Waqf Higher Education in Malaysia in Realizing Quality Education for Sustainable Development Goals (SDGs)
- Wan Rasyidah Binti Wan Musa
- Dr Mohamed Saladin Abdul Rasool
- Dr Siti Sara Ibrahim
- 6592-6600
- Sep 19, 2025
- Social Science
Waqf Higher Education in Malaysia in Realizing Quality Education for Sustainable Development Goals (SDGs)
Wan Rasyidah¹, PM Dr Saladin², PM Dr Siti Sara Ibrahim³
¹,²Faculty of Business Management, Universiti Teknologi MARA Cawangan Melaka, Malaysia.
ÂłFaculty of Business Management, Universiti Teknologi MARA Cawangan Negeri Sembilan, Malaysia
¹,²Centre for Islamic Philanthropy and Social Finance
ÂłInstitute for Big Data Analytics and Artificial Intelligence, Universiti Teknologi MARA, Shah Alam, Selangor, Malaysia
DOI: https://dx.doi.org/10.47772/IJRISS.2025.908000542
Received: 17 August 2025; Accepted: 25 August 2025; Published: 19 September 2025
ABSTRACT
This paper explores the role of waqf in higher education in Malaysia in achieving Quality Education under the Sustainable Development Goals (SDG 4). Waqf, an Islamic endowment, has historically played a crucial role in funding education. Thus, its revival in Malaysia provides sustainable financing mechanisms for higher learning institutions. Despite the growing body of literature on waqf, limited studies that provide a comparative analysis of how different Malaysian higher education institutions implement waqf models and align them with SDG 4 objectives were found. A qualitative comparative analysis was adopted using secondary data from selected public universities representing different regions in Malaysia (central, northern, southern, and eastern zones). Findings indicate diverse approaches to waqf implementation, ranging from cash waqf and infrastructure endowments to digital waqf initiatives, each addressing distinct institutional priorities such as scholarships, research, and campus development. The study contributes practical insights for policymakers and university administrators on strengthening waqf governance and leveraging philanthropic resources to achieve sustainable quality education.
Keyword: Waqf, Higher Education Institutions, Quality Education, Sustainable Development Goals (SDGs), SDG 4
INTRODUCTION
Waqf has historically played a significant role in promoting the economic development of numerous Muslim-majority nations, including Malaysia. As a form of Islamic endowment, waqf has long supported various socio-economic sectors such as healthcare, social welfare, and notably, education (Hussin & Rashid, 2017; Mohd Roslan, Nor Muhamad, & Che Yaacob, 2023). Waqf has long contributed to the establishment of renowned educational institutions such as Al-Azhar University in Egypt and Al-Qarawiyyin University in Morocco, reflecting its enduring legacy in sustaining knowledge transmission (Ab Rahman et al., 2024). In Malaysia, waqf has been strategically adopted to strengthen the educational ecosystem by reducing institutional financial constraints and broadening access to higher education for students from various socio-economic backgrounds (Hasbullah & Ab Rahman, 2024; Arab & Zakariyah, 2023).
Despite the promising potential, Malaysian higher education institutions continue to face challenges such as insufficient funding diversification, limited donor engagement, and fragmented governance mechanisms. These issues underscore the need to evaluate how waqf has been implemented across universities and how effective it has been in addressing financial sustainability and equity in education.
The integration of waqf into the higher education framework is essential for enhancing financial sustainability and reducing dependency on traditional funding sources such as government allocations and student tuition fees (Hussin, Manshor, Fazial, & Usman, 2024). Waqf funds allow universities to provide scholarships, improve research infrastructure, and expand academic programmes, and these efforts align with national development goals and community needs (Harun, Possumah, Shafiai, & Mohd Nor, 2023). In recognition of its transformative potential, the Malaysian Ministry of Higher Education introduced the Purple Book: Enhancing University Income Generation, Endowment and Waqf as part of the Malaysia Education Blueprint 2015–2025 (Higher Education), outlining strategic recommendations for the governance and implementation of waqf in public universities (Ministry of Higher Education Malaysia, 2016).
Sustainable Development Goal 4 (SDG 4) calls for inclusive and equitable quality education and lifelong learning opportunities for all. Based on this context, waqf can be seen as a source of providing a faith-based, sustainable financing tool that directly contributes to achieving these objectives by reducing financial barriers, supporting disadvantaged students, and promoting institutional excellence (Abd Aziz, Sapuan & Muhamad Tamyez, 2023; IslamicMarkets.com, 2022).
