Management of Wakaf Assets

*1436. Dr Hamid Razak: To ask the Acting Minister-in-charge of Muslim Affairs (a) what governance and oversight mechanisms are in place to ensure wakaf assets are managed faithfully in accordance with donors’ intentions while remaining financially sustainable; and (b) how has wakaf management evolved in recent years to address challenges such as fragmented assets, rising maintenance costs, and redevelopment constraints in land-scarce Singapore.

Response:

1. Sir, under the Administration of Muslim Law Act (AMLA), the ownership of all wakaf assets is vested in the Islamic Religious Council of Singapore (MUIS). The wakaf assets are managed by Warees Investments, a subsidiary of MUIS, and the appointed mutawallis, in accordance with the intentions of the wakif or donor.

2. There are clear governance mechanisms in place to ensure that wakaf assets remain financially sustainable and are managed with accountability and transparency.

3. First, all mutawallis must be approved by the MUIS Council and have the competencies to maintain good governance and long-term sustainability of the wakaf they oversee.

4. Second, Warees and the appointed mutawallis must comply with audit requirements set out under the AMLA, as well as undergo periodic checks by MUIS that religious guidance by the Fatwa Committee has been adhered to.

5. Third, the MUIS Wakaf Disbursement Committee, which comprises members from the MUIS Council, monitors and reviews annual wakaf disbursements, and makes recommendations on the allocation of wakaf funds, in accordance with the wakif’s intention.

6. Wakaf management has indeed become more challenging over the years. Amidst rising costs and development needs, MUIS and Warees strive to keep rents affordable, while performing their fiduciary duty to ensure sufficient financial returns for the wakaf beneficiaries.

7. Where tenants face challenges paying rent, MUIS and Warees engage them to understand their situation and explore repayment plans. For some wakaf properties, MUIS and Warees have also undertaken asset enhancement and redevelopment initiatives under the Wakaf Revitalisation Scheme to optimise financial returns while sustaining their heritage value. Recent examples include The Red House at East Coast Road, and Jamae Chulia Heritage Development at Mosque Street.

8. MUIS will continue to review and enhance wakaf asset management, to ensure that our wakaf assets can sustainably support their intended beneficiaries.