Lately, in order to having the high
quality of education system for students in every universities, this will make
the universities facing the higher cost and limitation on their budgets. In
order to prevent that kind of difficulties to universities for conducting their
education activities, they need to develop several funding strategies to
enhance source of income, diversified the portfolio of income, and shift to a
more commercial mindset for achieve the goals of financial sustainability. In
that way, there are several reasons why universities need to enhancing source
of income, this is because of:

a)   
Economic
Context.

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This is because
of the current condition of Malaysia economic, which is when the cost of living
is increasing such as price of fuel, basic needs, and others, so this give
pressures to the public financial plan in which that will direct to the
rationalism of public funding. In order to overcome this difficulty, there have
several major alternatives that have been stated on the Malaysia Education
Blueprint 2015-2025 (Higher Education) in developing financial sustainability
models for universities.

 

b)   
Dependency
on Public Funding.

This is because basically
the Malaysia university both public and private are mostly relies on government
funding, tuition fees, and student loans. Today, more than 90% of government
fund have been expense towards public universities. In that way, the
universities should explore several alternative ways of generating income from multitude
of sources in order to make them stronger, more flexible, and financially
sustainable.

 

c)   
Risk
Mitigation.

Due to the
public pressure on current condition of Malaysia economic, this is important for
them to make diversified their risk by making portfolio funding. By following the
prerequisite, the Malaysia universities may find themselves in enhancing the income
generation to sustainable the growth.