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WIEF-IDB AWQAF ROUNDTABLE

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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 2014 LE MERIDIEN JAKARTA, INDONESIA

2 WIEF-IDB AWQAF ROUNDTABLE
Jakarta, Indonesia Management Challenges of Awqaf Assets Role Players: Tan Sri Muhammad Ali Hashim, President, Malaysian Islamic Chamber of Commerce, Malaysia Mr. Husain Benyounis, Secretary General, Awqaf New Zealand Moderator: Mr. Riawan Amin, Chairman, Supervisory Board, Association of Islamic Bank Indonesia (ASBISINDO)

3 WIEF-IDB AWQAF ROUNDTABLE
Jakarta, Indonesia Tan Sri Muhammad Ali Hashim President Malaysian Islamic Chamber of Commerce, Malaysia

4 WIEF-IDB “ Management- challenges of - awqaf assets.”
AWQAF ROUNDTABLE 5th 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 - WAQF CORPORATE WAQF

6 Integrating waqf principles into corporate practice
JOHOR CORPORATION Integrating waqf principles into corporate practice - to reform business.

7 IMAGINE JCORP AS A WAQF ENTITY!
JOHOR CORPORATION More than 280 cos. with more than 65,000 employees 8 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.

8 INTRODUCTORY STATEMENTS:
1. “ Corporations rule the world.” 2. Private sector interests CORPORATE waqf? Why CORPORATE crowding out people’s interests everywhere!

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.

10 Corporate Waqf INTRODUCTORY STATEMENTS: 1. “ Corporations
rule the world.” 2. Private sector interests Corporate Waqf Corporate reform REFORM crowding out people’s interests Shift system away from Shareholder-centric to Community-centric everywhere!

11 delivery of benefits in line with the principles of Waqf.”
“ 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.”

12 - - - Corporate Waqf Mgt challenges Ownership structure
concept - Entrepreneurship - Corporate Waqf benefit delivery

13 ANITA RODDICK - Ownership structure

14 US$ 1.1 billion = RM3.3 billion
ANITA RODDICK Sold Bodyshop to L’Oreal in 2006 US$ 1.1 billion = RM3.3 billion The Economist, September 15-21, 2007, “Business and society”.

15 Fourth richest woman in Britain
ANITA RODDICK Fourth richest woman in Britain

16 Datin Paduka SITI SA’DIAH
ANITA RODDICK 82 KPJ Healthcare Bhd Malaysian CEO, KPJ: RM3.86 billion

17 IPO valuation: (Nov 94) 276 mill.-
JCorp’s intrapreneur AMANAH Entrepreneur KPJ HEALTHCARE BHD Principal Bizs: 23 Specialist hospitals in Malaysia IPO valuation: (Nov 94) 276 mill.- Feb 2012: > 800 Specialists, >2 mill patients Started with Hospital & 6 Specialists in Johor Bahru in 1981 D.P. Siti Sa’diah Sheikh Bakir Managing Director Integrating amanah into corporate practice Market Cap Dec 2012: 2 Sp. Hospitals in Jakarta, Indonesia 1 Kolej Universiti, N.S RM3.9 Billion 1 Waqf Hospital & Waqaf An-Nur clinics in 6 states in Malaysia W’out privatisation, MBO or Stock Options! 2013 Sales: RM2.3 bil, PBT RM158 mill

18 Nilai Modal IPO: (Nov 94) 276 juta--
Intrapreneur JCorp AMANAH Entrepreneur KPJ HEALTHCARE BHD Bisnes utama: 23 Hospital pakar di Malaysia Nilai Modal IPO: (Nov 94) 276 juta-- Bermula dpd Hospital & 6 doktor pakar di Johor Bahru pada 1981 Feb 2012: > 800 Specialists, >2 juta pesakit D.P. Siti Sa’diah Sheikh Bakir Pengarah Urusan JIHAD BUSINESS “Market Cap” Dis 2012: 2 Hospital pakar di Jakarta, Indonesia 1 Kolej Universiti, N.S RM3.9 Bilion 1 Hospital Waqaf dan Klinik Waqaf An-Nur di 6 negeri di Malaysia W’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” objectives through Corporate Waqf’s role as a “Mother Corp.” - Spawning business and entrepreneurial opportunities for all!

