Kuala lumpur: 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 emphasized the necessity for universities to create their own financial ecosystems sustainably and with integrity while maintaining government support as a significant factor.
According to BERNAMA News Agency, Professor Dr. Mohd Shafry Mohd Rahim stated that financial sustainability is crucial for the independence of higher education institutions. With rising operating costs, rapid advancements in research technology, and fierce competition for top academic talent, universities must ensure that students from low-income families are not marginalized due to financial constraints. He noted that a strong and diverse financial foundation would enable universities to offer scholarships, enhance learning facilities, fund impactful research, and respond swiftly to budget cuts or economic crises.
Dr. Mohd Shafry highlighted the experiences of world-renowned universities like Harvard, Yale, and Oxford, which demonstrate the importance of endowment funds in building institutional resilience. In Malaysia, he proposed strengthening financial strategies through endowment, zakat, and waqf to form an inclusive and sustainable social finance ecosystem. Endowments provide long-term resources that generate continuous returns, while zakat targets the asnaf group, including students in need, ensuring that poverty does not hinder access to education.
He explained that endowments, whether in cash or assets, offer long-lasting benefits such as scholarships, residential colleges, laboratories, and research centers. At UTM, this approach is embodied in the UTM Endowment Fund and various zakat and waqf initiatives to support undergraduate and postgraduate students, reducing dependence on funding from the National Higher Education Fund Corporation (PTPTN) or external scholarships. This allows students to focus more on learning, research, and personal development.
Dr. Mohd Shafry urged a paradigm shift wherein alumni, university staff, industry partners, corporate figures, and the community view contributions to universities as future investments for the country. UTM is organizing the UTM Royal Gala Dinner, under the patronage of the UTM Chancellor, to bring together philanthropists, corporate leaders, and alumni to gather contributions for the UTM Endowment Fund.
He concluded that the independence of 21st-century universities is no longer solely measured by annual allocations but also by their capacity to build financial strength while maintaining 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.