WIEF-IDB AWQAF

ROUNDTABLEJakarta, Indonesia

5 JUNE 2014LE MERIDIEN JAKARTA,

INDONESIA

“Beyond Charity: Harnessing Waqf for Economic Prosperity”

Management Challenges of Awqaf Assets

Role Players:Tan Sri Muhammad Ali Hashim, President, Malaysian Islamic Chamber of Commerce, MalaysiaMr. Husain Benyounis, Secretary General, Awqaf New Zealand

Moderator:Mr. Riawan Amin, Chairman, Supervisory Board, Association of Islamic Bank Indonesia (ASBISINDO)

WIEF-IDB AWQAF

ROUNDTABLEJakarta, Indonesia

WIEF-IDB AWQAF

ROUNDTABLEJakarta, Indonesia

Tan Sri Muhammad Ali Hashim President

Malaysian Islamic Chamber of Commerce, Malaysia

“ Management- challenges of

- awqaf assets.”

WIEF-IDBAWQAF ROUNDTABLE

5th June, 2014, Jakarta, Indonesia

VISIT BY SAUDI GUESTS

(11 April, 2014)--CORPORATE WAQF

MALAYSIA:CORPORATE

WAQF

JOHOR CORPORATION

--

Integrating waqf principles into

corporate practiceto reform business.

• 8 PLC, inc Kulim Malaysia Bhd, KFC Holdings, KPJ Healthcare,

& New Britain Palm Oils, PNG. NBPOL listed on London StockX • Group PBT 2010: RM962 mill.

• More than 280 cos. with morethan 65,000 employees

Market Cap. Dec 2010: RM18.1 billion.Market Cap. Dec 2012: RM20.9 billion.IMAGINE JCORP AS A

WAQF ENTITY!

JOHOR CORPORATION

INTRODUCTORY INTRODUCTORY STATEMENTS:STATEMENTS:

1. “ Corporations rule the world.”

2. Private sector interestscrowding outpeople’s interests everywhere!

CORPORATE waqf?

WhyCORPORATE

“ The culture & institutions of the Wall Street economy cultivate & reward our capacity for individualistic greed,

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.

hubris, deceit, ruthless competition, & material excess.

”

ReformingReformingBusiness waysBusiness waysWALL STREET CULTURE

everywhere!

INTRODUCTORY INTRODUCTORY STATEMENTS:STATEMENTS:

1. “ Corporations rule the world.”

2. Private sector interestscrowding outpeople’s interests

to Community-centricto Community-centric

Corporate reformREFORMCorporate WaqfCorporate Waqf

Shareholder-centricShift system away from

“ 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 WaqfCorporate WaqfMgt challengesMgt challenges

•-Corporate Waqfbenefit delivery

concept•-Entrepreneurship

•-Ownership

structure

ANITA RODDICK

•-Ownership

structure

Sold Bodyshop

US$ 1.1 billion

The Economist, September 15-21, 2007, “Business and society”.

ANITA RODDICK

to L’Oreal in 2006

= RM3.3 billion

Fourth richest woman in Britain

ANITA RODDICK

ANITA RODDICK

KPJ Healthcare Bhd Malaysian CEO,KPJ: RM3.86

billion

82

Datin Paduka SITI SA’DIAH

JCorp’s intrapreneur Principal Bizs:

23 Specialist hospitals in Malaysia 2 Sp. Hospitals in Jakarta, Indonesia

Started with 1 Hospital

& 6 Specialists

in Johor Bahru

in 1981D.P. Siti Sa’diah

Sheikh BakirManaging Director

1 Waqf Hospital & 21 Waqaf An-Nur clinics in 6 states in Malaysia

1 Kolej Universiti, N.S

KPJ HEALTHCARE BHDFeb 2012:

> 800 Specialists, >2 mill patients

IPO valuation: (Nov 94) 276 mill.-Market Cap

Dec 2012: -

AMANAH Entrepreneur

RM3.9 Billion

2013 Sales: RM2.3 bil, PBT RM158 mill

W’out privatisation,MBO or Stock Options!

