Issues and Economic Role of Waqf in Higher Education Institution: Malaysian Experience

As early as 1980, the Malaysianfederal government's spending on education, was the highest in East Asia andhigher than the OECD average of 3.4% of GDP. This demonstrates that theMalaysian Government has big expenses from educational sector and respectivelyis amenability for Malaysian economic budget. In other side Waqf in Malaysia isone of large financial source that has not been fully explored. By using qualitative methodology through content analysis this paper attempt to explore the issues andeconomic role of Waqf in Malaysia, especially in Higher Education Institution(HEI) and attempt to study how Waqf fund empowering the education. Thisstudy found that taking the que from the institutions of Waqf, the explorationand development of waqf fund can be exalarate through the formation of formalorganizations at state and federal level and rearrange the Malaysian educationalbudget and policy to support the better quality of HEI.DOI: 10.15408/aiq.v8i1.2514


Introduction
The concept of waqf (pl: "Awqaf " and "wuquuf") or in another terms is an "endowment", was developed by the Holy prophet Mohammad (SAW) and has played a vital role in fulfilling the needs of socio-economic of the Ummah. The term waqf is used in Islam to describe certain property, which is held and/or preserved for the confined benefit of any philanthropy use and disposition of it outside those specific objectives is thus prohibited. Thus, zakah and waqf can be set as an alternative solution to the poverty as a major obstacle in several modern Islamic countries.
We may begin by looking at the meaning of waqf from an everyday point of view to compliment the various definitions by language terminology or by scholars, which are plentiful if we search the Internet. Thus, waqf refers to a property or asset donated by its owner for the cause of Allah in perpetuity (forever), to be used for philanthropy for the benefit of the community or the public. Once the asset is made a waqf, it cannot be revoked, meaning that the donor of the waqf property cannot cancel this act and repossess or take back this property. Also, once the asset becomes a waqf asset, it can no longer be inherited nor sold.
Although Waqf is in fact a permanent form of endowment, but we should note that the act of performing a waqf is a voluntary act, and it is not compulsory as compared to zakat (giving alms), which becomes compulsory on a Muslim when his or her wealth reaches a certain minimum amount (Nisab). I have deliberately highlighted the phrase "a portion of one's assets" to highlight that Islam is a practical religion as we are encouraged to give or donate only a certain percentage of our wealth and not all of it. Waqf has four pillars, which forms the components or basic ingredients, for a transaction to become a waqf. As in any act of charity or philanthropy, the donor or benefactor (termed as waqif) is the person who has complete ownership of the asset or property, which is to be made waqf. Complete ownership means that the asset or property is free from any claims or encumbrances, meaning that a property, which is under mortgage or which is secured as collateral to a loan, does not constitute complete ownership by its registered owner.
The property or asset selected for waqf (termed mauquf) must be a Syariahallowed asset of value that is identifiable, quantifiable and non-perishable. For instance, a waqf of wine is invalid and items such as food or medicine cannot be made waqf as it perish on consumption. The intended beneficiary or recipient of the proceeds and benefits of the waqf asset (termed mauquf 'alaih) must be alive (cannot be a deceased person) who can be a specific group, the community or the general public. In a waqf, the donor/benefactor or waqif can also be one of the recipients http://journal.uinjkt.ac.id/index.php/iqtishad DOI: 10.15408/aiq.v8i1.2514 of the benefits of the asset he/she made a waqf. For instance, if I donated a piece of land as waqf and build a school on it, I can send my son or daughter as a student of this school. The waqif must demonstrate intent to establisha waqf via explicit or implicit statement to do so (termed sighah). Waqf is consummated when the waqif puts it clearly that he/she wishes to specifically make the subject property/asset into a waqf whereby the sighah or the form of agreement is decisive and clear, and not conditional on certain event(s). Waqf traditionally used for religious purposes, such as for Imam's salary, religious education, build a mosque and or to fund mosque's running expenses and so on. This kind of waqf categorized as Religious Waqf. It helps community to reach their religious satisfaction needs and to reduce the cost in providing religious facilities in the future. Unique things is, in the Islamic religious Waqf is that the Shari`ah did not give any religious bodies, persons, or leaders managerial privileges or beneficiary's rights on any religious grounds. An Imam or preacher may be entitled to certain benefits from the revenues of a religious Waqf on one ground only, that is, if the name or position is assigned such benefits by the Waqf founder. We might came to conclusion that waqf adds another feature which is, waqf supposed ran by a legal body in order to create a boundaries between waqf founder and waqf itself in regarding benefit or distribution of waqf. Expected, by the civil management, waqf will have its' own framework, objectives, documentation and regulations to manage the waqf output.
