The decision to only provide Public Service Department (JPA) bursaries for studies locally is a compromise to ensure students can still access quality education, despite the economic downturn, Minister in the Prime Minister’s Department Wee Ka Siong said.

He said the hard decision was made after discussion between Prime Minister Najib Abdul Razak, Wee and MCA president Liow Tiong Lai.

After all, he said, there is “no shortage of high-quality education” at local universities.

“Funding undergraduate studies abroad for all gifted 744 students is estimated to cost the government RM1 billion.

“It had been determined that such an amount will exert unsustainable pressure on the government’s financial position in this time of global economic volatility,” he said in a statement.

He said this after Prime Minister Najib Abdul Razak announced that JPA bursaries will be available to 744 students to study at public and private universities in Malaysia.

The JPA Bursary Programme is open to high-achieving pre-university graduates, while the JPA Scholarship Programme is open to high-achieving secondary school leavers.

Najib said 8,000 scholarships will also be available for those who pursue undergraduate studies at local universities.

The JPA will, however, continue to sponsor the top 20 SPM scorers to pursue their studies anywhere in the world.

It will also provide scholarships to 200 students to pursue engineering degrees in South Korea, Japan, Germany and France.

Najib announced this in his speech on Budget 2016 revision in Putrajaya today.

Wee said he hopes the affected gifted students can understand that the government needs to walk a tightrope.

“We wish to appeal for understanding and patience from those affected that this decision is a compromise the government must make, given the difficult economic challenges brought on by external factors,” he said.

“We need to place priority on the middle- and low-income groups by introducing measures to stimulate domestic consumption and to ease the burden of the public,” he said.

Speculation that JPA would suspend scholarships created an uproar, with many questioning how the government could prioritise VIP jet purchases above education.

JPA bursaries and scholarships are awarded to the nation’s top academic achievers and are awarded solely on academic merit.