The Malaysian federal budget 2017 presented last week revealed both good and bad news for the education sector. A total of MYR262.8bil was disbursed, an increase of 3.4 per cent from the recalibrated 2016 Budget. A large percentage of the budget (20 per cent or MYR52.4bil) was allocated the education sector, a similar trend to previous years.

MYR4.3bil has been allocated for scholarships, with MARA receiving the largest share:

• MYR2bil – MARA
• MYR1.6bil – Public Services Department (JPA)
• MYR250mil – Ministry of Higher Education (MoHE)
• MYR208mil – Ministry of Health (MoH)
• MYR194mil – Ministry of Education (MoE)
• MYR28mil – Ministry of Human Resources (MoHR)
• MYR21mil – Ministry of Youth and Sports (MoYS)

Despite the increase in the overall budget, the Ministry of Higher Education’s (MoHE) allocation was slashed about 9 per cent. All public universities in Malaysia saw their combined operating expenditure slashed by 19 per cent. The National University of Malaysia (UKM) suffered the most, with a whopping 31 per cent cut. All five research universities saw a budget reduction of no less than 20 per cent.

The good news however, is that a MYR7.4bil allocation will be awarded to the 20 public universities:

• MYR1.4bil for the four university hospitals
• MYR300mil for empowerment of the five research universities
• MYR100mil to foster research culture, increase publications and intellectual properties

Besides higher education, allocations are also made to develop the capacity of the local workforce. The technical and vocational education and training (TVET) sector received an allocation of MYR4.6bil. A large percentage of the sum is for the development of TVET institutions, especially in infrastructure. The Skills Development Fund Corporation (PTPK) will receive MYR360mil and MYR50mil will be earmarked to enhance graduate employability.

Commentary by Jennifer Wan, British Council Malaysia

Looking at the budget allocation for the education sector, it is unlikely that the generous scholarship provisions that were once awarded to Malaysian students to study abroad are going to be reinstated in the near future. The Malaysian government is seen to be taking measures to reduce spending, especially forcing public universities to be less reliant on government funding.

After the recalibrated 2016 budget, it was reported that a total of MYR684 million in scholarships was disbursed under the JPA scholarships, RM133.1 million under the MoE, RM62.2 million under MoHE and RM153.5 million under MoH.

Allocations, however, are seen to have been channelled to initiatives which will drive the ambitions of the country’s education blueprints. These include initiatives such as development of TVET, graduate employability, academic research and science, technology and innovation. Scholarships for the Ministry of Higher Education are also meant to develop academics in the public universities in the country.