WIEF-IDB AWQAF ROUNDTABLE Jakarta, Indonesia “Beyond Charity: Harnessing Waqf for Economic Prosperity” 5 JUNE 2014 LE MERIDIEN JAKARTA, INDONESIA 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) WIEF-IDB AWQAF ROUNDTABLE Jakarta, Indonesia Tan Sri Muhammad Ali Hashim President Malaysian Islamic Chamber of Commerce, Malaysia WIEF-IDB AWQAF ROUNDTABLE th 5 June, 2014, Jakarta, Indonesia “ Managementchallenges of - awqaf assets.” MALAYSIA: VISIT BY SAUDI GUESTS CORPORATE (11 April, 2014) - WAQF CORPORATE WAQF JOHOR CORPORATION Integrating waqf principles into - corporate practice - reform business. to 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 NBPOL & New listed Britain on Palm London Oils, StockX PNG. Market Cap. Dec2012: RM20.9 billion. • Group PBT 2010: RM962 mill. Market Cap. Dec2010: RM18.1 billion. A WAQF ENTITY! INTRODUCTORY STATEMENTS: 1. “ Corporations rule the world.” 2. Private sector Why interests CORPORATE waqf? crowding out people’s interests everywhere! 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. INTRODUCTORY STATEMENTS: 1. “ Corporations rule the world.” 2.Corporate Private sector Corporate Waqf reform REFORM interests Shift system away crowding out from Shareholder-centric people’s interests to Community-centric everywhere! “ 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.” Corporate Waqf Mgt challenges wnership •-Ostructure E ntrepreneurship •-concept Corporate Waqf •-benefit delivery ANITA RODDICK wnership •-Ostructure 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”. ANITA RODDICK Fourth richest woman in Britain Datin Paduka SITI SA’DIAH ANITA RODDICK 82 Malaysian CEO, KPJ Bhd KPJ:Healthcare RM3.86 billion KPJ HEALTHCARE BHD JCorp’ s intrapreneur AMANAH Entrepreneur Principal Bizs: Feb 2012: Started with IPO valuation: 231Specialist hospitals Hospital & Integrating >276 (Nov 94) mill.in800 Malaysia 6Specialists, Specialists amanah into 2Market Sp. Hospitals in Cap in Johor Bahru corporate Jakarta, Indonesia >2 mill Dec 2012: in 1981 1 Kolej Universiti, N.S patients practice RM 3.9 Billion 1 Waqf Hospital & W’out privatisation, D.P. Siti Sa’diah 21 Waqaf An-Nur clinics in 6 states in Malaysia MBO or Stock Options! Sheikh Bakir Managing Director 2013 Sales: RM2.3 bil, PBT RM158 mill AMANAH Entrepreneur KPJ HEALTHCARE BHD Intrapreneur JCorp Bisnes utama: Nilai IPO: FebModal 2012: Bermula dpd 231Hospital pakar Hospital & (Nov 94) juta>di276 800 Malaysia 6 doktor pakar BUSINESS Specialists, 2“Market Hospital- pakar di Cap” dJakarta, i JohorIndonesia Bahru >2 juta Dis 2012: pada 1981 N.S 1 Kolej Universiti, pesakit RM 3.9 Bilion 1 Hospital Waqaf dan JIHAD W’out privatisation, KPJ shares waqfed: D.P. Siti Sa’diah MBOmillion or Stock(14.3%) Options! 18.6 Sheikh Bakir 21 Klinik Waqaf An-Nur di 6 negeri di Malaysia Pengarah Urusan 2013 Sales: RM2.3 bil, PBT RM158 juta - Waqaf An Nur Corp: Realising “Biz Jihad” objectives through Corporate Waqf’s role as a “Mother Corp.” - Spawning business and entrepreneurial opportunities for all! AMANAH Entrepreneur Waqf venture capital funding CAPAIAN ASPIRASI Sdn Bhd for entrepreneurs without capital Ustaz Ismail Mat Ali B.A. Hons (Al Azhar U) - Shariah Islamiah GM-Minority shareholder Capaian Aspirasi Sdn Bhd Subsidiary Waqf Nur Corporation Ustaz IsmailofMat Ali,An General Manager AMANAH Entrepreneur Intrapreneur WAQAF AN NUR CORORATION BHD CAPAIAN ASPIRASI Sdn Bhd Biz: Agency (Zakat/ Wasiat + Mutawwif) Paid-up Capital: RM100,000 (25%IMA) Loss2006:(RM100,000) PBT 2010: RM511,000 2011: RM600,000 PBT 2012: RM557,640 Dividend 2011: 400% 5 staff + 80 agents Intrapreneur Ustaz Ismail Mat Ali JOHOR CORPORATION’S CORPORATE CONCEPT An entrepreneurial corporate organisation generating sustainable businesses under leadership of (AMANAH entrepreneurs) JCORP’S INTRAPRENEURS JCorp’s Intrapreneurs: