The roles and challenges of waqf in Malaysian higher education institutions: A review and future directions

Abstract

Waqf has long served as an Islamic philanthropic institution that supports education, social welfare and socioeconomic development. In Malaysia, waqf has gained renewed attention as a complementary mechanism for strengthening the financial sustainability of higher education institutions. This development is significant as universities face rising operational costs, growing demand for quality education and increasing pressure to diversify income beyond government funding and tuition fees. This paper reviews the roles and challenges of waqf in Malaysian higher education institutions and proposes future directions for strengthening its implementation. Using a narrative review approach, the paper synthesises literature on waqf, educational financing, Islamic social finance, governance, public trust, institutional capacity and higher education sustainability. The review indicates that waqf can support financial sustainability, student assistance, infrastructure development, research and innovation, community engagement and human capital development. However, implementation remains constrained by legal and regulatory complexity, governance and management issues, limited public awareness, weak waqf literacy, financial and resource constraints, institutional capacity limitations and slow digital adoption. The paper argues that the future sustainability of waqf in higher education depends on stronger governance frameworks, transparent reporting, digital waqf ecosystems, strategic industry collaboration, sustainable investment and integrated waqf-based education financing models. The paper contributes by synthesising the main roles and challenges of educational waqf in Malaysia and identifying directions for future research and institutional practice.