Title the role of cash waqf in the development of islamic institutions in Japan: Prospect and challenges

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Thesis Submitted to Islamic Business School (IBS), Universiti Utara Malaysia,

in Fulfillment of the Requirement for the Master Degree




In presenting this dissertation/project paper in partial fulfillment of the requirements for a Master’s Degree from the Universiti Utara Malaysia (UUM), I agree that the Library of this university may make it freely available for inspection. I further agree that permission for copying this dissertation/project paper in any manner, in whole or in part, for scholarly purposes may be granted by my supervisor(s) or in their absence, by the Director of Postgraduate Studies Unit, College of Business where I did my dissertation/project paper. It is understood that any copying or publication or use of this dissertation/project paper parts of it for financial gain shall not be allowed without my written permission. It is also understood that due recognition shall be given to me and to the UUM in any scholarly use which may be made of any material in my dissertation/project paper.

Request for permission to copy or to make other use of materials in this dissertation/project paper in whole or in part should be addressed to:

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06010 UUM Sintok Kedah Darul Aman



A cash Waqf that is effectively run, organized, and efficient will have a big impact on the community, significantly on socioeconomics and the development of Islamic institutions locally. Cash Waqf seems to be one of the most suitable methods for endowment in perpetuity in the current environment because of its liquid nature. This is arguable because cash is free to endow, easy to manage, more practical to distribute its benefits among the wider sections of beneficiaries, and easy to utilize beneficiaries day-to-day. While in Malaysia we find that cash Waqf instruments are flourishing, we should also pay attention to Muslim minority countries like Japan. Muslims in Japan is in dire need of convenient and optimally functioning Islamic institutions to help them navigate their daily lives as practicing Muslims. To support and fulfill this crucial need, Islamic Institutions in Japan are seen to need stable and sustainable funding for their ongoing development. To benefit the Muslim minority in Japan, this research was conducted with the aim of focusing on the role of cash Waqf in the development of Islamic institutions in Japan, and the prospects and challenges that entails. The research utilized qualitative methods, which included library searches and in-depth face-to-face interviews. By conducting semi-structured interviews with informants, this research employed non- probability sampling, specifically purposive sampling. To scrutinize the data, this study used thematical analysis. Besides being able to understand the difficulties faced by Muslims in Japan, the findings of this research indicate how Islamic institutions there can support Muslims in dealing with the difficulties. This research also exposes how cash Waqf can serve for the development of Islamic institutions there and what prospects and challenges there are to the implementation of cash Waqf in Japan. The results of this study are expected to help increase the utilization of cash Waqf funding for the socio-economic goals of the Ummah.

Keywords: Cash Waqf, Muslim in Japan, Islamic institutions, social economy



Wakaf tunai yang dilaksana dengan berkesan, tersusun dan cekap akan memberi impak yang besar kepada masyarakat, secara signifikannya kepada sosioekonomi dan pembangunan institusi Islam tempatan. Wakaf tunai merupakan salah satu kaedah yang paling sesuai dipraktis dalam era kontemporari kerana sifatnya yang cair. Ini kerana wang tunai adalah mudah untuk diberi, mudah diurus, lebih praktikal untuk diagihkan manfaatnya, dan mudah kepada penerima menggunakan untuk keperluan setiap hari. Walaupun di Malaysia kita dapati instrumen Wakaf Tunai sedang berkembang dengan baik, kita juga harus memberi perhatian kepada negara minoriti Islam seperti Jepun. Umat Islam di Jepun amat memerlukan institusi Islam yang selesa dan berfungsi secara optimum untuk membantu mereka mengemudi kehidupan seharian mereka beribadah sebagai seorang Muslim. Untuk menyokong dan memenuhi keperluan penting ini, Institusi Islam di Jepun dilihat memerlukan pembiayaan yang stabil dan mampan untuk pembangunan yang berterusan. Bagi memberi manfaat kepada minoriti Islam di Jepun, kajian ini dijalankan dengan tujuan memfokuskan kepada peranan Wakaf Tunai dalam pembangunan institusi Islam di Jepun, juga mengenai prospek serta cabaran yang datang bersamanya. Penyelidikan menggunakan kaedah kualitatif, termasuk carian literatur dan temu bual bersemuka. Dengan menjalankan temu bual separa berstruktur dengan informan, penyelidikan ini menggunakan persampelan bukan kebarangkalian, khususnya persampelan bertujuan. Untuk meneliti data, kajian ini menggunakan analisis tematik. Selain dapat memahami kesukaran yang dihadapi oleh umat Islam di Jepun, dapatan kajian ini menunjukkan bagaimana institusi Islam di sana dapat menyokong umat Islam dalam menangani kesulitan tersebut. Penyelidikan ini juga mendedahkan bagaimana Wakaf Tunai boleh berfungsi untuk pembangunan institusi Islam di sana dan apakah prospek dan cabaran yang ada terhadap pelaksanaan Wakaf Tunai di Jepun. Hasil kajian ini diharapkan dapat membantu meningkatkan penggunaan pembiayaan Wakaf Tunai untuk matlamat sosio- ekonomi Ummah.




