New ways for varsities to make money

As public universities are expecting a further reduction in public funding and no rise in tuition fees, new methods of generating income are to be employed.The tabling of the 2017 budget sees public universities operating budget being reduced from RM7.57 billion to RM6.2 billion. This reduction in the budget, will not, in return, effect tuition fees.

The Minister of Higher Education Datuk Seri Idris Jusoh, said that this cut is part of the Education Blueprint 2015-2025 and is aimed to reduce the dependency of public universities on government funding. The cuts will continue until a 70% dependency rate is established by the end of the period. Currently, public universities depend on government funding of up to 90%.

According to the minister, a 90% reliance on public funding is unsustainable. Many universities around the world use only up to 40-50% of public funds and there are other ways that universities can fund themselves. The government is working with these institutions to establish self-sustained funding platforms without having to increase tuition fees.

The ministry has released guidelines on how universities can source out more funding and enhance their income. Dubbed the "Purple Playbook", the guideline was launched back in July and is one of three guidelines launched by the ministry.

Some of the ways to raise funds include publishing more journals, providing training, alumni contributions and pledges, donations, waqf (donations made for religions, educational or charitable causes), unlock assets, and commercialising research and production of goods and services from the research.

The ministry hopes that community colleges continue to improve the lives of the communities they serve, provide skills and contribute to the livelihood of the people. More community colleges are expected to be constructed as these institutions have been serving some 2 million people across the country.