Second type of Waqf is Philanthropic Waqf, which its' aim is to help the poor-society segment and support all the public facilities needs such as, public utilities, health services, public library, public transportation, public land-structure, and so on. Began by Prophet Muhammad PBUH, Umar who asked the Prophet, peace and blessings be upon him, what to do with a palm orchard he owned in the city of Khaibar and the Prophet, peace and blessings be upon him, said: "Give it in charity (i.e. as an endowment) with its land and trees on the condition that the land and trees will neither be sold nor given as a present, nor bequeathed, but the fruits are to be spent in charity."(Bukhari) The third Waqf is, Family Waqf. This type of waqf, actually, let the family have the fruits and the revenue. If only the Waqf has surplus, then it is allowed to distribute to the poor. The idea is arisen, and moralities of philanthropy we can simply mark a illustration that family Waqf is in fact bountiful in substance because it gives revenue/usufruct to individuals with no charges and it advances the welfare of forthcoming generations also reduces the future social welfare burden of philanthropies/governments. Basically, The Waqf development in Malaysia is constantly bright and inspiring with the full support by the Malaysian government but as we known still not much elaborated in context relation to the higher education institution. Hence this paper aims to study and review what are the issues, challenges, and future directions of waqf based higher educational program in Malaysia.

Literature Review
Refer to Chowdhury, Ghazali and Ibrahim, (2011), the continuous existence and operation of any organization is crucial and depending on financial health. In the case of waqf, this matter is more essential because productive endowed assets are left idle due to insufficient revenue to sustain operational costs. As one of the mechanisms in the Islamic economic system, Waqf, is a perpetual voluntary charitable act (Sadeq, 2002), to promote equitable and just distribution of wealth. More over Singer, (2008) has stated that the contributions of waqf in the political and socioeconomic growth and development of Muslim countries and communities over the years were so pertinent so much and has been labelled as the most visible evidence of charity in Islam. Waqf assets were instrumental in providing social and economic safety valves through its role in promoting religion, education, shelter, health, food security and rural-urban transformation. Therefore in the tenth century, waqf has been replaced zakat as the vehicle for financing social economic development in Islamic societies (Singer, 2008).
In the modern era, Pirasteh (2011) has investigated the economic and operational efficiency of government and private-administered waqf in Iran. By using two ratios: the ratio disbursement to proceeds (which they termed the objective achieved index) and the ratio of remaining balance from years to total earnings (which they termed the expected income achieved index), they measure the extent of achievement to which the institution is fulfilling its objectives while the latter measures the degree to which the institution is able to maximize the generation and collection of waqf income while minimizing uncollectable earnings. They found that that privately-managed waqf performed better than governmentmanaged waqf.

Methods
The above background leads us to develop a study that will be spread out through particularly purposes and methodology. The purpose of this study was to investigate the role and issues of Waqf as one of sector financing and its development related to higher education institution. The functional mechanism of waqf linked to higher education institution in strengthening the socio-economic of ummah has not explained well, as well as government efforts to make waqf as http://journal.uinjkt.ac.id/index.php/iqtishad DOI: 10.15408/aiq.v8i1.2514 an instrument of macro economic development. This is among the reasons why this research is needed. By using qualitative description method through content/ documents analysis this research basically attempt to complete grounded theory to the relevance references pertaining to Waqf and others philanthropy fund.

Results and Discussion
As a developed country, currently Malaysia faces a great challenge. The future success, both socio-cultural and economic of the nation depends on quickly and significantly improving the outcomes of the nation's education system. The people are also demanding that initiatives launched by the Government are consistent, well executed, and deliver on their promised outcomes (Harun, et.al, 2014). The people agree that the better future of a nation may be predicted trough how the nation managing their educational system. Education plays a central role in any countries not just to pursuit the better of economic growth and national development, but to pursuit the better quality of human resources as well who can execute the economic development itself. It is understood that the nation with high quality of education level tends to the better economic prosperity also.