Several Malaysian universities have successfully implemented waqf-based initiatives. For instance, Universiti Sains Islam Malaysia (USIM) and International Islamic University Malaysia (IIUM) have pioneered the establishment of dedicated endowment funds to support underprivileged students, academic research, and infrastructure development (USIM, 2018; Mohd Rusli & Adeyemi, 2017). These efforts exemplify the operational potential of waqf to promote equitable access and long-term institutional viability.
This paper, therefore, aims to: (i) examine the development and implementation of waqf across selected Malaysian higher education institutions; (ii) compare regional variations in waqf practices; and (iii) evaluate how these practices contribute towards achieving SDG 4. Addressing these objectives can help interested parties to see the best practices and identify the gaps for strengthening waqf as a sustainable financing mechanism for Malaysian higher education.
LITERATURE REVIEW
2.1 The Development of Waqf Education
The tradition of waqf in education across the Islamic world has a rich and enduring legacy, as it always functions as a foundational financial mechanism for both religious and secular institutions. One of the earliest examples is Al-Qarawiyyin University in Fez, Morocco, which was established around the year 859 through the waqf endowment of Fatimah al-Fihriyyah. Another prominent example is Al-Azhar University in Cairo, Egypt, founded around 970, which also benefited from waqf support. These institutions developed into prominent centres of Islamic learning, offering free education, supporting scholarly pursuits, and advancing intellectual development throughout the Muslim world (Mujani et al., 2018; Hasan, Hassan, & Rashid, 2018; Islamicity, 2023).
In modern Muslim-majority countries such as TĂĽrkiye, Saudi Arabia, and Indonesia, waqf continues to support education. Waqf contributes to institutional sustainability, enhances access to learning opportunities, and reduces dependency on government resources (Don et al., 2018; European Proceedings, 2023). Beyond the Middle East, contemporary Muslim-majority countries such as TĂĽrkiye, Indonesia, and Saudi Arabia have revitalised waqf to support modern education, integrating it with corporate social responsibility (CSR) initiatives and digital platforms. These experiences provide valuable benchmarks for Malaysia to adapt innovative waqf models.
In the Malaysian context, waqf-supported education initially centred around traditional Islamic institutions such as pondok schools and madrasahs, and these institutions depended on community waqf contributions, including land, property, and financial donations. These institutions formed the backbone of grassroots Islamic education (Mujani et al., 2018). As Malaysia’s education sector evolved, the government began integrating waqf into formal educational frameworks, particularly within higher education, to diversify funding and strengthen financial sustainability (Mujani et al., 2018; Sani et al., 2022). Today, Malaysian public universities utilise waqf not only to fund religious programmes but also to offer scholarships, build academic infrastructure, and support research and innovation (Abd Aziz et al., 2023). These efforts reflect a national strategy to incorporate Islamic philanthropic principles within Malaysia’s broader educational and socio-economic development agenda.
2.2 Waqf in Malaysian Higher Education Institutions
In Malaysia, waqf-supported education initially emerged through traditional Islamic institutions such as pondok schools and madrasahs, primarily funded by community contributions of land, property, and financial donations. Over time, this philanthropic tradition evolved into formalised waqf models within public universities, driven by the need to diversify income sources and reduce reliance on government funding.
The significance of waqf in higher education has attracted growing scholarly and policy interest, leading to the establishment of dedicated waqf centres or units across several public and private universities. Recognising its potential to promote financial sustainability and broaden access to education, many institutions have implemented waqf-based initiatives that provide scholarships, support infrastructure development, and finance research activities (Abd Aziz, Sapuan, & Muhamad Tamyez, 2023; Don et al., 2018; Yaacob, 2025).
Prominent examples in Malaysia include International Islamic University Malaysia (IIUM), Universiti Sains Islam Malaysia (USIM), Universiti Tun Hussein Onn Malaysia (UTHM), and Universiti Teknologi MARA (UiTM), which have successfully mobilized contributions from alumni, corporations, and the public. These initiatives significantly reduce the dependency on tuition fees and government allocations while enhancing institutional autonomy (Don et al., 2018; Sukmana, 2023). Similarly, other institutions such as Universiti Kebangsaan Malaysia (UKM), Universiti Malaya (UM), Universiti Putra Malaysia (UPM), and Universiti Teknologi Malaysia (UTM) have established waqf programmes. For example, UKM’s Dana Wakaf Ilmu via Yayasan Canselor supports student welfare and academic excellence, while UPM’s Wakaf Ilmu funds infrastructure improvements and assistance for underprivileged students (Hasan, Hassan, & Rashid, 2018; Yaacob, 2025).
