FINANCIAL PROBLEMS OF BOTTOM 40 PERCENT BUMIPUTERA IN MALAYSIA: A POSSIBLE SOLUTION THROUGH WAQF-BASED CROWDFUNDING

Low savings by the bottom 40 percent Bumiputera triggered low wealth accumulation and greater wealth inequality. The issue behind the low savings is the increase in food prices, taxes, and interest rates for the borrowers. In response to these problems, the Malaysian government provides cash transfer BRIM as one of redistributive measures. However, it is still not enough as many of the bottom 40 percent are neglected to avail the facility. In such circumstances, the role of community-based cash and credit transfer schemes such as cash waqf can be more fruitful. However due to inefficiency of the awqaf institutions regarding financial management, the system cannot contribute effectively. Therefore, the main aim of the paper is to provide an efficient mechanism which can ensure effectiveness in terms of transparency, collection and distribution of cash endowments and its benefits. Hence, by means of library research, we have proposed a conceptual framework. It is suggested that collection and distribution of cash waqf through crowdfunding platform would solve both transparency, collection and distribution issues. This study would provide a ground for those researchers and practitioners who are working on finding the right approach to implement waqf in more efficient way. Keywords: Wealth Inequality, Cash transfers, Waqf, Crowdfunding, Poverty