KUALA LUMPUR, Oct 10 — The government today announced free education for 5,800 students from low-income families studying at public universities under Budget 2026.

Prime Minister Datuk Seri Anwar Ibrahim said in the Dewan Rakyat that the initiative, funded through the National Higher Education Fund Corporation (PTPTN), will receive an annual allocation of RM120 million.

“The government has also approved a loan repayment exemption for all PTPTN borrowers who graduate with a First-Class Honours Bachelor’s Degree from public universities, provided they come from low- and middle-income families.

“This measure is expected to benefit around 6,000 students each year, with an additional RM90 million allocated to support the initiative,” he said.

Anwar said the government will also tighten enforcement against borrowers capable of repaying their PTPTN loans but who fail to do so.

“A travel restriction will be imposed on defaulters working abroad who deliberately avoid repayment,” he said.

The education sector’s allocation under Budget 2026 has been increased to RM66.2 billion, up from RM64.2 billion in Budget 2025.

Among the priorities is the refurbishment of school infrastructure, with RM2 billion allocated to upgrade more than 520 dilapidated schools, particularly in Sabah and Sarawak.

The government also pledged to safeguard the welfare and education of special needs children. Two new special education secondary schools will be built — SMK Pendidikan Khas Kota Damansara in Selangor and SMK Pendidikan Khas Pasir Mas in Kelantan.

In addition, 35 new special education blocks will be built in existing schools at a total cost of RM700 million. KEMAS preschools will also be introduced in every state for children with mild autism, including in Terengganu, Labuan and Kedah.

A total of 150,000 students with disabilities will receive a monthly allowance of RM150, supported by an allocation of RM270 million, while another RM30 million will go toward upgrading school facilities and equipment to make them more disability-friendly.

From the RM18.6 billion allocated to the Ministry of Higher Education, more than RM400 million will be used to refurbish infrastructure and replace outdated equipment in public universities, polytechnics and community colleges.

To help young Malaysians pursue higher education, a combined allocation of RM4.4 billion from the government and government-linked investment companies will fund scholarships, loans and education allowances for students from low-income families.

The private sector will receive double tax deductions for scholarships to eligible students. The incentive, which currently covers undergraduate scholarships, will be expanded to include professional qualifications in fields such as ICT, engineering, accounting and finance.

Meanwhile, Permodalan Nasional Berhad’s (PNB) Celik Madani programme will continue, offering an initial investment of RM50 in Amanah Saham Bumiputera (ASB) or Amanah Saham Malaysia (ASM) to 200,000 students. PNB will also make available an additional five billion units under ASB 3 Didik and ASM.

For students on campus, RM26 million will be allocated to provide cooking materials, while the Employees Provident Fund (EPF) and Universiti Malaya will jointly build 1,000 residential units for students.

Under Budget 2026, the government will also add 1,500 new undergraduate spaces across 10 academic fields in five research universities, including law, accounting, economics, banking, Islamic finance, artificial intelligence and languages.

To strengthen the medical field, two public-private partnership projects have been approved — the Health Technopolis Development at Universiti Kebangsaan Malaysia (UKM) and Universiti Malaya Health Metropolis.

The government has also approved the establishment of endowment funds by public university teaching hospitals. Donations made to these funds will qualify for income tax deductions, and all contributions — including income generated from the funds — will be fully tax-exempt.

In the aeronautics sector, RM16 million has been allocated to strengthen the industry. Universiti Malaysia Perlis will develop the country’s first low-altitude flight testing facility, the Air Space Sandbox, in Sungai Batu Pahat, Perlis — a project crucial for logistics, mapping, smart agriculture and security.

Meanwhile, Universiti Tun Hussein Onn Malaysia — the first university in Asean with its own airfield — will support the maritime aviation industry and train local amphibious pilots.

 Malay Mail – Malaysia