Green Sukuk and its challenges faced by public universities in Malaysia: An empirical study

A public university in Malaysia, in addition to providing educational services, also engages in commercial activities through its subsidiaries that operate in the solar power energy industry. The subsidiary company of this public university (SCPU) has issued Green Sukuk as a means of funding its com...

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Bibliographic Details
Published in:Islamic Green Finance: A Research Companion
Main Author: Karim N.A.; Muhamat A.A.; Nizar N.; Senawi A.R.
Format: Book chapter
Language:English
Published: Taylor and Francis 2024
Online Access:https://www.scopus.com/inward/record.uri?eid=2-s2.0-85206035988&doi=10.4324%2f9781032672946-24&partnerID=40&md5=2d2ccc83c6d42c92299cf5941cec0204
Description
Summary:A public university in Malaysia, in addition to providing educational services, also engages in commercial activities through its subsidiaries that operate in the solar power energy industry. The subsidiary company of this public university (SCPU) has issued Green Sukuk as a means of funding its commercial activities. The objective of this study is to examine the difficulties and barriers encountered by the SCPU, which is owned by a university and lacks expertise in solar projects, in issuing the Green Sukuk. The study employed semi-structured interviews with key informants who possess expertise in this particular sector as part of its approach. The study also extends its methodology by examining the literature on challenges and obstacles faced by public universities, in general, in implementing Green Sukuk. The study identified many concerns and obstacles that the company has in relation to Green Sukuk. These discoveries may motivate policymakers to develop future recommendations on Sustainable and Responsible Investment (SRI) Sukuk to enhance its attractiveness to both domestic and foreign investors, issuers, and regulators. Several suggestions were proposed based on consideration of the study’s comprehensive results. © 2025 selection and editorial matter, Mohd Ma’Sum Billah, Rusni Hassan, Razali Haron, Romzie Rosman and Akhtarun Naba’ Billah.
ISSN:
DOI:10.4324/9781032672946-24