Alhamdulillah, I praised Allah S.W.T for His Blessings. Finally, I successfully completed this Project Paper after all the hardships I have been through in completing this work.

However, I received a lot of support from my lecturer, family, and friends. First and foremost, I would like to convey my heartfelt appreciation to my supervisor Dr. Amirul Faiz Bin Osman, for the continuous support of my Master's Degree study and research and for his patience, motivation, enthusiasm, and immense knowledge. His advice was invaluable during the research and writing of this project paper. I am grateful to Dr. Amirul for enlightening me at first glance about research. I could not have imagined having a better supervisor for my Master's Degree study. Besides my supervisor, I thank my fellow friends for the endless support and for facing the hardships of our final semester journey together.

Taking the opportunity here to thank my family, especially my beloved husband, Abdul Aziz Bin Rosli, for your understanding, caring, and endless support. Also, for my parents, Roslan Bin Ahmad and Salamiah Binti Mohd Nor, thank you for the financial and emotional support, and thank you a lot for raising me well in the first place. Last but not least, all my siblings for supporting me spiritually throughout my life. I am very grateful for all the help, support, and prayer for completing this Project Paper.





ABSTRACT ... iii

ABSTRAK ... iv







1.1 Introduction ... 1

1.2 Background of the Study ... 1

1.3 Problem Statement ... 3

1.4 Research Question ... 4

1.5 Research Objective ... 5

1.6 Scope of the Study ... 5

1.7 Definition of Key Terms ... 7

1.8 Conclusion ... 7


2.1 Introduction ... 8

2.2 Definition and Historical Background of Waqf ... 8

2.3 The Types and Concept of Waqf ... 10

2.4 Cash Waqf Instrument: Legality and Potential ... 12

2.5 Cash Waqf’s Prospect in Japan ... 14

2.6 Muslims in Japan ... 15

2.7 Challenges faced by Muslims in Japan ... 16

2.8 Development of Islamic Institutions in Japan ... 18

2.9 Conclusion ... 19


3.1 Introduction ... 21

3.2 Research Design & Research Method ... 21

3.3 Sampling Group and Informants ... 22

3.4 Data Collection & Procedures ... 24

3.5 Data Analysis ... 26



3.6 . Research Ethics ... 27

3.7 Conclusion ... 28


4.1 Introduction ... 30

4.2 Profile of the Interviewees ... 30

4.3 Finding 1: The Difficulties Faced by Muslims ... 32

4.3.1 Practicing Worship as a Muslim ... 33

4.3.2 Getting Halal Food ... 33

4.3.3 Educating Islam for Muslims ... 34

4.3.4 The Mind-Set of non-Muslims ... 35

4.3.5 Community Support ... 36

4.4 Finding 2: The Urgency of Islamic Institutions in Japan to Support Muslims’ Difficulties ... 37

4.4.1 Islamic Institutions to Support Muslims Practicing Worship ... 38

4.4.2 Islamic Institutions to Support Muslims Getting Halal Food ... 38

4.4.3 Islamic Institutions to Support Educating Islam for Muslims ... 39

4.4.4 Islamic Institutions to Support Encountering the Mind-Set of non-Muslims ... 39

4.4.5 Islamic Institutions to Support Muslims Community ... 41

4.5 Finding 3: Cash Waqf’s Potential in Developing Islamic Institutions in Japan ... 42

4.5.1 Establishing Building Construction ... 43

4.5.2 Bearing Maintenance Costs ... 44

4.5.3 Manpower Payment ... 45

4.5.4 Sponsoring Program / Events ... 46

4.5.5 Giving Scholarships to Students ... 46

4.6 Finding 4: Cash Waqf’s Challenges in Developing Islamic Institutions in Japan ... 47

4.6.1 Japanese Culture ... 48

4.6.2 Rules and Law in Japan ... 49

4.6.3 Muslims in Japan ... 50

4.7 Discussions ... 52


5.1 Conclusion ... 56

5.2 Limitations & Recommendations for Further Research ... 57


Appendix A: Consent Form ... 68

Appendix B : Demographic Form ... 70



Appendix C: Semi-structured Interview Questions ... 71




Table 4.1: Informants Background Profile………28




