KUALA LUMPUR – Private higher education institutions (PHEIs) are asking that Budget 2022 provide them tax-free status.
Malaysian Association of Private Colleges and Universities president Datuk Paramjit Singh said that this is because revenue obtained from the recruitment of foreign students is export revenue.
“For other industries, the government has provided tax incentives for export revenues.
“So, we are also asking that such a benefit be extended to PHEIs as well – that our revenue be tax-free,” Paramjit said, adding that such incentives are needed to get them back on track.
The PHEI industry contributes about RM40 billion annually towards the national gross domestic product and more than 50% of post-secondary education is supported by the PHEIs, thus saving the government billions of ringgit.
Paramjit also asked that the budget provide tax breaks to PHEIs for the industry to upgrade themselves in the digitisation process.
This is in line with the government’s MyDigital initiative involving a new and comprehensive approach designed to make Malaysia a digital content and cyber security lead in the regional market.
Paramjit said that among the challenges faced by the PHEI industry over the past two years is the recruitment of foreign students.
“Recovery in the recruitment of foreign students can only be seen within the next four to five years.
“PHEIs have also invested in new tools to make the rapid transition to online learning such as enhancing the learning management system to ensure effective delivery.
“We have also invested in cloud services and other infrastructure to make software and other resources available to students.
“All this has been undertaken without government support or incentives,” said Paramjit, adding that the government should provide incentives to PHEIs for such initiatives.
Paramjit, who is also Asia Pacific University chief executive officer, said that it is important for Budget 2022 to provide marketing incentives and grants to support international student recruitment activities.
Before the pandemic, the enrolment of foreign students in Malaysia had reached 127,583 as at March 2019, with 70% in PHEIs, according to the Education Ministry’s data.
Reports have quoted Education Ministry Secretary-General Mohd Ghazali Abas as saying that Malaysia had made an average of RM7.2 billion per year from tuition fees and living expenses of foreign students.
“Incentives should also be given to PHEIs to penetrate new markets in order for Malaysia to become an educational hub. Currently, incentives are geared towards SMEs,” he said.
In view of the strong competition from global universities offering their programmes fully online, it is important that the government in Budget 2022, extend grants to PHEIs to introduce new forms of delivery modes and upgrading of digital resources on campus.”
Paramjit also expressed his concern on the need for teaching staff to be upskilled, especially in the critical areas of Industrial Revolution 4.0 as well as artificial intelligence and the Internet of Things to support national objectives such as Digital Malaysia.
“The human resource development fund alone will not be enough.
“For PHEIs to catch up and make up for what they lost during the Covid-19 pandemic, Budget 2022 should make a provision for them,” he said.
Currently, there are some 600,000 students enrolled in 435 PHEIs, of which 260 are colleges and the rest, universities, and university colleges.
So far, a total of 60 colleges have closed down since the pandemic, which brought the total number of private colleges in the country to 260.
Students dropping out to support families
National Association of Private Educational Institutions associate professor Elajsolan Mohan said that the 260 colleges cater for the bulk of student enrolment.
“Most of them provide diploma and certificate level courses that greatly support the sub-professional job market demand across all sectors including manufacturing, construction, hospitality and childcare. Many of those enrolled are from poor income groups.
“Due to the pandemic, many have dropped out to financially support their families and the students attending classes in the 260 colleges need support and financial assistance from the government to continue, and complete their classes,” he said.
Budget 2021’s RM50.4 billion for the education sector is only for public universities.
Of this, a total of RM14.4 billion was allocated to the Higher Education Ministry for public universities, RM800 million for the maintenance and repair of government and government-aided schools. Another RM725 million went to the upgrading of buildings and infrastructure in government schools.
Digital access for all
Parent Action Group for Education (PAGE) founder Datin Noor Azimah Abdul Rahim said that during the post-pandemic era, PAGE’s wish is for Budget 2022 to provide digital access to all students.
The previous budget saw the government allocating RM50 million to upgrade the Malaysian Research and Education Network for greater internet connectivity in higher education institutions.
“The pandemic has widened the learning gap and the best way to resolve this is to provide full accessibility to all students,” she said.
“Repair and maintenance of schools continue to cost the government a large allocation annually.
“However, PAGE continues to question the quality of work provided by contractors and the need to establish better systems to ensure standards are met.
“PHEIs are as crucial as public universities, which contribute to the economy and the employment sector.
“They have suffered financial losses due to a drop in enrolment during the pandemic and the delay in courses due to the delayed SPM exams. Due to this, Budget 2022 should provide grants to help them recover.”
53,000 childcare centres needed
Early Childhood Care and Education president Anisa Ahmad said that with 23 affiliate district and state associations, they hope the government will allocate funds for the revitalisation of childcare centres.
“This is so that women can re-enter the workforce, by leaving their toddlers safely at these centres.
“In Malaysia, the number of children registered under the age of four stands at 1.61 million, based on last year’s figures provided by the Statistics Department, which requires an estimated 53,000 childcare centres or ‘taska’ to cater to them.
“The association hopes Budget 2022 can provide an allocation for the setting up of more registered childcare centres to accommodate the needs of children and parents in Malaysia.
The budget should also provide grants to assist childcare centres, which had to close down during the pandemic.”
Anisa said that with the fees at childcare centres increasing annually, it would be ideal for Budget 2022 to increase household income and subsidies so that “no child is left behind”.
Currently, only those with a household income of RM800 are entitled to the subsidy.
“The income level should be increased from RM800 to RM5,000 for those in urban areas and from RM500 to RM3,000 for those in rural areas.
“Budget 2022 should also increase the number of government and community childcare centres from 883 to 2,000 as this is the number needed to meet the needs of parents.” – The Vibes, October 29, 2021
