The Madani Government deserves genuine praise for placing education at the heart of Budget 2026. With a historic RM66.2 billion allocated to the Education Ministry and RM4.4 billion for scholarships and education allowances, it’s clear that education remains a cornerstone of Malaysia’s nation-building vision.
Initiatives like Ikhtiar Dapur Madani, which provide food and essentials to underprivileged students, embody the government’s compassion and belief that no student should be left behind. These are commendable steps that reflect true leadership in prioritizing access and equity.
Yet, as public universities benefit from these record allocations, private universities are quietly struggling to stay afloat. Beyond the well-intended double tax deduction for scholarship sponsors, little direct support has reached the institutions themselves. Many continue to face rising costs, slowing student enrolments, and limited access to funding.
According to The Sun, the number of private higher education institutions in Malaysia has dropped from 437 in 2020 to 388 in 2023 — 49 closures in just four years. Escalating expenses, shrinking intakes, and lengthy accreditation processes have made survival increasingly difficult.
📎 Source: The Sun – “Private Universities Facing Multiple Challenges”
https://thesun.my/malaysia-news/private-universities-facing-multiple-challenges-MB13478136
The Shrinking Private University Landscape
The numbers tell a clear story. Over the past decade, Malaysia has seen a steady decline in private university enrolments. Many institutions have downsized, frozen hiring, or discontinued programmes.
As students increasingly view public education as more affordable and secure, private universities risk becoming the forgotten pillar of Malaysia’s higher education system.
If this trend continues, how many private universities will still be standing in the next five to ten years?
Private universities have long served as a critical extension of opportunity, by absorbing students who miss out on public placements and offering globally relevant education. Yet, while public institutions receive billions in support, private universities depend almost entirely on tuition fees.
To survive, they must diversify revenue, collaborate with industry, offer niche programmes, and advocate for fairer policies. But more importantly, policymakers must recognise that private universities are partners in nation-building, not competitors.
The Madani Government’s education vision is admirable, and its compassion towards learners is deeply respected. Yet, for Malaysia’s higher education ecosystem to truly thrive, private universities must not be left behind.