Financing for equity in higher education
1. Education resources to subnational governments
2. Education resources to institutions
3. Education resources to students
4. Support for students' living costs
Introduction
Key financing indicators (UIS Data)
In Malaysia, the gross enrolment ratio for tertiary education for both sexes in 2021 was 38.5%. The initial government funding per tertiary student as a percentage of GDP per capita has decreased significantly from 80.07% in 2000 to 17.55% in 2023.
Tuition-free status
Public tertiary education in Malaysia is not tuition-free, but fees at public institutions are regulated by the government and supported by substantial public subsidies.
Governance
Higher education in Malaysia is regulated by the federal government through the Ministry of Education, the Ministry of Higher Education (MOE/MOHE). The Public Service Department and the Treasury also have strong jurisdiction over human resources matters, budgetary, and financial procedures of public universities.
Within the MOHE, there are three relevant agencies: the Department of Higher Education, the Department of Polytechnic Education, and the Department of Community Colleges.
For student loans and scholarships, the MOHE has two agencies: the National Higher Education Fund Corporation (PTPTN), which is the national body responsible for providing loans for tertiary and higher education students, and the Tunku Abdul Rahman Foundation, which provides scholarships.
1. Education resources to subnational governments
In 2019, there were 20 public universities and 51 private universities. All of the public universities are funded directly through the budget allocated by the Federal government to the Ministry of Higher Education.
2. Education resources to institutions
Funding for private universities in the absence of public institutions
The federal government does not fund private universities in Malaysia.
Allocation and equity
According to the 1971 Universities and University Colleges Act, the Parliament may “from time to time provide grants-in-aid to a university”. It is unclear if there is an equity aspect to these grants.
3. Education resources to students
Admission for vulnerable groups
In 1970, the New Economic Policy was launched, leading to the establishment of an ethnic quota for student admissions to access all programmes and public universities in the country. The policy has since moved beyond ethnicity and now also targets indigent and low-income households and people with disabilities.
There is one public university dedicated to enrolling only Bumiputera, or the indigenous people of the country, at the undergraduate level. It is the largest public university in Malaysia. The Bumpitera category comprises of about 70% of Malaysia’s current population. Other public universities have introduced specific programmes to enrol specific groups, such as those in the bottom 40% income group or ethnic minorities.
Scholarships, grants and loans for vulnerable groups
Under the MOHE, the National Higher Education Fund Corporation (PTPTN) is one of the biggest companies that provides loans to students through Loan/Financing Education (Skim Pinjaman/Pembiayaan Pendidikan – SPP). The amount is determined based on the level of studies, discipline, institution, and the financial status of the household. The financial aid comes in cash advances called Cash Advance Funding (Wang Pendahuluan Pembiayaan- WPP). PTPTN also provides a saving scheme for parents through the National Education Saving Scheme (Skim Simpanan Pendidikan Nasional – SSPN). PTPTN finances 70% of the total loan sponsorship/funding of state education.
The MOHE manages multiple financial assistance programmes for low-income students and students with disabilities who are pursuing higher education.
The Foundation Students' Financial Assistance (Bantuan Kewangan Asasi) provide students pursuing foundation programmes at public universities with an allowance in addition to covering the education and accommodation fees. Applicants must be part of a family with an income below RM 10,000 after income tax.
The Community College Students' Financial Assistance (Bantuan Kewangan Pelajar Kolej Komuniti) provides an allowance to students undergoing education certification programmes at community colleges. Applicants must be part of a family with an income below RM 3,000 after income tax.
The Financial Assistance for the Disabled (Bantuan Kewangan Orang Kurang Upaya) and Special Education Program (Program Pendidikan Khas) help cover the cost of study fees and provide a living allowance for eligible students. The first is available for students attending institutions registered with the MOHE, while the second is only available for certain institutions on a select list.
Additionally, the country provides a voucher system for Malaysian students in all private and public higher education institutions.
There are several organizations and funds outside of the MOHE that provide some form of financial assistance to students. This includes: the MARA Educational Foundation (Yayasan Pelajaran Mara-YPM), Tunku Abdul Rahman Foundation, the Public Service Department (Jabatan Perkhidmatan Awam -JPA), People’s Trust Council (Majlis Amanah Rakyat -MARA).
YMP’s Educational Assistance Program focuses on aiding Malay and Bumiputera students, including those with low-income, in rural and remote areas. The program offers financial aid and school materials.
The Tunku Abdul Rahman Foundation provides scholarships that fund university fees (public or private), a monthly living allowance, an annual allowance, and/or a one-off allowance to cover one-time expenses such as flights or laptops. Priority is given to students who have overcome or are currently overcoming difficult life challenges, demonstrate leadership potential, or those coming from challenging backgrounds such as Persons with Disabilities (PWD), rural communities, or those from families with an income of less than RM 4,850 a month. MARA provides educational loans to eligible Bumiputera.
4. Support for students’ living costs
Transportation
There is no specific programme which provides transportation for students.
Accommodation
There is no specific programme which provides accommodation for students.
Textbooks
Students can use funds from several programmes to buy books. Students who have Siswa cards can use the funds to purchase books, food, and more.
The MADANI Book Voucher Initiative also provides RM 100 to students to help purchase textbooks. RM3.5 million was budgeted for 50,000 university students in 2025.
