Exploring Holistic Performance Indicators for WAQF Institutions in Malaysia

Abstract

The practice of waqf (or Islamic endowment) has been recognized as the mainstream social development in Muslim society today since waqf greatly contributes to Malaysia's socio-economic development. Despite the fact that the current development of waqf is not fully utilized, waqf institutions must play a pivotal role in ensuring the attainment of waqf objectives in contemporary society. To achieve their strategic goals and fulfil their accountability towards relevant stakeholders and the public at large, a comprehensive measurement tool is required to assess the performance of waqf institutions holistically. Thus, the objective of this study is to explore the possible key performance indicators for waqf institutions in Malaysia using the balanced scorecard model with four main perspectives: financial perspective, stakeholder perspective, internal process perspective, and learning and growth perspective. The method of this study is based on a review of the literature on relevant performance measurement for waqf institutions in Malaysia. The findings of this study could assist waqf institutions in Malaysia to define their vision and strategy, as well as change their vision and strategy into specific activities, by implementing the proposed indicators that are measurable and comprehensive and are useful for waqf managers to make an accurate and informed decision. The outcome of this study could provide a guideline for designing a holistic and proper measurement system that can be implemented by all waqf institutions in Malaysia to maintain their sustainability and competitiveness.