As one of emerging countries, the Malaysian government has emphasized the important of education. Various policies have been taken by the government to narrow the gap between Malaysia and other developed countries and to force the internal educational system. The society also has large and more easily to access the information on current education development worldwide. Nevertheless, there is still empty room need to elaborate well especially in term of collaboration between government and non-government or private institution. In harmonizing to World Bank advocacy for knowledge basic development, Malaysian Government has put down various steps, which accumulated, in three specific objectives and known as Malaysia Education Blueprint: first, understanding the current performance and challenges of the Malaysian education system, with a focus on improving access to education, raising standards (quality), closing achievement gaps (equity), promoting unity amongst students, and maximizing system efficiency; second, establishing a clear vision and aspirations for individual students and the education system as a whole over the next 13 years; third, outlining a comprehensive transformation programmed for the system, including key changes to the Ministry that will allow it to meet new demands and rising expectations, and to ignite and support overall civil service transformation.
The Malaysian federal government's spending on primary and secondary education, as a percentage of Gross Domestic Product (GDP), was the highest in East Asia. In 2011, the amount spent, at 3.8% of GDP or 16% of total Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics) Vol. 8 (1), January 2016 government spending, was not only higher than the OECD average of 3.4% of GDP and 8.7% of total public spending respectively, but also at par with or more than top-performing systems like Singapore, Japan, and South Korea. In 2012, with an education budget of RM37 billion, the Government has continued to devote the largest proportion of its budget, 16% to the Ministry and 4% to Malaysian Gross National Income (GNI). This demonstrates the very real commitment from the government for education as a national priority (see Harun, et.al, 2014). As one of important Islamic finance institution "Waqf " has been exists since the early Islam. "Waqf " is the catalyst institution to the economy and ummah development. These institutions also carry out the success of social warranty system in Malaysia besides others institution like "zakat", "sadaqah". Basically "waqf " not only as "ibadah" to Allah SWT, but it also have a wide meaning and overwhelm as an agent to the growth of all Muslims. Currently, the Waqf institution in Malaysia seems like not well function, causing by the certain constraints and problems besides the low social awareness of Waqf and it's management. The Malaysian government must overcome this constraints, increase the "waqf ' awareness among citizens and also make a brand new concepts to see the "waqf " institution in Malaysia thrive through around the globe. This is followed by issues and problems related to unsystematic waqf land registration at large. One of the issues of Waqf land in Malaysia was still over 70 % allocated in mosques, as shown in the table below:  Refer to MAIN (State Islamic Religious Council Malaysia) as well, there are many Waqf land which is still unregistered under MAIN, this problem occur due to lack of knowledge among the community regarding the waqf land registration system..The previous system adopted by the community is entrusting the Waqf land to the village leader or Imam that is led many of waqf land is unregistered. The problem is aggravated when the trustee is deceased and failed to bestow the waqf land to their next kin. Currently, the authority is hardly trying to ensure the entire Waqf land throughout the country soon will be registered in order to sustain the development. More over on the data, Malaysia has large size of waqf land to develop. If we estimate that Waqf land is 10% unregistered, meaning that the total of Waqf land is 20K hectares. This amount represents the potential impact of Waqf to the development, especially for the Moslem community.
In 1999, MAIN Selangor launched waqf certificate under Section 17 Waqf Enactment to encourage Moslem citizen have shares units, and all collected fund will debited into Cash Waqf Group Fund, together with income received from waqf properties then all fund will disbursed for usage of the Moslem, includes education, health, social and spiritual concerns. This scheme actually helps people who does not have high value asset such as land, buildings, but they can still take part on waqf. Kedah applied another system regarding waqf management. MAIN Kedah buy an asset or property, which this asset is for the usage of good deeds, and this property will divided to waqf, and sold to public then. This project called "Waqf Jemba". In the end, the public will purchase the land with estimation of one jemba is RM5 to RM30. Penang waqf management is manage through; (1) (Isa, et.al, 2011) As Quoting by Isa, Ali and Harun (2010), The Federal Territory manage Waqf land for the benefit of Ummah as follow, 1) Mosques, 2) Education centers, 3) Old Folks' and Orphanage, 4) Shelter centers, 5) A 34 storeys'A' class office building which will be rented out (ready in April 2011); 6) Dialysis Centre 7) Service apartments and 8) Waqf Share Scheme (see www.maiwp.gov.my).
