Potential development of SRI sukuk models for higher learning institutions in Malaysia based on Wakalah and Waqf

Funding for Higher Learning Institutions (HLIs) in Malaysia has become increasingly constrained as the government faces increasing costs and global economic slowdown. Central to this issue is the challenge to raise the funds needed to sustain HLIs’ operations and development. It has theref...

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Main Authors:	Engku Ali, Engku Rabiah Adawiah, Syed Azman, Syed Marwan Mujahid, Mohd. Zain, Nor Razinah, Hassan, Rusni, Kassim, Salina
Format:	Article
Language:	English
Published:	IIUM Institute of Islamic Banking and Finance (IIiBF), International Islamic University Malaysia (IIUM). 2019
Subjects:	H Social Sciences (General) HG Finance HG3368 Islamic Banking and Finance K Law (General) L Education (General)
Online Access:	http://irep.iium.edu.my/72859/ http://irep.iium.edu.my/72859/ http://irep.iium.edu.my/72859/1/72859%20-%20Potential%20Development%20of%20SRI%20Sukuk%20Models%20for%20Higher.pdf

id	iium-72859
recordtype	eprints
spelling	iium-728592020-02-21T08:33:09Z http://irep.iium.edu.my/72859/ Potential development of SRI sukuk models for higher learning institutions in Malaysia based on Wakalah and Waqf Engku Ali, Engku Rabiah Adawiah Syed Azman, Syed Marwan Mujahid Mohd. Zain, Nor Razinah Hassan, Rusni Kassim, Salina H Social Sciences (General) HG Finance HG3368 Islamic Banking and Finance K Law (General) L Education (General) Funding for Higher Learning Institutions (HLIs) in Malaysia has become increasingly constrained as the government faces increasing costs and global economic slowdown. Central to this issue is the challenge to raise the funds needed to sustain HLIs’ operations and development. It has therefore become a necessity for HLIs to come up with innovative ways to raise funds and move towards to becoming more self-sustainable. Malaysia can possibly learn from HLIs in the UK, US, and Australia where universities have managed to obtain funds through the capital market by issuing bonds. This paper focuses on exploring alternative financing modes for HLIs through Socially Responsible Investment (SRI) sukuk and Social Impact Bonds (SIBs). The methods utilized in this study are critical review of literature, case study analyses and interview sessions with experts. This study recommends two SRI sukuk models: firstly, in the situation where the proceeds are used for income generating activities, sukuk based on wakalah is proposed; while secondly for non-income generating activities, a cash-waqf sukuk with temporary and permanent features is suggested. In term of the structure of the sukuk, the returns and repayments of both sukuk are dependent on key performance indicators (KPIs) being achieved. In both cases, it is recommended that the sukuk be issued by a consortium consisting of a number of different universities in order to lower the cost of issuance and fund management, as well as efficiently utilizing resources. It is also recommended that the sukuk is guaranteed by a third party, preferably by the government. IIUM Institute of Islamic Banking and Finance (IIiBF), International Islamic University Malaysia (IIUM). 2019-06 Article PeerReviewed application/pdf en http://irep.iium.edu.my/72859/1/72859%20-%20Potential%20Development%20of%20SRI%20Sukuk%20Models%20for%20Higher.pdf Engku Ali, Engku Rabiah Adawiah and Syed Azman, Syed Marwan Mujahid and Mohd. Zain, Nor Razinah and Hassan, Rusni and Kassim, Salina (2019) Potential development of SRI sukuk models for higher learning institutions in Malaysia based on Wakalah and Waqf. Journal of Islamic Finance, 8 (Special Issue). pp. 90-106. ISSN 2289-2109 E-ISSN 2289-2117 https://journals.iium.edu.my/iiibf-journal/index.php/jif/article/view/349/159
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	H Social Sciences (General) HG Finance HG3368 Islamic Banking and Finance K Law (General) L Education (General)
spellingShingle	H Social Sciences (General) HG Finance HG3368 Islamic Banking and Finance K Law (General) L Education (General) Engku Ali, Engku Rabiah Adawiah Syed Azman, Syed Marwan Mujahid Mohd. Zain, Nor Razinah Hassan, Rusni Kassim, Salina Potential development of SRI sukuk models for higher learning institutions in Malaysia based on Wakalah and Waqf
description	Funding for Higher Learning Institutions (HLIs) in Malaysia has become increasingly constrained as the government faces increasing costs and global economic slowdown. Central to this issue is the challenge to raise the funds needed to sustain HLIs’ operations and development. It has therefore become a necessity for HLIs to come up with innovative ways to raise funds and move towards to becoming more self-sustainable. Malaysia can possibly learn from HLIs in the UK, US, and Australia where universities have managed to obtain funds through the capital market by issuing bonds. This paper focuses on exploring alternative financing modes for HLIs through Socially Responsible Investment (SRI) sukuk and Social Impact Bonds (SIBs). The methods utilized in this study are critical review of literature, case study analyses and interview sessions with experts. This study recommends two SRI sukuk models: firstly, in the situation where the proceeds are used for income generating activities, sukuk based on wakalah is proposed; while secondly for non-income generating activities, a cash-waqf sukuk with temporary and permanent features is suggested. In term of the structure of the sukuk, the returns and repayments of both sukuk are dependent on key performance indicators (KPIs) being achieved. In both cases, it is recommended that the sukuk be issued by a consortium consisting of a number of different universities in order to lower the cost of issuance and fund management, as well as efficiently utilizing resources. It is also recommended that the sukuk is guaranteed by a third party, preferably by the government.
format	Article
author	Engku Ali, Engku Rabiah Adawiah Syed Azman, Syed Marwan Mujahid Mohd. Zain, Nor Razinah Hassan, Rusni Kassim, Salina
author_facet	Engku Ali, Engku Rabiah Adawiah Syed Azman, Syed Marwan Mujahid Mohd. Zain, Nor Razinah Hassan, Rusni Kassim, Salina
author_sort	Engku Ali, Engku Rabiah Adawiah
title	Potential development of SRI sukuk models for higher learning institutions in Malaysia based on Wakalah and Waqf
title_short	Potential development of SRI sukuk models for higher learning institutions in Malaysia based on Wakalah and Waqf
title_full	Potential development of SRI sukuk models for higher learning institutions in Malaysia based on Wakalah and Waqf
title_fullStr	Potential development of SRI sukuk models for higher learning institutions in Malaysia based on Wakalah and Waqf
title_full_unstemmed	Potential development of SRI sukuk models for higher learning institutions in Malaysia based on Wakalah and Waqf
title_sort	potential development of sri sukuk models for higher learning institutions in malaysia based on wakalah and waqf
publisher	IIUM Institute of Islamic Banking and Finance (IIiBF), International Islamic University Malaysia (IIUM).
publishDate	2019
url	http://irep.iium.edu.my/72859/ http://irep.iium.edu.my/72859/ http://irep.iium.edu.my/72859/1/72859%20-%20Potential%20Development%20of%20SRI%20Sukuk%20Models%20for%20Higher.pdf
first_indexed	2023-09-18T21:43:18Z
last_indexed	2023-09-18T21:43:18Z
_version_	1777413283919167488

Potential development of SRI sukuk models for higher learning institutions in Malaysia based on Wakalah and Waqf

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