4 takeaways for students from Budget 2017

The federal budget for 2017 has been finalised and here are the highlights for higher education.

RM4.3 billion of scholarships

As the budget concluded on Friday, the government announced the allocation of RM4.3 billion for scholarships, contrary to expectations of austerity measures and budget cuts. Many had speculated that expenditure on scholarships would be reduced. In 2016, the allocated budget for scholarships was RM2.647 billion, which was a 23% reduction from the 2015 budget. However, next year, scholarship allocation would even surpasses that of 2015.

Public university funding

Public universities, on the other hand, will suffer a significant cut in the annual funding for 2017. As much as RM7.4 billion have been allocated for 20 public universities with RM1.4 billion allocated for 4 university hospitals and RM300 million for 5 research universities. The combined operating budget for public universities next year will see a slash of nearly 20% (RM1.5 billion).

Some universities will suffer major cuts in their funding. UKM, for instance, will face cuts as high as 31.1% in operational expenditure from this year's already reduced budget. UKM has a RM512.33 million in operational cost this year, but will have RM352.7 million in 2017. Top ranking institutions will not be spared.

Additionally, public universities are expected to promote research culture and increase their publications and intellectual property. For this purpose, there will be an allocation of some RM100 million.

Student debit card

Book vouchers known, as the 1Malaysia Book Voucher, will be replaced with a student debit card. The card is expected to benefit 1.3 million students and will enable students to purchase more than just books.

Students don't just need books, technology has become an important part of their education. Therefore, they need to have the ability to pay for internet access, purchase some accessories (like CDs, pen drives, and hard-disks), and calculators for students in particular courses like accountancy, finance and engineering.

PTPTN discounts

The National Higher Education Fund Corporation (PTPTN) loans are expected to have a discount of 15% on outstanding debt, and a 10% for those who have settled 50% of their payment in a single payment. 10% discount will be given to those who have been paying accordingly with the salary deduction scheme.

Other allocations

• RM50 million: Training 20,000 graduates to improve employability
• Public universities will get 100Gps internet broadband speed