Record Details

Potential of Cash Waqf for Poverty Alleviation in Malaysia: A System Dynamics Approach

Jurnal Ekonomi Malaysia

View Archive Info
 
 
Field Value
 
Title Potential of Cash Waqf for Poverty Alleviation in Malaysia: A System Dynamics Approach
 
Creator Shahimi, Shahida
Mohd Marzuki, Mohd Umar
Embong, Zaini
 
Subject Cash waqf; microfinance; poverty alleviation; system dynamics
—
 
Description ABSTRACTPoverty alleviation has always been one of the top agendas in any country, including Malaysia. This is evidenced from the spending of the government for the purpose of uplifting the income of the poor. The objective of this paper istherefore to explore alternative tool in eradicating poverty, specifically in Malaysia, by exploring the role of cash waqf. This paper examines the potential impact of cash waqf on the Malaysian economy. Cash waqf is specifically analysed in this paper as an alternative instrument that can improve the overall social welfare system and reduce poverty rate; and at the same time, lessen the burden of the government. To analyse the potential of cash waqf model in a dynamic system, this study employs system dynamics methodology. The feedback nature of the whole system is modelled and outputs in the form of figures are derived from simulations. With two different cases (i.e. set of assumptions) under study, the model simulations show that cash waqf is significant in alleviating poverty by up to 50 per cent for both cases. Apart from that, government spending can also be significantly reduced. Total savings can go over RM13 billion or an average of RM433 million a year over 30 years. Given the findings, the government can take into account the potentialof implementing cash waqf in Malaysia.Keywords: Cash waqf; microfinance; poverty alleviation; system dynamicsABSTRAKPembasmian kemiskinan telah sentiasa menjadi salah satu agenda penting di mana-mana negara, termasuk Malaysia. Ini terbukti berdasarkan perbelanjaan kerajaan bertujuan meningkatkan pendapatan golongan miskin. Kajian iniakan meneroka potensi wakaf tunai sebagai instrumen alternatif yang dapat meningkatkan kebajikan sosial dan mengurangkan kadar kemiskinan, serta pada masa yang sama mengurangkan beban kerajaan. Objektif kajian ini ialah untuk meneroka wakaf tunai sebagai alat alternatif bagi membasmi kemiskinan, khususnya di Malaysia. Kajian ini mengkaji potensi wakaf tunai berdasarkan kesannya terhadap pembolehubah ekonomi dalam sistem yang dinamik.Bagi tujuan ini, kajian ini menggunakan kaedah sistem dinamik. Sifat maklum balas daripada keseluruhan sistem akan dimodelkan dan output dalam bentuk angka diperoleh berdasarkan kaedah simulasi. Dapatan kajian menunjukkanbahawa wakaf tunai mampu membasmi kemiskinan sehingga 50 peratus. Selain itu, kerajaan mampu menjimatkan perbelanjaan sehingga melebihi RM13 bilion atau purata RM433 juta setahun dalam tempoh 30 tahun. Justeru, kerajaanboleh mempertimbangkan pelaksanaan wakaf tunai di Malaysia sebagai alat pembasmian kemiskinan.Kata kunci: Pembasmian kemiskinan; pembiayaan mikro; sistem dinamik; wakaf tunai
 
Publisher Universiti Kebangsaan Malaysia
 
Contributor —
 
Date 2013-12-31
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://ejournal.ukm.my/jem/article/view/7274
 
Source Jurnal Ekonomi Malaysia; Vol 47, No 2 (2013): Jurnal Ekonomi Malaysia; 149-163
0126-1962
 
Language eng
 
Relation http://ejournal.ukm.my/jem/article/view/7274/2927