Coverpage

1. Executive Summary

The COVID-19 pandemic has caused panic around the world with increasing numbers of
infections and deaths. The outbreak was initially said to be temporary in nature and had
dragged on which until the end of August 2020, the World Health Organization (WHO)
recorded a total of 24,257,989 confirmed cases with 827,246 deaths occurring worldwide.
The immediate impact on the level of public health is the most worrying and at the same time
affects the economy and society of a country. This article examines the situation of COVID-
19 that occurred from the beginning of its transmission in the world and Malaysia by using
data and secondary sources. The findings of this article suggest wakaf as an alternative
solution to the COVID-19 issue in Malaysia based on the implementation and success of
previous and recent wakaf. For this task, we have selected the Ministry of Finance in
Malaysia to focused on the solution of the COVID 19 outbreak.

2. Introduction

The global economy in 2020 is projected to be moderate but stable by targeting recovery
strategies and economic stimulus from regional countries in improving the economic levels
of their respective countries and the world. But no one expected the COVID-19 outbreak to
start spreading in Wuhan province, China has been the starting point to a looming and
worrisome global economic problem. The situation worsened when COVID-19 spread
rapidly around the world stepping over countries and continents as early as the first quarter of
2020.

The regional world was shocked by the COVID-19 outbreak which was initially expected to
be only temporary but has continued resulting in a high number of cases of infection and
deaths in most countries. Many industries in each country are directly and indirectly involved
in feeling the pressures and effects or implications of this epidemic. The health industry is
seen as an industry that is directly involved and has an immediate impact, including the high
demand for medicines and health supplies. In addition, there is a contraction and loss of
income to industries such as hospitality, tourism, food, manufacturing, transportation,
manufacturing, education and the most affected is the financial and banking industry as a
result of drastic measures taken by a government to curb the spread of Coronavirus.
The finance and banking industry is an industry that is closely related to the economy
because the action taken by the government is to ensure that the people of a country can
afford to live without neglecting their health. Thus, the role of the economy in shaping the
harmony of the people is very large and significant so that there is no pressing pressure from
a financial and non -financial point of view that can cause harm to the people and the country
as a whole. The government is one of the main movers in determining strategies and
mechanisms to minimize the risks and impact of COVID-19 on society.

However, from the Islamic perspective, waqf is seen as very relevant and appropriate to be
highlighted as an alternative mechanism in helping this COVID-19 problem. The history of
the time of the Prophet Muhammad SAW has proven that waqf prospered the community and
improved the economy not only of the Muslim population but also non -Muslims at that time.
The potential of waqf grew rapidly later in the time of the Prophet's companions and other
Islamic empires. The Ottoman Empire in Turkey became the best example of success and
many apply waqf in the administration of its country to this day.

3. Research Problems

Covid 19 in Malaysia

Based on a previous study by Elengoe (2012), the first case of COVID-19 in Malaysia was
detected on 25 January 2020 involving three Chinese nationals where the person under
investigation (PUI) had a history of close contact with an infected person in Singapore.
Meanwhile, the first Malaysian confirmed to be infected with COVID-19 was on February 4,
2020, a 41-year-old man who had symptoms of fever and cough since returning from
Singapore. The Malaysian Government in collaboration with the Ministry of Health Malaysia
(MOH) has taken a good approach and swift measures to curb the spread of the epidemic by
introducing three important strategies namely prevention, containment and control (Rohman,
2020). Based on information from the MOH infographic site in the early stages of
transmission, which is around a quarter from January to March 2020, Malaysia has recorded
a total of 2,858 cases of infection with Selangor.

As the state with the highest number of cases of 718 cases followed by Kuala Lumpur with
446 cases and then Johor and Sabah which recorded 361 and 208 cases respectively. Other
states were under 200 cases of infection with no state or province not recording a COVID-19
case. As of mid -August this year, Malaysia has recorded a total of 9,306 cases of infection.

However, until the end of August, Malaysia was still far below other countries in the world in
the number of COVID-19 cases. In fact, the latest data, compared to ASEAN countries,
Malaysia is behind Singapore which has a much smaller population but has six times more
cases than Malaysia which is 56,666 cases (MOH, 2020). Based on MOH data, the low
mortality rate of 1.34 percent and the high patient recovery rate of 97.03 percent show that
Malaysia is able to curb the spread of COVID-19 from becoming more severe in its own
country.

Implications of Covid 19 to Malaysia

Until now the whole world is not only still struggling to deal with COVID-19 but is seriously
drafting, mobilizing and controlling the direct and indirect effects that are squeezing their
respective countries. In Malaysia to curb Coronavirus, the implementation of the Movement
Control Order (PKP) was announced by the previous Prime Minister, Tan Sri Muhyiddin
Yassin and came into effect on 18 March 2020 for two weeks until the end of March and
then continued to the next phases until the Tightened Movement Control Order (PKPD),
Conditional Movement Control Order (PKPB) and the latest is the Rehabilitation
Movement Control Order (PKPP) until 31 December 2020.

