The government has agreed to channel RM30 million to Tunku Abdul Rahman University College (TAR UC) through a trust fund managed by its alumni.

However, Finance Minister Lim Guan Eng said monies from the trust fund can only be channelled to TAR UC once MCA relinquishes control of the varsity.

"This latest step follows slander by certain quarters who question the government's sincerity to channel at least RM30 million a year to TAR UC if it respected the principle of separation between political parties and educational institutions," said in a statement today.

Lim said the RM30 million would be transferred this year as soon as the trust fund is set up, and that another RM30 million would be channelled next year.

He said the trust fund will be managed by members of the TAR UC alumni association, a student representative, and a Finance Ministry representative.

The trust fund's terms of reference are to manage the monies for the benefit of TAR UC and its students.

"In other words, the trust fund will manage RM30 million each year without involvement or interference from the government or any political parties including MCA or Pakatan Harapan," he said.

During the BN administration, funds for TAR UC were included in the federal budget yearly and channelled directly to the varsity.

Lim as finance minister, however, has been adamant that MCA relinquishes control of TAR UC before funds are transferred.

In an immediate response to Lim's statement today, MCA secretary-general Chong Sin Woon said Lim should “let go of his ego and don’t play politics in education”.

Funding for TAR UC was one of the key issues played up by MCA during the Tanjung Piai by-election. Deputy Education Minister Teo Nie Ching admitted that this was among the reasons why Chinese voters swung back to BN in the Tanjung Piai by-election last Saturday.

Lim, however, said it was not the sole reason.

BN candidate Wee Jeck Seng, who is from MCA, won with a whopping 15,086-vote majority by garnering 25,466 votes against Harapan candidate Karmaine Sardini's 10,380 votes.

Malaysiakini had reported that Chinese-majority polling districts were abandoning Harapan at a rate of more than double than that of Malay-majority polling districts.