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Petaling Jaya MP Lee Chean Chung called on the Education Ministry this week to explain the requirement for tuition centres to have 30% Bumiputera equity for license renewals in 2027.
The matter came to light when Petaling Jaya MP Lee Chean Chung called on the ministry to explain the basis of the requirement. He said the ministry should consult tuition centre operators and provide clear guidance on its implementation.
The 30% Bumiputera equity requirement for tuition centres isn’t a new policy proposal by the current administration. The requirement originated from the Private Education Institutions Policy Book published by the Education Ministry in 2006 when Hishammudin Hussein was the Education Minister.
Due to raised concerns, the Education Ministry will propose a review of tuition centre ownership rules to the cabinet next week.
READ MORE: Tuition Centre Owners Told To Find Bumi Partners By 2027, Or Lose Their Licence
Criticisms and concerns over the equity requirement
Melaka Action Group for Parents in Education (Magpie) urged the ministry to drop the requirement. Independent scholar Sharifah Munirah Alatas echoed the call, warning that the policy risked racialising the education sector and would not encourage genuine Bumiputera entrepreneurship.
Magpie president Mak Chee Kin questioned whether it was fair to ask businesses, some of which had operated for decades, to give up 30% of their ownership.
Social activist Tan Sri Lee Lam Thye pointed out that not all tuition centres are run by large, profit-driven corporations. He said most tuition centres are small, neighbourhood-based businesses run by educators that run on modest budgets.
Lee added the strict equity ownership requirements on small businesses could place unnecessary and disproportionate burden on operators.
Former deputy education minister, P. Kamalanathan, said it also risks driving businesses underground, as those that fail to meet the equity requirements will have their operating licenses revoked starting in 2027.
Kamalanathan said Malaysia has a large unregistered home-tuition and online-tuition market. Adding the strict equity requirement might force some business operators to deregister, operate without a licence, or shift fully online. When this happens, the Education Ministry has no oversight on safety and teacher quality.
Kamalanathan suggested exploring better models. One option is procurement-linked incentives instead of licensing-linked equity.
He said the ministry runs its own programmes, such as extra classes, remedial support for Tamil schools, and digital education grants. These programmes could prioritise centres that employ a meaningful number of Bumiputera teachers or offer scholarships to Bumiputera students.
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