Green sukuk issuance: a case study of public university in Malaysia

Amirul Afif Muhamat, . and Nurhuda Nizar, . and Azhan Rashid Senawi, . and Norzitah Abdul Karim, . and Salina Kassim, . and Heazar Ismail, . (2024) Green sukuk issuance: a case study of public university in Malaysia. Journal of Sustainability Science and Management (Malaysia), 19 (11). pp. 211-223. ISSN 2672-7226

Universiti Teknologi MARA (UiTM) is one of Malaysia’s premier public universities, offering a wide range of courses, from pre-diploma to postgraduate studies. In addition to its educational services, the university engages in commercial activities through its investment arm, UiTM Holdings Sdn. Bhd. One of its subsidiaries, UiTM Energy and Facilities has ventured into the solar power sector, which is managed by UiTM Solar Power Sdn. Bhd. (USPSB). To finance its operations, USPSB has issued green sukuk. This paper aims to investigate the factors driving USPSB’s entry into the green industry and examines the challenges it faces as a university-owned company with no prior experience in solar projects. The study utilised a single descriptive case study design and included semi- structured interviews with experts in the field. The findings revealed five push factors and two pull factors that influenced USPSB’s decision to enter the sector, as well as the primary motivations for issuing sukuk instead of other debt instruments. The study highlighted the issues and challenges USPSB encountered in dealing with green sukuk and provided recommendations to enhance the attractiveness of sustainable and responsible investment sukuk for investors, issuers, and regulators.

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Abstract

Universiti Teknologi MARA (UiTM) is one of Malaysia’s premier public universities, offering a wide range of courses, from pre-diploma to postgraduate studies. In addition to its educational services, the university engages in commercial activities through its investment arm, UiTM Holdings Sdn. Bhd. One of its subsidiaries, UiTM Energy and Facilities has ventured into the solar power sector, which is managed by UiTM Solar Power Sdn. Bhd. (USPSB). To finance its operations, USPSB has issued green sukuk. This paper aims to investigate the factors driving USPSB’s entry into the green industry and examines the challenges it faces as a university-owned company with no prior experience in solar projects. The study utilised a single descriptive case study design and included semi- structured interviews with experts in the field. The findings revealed five push factors and two pull factors that influenced USPSB’s decision to enter the sector, as well as the primary motivations for issuing sukuk instead of other debt instruments. The study highlighted the issues and challenges USPSB encountered in dealing with green sukuk and provided recommendations to enhance the attractiveness of sustainable and responsible investment sukuk for investors, issuers, and regulators.

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Item Type:	Article
AGROVOC Term:	solar energy
AGROVOC Term:	financing
AGROVOC Term:	investment
AGROVOC Term:	insect growth regulators
AGROVOC Term:	public sector
Geographical Term:	Malaysia
Depositing User:	Mr. Khoirul Asrimi Md Nor
Date Deposited:	15 Jul 2026 03:24
Last Modified:	16 Jul 2026 14:51
URI:	http://webagris.upm.edu.my/id/eprint/4913

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