Alternative financing modes for higher learning institutions in Malaysia – Socially Responsible Investment (SRI) Sukuk & Social Impact Bonds (SIB)

Higher learning institutions (HLIs) in Malaysia consists of 20 public universities and more than 500 private HLIs catering for an increasing number of student enrolments. Funding for HLIs has become increasingly constrained as the budget for the education sector has been seeing cuts in recent years....

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Main Authors:	Engku Ali, Engku Rabiah Adawiah, Hassan, Rusni, Kassim, Salina, Syed Azman, Syed Marwan Mujahid, Mohd. Zain, Nor Razinah
Format:	Conference or Workshop Item
Language:	English
Published:	2018
Subjects:	H62 Study and teaching. Research H65 Schools. Institutes of social sciences HG1501 Banking HG3368 Islamic Banking and Finance HG4001 Financial management. Business finance. Corporation finance. K Law (General)
Online Access:	http://irep.iium.edu.my/71500/ http://irep.iium.edu.my/71500/ http://irep.iium.edu.my/71500/1/71500%20-%20Alternative%20Financing%20Modes%20for%20Higher%20Learning%20Institutions%20in%20Malaysia.pdf

id	iium-71500
recordtype	eprints
spelling	iium-715002020-01-20T05:00:05Z http://irep.iium.edu.my/71500/ Alternative financing modes for higher learning institutions in Malaysia – Socially Responsible Investment (SRI) Sukuk & Social Impact Bonds (SIB) Engku Ali, Engku Rabiah Adawiah Hassan, Rusni Kassim, Salina Syed Azman, Syed Marwan Mujahid Mohd. Zain, Nor Razinah H62 Study and teaching. Research H65 Schools. Institutes of social sciences HG1501 Banking HG3368 Islamic Banking and Finance HG4001 Financial management. Business finance. Corporation finance. K Law (General) Higher learning institutions (HLIs) in Malaysia consists of 20 public universities and more than 500 private HLIs catering for an increasing number of student enrolments. Funding for HLIs has become increasingly constrained as the budget for the education sector has been seeing cuts in recent years. This gives rise to the ever-increasing concern on the issue of self-sustainability of HLIs. It is not an issue unique to Malaysia per se, but it is a global phenomenon where HLIs around the world have faced challenges in achieving self-sustainability. Central to this issue is the challenge to find sources of funds needed to sustain HLIs’ operations and development. This issue has been gaining increasing prominence especially when funds and resources are becoming lesser and limited as a result of the slowing growth of the global economy. It has, therefore, become a necessity for HLIs to come out with innovative ways to raise funds and move towards becoming more self-sustainable sooner rather than later. Possible lessons can be learned from HLIs in the UK, US, and Australia where universities have enriched their source of finance including their involvement in the capital market to raise funds through bonds. Funds are also raised through university-industry linkages from private grants and PPP projects. In the context of Malaysia, 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 a critical review of the literature, case study analyses and interview sessions with experts. Based on the findings, the study recommended 2 SRI Sukuk models: firstly, in the situation where the proceeds are used for income-generating activities, while secondly for non-income generating activities. The returns and repayments of the 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. 2018-11-15 Conference or Workshop Item NonPeerReviewed application/pdf en http://irep.iium.edu.my/71500/1/71500%20-%20Alternative%20Financing%20Modes%20for%20Higher%20Learning%20Institutions%20in%20Malaysia.pdf Engku Ali, Engku Rabiah Adawiah and Hassan, Rusni and Kassim, Salina and Syed Azman, Syed Marwan Mujahid and Mohd. Zain, Nor Razinah (2018) Alternative financing modes for higher learning institutions in Malaysia – Socially Responsible Investment (SRI) Sukuk & Social Impact Bonds (SIB). In: 6th ASEAN Universities International Conference on Islamic Finance (AICIF), Makati, Philippines, 14th & 15th November 2018, Makati, Philipines. (Unpublished) http://aicif.net/
