30% equity for tuition centres detrimental to students, ministry and national policy

Deputy Education Minister P Kamalanathan expresses concerns that a new education policy requiring 30% Bumiputera equity and 100% Malaysian ownership for tuition centers could be detrimental to students. He argues that this regulatory approach, while aiming to increase Bumiputera participation in the economy, could backfire in practice.

Kamalanathan points out that forcing existing operators to relinquish equity or granting new operators new conditions upon renewal would be impractical and could lead to unintended consequences. He urges the ministry to clarify if the rule applies to existing centers or only new applications, and to conduct genuine stakeholder engagement before implementing the policy.

Kamalanathan highlights legal issues such as the principle of legitimate expectation, the potential for the sector to go underground, and the contradiction with Malaysia's recent policy liberalization efforts. He also emphasizes the negative impact on Bumiputera students who rely on tuition centers, particularly in urban areas. Additionally, he notes that the education ministry's capacity to enforce such a policy is limited and that alternative measures, such as targeted procurement incentives, would be more effective in achieving education equity.