A Tunku Abdul Rahman University College (TAR UC) student group has questioned what they claim was a lack of upgrades to the students' hostel at the institution's main campus in Kuala Lumpur despite the firm managing the hostels raking in more than RM1 million in profits.

The TAR UC Association of New Youth said the hostels are managed Delta Pride (M) Sdn Bhd, which is 99.99 percent owned by MCA.

It said based on a Companies Commission search, the company's 2018 financial statement showed it made generated revenue of 4.684 million with an after-tax profit of 1.006 million.

"Since the hostel is making a huge surplus, why does it not upgrade its facilities?" it said in a statement.

The group claimed the students occupying the hostels have faced problems with its facilities.

It said this includes limited washing machine units, lack of water heaters and poor WiFi coverage.

The group said while it agreed with TAR UC subcontracting the hostel's management to an external firm as it is more cost-effective, it wanted the MCA-owned university college to disclose its agreement with the MCA-owned firm.

It said this would determine whether the firm was using only raking in profits or is putting them to good use to help the university and students.

The statement came amid a tussle between the government and the MCA-owned TAR UC over funding.

The government had previously allocated RM5.5 million to TAR UC, but this was stopped on the grounds that the government should not fund a politically-owned institution.

However, Finance Minister Lim Guan Eng agreed to give an increased allocation of RM40 million, but through a trust not controlled by the MCA, for the benefit of TAR UC students.

The MCA had said it would snub the allocation, questioning its legality.