Potential of cash waqf for poverty alleviation in Malaysia: a system dynamics approach

Poverty 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 is therefore to explore alternative tool in eradicating poverty, spe...

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Main Authors: Shahida Shahimi, Mohd Umar Mohd Marzuki, Zaini Embong
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2013
Online Access:http://journalarticle.ukm.my/8128/
http://journalarticle.ukm.my/8128/
http://journalarticle.ukm.my/8128/1/7274-18734-1-SM.pdf
id ukm-8128
recordtype eprints
spelling ukm-81282016-12-14T06:46:18Z http://journalarticle.ukm.my/8128/ Potential of cash waqf for poverty alleviation in Malaysia: a system dynamics approach Shahida Shahimi, Mohd Umar Mohd Marzuki, Zaini Embong, Poverty 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 is therefore 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 potential of implementing cash waqf in Malaysia. Penerbit Universiti Kebangsaan Malaysia 2013 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/8128/1/7274-18734-1-SM.pdf Shahida Shahimi, and Mohd Umar Mohd Marzuki, and Zaini Embong, (2013) Potential of cash waqf for poverty alleviation in Malaysia: a system dynamics approach. Jurnal Ekonomi Malaysia, 47 (2). pp. 149-163. ISSN 0127-1962 http://ejournals.ukm.my/jem/index
repository_type Digital Repository
institution_category Local University
institution Universiti Kebangasaan Malaysia
building UKM Institutional Repository
collection Online Access
language English
description Poverty 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 is therefore 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 potential of implementing cash waqf in Malaysia.
format Article
author Shahida Shahimi,
Mohd Umar Mohd Marzuki,
Zaini Embong,
spellingShingle Shahida Shahimi,
Mohd Umar Mohd Marzuki,
Zaini Embong,
Potential of cash waqf for poverty alleviation in Malaysia: a system dynamics approach
author_facet Shahida Shahimi,
Mohd Umar Mohd Marzuki,
Zaini Embong,
author_sort Shahida Shahimi,
title Potential of cash waqf for poverty alleviation in Malaysia: a system dynamics approach
title_short Potential of cash waqf for poverty alleviation in Malaysia: a system dynamics approach
title_full Potential of cash waqf for poverty alleviation in Malaysia: a system dynamics approach
title_fullStr Potential of cash waqf for poverty alleviation in Malaysia: a system dynamics approach
title_full_unstemmed Potential of cash waqf for poverty alleviation in Malaysia: a system dynamics approach
title_sort potential of cash waqf for poverty alleviation in malaysia: a system dynamics approach
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2013
url http://journalarticle.ukm.my/8128/
http://journalarticle.ukm.my/8128/
http://journalarticle.ukm.my/8128/1/7274-18734-1-SM.pdf
first_indexed 2023-09-18T19:51:34Z
last_indexed 2023-09-18T19:51:34Z
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