UM prepared to generate enough income to make up shortfall

KUALA LUMPUR: Universiti Malaya (UM) is well prepared to face the budget cuts by generating hundreds of millions of ringgit to make up for the shortfall.

Its Vice-Chancellor Tan Sri Prof Dr Mohd Amin Jalaludin said the reduction in funding was not totally unexpected, and the university has already met the Government’s 2025 requirement in generating 30% of its operating expenditure.

“UM will be enhancing its policy of income generation, optimisation and financial prudence to cope with the impending cuts,” he said.

To cut costs, the university has reduced the number of overseas trips, and is using internal facilities to hold events, he added.

On generating revenue, Dr Mohd Amin said this year alone, the university is expected to generate RM300mil from internal income sources, such as postgraduate fees, rentals and investments.

In fact, in November 2016, “top-notch corporations” have committed RM200mil when the university launched its “industry-on-campus” initiative to create a synergistic ecosystem for both the university and its industry partners, he said.

Moreover, Dr Mohd Amin said, a memorandum signed to set up the Engineering@UM – Industrial Innov­ation Centre, together with five global companies, was expected to generate RM230mil in income in the next five years.

“Besides that, UM has diversified its income through its subsidiaries, operating joint-ventures between public and private institutions, including International University of Malaya Wales and University of Malaya Centre for Continuing Education and University of Malaya Specialist Centre and development of its land banks.

“The management has also started to invest in a few lucrative sectors towards being self-sustaining in the near future,” he said.

Dr Mohd Amin said that the university would continue to pursue other revenue streams.

On the letting go of academics whose contracts have ended, Dr Mohd Amin said the number was “minimal”.

“In general, staff whose performance have been outstanding and whose expertise are in demand are prioritised in UM’s recruitment practice.

“UM appreciates the contribution of its academics and has been offering extension of contracts using internal funds,” he said.