Presentation on theme: "WIEF-IDB AWQAF ROUNDTABLE"— Presentation transcript:
1 WIEF-IDB AWQAF ROUNDTABLE Jakarta, Indonesia“Beyond Charity: Harnessing Waqf for Economic Prosperity”5 JUNE 2014LE MERIDIEN JAKARTA,INDONESIA
2 WIEF-IDB AWQAF ROUNDTABLE Jakarta, IndonesiaManagement Challenges of Awqaf AssetsRole Players:Tan Sri Muhammad Ali Hashim, President, Malaysian Islamic Chamber of Commerce, MalaysiaMr. Husain Benyounis, Secretary General, Awqaf New ZealandModerator:Mr. Riawan Amin, Chairman, Supervisory Board, Association of Islamic Bank Indonesia (ASBISINDO)
3 WIEF-IDB AWQAF ROUNDTABLE Jakarta, IndonesiaTan Sri Muhammad Ali HashimPresidentMalaysian Islamic Chamber of Commerce, Malaysia
4 WIEF-IDB “ Management- challenges of - awqaf assets.” AWQAF ROUNDTABLE5th June, 2014, Jakarta, Indonesia“ Management- challenges of awqaf assets.”
5 VISIT BY SAUDI GUESTS (11 April, 2014) MALAYSIA:VISIT BY SAUDI GUESTS (11 April, 2014)CORPORATE-WAQFCORPORATE WAQF
6 Integrating waqf principles into corporate practice JOHOR CORPORATIONIntegrating waqf principles into corporate practice-to reform business.
7 IMAGINE JCORP AS A WAQF ENTITY! JOHOR CORPORATIONMore than 280 cos.with morethan 65,000 employees8 PLC, inc Kulim Malaysia Bhd,KPJ Healthcare,KFC Holdings,IMAGINE JCORP AS A WAQF ENTITY!NBPOL listed on London StockX& New Britain Palm Oils, PNG.Market Cap. Dec 2012: RM20.9 billion.Group PBT 2010: RM962 mill.Market Cap. Dec 2010: RM18.1 billion.
9 Reforming Business ways WALL STREET CULTURE“ The culture & institutions of the Wall Street economy cultivate & reward our capacity for individualistic greed,hubris, deceit, ruthless competition, & material excess. ”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.
11 delivery of benefits in line with the principles of Waqf.” “ A study of Johor Corporation’sCorporate Waqf strategy.”University of Oxford, December, 2010.“...Corporate Waqf seems to beemerging as both an innovative and effective mechanism for the functional, practicaldelivery of benefits in linewith the principles of Waqf.”
17 IPO valuation: (Nov 94) 276 mill.- JCorp’s intrapreneurAMANAH EntrepreneurKPJ HEALTHCARE BHDPrincipal Bizs:23 Specialist hospitals in MalaysiaIPO valuation: (Nov 94) 276 mill.-Feb 2012: > 800 Specialists, >2 mill patientsStarted with Hospital & 6 Specialists in Johor Bahru in 1981D.P. Siti Sa’diah Sheikh BakirManaging DirectorIntegratingamanah intocorporatepracticeMarket Cap Dec 2012:2 Sp. Hospitals in Jakarta, Indonesia1 Kolej Universiti, N.SRM3.9 Billion1 Waqf Hospital & Waqaf An-Nur clinics in 6 states in MalaysiaW’out privatisation,MBO or Stock Options!2013 Sales: RM2.3 bil, PBT RM158 mill
18 Nilai Modal IPO: (Nov 94) 276 juta-- Intrapreneur JCorpAMANAH EntrepreneurKPJ HEALTHCARE BHDBisnes utama:23 Hospital pakar di MalaysiaNilai Modal IPO: (Nov 94) 276 juta--Bermula dpd Hospital & 6 doktor pakar di Johor Bahru pada 1981Feb 2012: > 800 Specialists, >2 juta pesakitD.P. Siti Sa’diah Sheikh BakirPengarah UrusanJIHADBUSINESS“Market Cap” Dis 2012:2 Hospital pakar di Jakarta, Indonesia1 Kolej Universiti, N.SRM3.9 Bilion1 Hospital Waqaf dan Klinik Waqaf An-Nur di 6 negeri di MalaysiaW’out privatisation,KPJ shares waqfed:18.6 million (14.3%)MBO or Stock Options!2013 Sales: RM2.3 bil, PBT RM158 juta
19 and entrepreneurial opportunities for all! - Waqaf An Nur Corp: Realising “Biz Jihad”objectivesthroughCorporate Waqf’s roleas a “Mother Corp.”- Spawning businessand entrepreneurialopportunities for all!
