AN ANALYSIS OF WAQF MODELS IN MALAYSIAN HIGHER EDUCATION INSTITUTIONS: A CONCEPTUAL REVIEW

Abstract

Abstract: This study examines the importance of diversifying funding sources in Malaysian Higher Education Institutions (HEIs) through the waqf instrument in order to achieve long-term financial sustainability. Amid increasing budgetary constraints and reductions in government funding, public universities are compelled to explore more autonomous and innovative financing mechanisms. The primary objective of this study is to analyse the various forms of waqf that have been implemented in Malaysian HEIs and to assess their potential within the national higher education ecosystem. Adopting a qualitative research design based on library research and document analysis, this study reviews existing literature, university annual reports, and policy documents related to waqf administration. The findings classify waqf practices in HEIs into five main categories: (1) Cash Waqf, which remains the most dominant and easily implemented instrument; (2) Real Estate Waqf, involving physical assets such as land and buildings; (3) Corporate Waqf, which utilises business entities to generate waqf income; (4) Movable Waqf (Waqf Manqul), comprising transferable assets; and (5) Service or Skills Waqf, an emerging dimension that leverages the intellectual capital of academics. The study finds that while cash waqf has gained significant traction, the potential of corporate waqf and skills-based waqf remains underexplored due to legal constraints and limited public understanding. The study highlights the need for policy harmonisation between State Islamic Religious Councils (MAIN) and universities to strengthen waqf governance, thereby transforming HEIs from passive fund recipients into sustainable generators of ummah wealth.