Education groups demand clarity after MOE-Miti bumi equity confusion

 

Education groups have urged the government to clarify details surrounding the abolition of a 30 percent bumiputera equity ownership requirement for private limited companies operating private educational institutions, including tuition centres.

Their calls came after the Investment, Trade and Industry Ministry denied involvement in the decision to revoke the 20-year-old rule, despite the Education Ministry earlier claiming that the cancellation was done following discussions between the two ministries.

Concerned over the “inconsistent and clearly differing accounts” from the ministries, the Malaysia Teachers' Empowerment Society (Mytes) said uncertainty arising from the situation has cast doubt on the Education Ministry’s move to rescind the equity rule.

“Which ministry has the final decision-making authority? Was the decision subjected to the necessary inter-ministerial coordination?

“Has the removal of the 30 percent bumiputera equity requirement formally taken effect, and will it be fully implemented in registration and licence-renewal procedures?” the association representing the private education sector asked in a statement today.

While the group welcomed the equity requirement removal, it said a “sound policy outcome” should not mean that the decision-making and communication processes are allowed to remain unclear to stakeholders.

“If the government ministries involved provide different accounts of who participated in the discussions, how are frontline enforcement authorities and education operators expected to determine which statement carries final administrative authority?

“The policy affects the ownership structure, registration eligibility and licence renewals of private educational institutions, as well as teachers’ livelihoods and students’ learning arrangements.

“The government therefore has a responsibility to provide an explanation that is consistent, unambiguous and administratively enforceable,” Mytes stressed.

Clear decisions, please!

Noting that the situation has revealed “room for improvement” in inter-ministerial coordination and public policy communication, Mytes said that while ministries have different areas of authority, the public must ultimately receive a clear, consistent, and actionable answer.

“Policies involving the authority of multiple ministries should undergo inter-ministerial verification, impact assessment, and a coordinated communication process before being announced publicly.

“Ministries should not have to clarify after a policy announcement that they were unaware of the matter or did not possess the relevant authority,” Mytes said.

Sharing similar sentiments, the Malaysian Association of Tuition Education Entrepreneurs (PPPTM) said the differing statements, issued one day apart, have “inevitably caused confusion” among tuition centre operators.

PPTM president Lim Seng Huat said that while the group had “no intention of determining which ministry was right or wrong”, there is a need for operators to be informed what the final policy is and which decision they should abide by.

“We hope the relevant government agencies will first coordinate internally before giving the industry an answer.

“Policies must be clear and consistent so that operators can run their institutions with confidence,” he said in a statement.

The Education Ministry’s decision to abolish the bumiputera equity rule, as detailed in a statement last night, followed concerns from various sectors after online postings claimed that the rule would come into force next year.

However, the ministry clarified on Sept 20 that the requirement was published in the Private Educational Institutions Policy Book from two decades ago.

It also noted that it intends to submit a proposal for the cabinet to review provisions related to the rule.

The Education Ministry’s statement yesterday did not mention if the cabinet was consulted prior to the announcement.

Review mechanism

On the ministry’s revocation of the rule, Mytes called on the government to clarify whether the decision applies to new applications, licence renewals, branch registrations, and applications currently under consideration.

A review mechanism, it said, should also be provided for applications previously suspended, returned or rejected because of the equity requirement.

Besides providing consistent written instructions to all education departments and relevant registration authorities, Mytes said the Education Ministry should also update its registration guidelines, application forms, and online systems to formally remove the requirement.

On the government’s wishes to increase bumiputera participation in education entrepreneurship, Mytes said it could be done through entrepreneurship funds, professional training, management guidance, digitalisation support, and professional certification. - Mkini