<Special Feature"Socio-Economic Role of Islamic Finance and its Potential in the Post-Capitalist Era">Economic Significance of Mosque Institution in Perak State, Malaysia

Abstract

This study explores the performance of mosque fund in Malaysia. Examining the structure of financial fund of a mosque is essential in promoting better socioeconomic development, as well as contributing to new knowledge pertaining to the Islamic finance principles. As the funding comes from the contribution or donation from various parties, the mosque institution is believed to be able to carry out this responsibility and trust. This study was conducted using 137 mosques which involved 1500 respondents in the districts of Batang Padang, Kinta and Hilir Perak, Perak State, Malaysia. The results show that the mosque institution has relatively good financial funds in terms of cash savings and also owned assets. Cash savings in the banks, from the year 2009 to 2011 amounted to RM 3, 783, 680 million. The results also show that nearly 75 percent of the respondents agreed that the fund of the mosque should be spent on activities that can increase the income of the mosque as this gives a positive impact to the society. In empowering the mosque fund, the public felt that the establishment of a mosque's co-operative is an excellent method of stimulating the economic activities. However, several issues relating to the management and administration of the mosque need to be addressed urgently in order to empower the mosque fund. Thus, the role of the mosque as a centre of unification and glory of Islamic society in various aspects of life can be achieved.