Integratingamanah intocorporate practice

Intrapreneur JCorp Bisnes utama:

23 Hospital pakar di Malaysia 2 Hospital pakar di Jakarta, Indonesia

Bermula dpd 1 Hospital

& 6 doktor pakar di Johor Bahru

pada

1981

D.P. Siti Sa’diah Sheikh Bakir

Pengarah Urusan

1 Hospital Waqaf dan 21 Klinik Waqaf An-Nur di 6 negeri di Malaysia

1 Kolej Universiti, N.S

KPJ HEALTHCARE BHDFeb 2012:

> 800 Specialists, >2 juta pesakit

Nilai Modal IPO: (Nov 94) 276

juta--“Market Cap” Dis 2012:

-RM3.9 Bilion

2013 Sales: RM2.3 bil, PBT RM158 juta

JIHADBUSINESS

AMANAH Entrepreneur

W’out privatisation,MBO or Stock Options!

KPJ shares waqfed:

18.6 million (14.3%)

Realising “Biz Jihad”objectives Corporate Waqf’s

role - Spawning business

as a “Mother Corp.”

- Waqaf An Nur Corp:

and entrepreneurial

through

opportunities for all!

CAPAIAN ASPIRASI Sdn Bhd

AMANAH Entrepreneur

Ustaz Ismail Mat Ali, General Manager

Ustaz Ismail Mat Ali B.A. Hons (Al Azhar U) - Shariah IslamiahGM - Minority shareholder

Capaian Aspirasi Sdn Bhd Subsidiary of Waqf An Nur

Corporation

Waqf venture capital fundingfor entrepreneurs without capital

CAPAIAN ASPIRASI Sdn Bhd

Biz: Agency (Zakat/

Loss 2006:

(RM100,000)PBT 2011: RM600,000Dividend 2011:

400%

Paid-up Capital:

PBT 2010: RM511,000

Intrapreneur Ustaz Ismail Mat Ali

PBT 2012: RM557,640

5 staff + 80 agents

Wasiat + Mutawwif)

RM100,000 (25%

IMA)

IntrapreneurWAQAF AN NUR CORORATION BHD

AMANAH Entrepreneur

JOHOR CORPORATION’SCORPORATE CONCEPT

An entrepreneurial corporate organisation generating sustainable

businesses under leadership of

(AMANAH entrepreneurs)

JCORP’S INTRAPRENEURS

JCorp’s Intrapreneurs: Equity up to 25%.

JCorp’s Intrapreneurs: Equity up to 25%.

‘TEAM INTRAPRENEURS’

JCorp INTRAPRENEURS offered equity up to 25%.

JCorp INTRAPRENEURS offered equity up to 25%.‘TEAM

INTRAPRENEURS’‘TEAM

INTRAPRENEURS’

JCORP’S INTRAPRENEURS

JCORP

JCORP’S INTRAPRENEURS: With

equity up to 25%.

JCORP’S INTRAPRENEURS: With

equity up to 25%.

MILLIONAIRES!

5 intrapreneursare today

JCORP’S INTRAPRENEURS

• 8 PLC, spt Kulim Malaysia Bhd, KPJ Healthcare,

& New Britain Palm Oils, PNG. NBPOL tersenarai di London SX • Group PBT 2010: RM962 juta

• Lebih 280 syarikat dan lebih 65,000 warga kerja Kumpulan

KFC Holdings,

Market Cap. Dec 2012: RM21.0 billion.

JIHADBUSINESSTRANSFORMJCORP

INTO WAQF

“CORPORATE WAQF”

PLC shares (@ NAV)3rd August, 20062007: + RM50 million

2006:RM 200 million

CORPORATE WAQF LANDMARKS

• Market

WAQF ASSET VALUE: (Market Cap, 31 Dec 2010)

RM430.4 mill

• Waqf Asset Value at endowment date: RM250 million

WAQF ASSET VALUE: (Market Cap, 31 Dec 2012)

RM575.9 mill

RM5

No. of Treatments

(1998-2013):

961,148Non-

Muslims: 69,690

21 CLINICS + 1 HOSPITAL (Dec 2013), in Johor, Perak, Negri Sembilan, Selangor, Sarawak and

Penang.

