Universities Need Diverse Sources Of Funding, Not Completely Relying On Government

KUALA LUMPUR, Sept 2 (Bernama) -- The uncertainty of the global economy and competition in higher education require local universities to diversify their financial sources and not rely entirely on government allocations to ensure the sustainability and excellence of the institutions.

Universiti Teknologi Malaysia (UTM) vice-chancellor Professor Dr. Mohd Shafry Mohd Rahim said that government support remains important, but universities with high aspirations need to have the capability to build their own financial ecosystem sustainably, prudently and with integrity.

He said that the culture of giving should also be viewed as an institutional strategy to ensure the sustainability of the university, not just as a charitable practice.

"Financial sustainability is the backbone of the independence of higher education institutions. Operating costs continue to rise, research technology is advancing rapidly, while the competition to attract the best academic talent is becoming increasingly fierce.

"At the same time, universities are responsible for ensuring that students from low-income families are not marginalised simply due to financial constraints," he said in a statement today.

Mohd Shafry said that strong and diverse financial resources enable the university to offer scholarships, improve learning facilities, fund high-impact research, and act more swiftly in the face of budget cuts or economic crises.

He said that the experience of world-renowned universities such as Harvard, Yale, and Oxford demonstrates the importance of endowment funds in building institutional resilience, with contributions professionally invested to support long-term academic missions.

In Malaysia, he said, the approach can be strengthened through the mobilisation of three main instruments, namely endowment, zakat and waqf, to form an inclusive and sustainable social finance ecosystem.

Endowment provides long-term resources that are invested to generate continuous returns. Zakat, on the other hand, is targeted at the asnaf group, including students in need, so that poverty does not become an obstacle to education.

"Endowments, whether in the form of cash or assets, allow benefits such as scholarships, residential colleges, laboratories, and research centres to be enjoyed for a long time," he said.

Mohd Shafry said that UTM also translates this approach through the UTM Endowment Fund and various zakat and waqf initiatives to support the needs of undergraduate and postgraduate students, including through financial assistance and the provision of a more conducive learning environment.

According to him, this effort can help reduce students' dependence on funding such as the National Higher Education Fund Corporation (PTPTN) or external scholarships, thereby giving them more space to focus on learning, research and personal development.

"We need to make a paradigm shift so that alumni, university staff, industry partners, corporate figures, and the community see contributions to the university not as an expense, but as an investment for the future of the country," he said.

In this regard, UTM is organising the UTM Royal Gala Dinner under the patronage of the UTM Chancellor as a platform to bring together philanthropists, corporate leaders, and alumni in an effort to gather contributions for the UTM Endowment Fund.

Mohd Shafry also said that the independence of 21st-century universities is no longer measured solely by the amount of annual allocations received, but also by their ability to build their own financial strength without neglecting social trust.

"This is the legacy we need to build, a university that is independent, excellent, and continues to benefit the nation and the world," he added.

-- BERNAMA