Analyzing Social Viability of the Commercial Real Estate Waqf in Malaysia

Abstract

The housing crisis in Malaysia, characterized by prohibitive costs and supply-demand disequilibrium, necessitates innovative and context-specific solutions. Commercial real estate waqf, an Islamic endowment model, has emerged as a potentially efficacious remedy to address the country's intractable housing challenges. This study investigates factors influencing the societal embrace of commercial property waqf in Selangor, using robust quantitative techniques. A sufficiently powered sample size was determined through statistical power analyses to enhance generalizability. Using PLS-SEM modeling, the impact of four determinants was assessed: community understanding and acceptance; religious beliefs and cultural norms; trust in management; and socioeconomic status. Our findings reveal community understanding and religious/cultural factors significantly increase receptiveness to commercial waqf, aligning with research on attitudinal drivers. Effective governance through managerial trust and transparency also plays a pivotal role in engendering community confidence. However, counterintuitively, socioeconomic status does not significantly influence waqf embrace, suggesting potential mainstream appeal across diverse strata. While valuable, this study acknowledges contextual limitations as findings are confined to Selangor. Further nationwide research could enrich generalizability. Overall, this timely investigation underscores Waqf's promise in addressing housing needs, while emphasizing sociocultural and governance elements essential for successful implementation. Mainstreaming commercial waqf necessitates nuanced, community-centric solutions addressing contextual specificities.