Kuala lumpur: Billions of ringgit worth of underutilised waqf land in Malaysia could be tapped for affordable housing if a clear legal framework is established to facilitate long-term development without transferring ownership of the land, according to real estate practitioner Datuk Idzham Mohd Hashim. He stated that amendments to the National Land Code could create a standardised framework for long-term registered leases on waqf land, allowing State Islamic Religious Councils (MAIN) to retain ownership indefinitely.
According to BERNAMA News Agency, Idzham, who is also the president and chief executive officer of Iskandar Investment Bhd (IIB), suggested that a clear framework would provide legal certainty for developers, homebuyers, and financial institutions involved in waqf development. He noted that the ownership of the land should remain with MAIN in perpetuity, as required by Islamic endowment law.
He highlighted Malaysia's possession of an estimated 30,000 hectares of waqf land, valued at RM4 billion based on 2015 figures. Data from the Department of Awqaf, Zakat and Hajj (JAWHAR) indicated that 3,018 of 18,402 registered waqf lots were underutilised as of July 2023, with undeveloped land estimates reaching up to 87 percent of the total.
Idzham underscored the significance of this issue amid growing housing affordability challenges, noting that land acquisition is a major cost in property development. He identified the absence of a clear mechanism separating perpetual land ownership from economic development rights as the main obstacle.
Under the proposed framework, MAIN would retain land ownership, while developers could execute projects through long-term registered leases without alienating the waqf asset. For Waqf Am, dedicated to general charitable purposes, this model could support affordable housing by eliminating the need for developers to acquire land at market prices, allowing housing prices to reflect construction and development costs. MAIN could generate long-term income from lease premiums for community and social programmes.
For Waqf Khas, dedicated to specific religious, charitable, or community purposes, mixed-use developments could generate income to support facilities like mosques and schools. Idzham noted that similar long-term lease structures already operate in parts of Malaysia, such as Johor, where registered leasehold interests are granted to end-buyers while ownership remains with the master landowner.
He referenced a Court of Appeal decision in June 2025 affirming the validity of such arrangements under existing Malaysian land and strata laws, indicating a legal foundation adaptable for waqf development. Idzham emphasized that a nationally standardised waqf lease framework could unlock the economic and social value of idle land while preserving its perpetual status, leveraging Malaysia's existing land, demand, and legal precedent for possible development.