Generally, by looking to the development Waqf in Malaysia over time we may accumulate several issues that counted as obstacles in managing Waqf property in Malaysia, as follow: First, law and legislation. The provisions of MAIN enactment, in term of Waqf not specifically provided as in the state of Selangor, Terengganu, Perak and Johor [see Baharuddin Sayin (2006), andAbdul Latif, et.al. (2006)] Due to the absence of this provision, there are some parties not responsible for the misuse of waqf, assuming that Waqf is the public domain that can be dominated and abused any time by simply arbitrary. Even now the Waqf is administered at the state level and provided in each of the Administration of the respective State, but the provisions of the Enactment of the Waqf is not exhaustive. It only emphasizes the administration and about simple procedure consecration. Substantive aspects are not emphasized even there is a conflict with the Islamic laws of Waqf itself (Mohd. Ali, et.al, 2006). For example, in restrictions the Waqf shall not exceed one-third of the property. This provision is also not assured and full recognition of the administration and management of the Waqf. This is due to the existence of restrictions and barriers and conflicts of jurisdiction between the State Legislature and Federal jurisdictions. By keeping the old law that is available, implications arises for the development of Waqf property. To overcome this problem, early action should be done through an amendment and approve the new rules specifically related to Waqf and the need for a broader interpretation of the number of sections contained in the available state enactments and other statutes should be consulted together. Among them are Akta Kanun Tanah  Second, social awareness. Understanding of the rights and responsibilities of the waqf property is still less attention by the society today. There are several cases related to Waqf properties and the society. Such as those who rent the Waqf land but categorized ineligible for that land because they are not from the poor group. There are also Waqf land cases sold by the children of the original tenant to a third party without changing the name of owner and with high prices not under MAIN authority. The first (the original tenant) who inhabit the land had long died and was succeeded by the beneficiary or his family (wife or children). There is also a Waqf land sold and legally renamed without an agreement.
There are also properties that given by Waqif involving land that has no economic value. The assumption can be made that their "the property given" is to avoid land tax or land does not bring any benefit to the owner, either for agriculture or other development. Similarly, the mentality of many Muslims still believes that the Waqf can be hovered just in a mosque or Surau. To overcome this problem so as not to drag and prolonged, profound understanding should be brought to the community about the importance of waqf to be used in common by all Muslims, especially to those who are entitled to enjoy. Public interest must take priority over private interests.
In addition, awareness of the importance of waqf for the whole community needs to be upgraded. Community must also act and concerned about preserving the trust responsibility of the waqf to make an immediate report to the MAIN if there is any invasion that occurred on land endowment. Selfishness will not achieve justice concept of community planning and development of waqf land will not be realized as long as this negative attitude is not changed.
MAIN also needs to encourage the people to dedicating more their property of surplus to others to increase the amount of Waqf in Malaysia, particularly in General Waqf . The endowed land is the land with economic value and viable strategy for development in the present and not just endowed from undesirable surplus property and not able to be developed by the causes as mentioned before.
Third, commerciality in financial institution. Since the Ottoman period, reported that many of public utilities such as health services, education, and community welfare services, is provided by waqf system. Quoting Zuki as stated on Boudjellal (2008: 125), currently, the potential of waqf organizations is substantially unrealized. It is the conventional philanthropic institutions that are functioning more effectively. Therefore, there is a strong need to re-evaluate the current waqf institution and its needs. Efforts are also needed to develop a better approach for its financial management to increase its efficiency and performance.   only need to be improved and intensified. Both parties must also "walkabout" launch campaigns, awareness courses to all members of the community about the Waqf, formed a special committee, and seek Waqf funds by large interestedcompanies in developing the Waqf property in Malaysia. Inadditional, in efforts to streamline the management of Waqf across the states in Malaysia also needs to be done, it is seen as being able to improve the quality of management of Waqf properties itself in Malaysia.
