people with the right calibre, right competency and right character. the usd 37. 1 billion harvard endowment is run by some of the best minds in finance, who determine the most optimal asset allocation strategies that deliver the best sustainable returns for the university. in 2017, the endowment contributed more than a third of harvard ’ s operating revenue. returns from the fund help to provide scholarships and to fund ground - breaking research. surely we would like to see the same in our malaysian universities. acquiring such expertise and capability may take time. to expedite this, i would like to suggest that waqf authorities explore partnering or collaborating with experts from the private sector to commercialise or monetise waqf assets. in particular, partnerships with islamic financial institutions can help waqf authorities develop waqf assets productively with the required financial expertise on board. a good example is the partnership between majlis agama islam wilayah persekutuan and lembaga tabung haji in developing menara bank islam on a 1. 2 acre waqf land in kuala 3 / 4 bis central bankers'speeches lumpur. the rm151 million project is a milestone achievement, being the first large - scale commercial development project on a waqf land in the country. another important aspect in professionalising waqf management is instilling good governance. it is unfortunate that management of waqf has had some governance challenges. efforts must be directed at strengthening its governance and management. adequate internal controls have to be put in place, including risk management, internal and external audits, and compliance systems. its standards of disclosure and transparency need to be at par with those of modern finance or of endowments in advanced economies. for a start, waqf authorities should provide high - quality disclosure and reporting of waqf activities to instil trust and confidence among the contributors and wider stakeholders. contributors want to know where their contributions are going and how they are being spent. in this regard, the waqf fund collaboration between islamic banks and the state islamic religious councils provides a good mechanism for the financial sector to lend its expertise and share best practices on good governance and transparency practices in managing fund. under the initiative, the code of governance and transparency of waqf fund will be issued by aibim. this will act as guidance for more efficient and effective management of waqf and with higher governance and transparency practices, thus bringing waqf to the next

marzunisham omar : waqf – an economic perspective speech by mr marzunisham omar, assistant governor of the central bank of malaysia ( bank negara malaysia ), at the forum on " waqf : an economic perspective ", kuala lumpur, 9 april 2018. * * * it is an honour to speak on waqf from an economic viewpoint. waqf, or islamic endowment, is a virtuous act which not only serves as a philanthropic tool but holds great potential for economic development. allow me to share some thoughts on the relevance of waqf and three strategies to unlock its full potential to benefit our country. revival of waqf is timely to unlock its full potential waqf is part of islam ’ s great and long history. it is a well - established concept, conceived during the time of the prophet, peace be upon him. when umar ibn al - khattab acquired a piece of land, he asked the prophet how best to use it. the prophet advised him to make the land inalienable and to use it for the benefit of the unprivileged – the poor and those in need. with that, the land was established as waqf. over the centuries, this tradition continued and waqf has made vast contributions to the development of islamic civilisation. notable examples include the waqf of suleymaniye in istanbul, which provided for the construction of schools and universities, and the waqfs of murad ii and of bayezid ii in edirne that built and operated hospitals that provided free treatment. while these are inspiring examples from the past, it is no question that waqf remains relevant today. it can play an important part in our quest to develop a more dynamic, progressive and inclusive economy. it can do so by tackling some of the major challenges facing society, such as inequality and improving access to quality education and health. we must not allow intergenerational inequity to widen and magnify. and waqf, as a vehicle for those in a more privileged position to voluntarily give back and reinvest in the society, can help promote social mobility and stem this vicious cycle of inequity. as a sustainable, intergenerational mechanism for social investments, waqf could effectively contribute towards a more equitable society. as stated in the quran, wealth that has been bestowed by allah should not merely circ