WAQAF AN-NUR CORPORATION

“ Management- challenges of

- awqaf assets.”

WIEF-IDBAWQAF ROUNDTABLE

5th June, 2014, Jakarta, IndonesiaCONCLUSIO

N

CORPORATE WAQF • Corporate capacity

building using Islamic motivational force & spiritual energy for business-driven success;

• Wealth-creating institution to reduce economic divides & bridge social disparities;

• A “Mother Corporation” for entrepreneur development, management talent and human capital development;

spawning new enterprises,

• Over the long run, through critical mass, an institution that will renew economic system, shifting it from one that is ‘shareholder-centric’

creating biz opportunities for marginalised groups;

• A “Mother Corporation”

to a ‘community-centric’ and more equitable system.

CORPORATE WAQF

WIEF-IDB AWQAF

ROUNDTABLEJakarta, Indonesia

Mr. Husain Benyounis Secretary General

Awqaf New Zealand

Simple Global ModelManagement Challenges of Awqaf Assets

Presented by: Husain BenyounisSecretary General – Awqaf New Zealand

Established in Feb 2011 & have been Run By Volunteers

Turning unused charitable Resources into Awqaf RevenuesMuslim Minority Prospective

Islamic Economy Award 2013

Winner

Understanding The Basics QهSالل Wل YحYأ YوYيعYا البYب cالر Yم Wر YحYو

“Allah destroys interest and gives increase for charities” 2-276

يQربgي Yو بYا cالر QهWالل Qق YمحYيgات YقYد Wالص

“But Allah has permitted trade and has forbidden interest” 2-275

TradeCharity

EconomyIslamic

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

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”

اإلسالمي التمويل أصول إلى //:)مدخل . / -6http suwailem net BooksDetails )

Elements of Awqaf EngineeringAimProjectNeedsAvailableChallengeLegislationDevelopmentModel

Maximum utilisation of our charitable resources Turn wasted charitable resources into Awqaf Revenues Take Awqaf from Local to 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 AssetsEstablishing 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 WaqfProject Prospectus

Awqaf Certificate or Sukuk

ApprovedNo

Amended

Awqaf BankInternational Awqaf Bank

World Awqaf Qard Fund Services (WAQF-S)

A Waqf OrganisationHas a Sharia Board

Has International StatusNon Governmental (independent)

Specialize in Qard Al Hasan & AwqafHas the authority to Issue Awqaf

Certificate & Sukuk

A small amount of the Adahi/Qurbani wool

is sufficient to fund the operation of WAQF-S

Cash Waqf

Yes Name

Rules

Fund

Name

Rules

Fund

WAQF-S

Issue the Awqaf Certificate or Sukuk

Qard Hassan given to Awqaf

Success

Buy the asset

Finish

Payment

Stop

SellAsset

Yes

Transfer ownership to Awqaf Org.Replicate the model somewhere else

No

Annual Payment

No

Yes

WAQF-SProposed Members

Revenues generated from the Wasted

charitable resources continue feeding

WAQF-S

The wasted value of the Adahi/Qurbani wool of the Muslims in the west is estimated at

50$ million/year

Turning bone into Halal Galatian

IdeallyWorld Waqf Foundation

Islamic Development Bank (2001)

Awqaf South Africa (2001)

Awqaf New Zealand (2011)

Awkaf Australia (2012)

Awqaf USA (2013)

Awqaf Fiji (2013)

Awqaf Canada (2014)

Awqaf Muslim Minorities

WAQF-S “Waqf Al Sukuk”

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

WAQF-S not only bridge the Gap between the Profit & Non-Profit Sectors but also help develop both sectors in many ways as:

CONCLUSIONSWe 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

WIEF-IDB AWQAF

ROUNDTABLEJakarta, Indonesia

Session End

Thank You,See you in Dubai!

10th World Islamic Economic Forum28 - 30 October 2014

Madinat Jumeirah Conference Centre, Dubai