“3rd INTERNATIONAL CONFERENCE ON

ISLAM AND HIGHER EDUCATION”

Pahang Foundation Complex

30 September – 3 October 2012

Under the Malaysian Federal Constitution, the authority

on all Islamic religious matters reside with Sultans in the

respective states, or the Yang Di-Pertuan Agong for

states without a Sultan; administratively, these powers

are delegated to the respective State Islamic Religious

Councils (MAIN).

Therefore, each respective MAIN is the sole trustee of

the management of waqf assets in their respective

States.

RELIGIOUS

MATTERS

Delegates Power

SULTAN

State Islamic

Religious Councils

Ninth Schedule,

List II, Federal

Constitution

cont.

Established as a national awqaf entity by Jabatan

Wakaf, Zakat dan Haji (JAWHAR) under the Prime

Minister’s Department

Incorporated on 23 July 2008

Main Stakeholders comprise of Majlis Agama

Islam Negeri (MAINs) or State Islamic Religious

Councils

5

19-member Board of Trustees

Chairman is YB Major-General (R) Dato’

Seri Jamil Khir Baharom, Minister in the

Prime Minister’s Department

Deputy Chairman is Director-General of

JAWHAR

Others from MAINs, EPU, MoF and 3

corporate appointees6

To facilitate consolidation and mobilization

of awqaf resources

To collaborate with MAINs to develop

awqaf assets in Malaysia and ensure

continuous benefits accrue to the intended

beneficiaries, benefactors and society in

general.

7

JAWHAR

Yayasan Waqaf

Malaysia

Majlis Agama

Islam MelakaJAWHAR

Hotel Pantai Puteri

Melaka (JAWHAR-

MAIM) managed

by Yayasan Waqaf

Malaysia

Similar 3-way

arrangement

between JAWHAR,

2 MAINs (Perak and

Terengganu) and

Yayasan Waqaf

Malaysia

Hotel Seri Warisan (JAWHAR-

MAIPk) in Taiping, Perak (commenced commercial operations in

September 2012)

Hotel in Kuala

Terengganu, Tere

ngganu (scheduled

completion in

November 2012)

Majlis Agama Islam dan

Adat Melayu TerengganuJAWHAR

Students’

Hostel in Besut,

Terengganu

Majlis Agama Islam

Pulau Pinang

JAWHAR

Al-Mashoor

Education

Complex in Balik

Pulau, Penang

RM20 million allocated for the development of waqf assets for small

businesses

69 locations: 66 Bazar Wakaf Rakyat and 3 Wakaf Marts

311 small business premises, primarily within the compounds of strategically-

located mosques

Yayasan Waqaf Malaysia’s awqaf

development initiatives

Masjid Sungai Adam,

Jejawi, Perlis

Masjid Jamek Kajang,

SelangorMasjid Putra,

Putrajaya

Masjid Daerah

Taiping, PerakMasjid At-Taqwa,

Kepala Batas, Penang

Wakaf Mart Masjid

Panchor Jaya, Seremban

The overall cost of education has been on an ever

increasing trend.

Parents and students alike face the burden of ever

increasing fees to enroll in the higher education

learning institutions.

The education institutions themselves also face

increasing costs to operate and provide quality

education.

“The general increase for local studies is about

3% per year and foreign about 5% and this

applies to a general business degree of three

years [see table]” (The Star, StarBizweek, 2010)

The general trend in

education costs

cont.

Real-world comparison of the average cost of attending

higher-level education amongst selected countries.

cont.

Public Higher Education Private Higher Education

Is this a possible future scenario?

As the cost of education increases, higher education can

be an “elite” product, which can only be afforded by

the wealthy (compounded by the rising cost of living)…

Comparison Between Public And Private Higher

Education

Public Higher Education Private Higher

Education

Lower tuition fees as 90%

Government subsidy

Much higher tuition fees, no

Government subsidy

Malay medium English medium

70% Bumiputera Maximum 10% Bumiputera

Staff:Student is 1:9 Staff:Student is 1:30

Staff teaches average 10

hours per week

Staff teaches average 20

hours per week

Not run as a business,

provision of education as a

social product

Run as a business,

education is the product

being sold/ commodity and

courses are more tailored to

the employment market

Budget 2010: RM30 billion for primary and secondary education, to help

students and scholarships, the construction of 80 new primary and

secondary schools, government-aided religious schools, Chinese and

Tamil schools and Missionary schools.

Budget 2011: RM29.3 billion operating budget for the Ministry of

Education, RM10.2 billion for the Ministry of Higher Education and RM627

million for the Ministry of Human Resources.

Budget 2012: RM50.2 billion allocated to the education sector which also

included tuition fee assistance to civil servants, including 5,000 master's

degree & 500 PhDs as well as book vouchers to all Malaysian students in

public /private institutions, matriculation & Form 6.

The Government of Malaysia is aware that education is important for the

future development of Malaysia, and serious efforts have been made to

ensure its continued development, as evident by the increasing

Government expenditure.

While important, there are other aspects of the modern Malaysia which

are also important, the Government’s priorities have to be spread over

several strategic sectors in addition to education.

Education is getting more and more expensive.

Affirmative action is needed in addition to the commitment and

endeavors of the Malaysian Government

Looking at past successes, the answer is definitely

“YES”.

Researchers and scholars have put forward

proposals to apply the waqf concept in education

development and the provision of education to

facilitate a more affordable and sustainable

education industry.

The world-famous University Al-Azhar is evidence of

the successful role of waqf (originate from a past

practice and still going strong and looking good for

the future).

Cash Waqaf

Proceeds from waqf Investment / Properties

Sukuk and Redemption by Cash Waqf

waqf for college / school / madrasahdevelopment

waqf for students’ accommodation /hostels

waqf for administration expenses

Waqf

muttawalli

Specific Cash

Waqf for Education

(collection from

the public/society)

Waqf Higher Education

Institution

Proceeds utilised to finance

building/development

Only need to cover

administration costs as

building fully paid by

waqf

Waqf

muttawalli

Specific Cash

Waqf for Education

(collection from

the public/society)

Proceeds utilised to finance

development of hostel

Waqf Hostel

Minimal accommodation

charges to cover

administration costs as

building fully paid by

waqf

Waqf

muttawalli

Specific Cash

Waqf for Education

(collection from

the public/society)

Investment in

commercial

properties, plant

ation estates

etc. (waqf

assets’ in the

form of

permanent

assets) for

economic

returns

Net returns

from the

investments

Net returns less administrative

expenses channeled for education

Lower fees as operational costs are

subsidised by waqf assetsHigher Education

Institution

Waqf

muttawalli

Specific Cash

Waqf for

Education

(collection from

the

public/society)

Cash Waqf

proceeds redeem

sukuk

Finance the

development

Higher Education

Institution becomes

a Waqf

Sukuk

Holders

Converted into

Waqf Asset

Lower fees at a level sufficient to

cover administration costs as the

costs of development will have

been fully paid

Land

(MAIDAM)

Funds

(YWM)

Perbadanan

Wakaf

Nasional

Berhad

Training Academy and Hostel

Manager

Academic & Syllabus (Giat

MARA)

ZakatFinance Training

CostsTrainees

(Asnaf)

As a special purpose vehicle for JAWHAR in developing and

managing waqf projects, YWM has its own Waqf Fund

Distribution Model.

MALAYSIAN AWQAF FOUNDATION

NO.13, JALAN DIPLOMATIK 2/2

PRESINT DIPLOMATIK PUTRAJAYA

PRESINT 15

62050 PUTRAJAYA

THANK YOU