PETALING JAYA: The requirement for certain private education institutions operated by private limited companies to have at least 30% bumiputra equity has been removed, says the Education Ministry.
The ministry said the decision followed discussions with the Investment, Trade and Industry Ministry (Miti) over the ownership requirement, which was stated in the Private Education Institutions Policy Statement Book published in 2006.
“Following discussions between the Education Ministry and Miti, the ministry has agreed that the requirement for at least 30% bumiputra equity will no longer be imposed as a condition on private limited companies operating private education institutions under the ministry,” it said in a statement yesterday.
Private tuition centres in the country that failed to comply with the 30% bumiputra equity requirement would have been at risk of losing their operating licences from 2027.
The ministry said removal of the requirement would align ownership requirements with the current needs of the education sector. It also ensures that participation in education remains open to all parties seeking to contribute to the country’s development, the ministry added.
“The Education Ministry appreciates the contributions of all private education institution operators and will continue to work with all parties in the interest of Malaysian students,” the ministry said.
On Sunday, the ministry said it had taken note of the various views raised regarding the requirements and would propose a review of the ownership structure requirements for tuition centres at the Cabinet meeting.
The requirement had sparked public debate and concern among operators and politicians.
Among those who voiced concern was social activist Tan Sri Lee Lam Thye, who said the proposal warranted careful consideration and timely action.
He noted that most tuition centres are small, neighbourhood-based businesses run by educators rather than large, profit-driven corporations.
