KUALA LUMPUR: Education remains a key focus of Budget 2027, with the Education Ministry set to receive nearly RM69 billion, up from RM66.2 billion this year, to improve school infrastructure, ease students’ financial burdens and widen access to education.
Students from Sabah and Sarawak will have greater opportunities to pursue higher education, with the government doubling the number of Public Service Department (PSD) scholarships to benefit 4,200 students annually.
The government has allocated nearly RM1.3 billion to upgrade 682 dilapidated schools, particularly in Sabah and Sarawak.
Funding for repairs and maintenance across all types of schools will double from RM1 billion to RM2 billion.
National schools will receive RM900 million, while national-type Chinese schools (SJKC) will receive RM100 million and national-type Tamil schools (SJKT) RM50 million.
Another RM200 million will be allocated to religious schools under the Malaysian Islamic Development Department, with the expanded funding scope covering operational assistance.
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said that, with nearly 500,000 pupils expected to enter Year One next year, including more than 70,000 aged six, the government expects to complete 3,500 additional classrooms by the end of this year using the Industrialised Building System (IBS) method.
He added that several new schools and educational facilities would also be built, while a new matriculation college was under construction in Marang, Terengganu.
To encourage greater community involvement in improving school facilities, the School Public Contribution Fund will be enhanced. Cash contributions to the fund will qualify for tax deductions of up to 10 per cent of aggregate income.
Anwar also announced an increase in financial assistance for schoolchildren, with early schooling assistance rising from RM150 to RM200 per student.
“Form Six students will receive a cost-of-living allowance of RM2,500, matching the rate provided to matriculation students. The measure is expected to benefit 90,000 students,” he said.
“In addition, RM870 million has been allocated to the Supplementary Food Programme, which benefits more than 800,000 students.
“The government will also expand the recruitment of teaching assistants to 200 primary schools with high enrolment to reduce teachers’ administrative workload and allow them to focus more on teaching.”
The Higher Education Ministry will receive RM19.1 billion, including RM800 million to upgrade lecture halls and student accommodation, and replace obsolete equipment.
“We are also preparing a comprehensive higher education legislative framework to replace the Universities and University Colleges Act,” Anwar said.
“The proposed framework will cover university autonomy, academic freedom and student rights.”
Separately, the National Higher Education Fund Corporation (PTPTN) will introduce repayment relief measures in 2027 to assist borrowers facing financial constraints.
“Borrowers earning up to RM2,500 per month will be eligible for repayment deferments, while those earning between RM2,500 and RM3,000 per month will be subject to a minimum monthly repayment of RM50,” Anwar said.
“Borrowers with no outstanding arrears who make regular repayments will also receive a 10 per cent discount.
“Employers that repay PTPTN loans on behalf of their employees will qualify for tax deductions on repayments made between Jan 1, 2027, and Dec 31, 2028.”
Retirement Fund Incorporated will invest RM750 million in the VISTA Campus project to develop student accommodation at six selected universities, including Universiti Sultan Zainal Abidin and Universiti Teknologi Mara.
Access to affordable food will also be expanded through the Madani Student Kitchen programme, which will be extended to polytechnics and teacher training institutes with an allocation of RM20 million.
The initiative will provide cooking equipment, food supplies and the Student Care Menu, with meals priced at RM5. Tax deductions will be available to parties contributing food and equipment to the programme from Jan 1, 2027, to Dec 31, 2030.
For students attending public universities, the FlySiswa Madani 2027 flight ticket subsidy will increase from RM400 to RM500, benefiting more than 60,000 students.
