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The Education Ministry will receive nearly RM69 billion under Budget 2027, up from RM66.2 billion this year.

The Higher Education Ministry will receive RM19.1 billion.

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced the allocations while tabling the Budget in the Dewan Rakyat on Friday (9 October).

What Schools Are Getting

The allocation to repair and maintain all types of schools will double from RM1 billion to RM2 billion.

The breakdown:

National schools (SK): RM900 million

Chinese national-type schools (SJKC): RM100 million

Tamil national-type schools (SJKT): RM50 million

Registered people’s religious schools, tahfiz institutions and pondok schools under JAKIM: RM200 million, with the scope widened to cover institutional operating aid

Anwar said Tamil schools have fewer pupils, but their dilapidated infrastructure needs urgent attention.

Another RM1.3 billion will go to upgrading 682 dilapidated schools, mainly in Sabah and Sarawak.

About 500,000 pupils are expected to enter Year 1 next year, including over 70,000 six-year-olds. 3,500 additional classrooms are expected to be completed by the end of this year through the Industrialised Building System (IBS).

New schools and facilities include:

SK Seri Chemor, Ipoh, Perak

Bandar Serenia school complex, Sepang, Selangor

A full replacement of SJK (Tamil) Ladang Pamol, Kluang, Johor

SJKC Bandar Mahkota Cheras

A preschool building at SK Bulu Silou, Keningau, Sabah

A new matriculation college is also being built in Marang, Terengganu.

Aid For Students And Families

The initial schooling aid will rise from RM150 to RM200 per pupil. A family with four children will receive RM800 for the 2027 school session.

5.3 million pupils are eligible, with RM1 billion allocated. The aid will be distributed at schools so parents can meet teachers in person.

Form Six students will get a RM2,500 living allowance, matching the matriculation allowance. It will benefit 90,000 students.

The Supplementary Food Programme gets RM870 million for over 800,000 pupils.

School sports activities get a 50% increase to RM27 million, benefiting over 4.6 million pupils at 10,000 schools.

What’s In the Budget For Teachers

The recruitment of teacher assistants will be extended to 200 high-density primary schools, and expanded in phases after an effectiveness assessment.

Anwar said teachers should return to educating children without being burdened with clerical work.

A special incentive of RM150 a month goes to 500 KAFA teachers who teach pupils with special needs, including through sign language and Braille Quran.

The allowance for pupils with special education needs rises from RM150 to RM200 a month, benefiting 150,000 pupils, including autistic children.

The teaching incentive for special education teachers rises from RM250 to RM300 a month, benefiting 20,000 teachers.

Two Pusat Permata Kurnia centres for autistic children will be built in Melaka and Pahang.

Over 130 new Tabika Tunas Istimewa classes will open in rural areas.

A 100-bed hostel will be built for Orang Asli students in Kinta, Perak, who live far from school.

New University Law To Replace AUKU

The Higher Education Ministry has prepared a comprehensive legal framework to replace the Universities and University Colleges Act (AUKU). It covers university autonomy, academic freedom and student rights.

Anwar said all disciplinary proceedings at public universities related to freedom of speech, expressing views, public criticism and peaceful assembly have been stopped with immediate effect.

Goodies For PTPTN Borrowers

For 2027, PTPTN borrowers earning up to RM2,500 a month will get a repayment deferment.

Borrowers earning between RM2,500 and RM3,000 a month will pay a minimum of RM50.

The measures will benefit over 400,000 borrowers.

Borrowers with no arrears who repay regularly will get a 10% discount.

Employers who repay PTPTN loans on behalf of employees will get a tax deduction, for repayments made from 1 Jan 2027 to 31 Dec 2028.

Student Housing And Welfare

RM800 million is allocated for facilities such as lecture halls and student residences, and to replace outdated equipment.

Phase 1 of the Universiti Malaya student residence is scheduled for completion in 2031, benefiting 10,000 students.

KWAP will invest RM750 million in the Vista Kampus project to build student residences at six selected universities, including UniSZA and UiTM.

The Dapur Siswa MADANI programme will be expanded to polytechnics and teacher training institutes with RM20 million. It provides cooking equipment, food donations and a RM5 Menu Kasih Siswa.

Contributors of food and equipment will get tax deductions from 1 Jan 2027 to 31 Dec 2030.

FlySiswa MADANI 2027 flight ticket aid rises from RM400 to RM500, benefiting over 60,000 public university students.

JPA scholarships for Sabah and Sarawak will be doubled, meaning 4,200 students from the two states can pursue university studies each year.

TVET And Skills Training

TVET allocations across ministries total RM8 billion.

HRD Corp will offer 3 million skills training opportunities with RM3 billion in funds.

The National Skills Development Fund Corporation (PTPK) provides RM500 million to finance trainees at registered public and private skills institutes.

Bakat MADANI will target 30,000 new job opportunities in 2027, up from the 25,000 young people covered so far. Companies that run Bakat MADANI training programmes will get tax deductions from 29 Jun 2026 to 31 Dec 2030.

Other training programmes include:

MARA will train and place 1,000 Bumiputera youths in high-growth sectors.

CIDB will train 10,000 youths in robotics and digital technology.

Community colleges will continue offering short courses to tahfiz students.

Allocations for Mitra agencies rise to RM150 million, prioritising training and jobs for Indian youths in areas such as industrial automation, technology and aircraft maintenance.

AI And Digital Skills

100,000 more free AI subscriptions will be offered to young people, expanded to new AI applications such as ChatGPT.

The Rakyat Digital platform offers free access to over 16,000 courses and Professional Certificate programmes through a partnership with Coursera.

AI Malaysia Berhad receives nearly RM15 million to strengthen a safe and ethical AI ecosystem, targeting 200,000 AI-skilled workers.

The MDEC fund of RM30 million will help 4,000 SMEs adopt AI. It will also train and certify 5,000 AI professionals.

A RM50 million UNIVC fund, set up with KWAP, will bring university research to market.

Other Measures

The Safe Internet Campaign will be expanded to all schools, focusing on cyberbullying and child exploitation.

Komuniti Angkat MADANI gets RM50 million, with universities and TVET institutions providing skills training to urban PPR communities.

Anwar also said ministries, agencies and educational institutions will contribute authenticated, annotated digital language data to Dewan Bahasa dan Pustaka to support Malay-language AI development.

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