Figure 1.1: Map of the location of informants and interview conducted: Japan Honshu (Tokyo, Osaka, and Nagoya) Prefecture……….………...6 Figure 4.1: Mapping the research findings on the difficulties faced as a minority in Japan

from the informant’s perspectives ………...29 Figure 4.2: Mapping the research findings on the urgency of Islamic institutions from the informant’s perspective. ………...34 Figure 4.3: Mapping the research findings on the response of informants regarding their

knowledge about Cash Waqf………39 Figure 4.4: Mapping the research finding of the potential of Cash Waqf in the development of Islamic Institutions from the perspectives of informants as Muslims in Japan

………40 Figure 4.5: Mapping the research finding of the challenge for Cash Waqf in the

development of Islamic Institutions from the perspectives of informants as Muslims in Japan ………45 Figure 4.6: Proposed solution model for the role of Cash Waqf in the development of

Islamic institutions in Japan………50




NGO - Non-Government Organization

I1 - Informant 1

I2 - Informant 2

I3 - Informant 3

I4 - Informant 4

I5 - Informant 5

I6 - Informant 6


CHAPTER 1 : INTRODUCTION 1.1 Introduction

The history thesis has been briefly defined in this chapter to clarify the overall notion of the research. To direct the researcher throughout the study, other essential sections consisting of the background of the study, problem statement, research questions, and research objectives have been taken from this research. In addition, this chapter further discusses the scope of the study and the definition of key terms in the field of this research.

1.2 Background of the Study

Cash Waqf, as derived from the definition of M. Kahf (2021), refers to retaining and safeguarding money for the specific benefit of one or more philanthropic endeavours, and only using the money for such missions. Cash Waqf is contributing a specified amount of money from one's possessions, endowing the amount, and then dedicating it to those who are entitled to the benefits of the Waqf's returns or distributing it for social development. The cash Waqf fund manager will gather funds from cash Waqf subscribers and invest them in the productive economy or Shariah-based investment opportunities (Khademolhoseini, 2013).

Nowadays, in Muslim majority nations, where Shariah law has been strictly enforced, charities like zakat and Waqf are managed through government agencies. In the meantime, referring to Z. Kamarudin, S.Z.S. Abdul Kader (2016), Muslim communities in non-Muslim nations have set up their Waqf following the country's laws, such as those governing Trusts,




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Appendix A: Consent Form Dear Participants,

You are invited to participate in a project paper research case study conducted by me, Mukminah Aqilah binti Roslan, a Master student from Universiti Utara Malaysia (UUM).

I thank you for agreeing to participate in my research entitled The Role of Cash Waqf in Development of Islamic Institutions in Japan: Prospects and Challenges. This research purpose is to understand the Cash Waqf roles in developing Islamic Institutions in Japan. I would glad to ask for your consent formally as specifically in terms of the data use, as recommended by ethical guidelines to conduct research. All data and information collected for this research will be anonymous and used solely for this research. I would be grateful if you could tick “√” and sign the content clauses below:

I consent to the recordings and related document being analysed for research purposes and understand that as far as possible anonymity will be preserved if extracts are included for publication and reports.

I consent to be interviewed and recorded and give permission to use the input as research data.

I consent that all the input provided is initiated by my own self and without force.

I consent that I can withdraw from the study at any time I want.

