Budget 2025: Fees For Boarding Schools And Public Universities To Increase For Wealthy Groups

The government proposes a slight increase in fees for fully residential schools (SBP) and public higher education institutions (IPTA) for the top 15 per cent of income groups.

Prime Minister Datuk Seri Anwar Ibrahim, during the 2025 Budget Presentation in Parliament today (18 October), emphasized that this fee increase will not affect the B40 and M40 groups.

He explained that the collected funds could be used to improve the infrastructure of SBPs and IPTAs, which would benefit all students.

This increase applies only to the top 15 per cent, meaning that the government will impose a slight increase on those in this category in SBPs and public universities.

From this, we can use the funds to help citizens, students, or undergraduates in the M40 and B40 categories.

Rich Kids, Poor Policy?

Anwar, who is also the Finance Minister, clarified that such targeted subsidies will also involve public health.

This is because currently, they are treated the same… entering the hospital paying RM1 whether they earn millions of ringgit or not. So, there should be a slight additional charge for the service fund so that it can be added to the government fund, Ministry of Health, and distributed to poor patients.

Boarding fees at public universities in Malaysia generally range from RM10,000 to RM80,000 per year, depending on the institution and the facilities provided.

Students at Fully Residential Schools (SBP) receive a yearly subsidy of RM15,000, with additional costs depending on specific school fees and expenses.

Recent findings indicate that 30 per cent of SBP students come from high-income families, raising concerns about the effectiveness of the subsidy allocation.