.png)
THE Government is rolling out its most comprehensive education reform in years, anchored by a RM66.2 billion allocation to the Ministry of Education under Budget 2026—an increase from RM64.2 billion this year—and RM18.6 billion for the Ministry of Higher Education.
Prime Minister Dato’ Seri Anwar Ibrahim told Parliament, “In a world marked by intense economic competition, artificial intelligence, and urgent climate change, education can no longer be confined to literacy alone. We aim to raise a generation that thinks critically, acts ethically, competes globally, and dares to innovate.”
The 13th Malaysia Plan (RMK13) lays the foundation for a more agile and holistic education system, including the passing of the 2025 Education Act (Amendment), which makes secondary education mandatory.
School infrastructure remains a top priority. Nearly RM2 billion is allocated to upgrade over 520 dilapidated schools, particularly in Sabah and Sarawak, and to improve facilities such as classrooms, staff rooms, and student amenities. Following the successful nationwide refurbishment of school toilets and canteens, the government will also build 38 new schools across the country to meet growing population demands.
Additionally, two vernacular schools—SJK Tamil Ladang Jeram in Pahang and SJK Cina Aik Hua in Perak—will be rebuilt.
To fast-track school projects, existing buildings will be repurposed using industrialised building systems (IBS). RM100 million will be spent to construct additional classrooms in over 100 overcrowded schools, while another RM100 million will support the creation of 350 new preschool classrooms.
To improve access for students from underprivileged backgrounds, RM150 million will be allocated for federal bursaries, RM870 million for the Supplementary Food Programme, and RM180 million to extend school assistance to students up to Form Five. Each of Malaysia’s 5.2 million public school students will receive RM150 in Early School Aid, distributed directly to parents via teachers from 2026, to strengthen home-school collaboration.
The early childhood education system will also be expanded, with six new KEMAS kindergartens and nurseries to be built, including in Melaka and Terengganu. An RM20 million fund will upgrade unity childcare centres across the country. A further RM70 million will be used to supply smart TVs to 10,800 preschool and early childhood education classrooms to support digital literacy.
Children with special needs are also a focus of the budget. Two new special education secondary schools will be established in Kota Damansara, Selangor, and Pasir Mas, Kelantan. RM700 million will fund the construction of 35 additional special education blocks in existing schools, while every state will host a KEMAS kindergarten class for children with mild autism.
“All 150,000 children with disabilities (OKU) will continue to receive RM150 monthly allowances under a RM270 million allocation,” Anwar said, adding that RM30 million has been set aside to make schools more inclusive through disability-friendly facilities and equipment.
To address education dropout rates, the Anak Kita Programme will continue in partnership with Yayasan Hasanah, with a RM30 million allocation.
Teacher upskilling has also been prioritised, with RM115 million allocated for curriculum preparation training ahead of the 2027 syllabus rollout, as well as STEM teaching methods.
At the tertiary level, the Ministry of Higher Education’s RM18.6 billion budget includes over RM400 million for maintaining and replacing ageing infrastructure in public universities, polytechnics, and community colleges.
“No young person should have to give up on their dreams because of financial hardship. Education remains the government’s most powerful investment in securing a better future,” said Anwar.
To support students from low-income families, the government and Government-Linked Investment Companies (GLICs) will provide RM4.4 billion in scholarships, loans, and education allowances. Private companies offering scholarships—including for professional qualifications in fields such as ICT, engineering, accounting and finance—will receive double tax deductions.
The Celik MADANI programme by PNB will continue, offering RM50 in unit trust investments (ASB or ASM) to 200,000 students. PNB will also release five billion additional units in ASB 3 Didik and ASM.
In-campus welfare initiatives include the Dapur MADANI programme, with RM26 million allocated to provide students with cooking equipment and raw ingredients, as well as CSR-driven food assistance. The RM20 million MySiswa Job On Campus programme will offer part-time job opportunities to help students earn income and develop entrepreneurial skills.
To address a growing housing shortage in universities, EPF and Universiti Malaya will pioneer the construction of 1,000 residential units at UM.
The government will also implement major PTPTN reforms. From 2026, the National Higher Education Fund will offer free education to 5,800 students from poor families studying in public universities, with a RM120 million annual allocation. Loan repayment exemptions will also be granted to around 6,000 students from low- and middle-income families who graduate with first-class honours, costing RM90 million annually.
In a move to enforce accountability, the government will restrict overseas travel for defaulters working abroad who are financially capable but refuse to repay their PTPTN loans.
Anwar also announced an expansion of university access. The government will add 1,500 new undergraduate seats across 10 disciplines—law, accounting, economics, Islamic finance, AI, and languages—at five research universities.
Public-private health education partnerships will be launched, including the development of the UKM Health Technopolis and Universiti Malaya Health Metropolis. These projects will not only provide modern medical training facilities but also extend healthcare access to communities in Petaling Jaya and Kuala Lumpur.
University teaching hospitals will be allowed to establish endowment funds. Donations to these funds will be tax deductible, and all income from the funds will be fully tax exempt.
Finally, the government will boost Malaysia’s aeronautics capabilities with RM16 million in funding. UniMAP will establish the country’s first low-altitude flight testing facility—Air Space Sandbox—in Sungai Batu Pahat, Perlis. UTHM, the first university in ASEAN with its own airstrip, will support maritime aviation and produce local amphibious aircraft pilots.
With these sweeping reforms, Anwar’s government aims to make Malaysia’s education system not only more inclusive, but also more future-ready in the face of global disruption. - October 10, 2025
