KUALA LUMPUR, Aug 3 (Bernama) -- RHB Islamic Bank Bhd is partnering Tabung Baitulmal Sarawak (TBS) to drive Waqf (Islamic endowment) funds as part of the bank's MyWakaf initiative.

RHB Islamic Managing Director Datuk Adissadikin Ali said under the collaboration, the bank would act as the lead bank for Sarawak Waqf and take on the role of a collection agent and a joint manager.

"TBS will open and maintain a collection account with RHB Islamic and manage the Waqf fund together via a joint management committee (JMC)," he said in a statement.

The fund would collaborate with six other Islamic banking institutions to make banking services easier for contributors to channel cash endowments for the development of Waqf projects.

Adissadikin also said the initiative was in support of Bank Negara Malaysia's strategic programme which would bring together members of the Association of Islamic Banking Institutions Malaysia (AIBIM) on a collective basis with state Islamic religious councils (SIRCs) to establish, collect, manage and invest in Waqf-based funds.

"The main aim of this Waqf strategic collaboration is to promote financial inclusion by maximising the value of Waqf and to provide channels to collect and manage the funds efficiently in the country," he said.

Adissadikin, who is also the president of AIBIM, added that the bank's role was to promote and encourage contributions towards Waqf funds among the public and private sectors, via collection points.

"These funds will then be channelled to support viable projects in education, health, economic empowerment and investment, approved by the committee comprising representatives from participating banks and SIRCs," he said.

Waqf is a voluntary, permanent, irrevocable dedication of a portion of one's wealth, be it in cash or kind, that will be assigned to deserving causes within the community.

Open to Muslims and non-Muslims, Waqf is an Islamic charitable endowment, a recurring charity where the benefits of the charitable act flows to the needy, repeatedly.

--BERNAMA