Brighter future: Noraini said Budget 2023 will ensure that youths can continue their studies in HEIs. – YAP CHEE HONG/The Star
EDUCATION remains a clear priority in Budget 2023 as the government continues its efforts in investing towards a brighter future for the next generation.The education sector, comprising the Education and Higher Education Ministries, received 19% of next year’s total allocation.
Of the RM70.7bil set aside for the education sector, RM15.1bil will be channelled to the Higher Education Ministry (MOHE). This marks a 4.2% increment from the RM14.5bil allocated this year.
In tabling the budget themed “Malaysian Family, Prospering Together”, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz announced a range of higher education-centric initiatives (see graphic) to ensure that the country’s tertiary education system remains competitive on the global stage.
“The country’s higher education achievements continue to impress the world. The government is committed to ensuring that Malaysian youths pursue their education until a tertiary level,” he said while tabling the budget on Oct 7.
Tengku Zafrul’s announcement included RM3.8bil for scholarships and education loans, and RM6.7bil for various technical and vocational education and training (TVET) initiatives.
In the official statement of MOHE, it was stated that Budget 2023 reflects the government’s commitment to supporting efforts to drive the well-being of higher education in the country.
The ministry added that the allocation provided for higher education is “responsive, responsible and significant” to the stakeholders, community and society.
Higher Education Minister Datuk Seri Dr Noraini Ahmad said the allocation provided under the budget will go towards ensuring a brighter future for the country’s youths at higher education institutions (HEIs).
“To ensure that the children of the Malaysian Family can continue their studies in the HEIs, MOHE has been allocated larger funds in Budget 2023.With that amount, several announcements that focus on cash assistance, the settlement of education loans, and development projects such as the upgrading of digital networks and facilities at HEIs across the country have been made,” she told reporters recently.
Better access for all
Taking into consideration the rising cost of living, Budget 2023 makes sure that youths, especially those from underprivileged groups, have the opportunity to pursue their dreams by making quality tertiary education accessible.
It was announced that National Higher Education Fund Corporation (PTPTN) borrowers would receive a 20% discount if they made a full settlement on their loans, 15% if at least half of the outstanding balance in a single payment was made, and 15% if repayments were made through salary deduction or direct debit.
Prime Minister Datuk Seri Ismail Sabri Yaakob recently announced that there would be an increase from 75% to 100% in education loans for students from M40 families and loan repayment exemption for all students who graduated with first-class bachelor’s degrees.
There would also be loans for the purchase of laptops for PTPTN borrowers in this income group, and together with the other benefits, would help to fund students in the private higher education institutions, said Tengku Zafrul.
Educators agree that discounts given to loan borrowers under the budget would reduce the financial burden of parents and spur more students to continue their tertiary education after the Sijil Pelajaran Malaysia (SPM).
As noted by National Association of Private Educational Institutions (Napei) secretary-general Dr Teh Choon Jin, such a move would pave the way for underprivileged students to have access to higher education.
Tengku Zafrul expressed his hopes that loan borrowers would be more responsible with the repayment of their PTPTN loans.
“PTPTN loan borrowers, you have a responsibility to settle your debts. That is clearly stated when you applied for the loans. It is also in line with religious teachings to pay one’s debts. If not paid, we would be denying other youths from benefiting from the same opportunity,” he said.
During his speech, Tengku Zafrul also noted that the cost-of-living allowance for Majlis Amanah Rakyat (Mara) and PETRONAS scholars will be increased. He said the government would continue to focus on the education of the Bumiputra community, especially those from low-income families.
Future-proofing education
It was also announced in Budget 2023 that RM10mil would be set aside to encourage public universities to inculcate green campus initiatives.
“During Jelajah Bajet 2023, I had the opportunity to visit photovoltaic solar systems installed by Universiti Sains Malaysia (USM) in 90 locations to supply clean energy on its campus,” Tengku Zafrul said in his speech.
In addition, more than RM300mil will be provided for upgrading and maintaining public university facilities.
The budget also looked at improving the digital network of HEIs. With an allocation of RM35mil, the Malaysian Research and Education Network (MYREN) project at public universities, polytechnics, and community colleges will continue to be upgraded in terms of bandwidth capacity.
Noraini said the allocation would be used to improve the green campus initiative in public universities, as well as research and development (R&D) activities.
She also commended the government’s focus on TVET. According to Noraini, the allocation of RM6.7bil for TVET would help to achieve the target of enabling at least 55% of post-SPM students to further their studies in their respective fields.
The marketability of graduates was a highlight of Budget 2023.
“While the country has achieved full employment, the unemployment rate for those aged 25 years and under, including school-leavers and graduates from HEIs, was at the level of 11% in the second quarter of 2022. This issue will continue to be given due attention,” Tengku Zafrul said.
To improve youths’ access to employment, the government will provide hiring incentives under the Social Security Organisation (Socso) to employers who hire youths aged between 18 and 30 who have been unemployed for more than three months. In addition, this incentive will be extended to employers who hire TVET graduates.
Also announced were the Digital Innovation Fund (DIGID) worth RM30mil and the Graduate Entrepreneur Programme (PUSh) worth RM20mil. The former seeks to enhance the employability of 9,000 graduates for careers in the capital market, while PUSh will enable 1,000 graduates to venture into entrepreneurship. These initiatives, Noraini said, showed that the government paid attention to the marketability of graduates.
As a whole, Noraini said Budget 2023 reflects the government’s care and concern for the higher education sector in the country.
“Through the distribution of the provisions mentioned (in the budget), it is clear that the education sector, especially higher education, remains the best investment to build a brighter future for students,” she concluded.