20 AMANAH Entrepreneur CAPAIAN ASPIRASI Sdn Bhd Waqf venture capital fundingCAPAIAN ASPIRASI Sdn Bhdfor entrepreneurs without capitalUstaz Ismail Mat Ali, General ManagerUstaz Ismail Mat Ali B.A. Hons (Al Azhar U) - Shariah IslamiahGM - Minority shareholderCapaian Aspirasi Sdn Bhd Subsidiary of Waqf An Nur Corporation20
21 Intrapreneur AMANAH Entrepreneur CAPAIAN ASPIRASI Sdn Bhd WAQAF AN NUR CORORATION BHDCAPAIAN ASPIRASI Sdn BhdBiz: Agency (Zakat/Wasiat + Mutawwif)Paid-up Capital:RM100,000 (25% IMA)Loss 2006: (RM100,000)PBT 2010: RM511,000PBT 2011: RM600,000PBT 2012: RM557,640Dividend 2011: 400%5 staff + 80 agentsIntrapreneur Ustaz Ismail Mat Ali21
22 Intrapreneurs (AMANAH entrepreneurs) under leadership of JOHOR CORPORATION’SCORPORATE CONCEPTAn entrepreneurial corporate organisation generating sustainable businessesIntrapreneursunder leadership of(AMANAH entrepreneurs)
23 JCORP’S INTRAPRENEURS “Entrepreneurship for everyone!" ‘TEAM INTRAPRENEURS’JCorp’s Intrapreneurs: Equity up to 25%.
24 JCORP’S INTRAPRENEURS “Entrepreneurship for everyone!" ‘TEAM INTRAPRENEURS’‘TEAM INTRAPRENEURS’JCorp INTRAPRENEURS offered equity up to 25%.
25 JCORP’S INTRAPRENEURS “Entrepreneurship for everyone!" JCORP’S INTRAPRENEURS: With equity up to 25%.5 intrapreneursare todayMILLIONAIRES!
26 Market Cap. Dec 2012: RM21.0 billion. Lebih 280 syarikatTRANSFORMdan lebih 65,000 warga kerja KumpulanJIHADBUSINESSJCORP8 PLC, spt Kulim Malaysia Bhd,KPJ Healthcare,INTO WAQFKFC Holdings,& New Britain Palm Oils, PNG.NBPOL tersenarai di London SXGroup PBT 2010: RM962 jutaMarket Cap. Dec 2012: RM21.0 billion.
28 RM575.9 mill RM430.4 mill WAQF ASSET VALUE: (Market Cap, 31 Dec 2012) Waqf Asset Value at endowment date:MarketRM250 millionWAQF ASSET VALUE: (Market Cap, 31 Dec 2012)WAQF ASSET VALUE: (Market Cap, 31 Dec 2010)RM575.9 millRM430.4 mill
29 WAQAF AN-NUR CORPORATION No. of Treatments ( ):961,148RM5Non- Muslims:69,69021 CLINICS + 1 HOSPITAL (Dec 2013), in Johor, Perak, Negri Sembilan, Selangor, Sarawak and Penang.
30 CONCLUSION WIEF-IDB “ Management- challenges of - awqaf assets.” AWQAF ROUNDTABLE5th June, 2014, Jakarta, Indonesia“ Management- challenges of awqaf assets.”
31 CORPORATE WAQFCorporate capacity building using Islamic motivational force & spiritual energy for business-driven success;A “Mother Corporation” for entrepreneur development, management talent and human capital development;Wealth-creating institution to reduce economic divides & bridge social disparities;
32 CORPORATE WAQF A “Mother Corporation” spawning new enterprises, creating biz opportunities for marginalised groups;Over the long run, through critical mass, an institution that will renew economic system,shifting it from one that is ‘shareholder-centric’to a ‘community-centric’ and more equitable system.