MAIN's management is related to waqf properties in Malaysia, MAIK also practiced the same system as MAIS (Selangor). Other than that, joint ventures in agriculture and farming with government agencies such as FAMA, MARDI, RISDA and many morecan be done to enrich waqf properties as done by MAIJ (Johor). To improve to a more efficient and effective database, MAIK can follow the example of JAIM (Malacca) (Isa, 2011) Waqf asset usually regulate by an institution, called Baitul Mal. That is the reason why BM performance on efficient waqf management is a mandatory. Currently, BM concept has shown narrowing down regarding its function and its role in the Economy. The actual fact is far beyond the truest sense of BM concept back in the glorious time of Islam. Indeed, the distinction between those eras is due to economy climate changes. Nevertheless, the implementation of BM concept nowadays has degraded and need to be improved on its services.
Waqf Unit Divisionis one of small division, joint with BM unit and led by several MAIN staffs who responsible regarding the property and other matters.. Based on that fact, it is clearly showed that MAIN has limited staff and labor that can run the waqf administration; this is the major problem for them to run waqf administration smoothly. It is impossible to plan and execute the program perfectly. Staffs are pushed to bear all the responsibilities, which involved two large institutions at the same time, BM and Waqf. If we refer to the development of the two institution, apparently MAIN is preferably and focusing on BM institution. Possibly due to certain factors, waqf institution is less noticeable regarding its role and its function, which is, shall be conducted.
The implication of the merger of two institutions is, indirectly will effect the jurisdiction allocated to Waqf Unit become restricted and limited. . The overlapping of job description will also lead narrow down staff's authority. Thus this issue will give impact in determining policies and decisions of the project implementation. Waqf Unit had to go through rather complicated process. Any project should have permission from the Council and providential by the KDYMM al-Sultan. Hence Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah (Journal of Islamic Economics) Vol. 8 (1), January 2016 this imbalance scenario will affect the entire aspect of waqf administration including development and financial, hand-over ownership, data provision and information, location monitoring and waqf land rental, and other. This negative impression resulted on relatively slow and difficult to take an action.
Public spending on education; total (% of government expenditure) in Malaysia was last measured in 2013, according to Ministry education consists of current and capital public expenditure on education includes government spending on educational institutions (both public and private), education administration as well as subsidies for private entities (students/households and other privates entities) in Malaysia shown as Table 5: While economic/financial institutions are a very large component of the Islamic reforms undertaken in the last 25 years, there also have been very important developments in supporting areas, especially in the education and legal spheres. The first was the establishment of the International Islamic University Malaysia in 1983. Although originally envisioned as an institution funded by the International Islamic community, the government of Malaysia has almost exclusively backed the IIUM. To date, the IIUM offers an integrated curriculum in courses such as economics, law, Islamic revealed knowledge, education, human/social sciences, engineering, architecture, medicine and basic sciences, taught in English (with some courses in Arabic). The underlying mission of the University is to produce graduates who are not only professionally competent, but imbued with good values, from an Islamic perspective. Since its first graduates in 1987, the IIUM has so far produced more than 20,000 graduates who have joined both the public and private sectors. In addition, the university is involved in providing diplomas and other short courses to Qadis (Shari'ah court judges), lawyers, businessmen and members of the public on various aspects of Islam related to their own fields.
In 1987, through the IIUM, the government set up the International Institute of Islamic Thought and Civilization (ISTAC), under the Directorship of Malaysian scholar Syed Muhammad Naquib al-Attas, with the objectives of promoting and undertaking more serious research in the fields of Islamic thought and civilization. In 1992, the Institute of Islamic Understanding (IKIM) was set up under the auspices of the Prime Minister's Department with the objective of providing a proper understanding of Islam, its principles and values to all Malaysians, especially the non-Muslims. In the mid 1990s, the government also set up the Islamic University College of Malaysia (Kolej Universiti Islam Malaysia), which was later renamed Islamic Science University of Malaysia (Universiti Sains Islam Malaysia), to provide more opportunities for students, especially those coming from religious secondary schools, to pursue their higher education in all professional areas by combining knowledge from both revealed and human sources of knowledge.
