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WIEF-IDB AWQAF ROUNDTABLE Jakarta, Indonesia

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:

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WIEF-IDB AWQAF ROUNDTABLE Jakarta, Indonesia

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

  5. MALAYSIA: VISIT BY SAUDI GUESTS (11 April, 2014) CORPORATE • - • - WAQF CORPORATE WAQF

  6. JOHOR CORPORATION • - • - Integratingwaqf principles into corporate practice toreformbusiness.

  7. JOHOR CORPORATION • More than 280 cos. with more than 65,000 employees • 8 PLC,inc Kulim Malaysia Bhd, KPJHealthcare, KFC Holdings, IMAGINE JCORP AS A WAQF ENTITY! NBPOLlisted on LondonStockX & NewBritainPalmOils,PNG. MarketCap. Dec2012: RM20.9 billion. • Group PBT 2010: RM962 mill. MarketCap. Dec2010: RM18.1 billion.

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

  9. Reforming Business ways WALLSTREETCULTURE “ 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. toCommunity-centric INTRODUCTORY STATEMENTS: 1. “ Corporations rule the world.” 2. Private sector • CorporateWaqf Corporate reform REFORM interests crowding out Shift system away from Shareholder-centric people’s interests everywhere!

  11. “ 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. CorporateWaqf Mgt challenges CorporateWaqf • - Ownership • - structure Entrepreneurship • - concept benefit delivery

  13. ANITA RODDICK Ownership • - structure

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

  15. ANITA RODDICK Fourth richest woman in Britain

  16. Datin Paduka SITI SA’DIAH ANITA RODDICK 82 MalaysianCEO, KPJ:RM3.86 billion KPJHealthcareBhd

  17. JCorp’sintrapreneur AMANAHEntrepreneur D.P. SitiSa’diah Sheikh Bakir Managing Director 2013 Sales: RM2.3 bil, PBT RM158mill KPJ HEALTHCARE BHD • Principal Bizs: • 23 Specialist hospitals inMalaysia Feb 2012: > 800 Specialists, >2 mill patients Started with 1Hospital & 6SpecialistsinJohor Bahru in 1981 Integrating amanahinto 2 Sp. Hospitals in Jakarta, Indonesia Market Cap Dec 2012: - corporate • 1 KolejUniversiti, N.S RM3.9Billion practice IPO valuation: (Nov94) 276 mill.- • 1 WaqfHospital & 21 Waqaf An-Nur clinics in 6 states in Malaysia W’outprivatisation, MBOorStockOptions!

  18. Intrapreneur JCorp AMANAHEntrepreneur D.P. SitiSa’diah Sheikh Bakir PengarahUrusan 2013 Sales: RM2.3 bil, PBT RM158juta KPJ HEALTHCARE BHD • Bisnesutama: • 23 Hospital pakardiMalaysia Feb 2012: > 800 Specialists, >2 juta pesakit Bermula dpd 1Hospital & 6doktor pakar di Johor Bahru pada1981 BUSINESS 2 Hospital pakar di Jakarta, Indonesia “Market Cap” Dis 2012: - • 1 KolejUniversiti, N.S RM3.9Bilion Nilai Modal IPO:(Nov94) 276 juta-- • 1 Hospital Waqafdan 21 KlinikWaqaf An-Nur di 6 negeri di Malaysia W’outprivatisation, KPJ shares waqfed: JIHAD 18.6million(14.3%) MBOorStockOptions!

  19. - Waqaf An Nur Corp: • Realising “Biz Jihad” objectives through CorporateWaqf’srole as a “Mother Corp.” - Spawning business and entrepreneurial opportunities for all!

  20. AMANAHEntrepreneur Waqf venture capital funding CAPAIAN ASPIRASI SdnBhd for entrepreneurs without capital Ustaz Ismail Mat Ali B.A. Hons (Al Azhar U) - Shariah Islamiah GM-Minority shareholder CapaianAspirasiSdnBhdSubsidiaryof Waqf An Nur Corporation Ustaz Ismail Mat Ali, General Manager

  21. Intrapreneur AMANAHEntrepreneur WAQAF AN NUR CORORATION BHD CAPAIAN ASPIRASI SdnBhd Biz: Agency (Zakat/ Wasiat + Mutawwif) Paid-up Capital: RM100,000 (25%IMA) Loss2006:(RM100,000) PBT 2010: RM511,000 PBT 2011: RM600,000 PBT 2012: RM557,640 Dividend 2011: 400% 5 staff + 80 agents IntrapreneurUstaz Ismail Mat Ali

  22. under leadership of Intrapreneurs JOHOR CORPORATION’S CORPORATECONCEPT An entrepreneurial corporate organisation generating sustainable businesses (AMANAH entrepreneurs)

  23. JCORP’SINTRAPRENEURS “Entrepreneurship for everyone!" ‘TEAM INTRAPRENEURS’ JCorp’s Intrapreneurs: Equity up to25%.

  24. JCORP’SINTRAPRENEURS “Entrepreneurship for everyone!" ‘TEAM INTRAPRENEURS’ ‘TEAM INTRAPRENEURS’ JCorp INTRAPRENEURS offered equity up to 25%.

  25. JCORP’SINTRAPRENEURS “Entrepreneurship for everyone!" JCORP JCORP’S INTRAPRENEURS: With equity up to 25%. 5intrapreneurs are today MILLIONAIRES!

  26. Lebih 280 syarikat dan lebih 65,000 warga kerja Kumpulan BUSINESS JCORP TRANSFORM • 8 PLC,spt Kulim Malaysia Bhd, KPJHealthcare, JIHAD INTO WAQF KFC Holdings, & NewBritainPalmOils,PNG. NBPOLtersenarai diLondonSX • Group PBT 2010: RM962 juta Market Cap. Dec2012: RM21.0 billion.

  27. “CORPORATE WAQF” CORPORATEWAQFLANDMARKS 2006:RM 200 million PLC shares (@ NAV) 2007: + RM50 million 3rd August, 2006

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

  29. WAQAFAN-NUR CORPORATION RM5 No. of Treatments (1998-2013): 961,148 Non- Muslims: 69,690 21CLINICS+1HOSPITAL (Dec 2013), in Johor, Perak, Negri Sembilan, Selangor, Sarawak and Penang.

  30. WIEF-IDB CONCLUSION 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 AwqafNew 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 Charity • 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” 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 Localto 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 • Livestockto 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 Cash Waqf WAQF-S Awqaf Bank International Awqaf Bank WorldAwqafQardFund 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 Finish Awqaf Canada (2014) Yes Awqaf Muslim Minorities 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-ProfitSectors 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. 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 6 - 12 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. 10th World Islamic Economic Forum 28- 30 October 2014 MadinatJumeirah Conference Centre, Dubai Thank You, See you in Dubai!

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