Signature: __________________________

Date: __________________________



Appendix A: 同意書


この度、マレーシアのウタラ大学(UUM)の修士課程に在籍する私、Mukminah Aqilah binti Roslanが














署名: __________________________


: __________________________



Appendix B : Demographic Form

Name: ______________________________________________

Age: _________

Gender: _____________________________________________

Educational Status: ____________________________________

Primary Language: ____________________________________

Location / Area in Japan: _______________________________

Appendix B : デモグラフィック・フォーム

名前: ______________________________________________


: _________


: _____________________________________________


言語: ____________________________________

日本での所在地/地域: _______________________________



Appendix C: Semi-structured Interview Questions Research Objective:

1. To study the demand of Islamic Institutions in Japan.

2. To investigate the potential of cash Waqf instrument to be used as the a tool for developing Islamic Institutions in Japan.

3. To study the issues and challenges faced by Muslim in Japan to establish Islamic Institutions in Japan.

Objective 1: To study the demand of Islamic Institutions in Japan:

• How do you see about the recent muslim population in Japan?

• What do you think about the Muslim’s needs in Japan?

• What do you think about Islamic Institution in Japan? How it can function to Muslim and Non-Muslim in Japan?

• Can you share how it was built, and what inspired the Islamic Institution under your management today?

• How has the Muslim community (near or far) responded to the Islamic institution that has been developed?

• Do you think the Islamic Institution in Japan still not enough, if yes why do you think so?

• Do you agree that there is a very huge demand for Islamic Institutions from Muslim in Japan? Please share your opinion and remark concerning this.



Objective 2: To investigate the potential of cash Waqf instrument to be used as a tool for developing Islamic Institutions in Japan

• Do you know about Waqf (Endowment) system in Islam?

• Do you know about Cash Waqf?

• Do you know the different between Waqf and Sadaqah/ donation in Islam?

• Do you believe that in order to build an Islamic institution, we truly need a lot of assistance, particularly financial help?

• Do you believe that Japanese people in the area or Muslims in Japan will be prepared to bear this financial load in order to observe how successfully an Islamic institution can operate in a particular location?

• Do you believe the Cash Waqf may be a useful instrument to be utilized in the development and stabilization of an Islamic Institution in Japan?

• Do you believe that using the Cash Waqf instrument, Muslims from other nations may assist Muslims in Japan in developing Islamic institutions?

• Do you believe that we may establish Islamic institutions in Japan utilizing Cash Waqf instruments, as well as maintain, develop, pay salaries, and carry out programs on them?


73 Appendix C: Semi-structured インタビュー質問


1. 日本におけるイスラーム施設機関の需要を調査する。

2. 日本におけるイスラーム施設機関の発展のためのツールとして現金ワクフ(寄贈)成長の可


3. 日本におけるイスラーム施設機関の設立に際して、在日ムスリムが直面する問題や課題を調



1: 日本におけるイスラーム施設機関の需要を調査する。



日本におけるイスラーム施設機関についてどう思いますか?日本のムスリムと非ムスリムの ためにどのように機能するのでしょうか。

現在管理しているイスラム機関についてですが、どのように設立され、どのような影響を及 ぼしているか教えてください。

開発されたイスラム機関に対し、ムスリムコミュニティ(近隣または遠方)はどのような反 応を示していますか?




日本のムスリムの間で、イスラーム機関に対する大きな需要があることに同意しますか?こ の点に関して、あなたの意見をお聞かせください。


2: 日本におけるイスラーム施設機関の発展のためのツールとしてキャッシ





日本イスラーム施設機関を建設するためには、本当に多くの援助、特に財政的援助が必要だ と思いますか?

日本におけるイスラーム施設機関がうまく運営されるのを観察するために、現地の日本人や 日本いるムスリムがこの財政的な負担を負う覚悟があると思いますか?

キャッシュワクフ(現金寄贈・寄進)は、日本におけるイスラーム施設機関の発展と安定化 のために有用できると思われますでしょうか。

キャッシュワクフ(現金寄贈・寄進)手段を用いて、他国のムスリムが日本におけるイスラ ーム施設機関を援助する可能性があると思いますか?

キャッシュワクフ(現金寄贈・寄進)を利用して、日本におけるイスラーム施設機関を設立 し、維持、発展、給与、プログラムを実施することができると思いますか?




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