Budget 2017: The Education Sector

Although the overall Budget for the coming year received a 3.4% boost as compared to the 2016 Budget, the amount allotted towards the higher education sector fell short.

Here are some of the Highlights for the Higher Education:

• RM4.6 billion allocated to TVET institutions, in line with the MOHE’s prediction that the demand for TVET workers will increase to 1.3 million by 2020
• RM4.3 billion allocated for scholarships
• 10%-15% discounts on PTPTN loan returns, to encourage loan repayment
• RM7.4 billion allocated to 20 public universities, inclusive of RM1.4 billion for four university hospitals and RM300 million for research universities
• BB1M vouchers to be replaced with RM250-worth student debit cards for more flexibility and feasibility
• RM570 million allocated to reconstruct destitute schools, RM478 million for the construction of new schools throughout the country
• RM90 million allocated for the improvement and expanding English Language proficiency through a variety of programmes

Noteworthy Improvements

The country is still on-track towards its commitment to fulfilling its aspirations, as stipulated in the Malaysia Education Blueprint 2015-2025 (Higher Education), especially regarding the quality of students, institutions, and the overall system.

With the increase of budgets allocated to public universities, particularly to the research universities, it is expected that the five institutions will yield more studies beneficial not just to increase their academic standard in rankings worldwide, but to benefit the nation as well.

Further, the focus on TVET institutions is a welcome development. With the additional allocated budget, Academic and TVET pathways are now becoming equally valued and cultivated.

Despite the chaotic first half of the year, with students fearing of losing their scholarships, the government promises to continue providing financial assistance through Public Science Department (RM1.6 billion), MARA (RM2 billion), Ministry of Higher Education (RM250 million), Ministry of Health (RM208 million), Ministry of Education (RM194 million), Ministry of Human Resources (RM28 million), and Ministry of Youth and Sports (RM21 million).

The Setbacks

For the second year in a row, the amount allotted for the higher education budget has been decreased, an RM1.46 billion difference, or 19%. Higher Education Minister Datuk Seri Idris Jusoh commented that the reason behind this lay in the government attempting to push public universities into relying less on the government and more towards their ability to take advantage of their assets to generate income.

“Clearly now the dependence is between 70 and 90%,” Jusoh said during an event, this being in line with the Malaysia Education Blueprint 2013-2025 as well.

Out of the 20 public universities included in the budget, 15 will be receiving significant setbacks as high as 31%, while the rest are seen to have minute increases in their 2017 budget.  

What is Missing?

There was no focus on the international students’ community, as well as the efforts done by the government to increase the enrolment of foreign students in the country. Adding to that, there was no mention of any plans on partnerships between foreign higher learning institutions in the intended budget for next year.

As one of the top destinations for international students worldwide and to enhance the appeal and competitiveness of the country's higher education institutions, the government should highlight the initiatives to become the region’s education hub.

Final Thoughts

Now the proposed budget have been announced, the higher education sector, as well as the students and parents, are in high hopes for improvement from last year. Time is hard to predict; it's hard to say if it will be a better year for the country in the upcoming year. However, despite the decrease in the allocations, the assurance of the government to assist the students, especially those who are in need of financial support, is a promise we all hold to.

To read the full Budget 2017 address, click here.

(with additional texts from Angelique Parungao; photo courtesy: themalaymailonline.com)