2.3 Quality Education in the Sustainable Development Goals Agenda (SDG 4)
The Sustainable Development Goals (SDGs), established by the United Nations, highlight the significance of inclusive and equitable quality education as outlined in Goal 4. The main aim of SDG 4 is to ensure that all individuals, regardless of socio-economic status, have access to affordable, high-quality education (United Nations, 2015). This goal emphasises the need to remove financial barriers, improve literacy levels, and provide lifelong learning opportunities. By funding marginalised students and improving academic resources, the waqf can reduce inequality and contribute to Malaysia’s aspiration of becoming a regional education hub.
The incorporation of waqf within Malaysia’s higher education landscape has emerged as a strategic response to achieving these objectives. Waqf is increasingly recognised as a sustainable funding mechanism that reduces the financial burden on students, enhances academic infrastructure, and supports the holistic development of institutions (Mahamood & Ab Rahman, 2015; Sulkarnain & Halim, 2022). Universities have adopted waqf to function as scholarship offerings, modernised facilities, and financed research efforts, and waqf is now helping higher education to be more inclusive and sustainable (Mohd Roslan et al., 2023; Ab Rahman et al., 2024).
Waqf-supported institutions play a pivotal role in reducing educational inequality, especially among students from disadvantaged backgrounds. Targeted financial assistance helps increase enrolment, reduce dropout rates, and create a more equitable learning environment (Hasbullah & Ab Rahman, 2024). This effort aligns directly with SDG 4’s focus on equal educational access and outcomes for all.
Beyond student support, waqf also contributes significantly to faculty development, research innovation, and community engagement. When efficiently managed, waqf funds can elevate academic standards and institutional capacity, thereby contributing to Malaysia’s knowledge economy and global competitiveness (Hassan & Shahid, 2016; Yaacob, 2025). Thus, strengthening waqf-based models is essential for narrowing the educational gap, enhancing long-term institutional resilience, and aligning Malaysia’s educational vision with global development goals (IslamicMarkets.com, 2022).
Thus, the establishment of a robust waqf ecosystem will empower Malaysian universities to achieve sustained financial health, reducing overreliance on government funding and student fees. This strategy not only uplifts individual learners but also enhances the international standing of Malaysia’s higher education sector (Hasan et al., 2018; Harun et al., 2023).
RESEARCH METHODOLOGY
A qualitative comparative case study approach was adopted to analyse the implementation of waqf in selected Malaysian public universities. The focus is on understanding regional variations in waqf practices and their alignment with institutional priorities and the Sustainable Development Goal 4 (Quality Education).
3.1 Research Design
The research utilises secondary data analysis, drawing information from official university documents, waqf centre reports, academic publications, and government policy documents (e.g., the Purple Book 2016). This approach allows for an in-depth examination of waqf practices without the need for direct primary data collection, ensuring efficiency and broad coverage of multiple institutions.
3.2 Sampling and Case Selection
Four public universities were purposively selected to represent Malaysia’s major geographical zones:
- Central Region: International Islamic University Malaysia (IIUM)
- Northern Region: Universiti Utara Malaysia (UUM)
- Southern Region: Universiti Teknologi Malaysia (UTM)
- Eastern Region: Universiti Malaysia Terengganu (UMT)
These universities were chosen based on their established waqf initiatives, diversity of waqf models (cash waqf, digital waqf, infrastructure waqf), and availability of publicly documented data.
3.3 Data Analysis Procedure
Data were analysed thematically and comparatively. Key dimensions examined include:
- Year of waqf establishment and institutional framework
- Core implementation strategies (e.g., scholarships, research, digital initiatives)
- Funding sources and governance structures
- Key challenges faced in sustaining waqf initiatives
Comparative tables were constructed to visualise regional similarities and differences, followed by narrative analysis to contextualise findings. The study analyses the implementation of waqf in selected public universities across different regions in Malaysia. The universities chosen represent different geographical zones to provide a broader perspective on how waqf initiatives are implemented.
