AN ANALYSIS OF THE EFFICIENCY AND PRODUCTIVITY OF WAQF FUND MANAGEMENT IN INDONESIA AND MALAYSIA IN SUPPORTING ISLAMIC SOCIAL FINANCE TO ADDRESS GLOBAL HUMANITARIAN CHALLENGES: A DEA AND MPI APPROACH

Abstract

This study aims to evaluate the efficiency and productivity of waqf fund management in Indonesia and Malaysia, with a view to understanding the differences in the level of efficiency and productivity in supporting optimal social contribution in both countries. The study was conducted using the annual reports of waqf management institutions over the period 2018-2022. The Data Envelopment Analysis (DEA) and Malmquist Productivity Index (MPI) approaches were employed, with the results processed using DEAP 2.1 software. The findings indicate that the efficiency and productivity of waqf fund management in both countries exhibited fluctuations throughout the analysis period. During this period, the Total Factor Productivity Change (TFPCH) score increased, primarily driven by the technological aspect (TECHCH) as the primary factor of productivity, while technical efficiency (EFFCH) made a relatively minor contribution. Overall, MAIS, a Malaysian institution, is the most efficient and productive waqf manager.