Edu Ministry to propose cabinet review of 2006 tuition centre bumiputera equity rule

The Education Ministry has confirmed it will submit a proposal for the cabinet to review provisions related to the ownership structure of tuition centres.

This follows concerns regarding a 30 percent bumiputera equity ownership requirement for tuition centres and other private education institutions operating under company structures.

PKR's Petaling Jaya MP Lee Chean Chung on Sept 15 urged the Education Ministry to clarify the matter, following a China Press report which referenced a social media posting that criticised the requirement.

While Lee's statement implied that operators are concerned they might be unable to renew their registration as the equity threshold will be implemented beginning next year, the ministry explained today that the provision was not new.

“Provisions regarding the ownership structure of tuition centres were detailed in the Private Educational Institutions Policy Book published in 2006.

“The ministry appreciates the contributions of tuition centre operators all this while and will continue to cooperate with all parties in the interest of the children's education,” it added in a statement.

No longer on ministry's website

According to a copy of the Private Educational Institutions Policy Statement sighted by Malaysiakini, the 2006 document stipulates the 30 percent bumiputera equity condition.

Malaysiakini also secured a separate document from the Education Ministry’s online archive, with the guidelines for the establishment, registration, and operation of tuition centres similarly stating that tuition centres structured as private limited companies must have at least 30 percent bumiputera equity ownership.

The guidelines, which do not include a publication date, appear to no longer be available on the Education Ministry's website, with a Malaysiakini check establishing that it was archived on May 14.

It is unclear when the document was originally uploaded or removed from the ministry’s website, or why it was taken down.

Unfair requirements

Yesterday, Entrepreneur Development and Cooperatives Minister Steven Sim said the cabinet had instructed the Education Ministry to review the equity requirement, after he raised the matter at the Sept 18 cabinet meeting.

MIC strategic director Sivaraj Chandran had also questioned the fairness of the equity requirement, arguing that efforts to increase bumiputera participation in the economy should not come at the expense of the rights and equity of non-bumiputera communities.

“If someone started a business years ago using their own capital and taking their own risks, building a reputation, providing jobs and complying with all regulations, why should they now have to give up part of their ownership to a bumiputera just to obtain or renew a licence?” he said in a statement yesterday.

Sivaraj (above) proposed that the government instead expand bumiputera ownership through financing, training, government contracts, market access, and new business opportunities. 

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