Measure: Education and Training
“Education should empower knowledge, instil good values, and shape character. Only the elevation of knowledge shall liberate the Rakyat from the clutches of crippling poverty.” (Translated from the PM’s original Budget 2025 speech https://belanjawan.mof.gov.my/en/)
It is precisely to the above end, that On 18 October 2024, the government announced a whopping RM421 billion budget with allocations to decrease fiscal deficit, cut subsidies and boost the economic competitiveness of our country. According to our PM, his “unwavering priority remains: to provide a conducive, safe, and pristine environment where our children can thrive in their pursuit of knowledge.
The Rakyat in general will now have to work out how the new budget will impact them in their businesses, strategic decisions and financial choices in their everyday lives. Helping the Rakyat deal with the rising cost of living and elevating the minimum wage are among the main thrusts in Budget 2025.
The largest allocation of this Budget has been set aside for the Education Ministry. The Ministry of Education (MOE) will receive a record-breaking RM64.1 billion which is 15.2% of the budget’s total allocation while the Ministry of Higher Education (MOHE) is allocated RM18 billion which is a 10.43% increase from Budget 2024 (RM16.3 billion). This brings the total sum allocated for education for 2025 to RM82.1billion. This allocation will be used to upgrade schools, improve student support and intensify research and development in universities in the country.
The allocation for the MOE (RM64.1 billion) will be used to:
- cater to the needs of all students segments so that no child will be left behind or marginalised.
- emphasise the need for effective leadership in education.
- be used to upgrade and maintain schools nationwide. RM2 billion will be used for this purpose. Of this RM1 billion is dedicated to the maintenance of national, Chinese, Tamil, religious, military camp and special education schools. The other RM1 billion will be used to upgrade dilapidated infrastructure in 543 schools especially in Sabah and Sarawak.
- construct 44 new schools beginning next year.
- be used to continue to provide 17 types of educational assistance (hostel food, supplementary food programme, early schooling aid and poor students’ trust fund) with a total allocation of RM5.3 billion. Provision of
- Hostel food: (RM2 billion)
- Rancangan Makan Tambahan: (RMT) RM870 million to benefit 860,000 students and provide opportunities to local food suppliers.
- Bantuan Awal Persekolahan: RM800 million to benefit 5.2 million students in Standard 1 to Form 5 regardless of their parents’ income levels.
- Kumpulan Wang Amanah Pelajar Miskin: RM180 million.
- improve other facilities such as canteens and prayer rooms (RM100 million).
- implement a Fixed-Line Broadband Infrastructure Connectivity programme to enhance internet access in rural and remote schools. RM100 million has been set aside for this.
- continue with the existing Point of Presence (PoP) projects, (PoP refers to a physical location or access point that connects users to the internet). The projects will be continued and improved with an allocation of over RM800 million.
- raise the PCG rate for TVET education: >RM900 million
- Schooling Assistance of RM10 million to 687 schools in remote locations
- increase the Living Allowance for student teachers under the Bachelor of Education Programme from RM430 to RM 530 per month.
According to our PM in his speech ‘the philosophy of education must continue to be embedded in higher education initiatives.” Thus the massive allocation for higher education reflects the government’s commitment to laying the foundation for a digital and innovation-driven economy. The distribution of this allocation prioritises research and innovation in AI and the developing of talent that would support the growing semiconductor industries.
From the allocation of RM18 billion for higher education:
- RM4 billion will go to scholarships, loans and educational allowances for university students.
- (GLICs and GLCs must ensure at least 50% of scholarships are reserved for
- students from low- and middle-income families).
- PTPTN (National Higher Education Fund Corporation) will receive RM500 million to be given out as loans with a focus on students pursuing STEM-related subjects in public universities. This is aimed at producing graduates with high employability in line with industry demands.
- Individual tax relief on net savings in the National Education Saving Scheme (SSPN) will be extended for another three years until 2027 to encourage saving for children’s higher education.
- Permodalan Nasional Berhad will launch the Celik MADANI Programme which credits RM50 for free to 100,000 students pursuing higher education who open new ASB accounts
- RM635 million will be used to enhance infrastructure, replace outdated equipment and expand internet access in all public institutions of higher learning.
