BUDGET 2025 will see the federal education system getting the lion’s share with RM64.1bil allocated for the Education Ministry and RM18bil for the Higher Education Ministry for a total of RM82.1bil.
This is a whopping 19.5% of next year’s national budget of RM421bil.
The amount is also an increase from last year’s allocation of RM75bil.
Prime Minister Datuk Seri Anwar Ibrahim said this includes 17 types of education assistance that will be continued, with an allocation of RM5.3bil.
Among them is the Supplementary Food Programme, with the allocation increased to RM870mil.
Almost RM800mil in Early School Assistance will also be provided to all 5.2 million students from Year One to Form Five regardless of parents’ income.
Another RM2bil will go towards hostel food aid while the Poor Student Trust Fund will be increased to RM180mil.
Anwar also said the per capita grant (PCG) rate for TVET Education will be increased by 15%, bringing the total PCG allocation to over RM900mil.
Another RM10mil will be given as School Assistance to all 687 rural schools while a living allowance for teacher trainees under the Bachelor of Education programme at teacher education institutes (IPGs) will be increased to RM530 per month.
Anwar, who is also Finance Minister, said there will be a “slight” hike in fees for the T15 community who enrol in fully residential schools (SBP) and public institutions of higher education (IPTAs).
“Education subsidies will be gradually reduced for the top 15% income group,” he said.
Anwar had said the SBPs were initially established to help excellent students, and for poor and rural families to get the best education.
As for the Higher Education Ministry, a total of RM4bil is provided in the form of scholarships, loans and educational allowances.
The National Higher Education Fund Corporation (PTPTN) will also provide RM500mil in education funding, specifically for students who pursue STEM (science, technology, engineering and mathematics) at institutions of higher education.
Government-linked invest-ment companies and government-linked companies are committed to ensuring that at least half of their scholarships are allocated to students from low and middle-income families.
Under Budget 2025, a total of RM635mil has been allocated to upgrade infrastructure, replace outdated equipment as well as expand Internet access across all public universities.
An additional RM20mil has been allocated to Universiti Teknologi Mara to produce more electrical and electronics engineers, enhancing bumiputra participation in the high-growth semiconductor sector.
Malaysian Association for Education secretary Hamidi Mookkaiyah Abdullah said there must be a system to check the eligibility of a student for these subsidies at SBPs and IPTAs.
“As an educationist, I strongly believe that underprivileged children should be given a financial boost to create a level playing field for them as they are at a disadvantage from the start,” he said.
He added that the rich can afford to pay for their children’s studies, but that is not the case for the poor.
“I always believed that subsidies should be for a targeted marginalised group,” he said, adding that by removing the subsidies for the ultra-rich, it can help to free up government funds.
Meanwhile, Parent Action Group for Education chairman Datin Noor Azimah Abdul Rahim said although the T15 will face a small fee hike to enrol in these institutions, the group doubts the increase will be adequate to contribute significantly towards improving infrastructure – where capital costs can be high.
“We had wanted SBP to be for the poor only,” she added.
National Union of the Teaching Profession of Malaysia (NUTP) secretary-general Fouzi Singon said the increase in the Education Ministry’s allocation by RM5.4bil under Budget 2025 compared with the 2024 allocation is evidence of the government’s commitment to strengthening the country’s education sector.
He said it will ensure a comfortable, safe and meaningful learning environment for children to acquire knowledge.
“NUTP greatly appreciates the government’s commitment to ensuring the well-being of students and teachers in schools,” he said in a statement yesterday.
He said the union is also grateful for the increase in living allowances for teacher trainees, demonstrating the government’s concern for the welfare of future educators.
