KOTA KINABALU: Deputy Higher Education Minister Mustapha Sakmud has rejected the term “deficit” used in the Auditor-General’s report on public universities, clarifying that their financial struggles stem from insufficient government grants and limited self-generated income rather than actual losses.
“I do not agree with the word ‘deficit’ because universities are not businesses but educational institutions,” he said when met by reporters in Kota Kinabalu on Sunday (March 9).
The report highlighted three public universities, namely Universiti Malaysia Sabah (UMS), Universiti Putra Malaysia (UPM), and Universiti Sains Islam Malaysia (USIM) as among the five federal agencies with the largest funding gaps from 2021 to 2023.
It noted that government grants and student fees were not enough to cover operational costs.
UMS recorded a funding gap of RM141.41mil in 2023, up from RM89.31mil in 2021 and RM89.47mil in 2022.
UPM reported a shortfall of RM127.71mil in 2023, compared to RM81mil in 2022 and RM118.7mil in 2021. USIM faced a gap of RM44.02mil in 2023, RM2.62mil in 2022, and RM14.21mil in 2021.
Mustapha explained that public universities rely on government funding for 80% of their budget, with the remaining 20% coming from their own revenue-generating activities.
While some institutions successfully meet their financial targets, others, including UMS, continue to struggle.
“This isn’t a loss, but a funding gap,” he said.
The issue was raised in Parliament, leading to the approval of additional funds for universities facing financial challenges, including UMS.
Mustapha also addressed corruption cases linked to UMS but stressed that they were not the main reason for its funding gap.
“We uphold strict governance, and anyone found guilty will be held accountable,” he said.
The Auditor-General’s Report 2024 has reignited concerns over the financial sustainability of Malaysia’s public universities.
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