Abstract:

This paper aims to present a conceptual model on the efficiency of waqf that are responsible in collecting, managing and distributing waqf in Malaysia. Waqf is an Islamic religious collected on the rich and wellto- do members of the community for distribution to the poor and the needy as well as other beneficiaries based on certain established criteria according to the Qur’an. The main aim of waqf is to protect the socio-economic welfare of the poor and the needy.The paper reviews and synthesises the relevant literature on waqf as tool of economy growth for Muslim and its efficiency. The paper then developed and proposed a conceptual model to study the efficiency waqf institutions.The paper identifies the appropriate methods to evaluate efficiency waqf institutions. Such evaluations are crucial for the Islamic financial system to function effectively in order to achieve the noble objectives of socioeconomic justice through proper distribution of wealth.This paper presents a conceptual model of efficiency of waqf institutions which would be useful for further empirical research in this area. The findings are not only relevant and applicable to Malaysia but also to other Muslim countries.