Integrating Productive Waqf And MSMEs: Inclusive Strategies for Achieving SDG-Oriented Economic Development in Indonesia and Malaysia"

This study aims to examine the integration of productive waqf with the Micro, Small, and Medium Enterprises (MSMEs) sector as an inclusive strategy to promote sustainable economic development in Indonesia and Malaysia. Using a descriptive qualitative approach, the research relies on secondary data through literature review and analysis of several MSME empowerment programs based on waqf in both countries. The findings reveal that the utilization of productive waqf schemes—such as cash waqf, asset-based waqf, and waqf-based sukuk—significantly contributes to expanding access to financing for MSMEs, enhancing entrepreneurial capacity, and strengthening market connectivity. Case studies such as the Microfinance Waqf Program by Dompet Dhuafa in Indonesia and the waqf-based Halal Hub initiative in Malaysia demonstrate how such integration can improve business resilience, increase financial inclusion, and reduce poverty levels. The study emphasizes that collaboration among waqf institutions, government bodies, and MSME actors is essential to build an inclusive and sustainable economic ecosystem aligned with the Sustainable Development Goals (SDGs). Furthermore, regulatory reform, professional governance, and the adoption of Sharia-based digital technology are identified as crucial supporting factors for the success of waqf-MSME integration in the modern era.