(RM 0.54 Mil)
15% Hospital Operator
(RM 0.54 Mil)
60% CLBG Maintenance
(RM 2.16 Mil)
*PWS : Perbadan Wakaf Selangor
South Asian Review of Business and Administrative Studies Vol. 3, No. 2, Dec 2021
118
hospital. To seek treatment at private hospital may be unaffordable for many patients. Hopefully
with the added waqf facilities, it will provide patients a broader accessible range for them to seek
medical treatment at private hospital since the 20% discount for cash patients is quite substantial.
For those who are encouraged to do righteous deeds, as mentioned in Quran surah An-Nahl ayat
97
“ Whosoever does righteous deeds, whether male or female, and is a believer, verily We shall
quicken with good life and We shall pay them a recompense in proportion to the best of what they
used to do”
The waqf program provides a platform for those who want to contribute towards the virtuous deeds
and receive the reward in perpetuity. Many would continue to contribute when they are enlighten
with the progress of such program for the benefits of the ummah. The initial step towards this
philanthropic waqf is very much depends on the trust earned when the programs are fully
transparent. At the moment ANSH has received hospital beds, wheel chairs and a complete
haemodialysis machine as waqf asset to ANSH patients.
Discussion
The proposed model will only work when MAIN allows to the formation of the framework. The
WANCORP success was the collaboration between MAIJ and JCorp and heavily supported by
KPJ Healthcare for the health services. Similar set up can be established if MAIN Selangor
approves such collaboration. Although the accumulated assets of WANCORP has reached more
than RM 811 million, however the benefits for healthcare allocated in 2020 was RM 225,050.
WANCORP has diversified into other charitable programs and the success had benefitted the
ummah as a whole especially in Johore state . However other states need to replicate the success.
The move by ANSH is a step towards improving the philanthropic programs in healthcare.
The proposed two options very much depended on the available waqf fund contributed by public
or any philanthropic institutions. Option 1 exhibits the full complete waqf programs for all tangible
assets in the hospital. If that is true then RM 24 million can be available to CLBG and the benefits
for healthcare services will be appreciated by public in Klang valley. In case of Option2, only
about RM 6 million will be allocated for waqf benefits. As compared to WANCORP, the allocated
benefits in healthcare services provided by these options are much more. Hence it is most
pragmatic initiatives to pursue this collaboration for the benefits of the ummah.
Conclusion
The role of waqf is in providing health care services to the local community by giving low fees or
at discount rate as proposed at An-Nur Specialist Hospital. This can be as an alternative to society
to reduce the long waiting time at public hospitals. The time for the institution of waqf to support
healthcare service is apt since the pandemic has afflicted many in the community with reduced
economic capabilities and social security. However, the main effort is to obtain the approval from
State Religious Council to allow public contributions in the form of cash waqf or in the form of
tangible assets, example hospital beds or wheel chairs which are popular contribution by public to
hospital.
As an effort to enhance the momentum of waqf activities in healthcare, it would be an advantage
to look into the collaboration between a private healthcare provider and MAIN. Although there are
still areas of alignment and streamlining of scope of works in the healthcare industry, building
public confidence and trust is paramount to ensure the success of this program. This collaboration
will enter a new dimension in philanthropic waqf for healthcare services
South Asian Review of Business and Administrative Studies Vol. 3, No. 2, Dec 2021
119
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