SINGAPORE: Wakaf properties, such as those in Kampong Glam, are rented out to tenants at market rates to ensure the income generated reaches their stated beneficiaries, the Islamic Religious Council of Singapore (MUIS) said on Wednesday (Feb 11).

This comes after CNA reported last month that some heritage businesses were being priced out of one of Singapore’s oldest conservation districts. 

A wakaf is a property or asset that has been dedicated by Muslims for religious or charitable purposes, with benefits generated from wakaf assets distributed to beneficiaries by the donor. These beneficiaries may include mosques, madrasahs, needy descendants and charities.

There are 26 shophouses in Kampong Glam that are on wakaf land, according to MUIS.

Under Singapore law, wakafs are managed by trustees or MUIS subsidiary Warees Investments, which performs on its behalf. For trustees, MUIS ensures that they are screened and approved by its council before being appointed.

Trustees must also comply with strict requirements under the Administration of Muslim Law Act (AMLA), including submitting audited financial statements of the wakaf property.

MUIS said it is responsible for ensuring wakaf properties are well managed so they can continue generating income for their intended beneficiaries, as specified in each wakaf deed.

“To do this effectively, trustees ensure their wakaf properties are regularly maintained and rented out at rates you’d expect to pay in the regular property market.”