- RM600 million will be used for research and development (R&D) to enhance the field of research and development as well as the development of science and technology in the country.
- A RM 170 million Malaysia Science Endowment (MSE) Trust Fund is set up to provide grants to spur up collaborations with private sectors entities and industries in R&D.
- The Malaysia Techlympics programme with an allocation of RM10 million will be enhanced to stimulate the development of homegrown talent in the fields of robotics and AI technology.
- RM50 million will be used for teaching AI-related subjects at research universities.
Specific roles of several universities:
- Universiti Malaya (UM) will focus on AI in the medical field to combat life-threatening diseases.
- Universiti Putra Malaysia (UPM) will establish a technology and cryptology management centre in collaboration with the National Cyber Security Agency (Nacsa) to counter cyber security threats.
- Universiti Sains Malaysia (USM) will deal with AI in semiconductors for Malaysia to become a global semiconductor hub.
- Universiti Kebangsaan Malaysia (UKM) will lead the endeavour in AI translation to translate Malay language as language of knowledge.
- GLICs (Khazanah, EPF, KWAP, PNB. Lembaga Tabung Haji, LTAT) will invest RM500 million in key sectors such as data centres and advanced manufacturing. Khazanah will provide RM1 billion to support the semiconductor industry.
- RM1 billion is allocated under the New Investment Incentive Framework (NIIF) to promote high-value activities such as integrated circuit (IC) design services.
- Universiti Teknologi MARA (UiTM) will be allocated RM20 million to produce more electrical and electronics (E&E) engineers in the semiconductor sector.
- Special tax deductions are given to private higher education institutions (IPTS) that develop courses on:
- Digital technology
- AI and Robotics
- The Internet of Things (IoT)
- Data Science and FinTech
- Sustainable technology
Technical and vocational education and training (TVET)
- Technical and vocational education and training (TVET) will receive RM7.5 billion to be used for industry collaboration and training programmes for marginalised youth.
- To encourage more private partnerships for TVET
- the government welcomes the partnership with PROTON through the PROTON Advanced Automotive Technology Institute in Melaka
- A matching grant of RM50 million is allocated to attract more industries to participate in the Anak Angkat ILKA Programme.
- GLCs will develop new training programmes for their respective industries e.g. TNB for energy transition, SD Guthrie for plantation mechanisation and automation.
- Companies which donate new machinery and equipment to registered ILKA, polytechnics or vocational colleges will be given tax deductions in Years of Assessment 2025 to 2027.
* Vocational colleges and technical secondary schools will continue to provide education to 77,000 students with an allocation of RM1.2 billion.
- PTPK will provide financing of up to RM500 million for the benefit of 20,000 trainees, including RM100 million dedicated to the priority sectors of NIMP 2030 such as MRO, EV, aerospace and AI.
- HRD Corp will give out RM3 billion fund to offer 3 million learning opportunities. Employers are permitted to use the levy to finance allowances of up to RM1000 per year for graduates through HRD Corp, including for skill training.
- Khazanah has allocated RM200 million under the K-Youth Development Programme to develop 11,000 local talents specialising in sectors such as semiconductor.
- GiatMARA and community colleges are given RM50 million to carry out programmes in skills training over the next five years. They will also provide short-term training to over. 3,000 gig workers
- A double deduction on expenses will be given for companies implementing the Structured Internship Programme (MySIP)
- SOCSO will establish a state-of-the-art Rehabilitation Centre with a cost of nearly RM600 million to offer comprehensive services ranging from rehabilitation programmes to return-to-work programmes.
The increase in allocation for R&D provides opportunities for collaborations between UK institutions, which excel in their digital technology, and public universities in Malaysia. They can form joint centres of excellence and technology hubs. This will enhance the opportunity to spur Malaysia to greater heights in areas such as AI for medicine, cybersecurity, engineering and the semiconductor industry. These joint ventures will encourage academic knowledge exchange, student mobility and better graduate outcomes.
As far as education is concerned, Budget 2025 provides opportunities as well as challenges. Thus it is up to the people to leverage opportunities given for the betterment of themselves and the nation.