In early millennium decade, 2001, Research Center for Islamic Economics and Finance University Kebangsaan Malaysia (EKONIS UKM), was established as centre of excellence by Ministry of Higher Education. The primary objective of EKONIS is to foster research advancement in the fields of Islamic economics and finance. To support this objectives, EKONIS fully activities include research, publications, organizing workshop, and roundtable discussion. EKONIS attempts to distinguish itself in terms of high reputation in academic achievement, teaching excellence and make and oustanding contribution to the Islamic economics and finance fields. to support the global development of the Islamic financial services industry in Malaysia. Human intellectual capital plays a pivotal role in driving the performance and market competitiveness of the industry. Going forward, it will be the defining factor. The fast pace of innovation in global financial services in general and in the Islamic financial services sector in particular, will demand new expertise and skills. Indeed, there will be an increase in demand for adequately qualified professionals. In this environment, the creation of a substantial pool of talent and expertise is thus indispensable for the future growth of Islamic finance. Strengthening research and development capabilities is also important for enhancing the capacity for innovation to meet the diverse requirements of the rapidly changing global economy.
In associated with promote applied research in the area of Shari'ah and Islamic finance, Bank Negara Malaysia established International Shari'ah Research Academy for Islamic Finance (ISRA) in 2008, who will also act as a repository of knowledge for Shari'ah views or fatwas and undertake studies on contemporary issues in Islamic financial industry. ISRA will contribute towards strengthening human capital development in the areas of Shari'ah and provide platform for greater engagement amongst practitioners, scholars, regulators, academicians via research and dialogues, both in the domestic and international environment. Through pioneering research and rigorous intellectual dialogue, ISRA aims to promote innovation and dynamism into new boundaries of Islamic finance. It is envisioned that with greater research and dialogues, mutual respect and recognition would emerge within Islamic financial industry global community.
The presence of some Islamic finance as institution or research centre provide large opportunities for the contemporary Muslim ummah to revive the best of past Islamic traditions in envisioning and realizing the central role of awqf in the development of the ummah's education, particularly at the college and university levels. There is a real need to re-examine the awqf tradition as a source of societal values and as an institution in the light of contemporary challenges facing the ummah in the field of education. It is with this awareness that all Islamic Finance institution consider the choice of the role of awqf in the development of Islamic higher education as its theme as most appropriate to the ummah's current public needs. The main hope is that opportunities will help to break new grounds and chart new directions in Muslim thinking and practices on awqaf-based higher education.
As we already known that Waqf as an endowment can be used as a source of funds to facilitate education program, especially higher education institutions. Regardless currently waqf is more in the form of fixed assets, accordance with its philosophy the word waqf means to hold. Furthermore, waqf can be interpreted as follows, in order to withstand the physical value of waqf is should unchanged / decreased; only the benefit of the assets may be used. The concept of waqf can be considered or as to the liberation of a servant (a person who requires the need for education as a primary / daruriyat) to the educational needs.
The Malaysian government expenditure in education is in very significant amount, thus limiting the movement and the expansion of the education system, in a certain way, due to budget constraints, might causing longer time to achieve certain targets. Thus this paper drawing a waqf thought and management as capable framework to fit and can be the flexibly source of funds to facilitate and empower the education activities especially in higher education institution.
If we see the principle of waqf definition, to hold, than we can redefined and review the meaning of waqf itself, it to preserved, to maintained the value of waqf, so the assets will have no decreasing in terms of value. Here, Waqf is containing value element. That value we bring forefront and proposed for unifying ground for diverse opinions. The matter of traditional waqf, (form of fixed asset, movable asset or intangible) may change hand physically, as long as its value is preserved, so, the philosophy of waqf will not shifted.
The benefitof this idea is a switch from non-liquid capital to liquid capital; that the subject matter of waqf, just like in the case of cash which may change hands, can be sold and charged, if (i) the disposal is in the interest of the waqf, (ii) complies with general principles of Shari'ah and (iii) is suitable to the nature of waqf. Their value, that provided always kept as waqf, and for the same purpose, in perpetuity. This corresponds to the spirit of the hadith, and as al-Salahat contends, should be decided according to the interest of community, nature, or need of waqf, and the demand of time and circumstances [Al Salahat in Sabit and Hamid 2006)] Waqf is expected to alleviate the burden of government budget in education cost for all citizens. Following to the current waqf issues, as mentioned earlier, there are many waqf and or waqf assets is unregistered and not utilized yet. Therefore the waqf management still needs improvement in all aspects, including the governance of waqf asset inventory. Furthermore, existing waqf assets can be utilized to facilitate education either directly (waqf land or building / fixed property assets can be used as an office building/campus building) and indirect (waqf assets that produce high profits to be used for education fund). Consequently, Waqf cash can be applied to for building/office manufactory at waqf land, orto facilitate operational cost such as scholarships, providing books, staffs and lecturer salaries and other costs.
