Malaysia’s Government has allocated RM297 billion for 2020’s Budget, an increase of RM19.5 billion from 2019. Ministry of Education received the largest allocation with RM64.1 billion.

Key Highlights

• RM735 million to build and upgrade schools; expecting to build more schools in Kedah, Johor, Kelantan and Terengganu.
• RM785 million to upgrade poorer schools in East Malaysia
• RM5.9 billion to strengthen synergy between public and private sectors, in order to improve Technical and Vocational Education and Training’s (TVET) graduate outcome. TVET students also receive an extra allowance.
• RM1.3 billion for educational institutions under MARA
• RM2.0 billion to finance loans for 50,000 students. However, exact allocation and types of loan are not specified

Other relevant points

• A total of RM6.5 billion is allocated to improve Malaysian graduate employability. The Government is expecting to create 350,000 jobs in the next 5 years
• The Government sets aside funding to encourage Malaysians to take professional certification exams in Industry 4.0 related courses
• E-commerce and other digital services might expect a boost due to Government’s effort to digitally enable medium-sized enterprises
• Through Malaysia Digital Economy Corporation (MDEC), SME Bank and other relevant organisations, the Government is aiming to cultivate more entrepreneurs
• Social entrepreneurship received significant attention from the new Government as well, with budget allocation of RM10 million
• Arts, cultural and international sporting events can apply to have their income tax exempted. On top of e-Sports’ RM20 million budget allocation

Commentary by Tiu (kianwee.tiu@britishcouncil.org.my)

Despite the large allocation for the Ministry of Education, the ministry’s focus will still mainly be on basic education level (primary to secondary schools). The Government is aiming to build more national schools. However, it is noteworthy that the number of students enrolling into national secondary schools had dropped by 27,782 students to 1,792,083 students in 2019. Chinese Independent Schools and International Schools, on the other hand, are receiving more enrolments (MOE, 2019).

TVET sector is currently undergoing a reformation with the focus to unify the accreditation and improve TVET’s recognition in Malaysia. Major efforts are in place to improve TVET sector, its providers and graduate outcome. TVET providers are actively seeking for collaborations and showcasing opportunities.

Despite an allocation of RM20 billion to finance student loans, the Government has yet to release the exact breakdown of allocation and mechanism of application. However, based on recent trends, the loans will most likely be used to keep students in the country.

The Government is advocating for Malaysians to take back the jobs from foreign workers, while at the same time trying to increase the availability of high-skill jobs. Education institutions and industries are encouraged to collaborate to produce quality and workforce-ready graduates. 

UK institutions doing direct student recruitment in Malaysia should be aware of the government’s key focus areas: e-commerce, digital marketing, entrepreneurship, social entrepreneurship, arts and e-Sports.