If we look at the timeline of this pandemic, it certainly affects many things, especially to the
society that needs to accept and adapt to the new norms in their lives. On economic issues, a
Short Term Recovery Plan was formulated by the government under the Ministry of Finance
to conduct remedial action and control the effects of COVID-19 with support from the
sectors involved such as tourism, social entrepreneurs, creative industries, trade associations,
technology and e-commerce. , education, housing, manufacturing, human resources, private
medicine, agriculture and plantation as well as not missing out on assistance from
professional services and non -governmental organizations (NGOs) (Zainuddin, 2020).

The tourism, hotel and aviation sectors, for example, are the most severely affected as a
result of restrictions on the entry of tourists from abroad due to movement control orders that
have been implemented at the entrances of every country, including Malaysia. Even more
impressive are the entrepreneur’s inside these sectors that take measures to reduce wages,
grant leave and retrenchment of employees as well as closure of operations. These layoffs
and business closures were the worst effects that also occurred in other sectors such as the
small and medium enterprise (SME), food, services and private sectors. As reported by
Zainuddin (2020) in his report based on a study by Nielson, during the PKP period more than
40 percent of respondents from the working class experienced a reduction in income.
According to him, the report of the Department of Statistics stated that the main challenge
faced by traders is paying employees' salaries of 77 percent, followed by a shortage of
customers of 66 percent, then the problem of paying rent for premises of 61 percent and
finally the problem of cash flow of 36 percent.

From the economic point of view, the government through the Ministry of Finance quickly
implemented several policies such as the Implementation of the People's Caring Economic
Stimulus Package (PRIHATIN) and the National Economic Generation Plan
(PENJANA) which has now entered its 19th implementation since the pandemic began.
PRIHATIN, for example, was formed with three goals, namely to protect the people, provide
business support and strengthen the economy. For example, through the first goal of
protecting the people, a total of 4.18 million recipients received benefits of RM2.7 billion.

While the second goal of providing business support is to include SOCSO's wage subsidy
program of RM8.9 billion which has been channeled to 2.61 million workers, soft loan fund
to 22,322 small and medium enterprises (SMEs) of RM10.2 billion and moratorium on loan
repayment of financial institutions. amounting to RM78.14 billion to both businesses and the
people. The third goal is an allocation of RM1 billion for the COVID-19 outbreak control
program.

4. Conclusion

COVID-19 clearly affects social growth and stifles the economy in addition to greatly
affecting the level of public health. Even this Coronavirus has made a pandemic that every
day there is an increase in the number of cases and deaths.
Every country in the world strives to improve the quality of health in line with the increase in
cured cases and the decrease in infection cases. Expenditure for every planning plan made by
the government or non-governmental organizations (NGOs) in curbing the epidemic and

helping the community will definitely require a large allocation. The public cannot continue
to expect assistance from banking institutions with high credit limitations and interest rates.

Government allocations and assistance are also not permanent and depend on the value of
national savings. Therefore, wakaf is very appropriate to be an alternative platform to be
highlighted, especially in the face of this COVID-19 pandemic. Hundreds of years of history
have proven that it is able to close the poverty gap, be a catalyst for the Islamic economy and
sustain and prosper the community and country regardless of race and religion because its
benefits benefit the entire ummah.

Waqf has great potential to be adopted or implemented in Malaysia because as a country with
a majority of Muslims, we should educate the new generation and non -Muslims about the
goals and benefits of waqf. Researchers, academics and religion as well as the government
need to sit at the same table to make waqf a major national agenda in strengthening
Malaysia's financial and economic structure.

5. References

Elengoe, A. 2020. COVID-19 Outbreak in Malaysia. Osong Public Health and Research
Perspectives. 11(3) 93–100. Selangor: Lincoln University College.

Rohman, M. A. P. 2020. COVID-19: Langkah Kerajaan Tangani Jangkitan Tepat, Betul -

PPC.https://www.bharian.com.my/berita/nasional/2020/04/675183/covid-19- langkah-
kerajaan-tangani-jangkitan-tepat-betul-ppc (diakses pada 30 Ogos 2020.

World Health Organization (WHO). 2020a. Novel Coronavirus (2019-nCoV) Situation

Report-1. https://www.who.int/docs/default-source/coronaviruse/ situation-reports/ (diakses
pada 28 Ogos 2020).

World Health Organization (WHO). 2020b. WHO Coronavirus Disease (COVID-19)

Dashboard. https://covid19.who.int/ (diakses pada 28 Ogos 2020).
Zainuddin, M. Z. 2020. COVID-19: Kerajaan Analisis Kesan ke atas Sektor Terjejas.
https://www.bharian.com.my/berita/nasional/2020/06/695534/covid-19-kerajaananalisis-
kesan-ke-atas-sektor-terjejas (diakses pada 29 Ogos 2020).