What Is the MBMF (Mosque Building and Mendaki Fund) and Why Does It Matter for Singapore?

What Does MBMF Stand For?

MBMF stands for the Mosque Building and Mendaki Fund. While the acronym might sound like it has something to do with banking or monetary policy, it’s actually a community fund that plays an important role in Singapore’s unique multicultural framework.

The MBMF is a compulsory monthly contribution collected from eligible working Malay/Muslim employees in Singapore. The fund was established to support the building and maintenance of mosques, as well as to finance Mendaki  a self-help group that supports education and social development for the Malay/Muslim community.

So, while it’s not a tax in the traditional sense, the MBMF is a statutory contribution managed by the Islamic Religious Council of Singapore (MUIS) in collaboration with the Central Provident Fund (CPF) Board.

A Brief History of the MBMF

The idea behind the MBMF dates back to 1975 when the Mosque Building Fund (MBF) was introduced to ensure that the growing Malay/Muslim population in Singapore had sufficient mosques to meet their religious needs.

In 1984, the scheme expanded to include contributions to MENDAKI, an organisation formed to uplift the educational standards of the Malay/Muslim community. Hence, the name changed to the Mosque Building and Mendaki Fund (MBMF).

Over the years, the MBMF has funded the construction of more than 20 mosques and supported thousands of students through educational bursaries, tuition programmes, and enrichment schemes.

Who Must Contribute to the MBMF?

In Singapore, the MBMF is a mandatory monthly deduction for all Muslim employees who are Singapore Citizens or Permanent Residents. The contribution rates are tiered according to an employee’s monthly wages, and employers are responsible for ensuring that these contributions are deducted correctly.

Here’s a simple breakdown:

• The MBMF contribution is separate from CPF contributions.

• The rates range from $3 to $13 per month, depending on income level.

• Employers deduct the amount from the employee’s salary and pay it to the CPF Board, which then channels it to MUIS.

For employees, this deduction is clearly stated on their payslips, ensuring transparency and proper record-keeping.

How Are MBMF Contributions Collected?

The process is straightforward:

1️. The employer deducts the MBMF amount from the employee’s salary every month.

2️. This deduction is paid to the CPF Board together with CPF contributions.

3️. The CPF Board transfers the MBMF portion to MUIS for mosque development and MENDAKI’s community programmes.

Employers must ensure that their HR or payroll system is set up to handle this process automatically and accurately.

What Happens If Employers Don’t Comply?

Failure to comply with MBMF obligations can have consequences under Singapore’s Employment Act and CPF regulations. Employers who fail to make the required deductions may face fines, legal action, and reputational damage.

Besides the legal aspect, non-compliance can also erode trust between employer and employee especially within the Malay/Muslim community.

The Wider Impact of the MBMF

For businesses, it’s easy to think of MBMF contributions as just another deduction. But it’s much more than that it’s a key pillar of Singapore’s approach to managing diversity and ensuring that no community is left behind.

By supporting mosque development and educational upliftment, the MBMF contributes to social harmony, opportunities for youth, and community resilience. This strengthens the wider social fabric, which in turn supports a stable and community.

Final Thoughts: It’s About More Than Compliance

In summary, the MBMF is more than just another line on a payslip it’s an important part of Singapore’s multicultural framework that supports community development and social stability.

Being compliant with MBMF deductions is a legal responsibility, but it’s also a way to demonstrate respect for Singapore’s social policies and to build trust with businesses in Singapore. By ensuring your payroll is accurate and transparent, your contribution help the well-being of the wider of the Malay/Muslim community.

So, the next time you see MBMF on a payroll sheet, you will know what it stands for much more than just a fund it’s a commitment to social harmony and opportunity for all.

Want to get do more for the community? Email us at: members@expatassociation.com and let’s work together to build your future in Singapore.