Equity up to 25%. ‘TEAM INTRAPRENEURS’ JCORP’S INTRAPRENEURS JCorp INTRAPRENEURS offered equity up to 25%. ‘TEAM INTRAPRENEURS’ ‘TEAM INTRAPRENEURS’ JCORP’S INTRAPRENEURS JCORP’S INTRAPRENEURS: With equity up to 25%. JCORP 5 intrapreneurs are today MILLIONAIRES! • Lebih 280 syarikat dan lebih 65,000 warga kerja Kumpulan • 8 PLC, spt Kulim Malaysia Bhd, KPJ Healthcare, KFC Holdings, & New Britain Palm Oils, PNG. NBPOL tersenarai di London SX • Group PBT 2010: RM962 juta Market Cap. Dec2012: RM21.0 billion. TRANSFORM BUSINESS JCORP JIHAD INTO WAQF “CORPORATE WAQF” CORPORATE WAQF LANDMARKS 2006:RM 200 million PLC (@ NAV) 2007: + RM50 million 3rdshares August, 2006 • •Waqf Asset Value Market at endowment date: RM250 million WAQF ASSET VALUE: 2010) (Market Cap, 31 Dec 2012) RM575.9 RM430.4 mill WAQAF AN-NUR CORPORATION No. of Treatments (1998-2013): 961,148 RM5 NonMuslims: 69,690 21 CLINICS + 1 HOSPITAL (Dec 2013), in Johor, Perak, Negri Sembilan, Selangor, Sarawak and Penang. WIEF-IDB CONCLUSION AWQAF ROUNDTABLE th 5 June, 2014, Jakarta, Indonesia “ Managementchallenges of - awqaf assets.” 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; CORPORATE WAQF • spawning A “Mother Corporation” 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. WIEF-IDB AWQAF ROUNDTABLE Jakarta, Indonesia Mr. Husain Benyounis Secretary General Awqaf New Zealand 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 Understanding The Basics “But Allah has permitted trade and has forbidden interest” 2-275 َّ َي ْم َح ُق ِ ص َد َقا ت َّ الر َبا َو ُي ْر ِبي ال ِّ ُ ّللا َوأَ َحل َّ ه الر َبا ِّ ّللا ُ ا ْل َب ْي َع َو َح َّر َم “Allah destroys interest and gives increase for charities” 2-276 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 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” )http://suwailem.net/BooksDetails-6( مدخل إلى أصول التمويل اإلسالمي Charity Elements of Awqaf Engineering Aim Maximum utilisation of our charitable resources Project Turn wasted charitable resources into Awqaf Revenues Needs Available Take Awqaf from Local to Global with minimum risks Adahi/Qurbani of Muslims in the West (5 million Sheep/year) Challenge Establish Awqaf farms to supply 5 million sheep a year Legislation Waqf, Donor, issuance & beneficiary in different countries Development Establish Global Awqaf Research Centre (GARC) NZ & UAE Innovate Global Awqaf Sukuk and Awqaf Certificates Model 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. 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 Approved Name Cash Waqf Awqaf Bank International Awqaf Bank World Awqaf Qard Fund Services (WAQF-S) WAQF-S Issue the Awqaf Certificate or Sukuk WAQF-S Proposed Members Awqaf South Africa (2001) Amended Yes Revenues generated from the Wasted charitable resources continue feeding WAQF-S Ideally World Waqf Foundation Islamic Development Bank (2001) No Turning bone into Halal Galatian Rules Sell Asset Qard Hassan given to Awqaf Annual Payment Buy the asset Awqaf New Zealand (2011) Success Awkaf Australia (2012) No Stop Yes Awqaf USA (2013) Payment Awqaf Fiji (2013) Awqaf Canada (2014) Awqaf Muslim Minorities No 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 Finish Yes Transfer ownership to Awqaf Org. Replicate the model somewhere else Fund A small amount of the Adahi/Qurbani wool is sufficient to fund the operation of WAQF-S 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 CONCLUSIONS We invite you to assist Awqaf NZ develop, establish & operate 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 6 - 12 months Insh-Allah. The Scope is Huge, The Cost is Low & The Opportunities are Endless Thank You WIEF-IDB AWQAF ROUNDTABLE Jakarta, Indonesia Session End 10th World Islamic Economic Forum 28 - 30 October 2014 Madinat Jumeirah Conference Centre, Dubai Thank You, See you in Dubai!