ANALYSIS AND FINDINGS
4.1 Overview of Waqf Implementation in Selected Universities
The analysis revealed that Malaysian public universities adopt diverse waqf strategies to tailor their institutional missions and regional priorities. Table 1 summarises the key features of waqf implementation across four selected universities.
Region | University | Waqf Centre/Unit | Year Established | Key Implementation Focus | Notable Challenges |
Central | IIUM | IIUM Endowment Fund (IEF) | 1999 | Scholarships, research funding, and community outreach | Complex fund management; sustaining donor engagement |
Northern | UUM | Dana Wakaf UUM | 2016 | Digital waqf platforms, student aid, waqf investment | Low public awareness; limited alumni participation |
Southern | UTM | UTM Endowment Fund | 2011 | Financial aid, campus infrastructure, and academic development | Donor retention; reliance on voluntary contributions |
Eastern | UMT | Wakaf Ilmu UMT | 2018 | Research-oriented waqf (marine studies), student support | Limited fundraising capacity; niche donor appeal |
4.2 Regional Differences in Waqf Priorities
The implementation of waqf in Malaysian higher education demonstrates distinct regional variations, shaped by localised needs, institutional goals, and resource availability.
Central Region (IIUM):
IIUM is one of the earliest adopters of waqf, with the IIUM Endowment Fund (IEF) established in 1999. This fund focuses on scholarships, research funding, and community outreach. The university has an extensive donor network, ranging from corporate and international contributors, and they provide significant resources. However, managing and allocating these large funds remains complex (Mohd Rusli & Adeyemi, 2017).
Northern Region (UUM):
UUM’s Dana Wakaf UUM, launched in 2016, pioneers digital waqf initiatives and investment-linked endowments. This model enhances donor outreach via online platforms, and this method has improved transparency. However, low public awareness and limited alumni engagement hinder optimal fund mobilisation (Sulkarnain & Halim, 2022).
Southern Region (UTM):
The UTM Endowment Fund, founded in 2011, prioritises financial aid and infrastructure development. This fund significantly supports underprivileged students and campus enhancements. Challenges include sustaining voluntary donor contributions and reducing dependence on government allocations (Harun et al., 2023).
Eastern Region (UMT):
UMT’s Wakaf Ilmu, initiated in 2018, is unique for integrating waqf with marine research and environmental education. While this specialised focus distinguishes UMT’s model, it also limits broader donor appeal and fundraising capacity (Mohd Roslan et al., 2023)Â
4.3 Common Challenges Across Institutions
Despite the diversity of waqf implementation across different regions, several recurring challenges are evident across all institutions. A critical issue lies in donor engagement, as maintaining long-term participation requires sustained awareness campaigns and transparent reporting mechanisms to build trust and encourage recurring contributions. Also, governance complexity poses difficulties, with coordination between universities and State Islamic Religious Councils often delaying fund utilisation and project approvals. Additionally, the public has limited awareness regarding waqf’s role in higher education, reducing the frequency and volume of donations, particularly among alumni and younger contributors who may lack exposure to the concept of waqf as a sustainable educational financing tool.
4.4 Emerging Opportunities
While these challenges persist, several emerging opportunities have been identified to strengthen waqf implementation in Malaysian higher education. One promising avenue is the expansion of digital waqf platforms to enhance accessibility and enable real-time donor engagement through online and mobile applications. Furthermore, integrating corporate social responsibility (CSR) initiatives and leveraging alumni networks can be a viable strategy to diversify funding sources and foster stronger community ownership of waqf projects. Next, adopting hybrid models that combine cash waqf, infrastructure waqf, and research-oriented endowments also presents an opportunity to address multiple institutional needs simultaneously, balancing immediate student support with long-term research and development objectives.
4.5 Implications
The findings underscore that a one-size-fits-all approach to waqf implementation is inadequate. Each university must adopt strategies tailored to its institutional mission and regional context, and simultaneously, share best practices to establish a more cohesive national framework. Policymakers, therefore, should prioritise harmonising governance structures between universities and State Islamic Religious Councils, incentivising corporate participation through tax benefits or matching grants, and promoting digital innovation to enhance transparency and donor trust. These measures would significantly improve the scalability and sustainability of waqf as a strategic mechanism for advancing quality education in Malaysia.