20 AMANAH Entrepreneur CAPAIAN ASPIRASI Sdn Bhd
Waqf venture capital funding CAPAIAN ASPIRASI Sdn Bhd for entrepreneurs without capital Ustaz Ismail Mat Ali, General Manager Ustaz Ismail Mat Ali B.A. Hons (Al Azhar U) - Shariah Islamiah GM - Minority shareholder Capaian Aspirasi Sdn Bhd Subsidiary of Waqf An Nur Corporation 20

21 Intrapreneur AMANAH Entrepreneur CAPAIAN ASPIRASI Sdn Bhd
WAQAF AN NUR CORORATION BHD CAPAIAN ASPIRASI Sdn Bhd Biz: Agency (Zakat/ Wasiat + Mutawwif) Paid-up Capital: RM100,000 (25% IMA) Loss 2006: (RM100,000) PBT 2010: RM511,000 PBT 2011: RM600,000 PBT 2012: RM557,640 Dividend 2011: 400% 5 staff + 80 agents Intrapreneur Ustaz Ismail Mat Ali 21

22 Intrapreneurs (AMANAH entrepreneurs) under leadership of
JOHOR CORPORATION’S CORPORATE CONCEPT An entrepreneurial corporate organisation generating sustainable businesses Intrapreneurs under 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 intrapreneurs are today MILLIONAIRES!

26 Market Cap. Dec 2012: RM21.0 billion.
Lebih 280 syarikat TRANSFORM dan lebih 65,000 warga kerja Kumpulan JIHAD BUSINESS JCORP 8 PLC, spt Kulim Malaysia Bhd, KPJ Healthcare, INTO WAQF KFC Holdings, & New Britain Palm Oils, PNG. NBPOL tersenarai di London SX Group PBT 2010: RM962 juta Market Cap. Dec 2012: RM21.0 billion.

27 CORPORATE WAQF LANDMARKS
2006:RM 200 million 2007: + RM50 million PLC shares NAV) 3rd August, 2006

28 RM575.9 mill RM430.4 mill WAQF ASSET VALUE: (Market Cap, 31 Dec 2012)
Waqf Asset Value at endowment date: Market RM250 million WAQF ASSET VALUE: (Market Cap, 31 Dec 2012) WAQF ASSET VALUE: (Market Cap, 31 Dec 2010) RM575.9 mill RM430.4 mill

29 WAQAF AN-NUR CORPORATION
No. of Treatments ( ): 961,148 RM5 Non- Muslims: 69,690 21 CLINICS + 1 HOSPITAL (Dec 2013), in Johor, Perak, Negri Sembilan, Selangor, Sarawak and Penang.

30 CONCLUSION WIEF-IDB “ Management- challenges of - awqaf assets.”
AWQAF ROUNDTABLE 5th June, 2014, Jakarta, Indonesia “ Management- challenges of awqaf assets.”

31 CORPORATE WAQF Corporate 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, Indonesia Mr. Husain Benyounis Secretary General Awqaf New Zealand

34 Simple Global Model Management Challenges of Awqaf Assets
Winner Islamic Economy Award 2013 Muslim Minority Prospective Turning unused charitable Resources into Awqaf Revenues Presented by: Husain Benyounis Secretary General – Awqaf New Zealand Established in Feb 2011 & have been Run By Volunteers

35 Understanding The Basics
“But Allah has permitted trade and has forbidden interest” 2-275 وَأَحَلَّ اللّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا “Allah destroys interest and gives increase for charities” 2-276 يَمْحَقُ اللَّهُ الرِّبَا وَيُرْبِي الصَّدَقَاتِ 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 Charity Trade Economy Islamic 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” مدخل إلى أصول التمويل الإسلامي (http://suwailem.net/BooksDetails-6)

36 Elements of Awqaf Engineering
Aim Project Needs Available Challenge Legislation Development Model 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 Assets Establishing 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.

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/year Project Prospectus Awqaf Certificate or Sukuk Turning bone into Halal Galatian No Approved Amended Name Name Yes Revenues generated from the Wasted charitable resources continue feeding WAQF-S WAQF-S Cash Waqf Awqaf Bank International Awqaf Bank World Awqaf Qard Fund Services (WAQF-S) Issue the Awqaf Certificate or Sukuk Rules Rules WAQF-S Proposed Members Sell Asset A Waqf Organisation Has a Sharia Board Has International Status Non Governmental (independent) Specialize in Qard Al Hasan & Awqaf Has the authority to Issue Awqaf Certificate & Sukuk Qard Hassan given to Awqaf Ideally World Waqf Foundation Islamic Development Bank (2001) Annual Payment Buy the asset Awqaf South Africa (2001) Awqaf New Zealand (2011) No Success Stop Fund Fund Awkaf Australia (2012) Yes Awqaf USA (2013) Payment A small amount of the Adahi/Qurbani wool is sufficient to fund the operation of WAQF-S Awqaf Fiji (2013) No Awqaf Canada (2014) Finish Awqaf Muslim Minorities Yes Transfer 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 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

39 World Awqaf Qard Fund Services
Conclusions World Awqaf Qard Fund Services We 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 months Insh-Allah. The Scope is Huge, The Cost is Low & The Opportunities are Endless Thank You

40 WIEF-IDB AWQAF ROUNDTABLE
Jakarta, Indonesia Session End

41 Thank You, See you in Dubai!
10th World Islamic Economic Forum October 2014 Madinat Jumeirah Conference Centre, Dubai Thank You, See you in Dubai!


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