33 WIEF-IDB AWQAF ROUNDTABLE Jakarta, IndonesiaMr. Husain BenyounisSecretary GeneralAwqaf New Zealand
34 Simple Global Model Management Challenges of Awqaf Assets WinnerIslamic Economy Award 2013Muslim Minority ProspectiveTurning unused charitable Resources into Awqaf RevenuesPresented by: Husain BenyounisSecretary General – Awqaf New ZealandEstablished in Feb 2011 & have been Run By Volunteers
35 Understanding The Basics “But Allah has permitted trade and has forbidden interest” 2-275وَأَحَلَّ اللّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا“Allah destroys interest and gives increase for charities” 2-276يَمْحَقُ اللَّهُ الرِّبَا وَيُرْبِي الصَّدَقَاتِIdentified 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 andCharityTradeEconomyIslamicHelps 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”مدخل إلى أصول التمويل الإسلامي (http://suwailem.net/BooksDetails-6)
36 Elements of Awqaf Engineering AimProjectNeedsAvailableChallengeLegislationDevelopmentModelMaximum utilisation of our charitable resourcesTurn wasted charitable resources into Awqaf RevenuesTake Awqaf from Local to Global with minimum risksAdahi/Qurbani of Muslims in the West (5 million Sheep/year)Establish Awqaf farms to supply 5 million sheep a yearWaqf, Donor, issuance & beneficiary in different countriesEstablish Global Awqaf Research Centre (GARC) NZ & UAEInnovate Global Awqaf Sukuk and Awqaf CertificatesNew Types of Awqaf AssetsEstablishing Awqaf Farms and associated industries to supplyLivestock 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.
37 Proposed Model Based on Cash Waqf The wasted value of the Adahi/Qurbani wool of the Muslims in the west is estimated at$50 million/yearProject ProspectusAwqaf Certificate or SukukTurning bone intoHalal GalatianNoApprovedAmendedNameNameYesRevenues generated from the Wasted charitable resources continue feeding WAQF-SWAQF-SCashWaqfAwqaf BankInternational Awqaf BankWorld Awqaf Qard Fund Services (WAQF-S)Issue the Awqaf Certificate or SukukRulesRulesWAQF-SProposed MembersSellAssetA Waqf OrganisationHas a Sharia BoardHas International StatusNon Governmental (independent)Specialize in Qard Al Hasan & AwqafHas the authority to Issue Awqaf Certificate & SukukQard Hassan given to AwqafIdeallyWorld Waqf FoundationIslamic Development Bank (2001)Annual PaymentBuy the assetAwqaf South Africa (2001)Awqaf New Zealand (2011)NoSuccessStopFundFundAwkaf Australia (2012)YesAwqaf USA (2013)PaymentA small amount of the Adahi/Qurbani woolis sufficient to fund the operation of WAQF-SAwqaf Fiji (2013)NoAwqaf Canada (2014)FinishAwqaf Muslim MinoritiesYesTransfer ownership to Awqaf Org.Replicate the model somewhere else
38 WAQF-S “Waqf Al Sukuk”WAQF-S not only bridge the Gap between the Profit & Non-Profit Sectors but also help develop both sectors in many ways as:Balance the Islamic EconomyEnhance efficiency of Non-Profit SectorRevive and apply the Sunnah of Qard Al HassanDevelop new Islamic Finance Tools for the Non-Profit SectorProvide secured infrastructure to globalize the Awqaf IndustryRecycle the Awqaf Sukuk by replicating the model over & overSafe structure for the profit to invest in the Non-Profit SectorsEnsure high degree of transparency via Awqaf Sukuk instrumentEncourage innovation through Engineering the Awqaf IndustryMost importantly becoming aCommunication PlatformBetween the Profit & Non-Profit Sectors
39 World Awqaf Qard Fund Services ConclusionsWorld Awqaf Qard Fund ServicesWe invite you to assist Awqaf NZdevelop, establish & operateWAQF-SWe 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 months Insh-Allah.The Scope is Huge, The Cost is Low &The Opportunities are EndlessThank You
40 WIEF-IDB AWQAF ROUNDTABLE Jakarta, IndonesiaSession End
41 Thank You, See you in Dubai! 10th World Islamic Economic ForumOctober 2014Madinat Jumeirah Conference Centre, DubaiThank You,See you in Dubai!