Muhammad Nazmul Hoque, Jamaliah Said
Purpose: As the government funding for higher learning institutions (HLI) is shrinking, there is a growing emphasis on developing HLIs capable of self-financing and finding alternative funding sources to sustain in the industry. This research aims to explore the sources of WAQF (endowment) funds implemented by two higher learning institutions in Malaysia and Bangladesh. It also attempts to compare the nature of WAQF (endowment) funds used to promote financial sustainability.
Methodology/Methodology/Approach: This study adopts a qualitative approach, which conducts semi-structured interviews with the director, coordinator and administrative officers of the two higher learning institutions in Malaysia and Bangladesh. Qualitative thematic analysis was carried out to analyze the primary data. The data were collected from the managerial authorities and board of the governance of one of the Malaysia’s prominent universities namely University Science Islam Malaysia, and Hamdard WAQF laboratories institute, which established a few higher learning institutions using various sources of WAQF in Bangladesh.
Findings: The findings show that the sources of WAQF fund for Hamdard WAQF laboratories are specific individual donations. Hamdard WAQF laboratories produces two hundred medical products and runs 300 clinics and sales centers in Bangladesh. As a result, Hamdard WAQF laboratories made a huge return from their business. Therefore, Hamdard WAQF laboratories managed to establish a few sustainable higher learning institutions in Bangladesh. On the other hand, University Science Islam Malaysia established WAQF center with specific special donations from various sources and later initiated project-based raising fund namely ‘Special Clinics’, ‘Mobile Clinics’, ‘Development of Residential College’ ‘International School’, ‘Convention Centre’ and ‘Medical College’. These sources directly engaged in financing higher learning institutions in both countries. This study recommends strategies to encourage societal contribution, directly and indirectly, contribute to the funding of higher learning institutions. At the end, this study added recommendations to sustain higher learning institutions during and after the Covid19 situations.
Significant Contribution: This research creates new knowledge by examining the WAQF development in two higher learning institutions and simultaneously studying how the funds are being mobilized to finance the HLIs. It is expected that the investment by the WAQF-based instruments can provide as an alternative to fund different institutions and thus can help solve the financial problem.