Waqf- Takaful Death Compensation & Sustainable Development Goals (SDGs): A Preliminary Review

Abstract

The Sustainable Development Goals (SDGs) consist of 17 goals put forward by the United Nations (UN) to be achieved in 2030 as a global development and human welfare agenda. In implementing an integrated and balanced social, economic, and environmental agenda, waqf and takaful which are among Islamic social financial mechanisms are seen as relevant and have the potential to help in achieving the 17 SDGs goals in Malaysia. Meanwhile, recently, some takaful operating companies in Malaysia have started practicing the waqf activity of death compensation through takaful product. However, the implementation standards of the concept of death compensation in the form of waqf are seen to be inconsistent, lack of Maqasid Shariah element and have flaws in waqf management. One of the factors in this scenario is because the waqf contributions developed by each takaful operating company to religious institutions are different from each other. Therefore, this study was conducted to explore the potential application of SDGs in waqf-takaful death compensation product in Malaysia. This study adopts a qualitative design via literature reviews and semi-structured interviews utilizing several informants of takaful operating companies. The research data was analyzed using the content analysis method. The results of the study concluded that death compensation waqf product offered through takaful operating companies need to be aligned with the SDGs as it has the potential to help Malaysia in achieving the 17 goals of the SDGs. In addition, the sustainability of waqf benefits through waqf-takaful death compensation can also make a positive contribution to the socio-economic development of Malaysia. As an implication, this study urges takaful operating companies in Malaysia to include SDGs as one of the main agendas in order to refine waqf-takaful death compensation product offered in the existing market.