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	H62 Study and teaching. Research H65 Schools. Institutes of social sciences HG1501 Banking HG3368 Islamic Banking and Finance HG4001 Financial management. Business finance. Corporation finance. K Law (General)
spellingShingle	H62 Study and teaching. Research H65 Schools. Institutes of social sciences HG1501 Banking HG3368 Islamic Banking and Finance HG4001 Financial management. Business finance. Corporation finance. K Law (General) Engku Ali, Engku Rabiah Adawiah Hassan, Rusni Kassim, Salina Syed Azman, Syed Marwan Mujahid Mohd. Zain, Nor Razinah Alternative financing modes for higher learning institutions in Malaysia – Socially Responsible Investment (SRI) Sukuk & Social Impact Bonds (SIB)
description	Higher learning institutions (HLIs) in Malaysia consists of 20 public universities and more than 500 private HLIs catering for an increasing number of student enrolments. Funding for HLIs has become increasingly constrained as the budget for the education sector has been seeing cuts in recent years. This gives rise to the ever-increasing concern on the issue of self-sustainability of HLIs. It is not an issue unique to Malaysia per se, but it is a global phenomenon where HLIs around the world have faced challenges in achieving self-sustainability. Central to this issue is the challenge to find sources of funds needed to sustain HLIs’ operations and development. This issue has been gaining increasing prominence especially when funds and resources are becoming lesser and limited as a result of the slowing growth of the global economy. It has, therefore, become a necessity for HLIs to come out with innovative ways to raise funds and move towards becoming more self-sustainable sooner rather than later. Possible lessons can be learned from HLIs in the UK, US, and Australia where universities have enriched their source of finance including their involvement in the capital market to raise funds through bonds. Funds are also raised through university-industry linkages from private grants and PPP projects. In the context of Malaysia, 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 a critical review of the literature, case study analyses and interview sessions with experts. Based on the findings, the study recommended 2 SRI Sukuk models: firstly, in the situation where the proceeds are used for income-generating activities, while secondly for non-income generating activities. The returns and repayments of the 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	Conference or Workshop Item
author	Engku Ali, Engku Rabiah Adawiah Hassan, Rusni Kassim, Salina Syed Azman, Syed Marwan Mujahid Mohd. Zain, Nor Razinah
author_facet	Engku Ali, Engku Rabiah Adawiah Hassan, Rusni Kassim, Salina Syed Azman, Syed Marwan Mujahid Mohd. Zain, Nor Razinah
author_sort	Engku Ali, Engku Rabiah Adawiah
title	Alternative financing modes for higher learning institutions in Malaysia – Socially Responsible Investment (SRI) Sukuk & Social Impact Bonds (SIB)
title_short	Alternative financing modes for higher learning institutions in Malaysia – Socially Responsible Investment (SRI) Sukuk & Social Impact Bonds (SIB)
title_full	Alternative financing modes for higher learning institutions in Malaysia – Socially Responsible Investment (SRI) Sukuk & Social Impact Bonds (SIB)
title_fullStr	Alternative financing modes for higher learning institutions in Malaysia – Socially Responsible Investment (SRI) Sukuk & Social Impact Bonds (SIB)
title_full_unstemmed	Alternative financing modes for higher learning institutions in Malaysia – Socially Responsible Investment (SRI) Sukuk & Social Impact Bonds (SIB)
title_sort	alternative financing modes for higher learning institutions in malaysia – socially responsible investment (sri) sukuk & social impact bonds (sib)
publishDate	2018
url	http://irep.iium.edu.my/71500/ http://irep.iium.edu.my/71500/ http://irep.iium.edu.my/71500/1/71500%20-%20Alternative%20Financing%20Modes%20for%20Higher%20Learning%20Institutions%20in%20Malaysia.pdf
first_indexed	2023-09-18T21:41:23Z
last_indexed	2023-09-18T21:41:23Z
_version_	1777413162956488704

Alternative financing modes for higher learning institutions in Malaysia – Socially Responsible Investment (SRI) Sukuk & Social Impact Bonds (SIB)

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