The partnership between the Government and Private sector in education sector is necessary. Both parties should take role and has the same responsibility to achieveeducation sustainability program. From the collaboration, it is expected, that, waqf institution initiation will be able for waqf assets both fixed and liquid assets to be managed, and in the end the benefit obtained from the assets management is proficient to facilitate the education program. In the long term, private sector with government will achieve the objective, to sustain the education system.
To empowering Higher Education Institution continuously, we cannot depend on non-solid-foundation only because sustainability of education system need sustainability of Waqf governance also as one of source of education fund, to lay this burden over the government is not wise. The government might have certain targets and limited budget in term of National economic account. But supporting to this governance, the policy makers are required also to derive a regulations regarding waqf asset management comprehensively. Hence, Waqf prospectus can be utilized to facilitate the ummah welfare needs, especially in higher education institution as combination between social awareness and government economic policy.
Basically, Waqf concept has developedalso by western society trough the "Endowment"Fund. Refer to investopedia, endowment fund isan investment fund set up by an institution in which regular withdrawals from the invested capital are used for ongoing operations or other specified purposes. Nonprofits, universities, hospitals and churches often use endowment funds. They are funded by donations, which are tax deductible for donorsan endowment fund is a permanent, self-sustaining source of funding. Endowment assets are invested. Each year, a portion of the value of the fund is paid out to support the fund's purpose, and any earnings in excess of this distribution are used to build the fund's market value. In this way, an endowment fund can grow and provide support for its designated purpose in perpetuity.
There are two basic types of endowment funds -true endowment and quasi endowment. A true endowment is defined as an endowment in which the donor stipulates that the corpus must be held inviolate and in perpetuity and invested to generate income to be spent for a specific purpose. Funds that are designated as endowment by the governing board of an institution (Board of Trustees) are called quasi endowment. These funds are also invested for the purpose of generating expendable income for a given purpose, but, as the funds are internally designated as endowment, the governing board can decide to spend the funds at any time. In some cases, donors will allow for the corpus of their endowment to be spent. This is also categorized as a quasi endowment. To spend the principal of a quasi endowment fund requires Board of Trustee approval or donor authorization.
Development of educational institutions such as Harvard, Oxford and Cambridge has done through the concept of Waqf. The report "The Sutton Trust Report (2003)" states: "the way forward is through endowment." The report states that endowment may be used to "invest in new facilities; Chairs ... pay for specific or general academic posts; undertake research, and pay Researchers competitively and

Conclusion
This research conclude and expected can be facilitate and provide some considerations to the policymaker to develop a superiorly and successful economic development planning linked to particularly Waqf variable. Waqf fund injection can reduce the government expenditure for specific purposes, especially education. This fund will cover education expenses entirely such as its operational cost, books, teachers and staffs salary, including student scholarship. There are two channels for waqf to be disbursed for the education; whether it will inject to education fund directly or to be invested. Based on the several Issues and challenges, we may offer some suggestive measures as basis to overcome the issues in developing better education trough Waqf financing, such as: First, waqf istibdaly (from perpetuity to un-perpetuity). Second, university as waqf center of excellence.
According to Sabit and Hamid (2006), the perpetuity of dedication is intended but the perpetuity of the object is subject to interpretation. Following the provisionson the inalienability and non-transferability of the subject matter of waqf, this is followed by the decision of the court in Re Dato Bentara Luar Decd Haji Yahya Bin Yusof & Anor V. Hassan Bin Othman & Anor (1982) 2 MLJ 264, one would presume that both the perpetuity of dedication and its subject matter are intended in the meaning of the term perpetuity which is confirmed by the practice in Malaysia.