PETALING JAYA: The Higher Education Ministry has been allocated RM19.1bil under Budget 2027, up from RM18.6bil in Budget 2026.
Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, said RM800mil would be allocated to upgrade facilities such as lecture halls and student accommodation, as well as replace outdated equipment.
“The government welcomes public contributions, including from alumni and the corporate sector, to public universities. Donations will be eligible for tax deductions of up to 10% of aggregate income,” he said when tabling Budget 2027 on Friday (Oct 9).
The National Higher Education Fund Corporation (PTPTN), which helps young Malaysians finance their higher education, also received attention, with the government agreeing to defer loan repayments for borrowers earning up to RM2,500 a month.
“Borrowers earning between RM2,500 and RM3,000 a month will be required to make minimum repayments of just RM50. These measures will benefit more than 400,000 PTPTN borrowers,” he said.
He added that borrowers with no outstanding arrears who make regular repayments will receive a 10% discount.
“The government has also agreed to provide tax deductions to employers who repay PTPTN loans on behalf of their employees. This incentive will cover repayments made from Jan 1, 2027, to Dec 31, 2028,” he said.
To address student accommodation needs, the government is working with government-linked investment companies to expedite project implementation, Anwar said.
“Phase One of Residensi Mahasiswa Universiti Malaya is scheduled for completion in 2031 and will benefit 10,000 UM students
“The Retirement Fund Incorporated (KWAP) will invest RM750mil in the Vista Campus project, which involves building student accommodation at six selected universities, including UniSZA and UiTM,” he said.
Other allocations include RM20mil for the Madani Student Kitchen Programme, which will be expanded to polytechnics and teacher education institutes. The initiative will provide cooking equipment, food donations and the Menu Kasih Siswa meal for only RM5.
In addition, tax deductions will be granted to donors providing food and equipment for the programme, from Jan 1, 2027, to Dec 31, 2030.
The FlySiswa MADANI 2027 flight ticket subsidy has also been increased to RM500 from RM400, benefiting more than 60,000 students at public higher education institutions.
Meanwhile, technical, vocational education and training (TVET) received RM8bil across ministries under Budget 2027, up from RM7.9bil in Budget 2026.
With RM3bil, HRD Corp will offer three million skills training opportunities, including continuing professional development for professionals.
The Skills Development Fund Corporation (PTPK) will allocate RM500mil to finance trainees enrolled in skills training programmes at public and private institutes registered with the corporation.
Community colleges will continue offering short courses to tahfiz students, providing pathways to employment, entrepreneurship and higher education.
Other Ranks personnel of the Malaysian Armed Forces (ATM) completing their service will receive skills training through collaborations with institutions including the Malaysian Institute of Aviation Technology (MIAT) and the Malaysian Maritime Academy (ALAM).
MARA will train and place 1,000 Bumiputera youths in high-growth sectors. GIATMARA trainees specialising in electrical wiring will contribute their skills to repairing the wiring in 20,000 homes belonging to poor families.
The Construction Industry Development Board (CIDB) will train 10,000 youths in robotics and digital technologies to expand career opportunities and reduce reliance on foreign labour.
ADTEC JTM will provide graduates with pathways to high-skilled automotive careers through the Advanced Automotive Technology Programme.
The government also stepped up efforts to develop young Indian talent by increasing. the Malaysian Indian Transformation Unit (MITRA) allocation to RM150mil, with priority given to training and employment opportunities for Indian youths in fields such as industrial automation, technology and aircraft maintenance.