Conceptual Framework of Universities’ Waqf Implementation towards SDG 4
Figure 4.1: Conceptual Framework of Universities’ Waqf Implementation towards SDG 4
Based on the findings in this study, this conceptual framework in Figure 4.1 illustrates the role of various forms of waqf initiatives implemented by universities (cash waqf, digital waqf, infrastructure waqf, and research-oriented waqf) in promoting financial sustainability and student support. These initiatives ultimately contribute to the attainment of Sustainable Development Goal 4 (SDG 4): Quality Education, through inclusive access, equity, and academic excellence.
CONCLUSION
This study offers a comprehensive comparative examination of waqf implementation across Malaysian higher education institutions (HEIs), focusing on variations in regional practices, institutional strategies, and the challenges faced in sustaining these initiatives. By analysing four representative universities, International Islamic University Malaysia (IIUM), Universiti Utara Malaysia (UUM), Universiti Teknologi Malaysia (UTM), and Universiti Malaysia Terengganu (UMT), the research illustrates how each institution has adapted waqf-based financial models to align with its unique mission and geographical context (Mahamood & Ab Rahman, 2015; Don et al., 2018; Hasan et al., 2018; Mohd Roslan et al., 2023; Ab Rahman et al., 2024). The findings reveal a broad spectrum of waqf initiatives, including cash waqf, infrastructure-based endowments, digital waqf platforms, and research-oriented models, reflecting a growing recognition of waqf as a sustainable mechanism to alleviate financial pressures, expand educational access, and enhance academic development (Hasan & Siraj, 2018; Sulkarnain & Halim, 2022).
The comparative analysis shows distinct regional patterns. Central institutions such as IIUM prioritise large-scale scholarships and research funding supported by corporate and international donors. Meanwhile, northern universities like UUM are early adopters of digital waqf models but struggle with donor awareness and alumni participation. As for the southern universities such as UTM, it focuses on infrastructure development and student aid, yet remains heavily dependent on voluntary contributions. Lastly, the eastern institutions, represented by UMT, channel waqf towards niche research areas such as marine studies but face challenges in scaling fundraising efforts. Across these diverse approaches, common difficulties are evident, particularly in sustaining donor engagement, navigating complex governance structures involving State Islamic Religious Councils, and addressing the limited public understanding of waqf’s potential role in higher education. Addressing these challenges will require a more holistic strategy that integrates digital innovation, stronger alumni and corporate partnerships, and harmonised policy frameworks to ensure both scalability and sustainability.
The contribution of this study is twofold. From a theoretical perspective, it situates waqf as a viable philanthropic instrument for advancing Sustainable Development Goal 4 (Quality Education), offering new insights into how faith-based endowments can complement conventional university financing models. Then, from a practical perspective, it provides guidance for policymakers, university administrators, and waqf managers by identifying existing best practices, highlighting gaps in current models, and recommending integrated approaches that combine cash waqf, infrastructure initiatives, and digital platforms to balance immediate student needs with long-term institutional growth (Abd Aziz et al., 2023; Hasbullah & Ab Rahman, 2024).
Looking ahead, future research should broaden this foundation by incorporating quantitative analyses to measure waqf’s impact on student outcomes and institutional performance, as well as conducting cross-country comparisons, particularly with established models in Türkiye and Indonesia to identify transferable lessons and policy innovations (Hasan & Siraj, 2018; Don et al., 2018). Further exploration of fintech applications, including blockchain-based waqf tracking and AI-driven donor engagement tools, may also enhance transparency and public trust. Additionally, examining policy harmonisation between federal and state religious authorities could inform the development of a more cohesive governance ecosystem. Ultimately, strengthening waqf in Malaysian higher education requires not only institutional commitment but also supportive legal, financial, and societal frameworks, positioning waqf as a cornerstone in achieving equitable and sustainable quality education in line with Malaysia’s national vision and the global development agenda (Ministry of Higher Education Malaysia, 2016; United Nations, 2015).
ETHICAL APPROVAL
This study has obtained ethics approval from the UiTM Research Ethics Committee (Reference No: EC/05/2024 (PG/MR/163)). The Committee operates in accordance with the ICH Good Clinical Practice Guidelines, the Malaysian Good Clinical Practice Guidelines, and the Declaration of Helsinki. Approval of this project is subject to continued compliance with these guidelines and declaration.
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