WITH Budget 2027 expected to be tabled this Friday, those in the education sector are watching closely to see where the next federal funding will go.
They are also hoping for more resources to strengthen learning environments and address pressing needs across schools, higher education, and technical and vocational education and training (TVET) providers.
StarEdu looks at the wish list for each sector.
What schools need
National Union of the Teaching Profession of Malaysia secretary-general Fouzi Singon believes the government must look beyond simply increasing allocations.
What matters, he said, is ensuring that every ringgit allocated to education translates into better learning environments, stronger teacher support and improved outcomes for students.
There must be a significant review and increase in the allowances for principals, headmasters, deputy principals and heads of departments.
The responsibilities carried by school leaders have increased substantially. They are responsible not only for academic leadership, but also staff management, student welfare, school safety, financial administration, parental engagement, complaints, compliance, digital transformation and increasingly complex operational matters.
A more appropriate allowance would also help recognise school leadership as a professional responsibility and encourage more experienced teachers to take up leadership positions.
> Fund school infrastructure and safety
A substantial and sustainable allocation for school maintenance, upgrading and safety, particularly for ageing and rural schools, is needed, with priority given to toilets, roofs, electrical systems, classrooms, laboratories, teachers’ rooms, information and communications technology facilities, sports facilities and other essential infrastructure.
A school cannot provide quality education if its physical environment is unsafe, unhealthy or not conducive to teaching and learning.
> Provide transport and fuel incentives
A dedicated fuel or vehicle card, or “fleet card”, allocation should be provided to schools to cover petrol and related travelling costs when teachers use school or authorised vehicles to transport students for official educational activities and programmes.
Teachers should not be expected to bear these operational costs personally, while school allocations are often limited.
A dedicated school transport and fuel allocation would ensure that students, particularly those from rural and lower-income communities, are not disadvantaged simply because their schools cannot afford transportation costs.
The mechanism should be transparent, properly controlled and restricted to authorised school activities.
> Support teacher well-being
Teacher well-being must be treated as an investment in education quality. Thus, dedicated funding is needed for psychological support, counselling and professional intervention for teachers experiencing serious stress or psychological difficulties.
At the same time, the government must address the root causes of teacher stress, particularly excessive administrative and non-teaching duties.
> Boost professional development and AI readiness
More investment should be put into continuous professional development, particularly in artificial intelligence (AI), digital education, science, technology, engineering and mathematics (STEM), inclusive education, classroom management and intervention strategies.
Teachers must be given practical training and sufficient time to adapt to new technologies and curriculum changes.
> Fund early intervention and learning recovery
Greater funding should be directed towards students who are struggling with literacy, numeracy, English, mathematics and science.
Intervention must begin at the primary level rather than waiting until pupils reach secondary school, when their learning gaps may become more difficult to address.
> Close the rural-urban gap
Budget allocations should take into account the actual needs of schools in rural, interior and underserved communities, including reliable Internet connectivity, digital devices, laboratories, libraries, teaching resources, transportation and basic infrastructure.
> Improve school safety
Stronger funding is needed for school safety, including closed-circuit televisions where appropriate, safer dormitories, maintenance of school facilities, emergency preparedness and measures to address physical and environmental risks.
> Strengthen teacher recruitment and retention
Teacher recruitment and retention should be strengthened, particularly in subjects and locations experiencing shortages.
Teacher retention is directly connected to workload, well-being, career development and working conditions. Investment in these areas is therefore an investment in the stability and quality of the education system.
A modern education system cannot be built solely through new technology, new curricula and new programmes. It requires adequately funded schools, properly supported teachers, respected school leaders, and students who receive timely assistance.
If the government wants better educational outcomes, it must invest in the people who deliver education every day – our teachers, school leaders and support personnel.
Ultimately, Budget 2027 must put people at the centre of education reform.
Making higher education fairer
PRIVATE higher education is largely self-funded. Unlike public institutions, private higher education institutions (IPTS) generally do not receive government funding while still meeting significant regulatory, accreditation, tax and compliance obligations.
Against this background, Budget 2027 should focus on creating a fairer, more enabling and sustainable policy environment that encourages continued private sector investment in higher education.
Malaysian Association of Private Colleges and Universities president Datuk Parmjit Singh has identified the following as its prioritised recommendations.
> Restore equal PTPTN treatment
The current National Higher Education Fund Corporation (PTPTN) policy provides repayment exemptions for eligible B40 and M40 first-class bachelor’s degree graduates from public higher education institutions, but does not extend the same exemption to graduates of recognised IPTS.
Eligible first-class graduates from recognised and quality-assured IPTS should receive the same PTPTN repayment exemption as their counterparts from public institutions, subject to the same income and other eligibility conditions.
> Extend endowment tax incentives.
The tax treatment currently available for qualifying university endowment arrangements should be extended to qualifying private universities, subject to appropriate governance, accountability and public-interest conditions.
Private universities also require sustainable, long-term sources of funding to support scholarships, academic development, research, infrastructure and other educational activities.
A more consistent endowment framework would encourage philanthropy and long-term private sector support for higher education. This is particularly relevant as the government continues to encourage stronger collaboration between higher education institutions, industry and society.
> Boost research tax incentives
The government should provide clear and consistent sales and service tax (SST) treatment for genuine research grants and university research activities, particularly where research funding does not constitute consideration for a taxable service.
This is important because research grants should not inadvertently be treated as commercial payments for taxable services merely because a university is undertaking research.
> Review SST treatment
International students contribute significantly to Malaysia’s economy and to the development of the country’s international education ecosystem. Any additional cost should therefore be considered carefully against Malaysia’s competitiveness with other education destinations.
> Expand lifelong learning tax relief
With AI, automation and rapid technological change, Malaysians increasingly need to reskill and upskill throughout their careers.
Mapcu therefore supports expanding and increasing the existing personal income tax relief for education and upskilling to include recognised micro-credentials, modular and short-form higher education programmes, postgraduate programmes, professional certifications, and other quality-assured lifelong learning programmes.
> Boost employer tax incentives
Employers that sponsor employees to undertake recognised higher education qualifications, postgraduate programmes, professional certifications or other accredited upskilling programmes should receive stronger tax incentives.
The objective is to encourage companies to invest directly in their employees’ capabilities and complement existing government-supported training mechanisms.
This would also support the government’s objective of developing a workforce with skills relevant to the future economy, including AI and the digital economy.
There should also be greater recognition that public and private institutions form part of one national higher education ecosystem.
Where institutions meet the same quality, accreditation and regulatory requirements, students should not be disadvantaged simply because they choose an IPTS.
