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."
MUIS said on Wednesday that whoever manages a wakaf property has a legal responsibility to act in the best interest of its beneficiaries.
"If the rental rates were set substantially below market norms, the trustees could be accused of failing to perform their fiduciary role and short-changing the beneficiaries of the charitable income intended for them by the wakaf deed," it added.
"By keeping rents at market levels, MUIS and trustees ensure these religious endowments can continue supporting their intended causes sustainably and according to the specific terms set out in each wakaf's deed."
Following CNA’s report last month, the Urban Redevelopment Authority (URA) said median rents in Kampong Glam rose by about 2 per cent a year in the past two years, comparable with rental growth for conventional retail space in the central area.
Addressing questions in parliament, Senior Parliamentary Secretary for National Development Syed Harun Alhabsyi said last week that the closure of Kampong Glam’s iconic 78-year-old nasi padang store Warong Nasi Pariaman was not due to rental issues.
However, he added that a "small proportion" of leases signed between 2023 and 2025 saw high increases of 25 per cent of higher, including leases in streets with high footfall.
Designated a conservation area in 1989, Kampong Glam is a historical centre for Singapore’s Malay-Muslim community and encompasses a network of streets with distinct identities.
Arab Street is home to traditional textile and carpet shops, while nearby Haji Lane has evolved over the years into a cluster of food-and-beverage outlets, lifestyle brands and creative retail concepts.
Some tenants told CNA that rents in the area had surged from about S$3,000 (US$2,375) to nearly S$10,000 over the past few years.
Honeybee, an ice cream shop that opened along Haji Lane in 2022, once made up to S$1,000 a day on weekdays, but by mid-2025 its daily takings had fallen by half while rent had nearly doubled.
Honeybee shut its doors after its lease expired in December.
Observers told CNA aggressive subletting practices have also exacerbated the surge in prices, with larger brands and tourist-oriented businesses with deeper pockets swooping in.
MUIS said it understands that businesses might face difficulties meeting rent payments due to manpower shortages, rising costs, intence competition and other challenges, adding that it engages tenants through its Warees subsidiary to understand their financial situation and explore repayment plans.
"Despite these flexible arrangements and support measures, we acknowledge that some businesses may still be unable to continue operations due to broader market conditions and business viability challenges beyond rental considerations alone," said MUIS, adding that mutually agreed termination of leases or legal proceedings are only pursued as a last resort.
"This approach balances MUIS's responsibility to ensure wakaf properties generate sustainable income for beneficiaries with compassionate tenant management."
For wakaf properties in heritage districts like Kampong Glam, MUIS and Warees work with relevant agencies to ensure that they are carefully maintained, restored and revitalised to sustain their heritage value, and that tenants of wakaf properties are in line with the identity of the district.
Heritage businesses housed in wakaf properties in the historic districts may also benefit from support offered by the National Heritage Board, the council added.
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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."
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MUIS said on Wednesday that whoever manages a wakaf property has a legal responsibility to act in the best interest of its beneficiaries.
"If the rental rates were set substantially below market norms, the trustees could be accused of failing to perform their fiduciary role and short-changing the beneficiaries of the charitable income intended for them by the wakaf deed," it added.
"By keeping rents at market levels, MUIS and trustees ensure these religious endowments can continue supporting their intended causes sustainably and according to the specific terms set out in each wakaf's deed."
Following CNA’s report last month, the Urban Redevelopment Authority (URA) said median rents in Kampong Glam rose by about 2 per cent a year in the past two years, comparable with rental growth for conventional retail space in the central area.
Addressing questions in parliament, Senior Parliamentary Secretary for National Development Syed Harun Alhabsyi said last week that the closure of Kampong Glam’s iconic 78-year-old nasi padang store Warong Nasi Pariaman was not due to rental issues.
However, he added that a "small proportion" of leases signed between 2023 and 2025 saw high increases of 25 per cent of higher, including leases in streets with high footfall.
KAMPONG GLAM
Designated a conservation area in 1989, Kampong Glam is a historical centre for Singapore’s Malay-Muslim community and encompasses a network of streets with distinct identities.
Arab Street is home to traditional textile and carpet shops, while nearby Haji Lane has evolved over the years into a cluster of food-and-beverage outlets, lifestyle brands and creative retail concepts.
Some tenants told CNA that rents in the area had surged from about S$3,000 (US$2,375) to nearly S$10,000 over the past few years.
Honeybee, an ice cream shop that opened along Haji Lane in 2022, once made up to S$1,000 a day on weekdays, but by mid-2025 its daily takings had fallen by half while rent had nearly doubled.
Honeybee shut its doors after its lease expired in December.
Observers told CNA aggressive subletting practices have also exacerbated the surge in prices, with larger brands and tourist-oriented businesses with deeper pockets swooping in.
RENT PRESSURES
MUIS said it understands that businesses might face difficulties meeting rent payments due to manpower shortages, rising costs, intence competition and other challenges, adding that it engages tenants through its Warees subsidiary to understand their financial situation and explore repayment plans.
"Despite these flexible arrangements and support measures, we acknowledge that some businesses may still be unable to continue operations due to broader market conditions and business viability challenges beyond rental considerations alone," said MUIS, adding that mutually agreed termination of leases or legal proceedings are only pursued as a last resort.
"This approach balances MUIS's responsibility to ensure wakaf properties generate sustainable income for beneficiaries with compassionate tenant management."
For wakaf properties in heritage districts like Kampong Glam, MUIS and Warees work with relevant agencies to ensure that they are carefully maintained, restored and revitalised to sustain their heritage value, and that tenants of wakaf properties are in line with the identity of the district.
Heritage businesses housed in wakaf properties in the historic districts may also benefit from support offered by the National Heritage Board, the council added.
Continue reading...