29/09/2025
MONDAY | SEPT 29, 2025
11
COMMENT by Dr Lee Hwok Aun and Dr Wan Chang Da
THE implementation of targeted subsidies through the MyKad system is not merely a matter of fiscal administration; it represents a strategic decision with far-reaching implications for the economy, society and Malaysia’s international standing. Unsurprisingly, few have questioned its necessity. What is frequently debated are the modalities of its execution and the ancillary contracts surrounding it. This commentary does not seek to endorse any political party but rather it aims to illuminate why targeted subsidies matter from a strategic standpoint and to underscore the broader benefits they confer upon the nation. Leakages in subsidies to foreign nationals or ineligible groups erode the state’s capacity to safeguard its S TPM graduates are the orphans of Malaysia’s education system. Their plight, recently highlighted by MP Sim Tze Tzin in his commendable call for a “Selamatkan STPM” taskforce, merits a considerate and effective response in line with the 13th Malaysia Plan’s social mobility pillar. The STPM is a two-year pathway to university – available at numerous schools and a few Form 6 colleges across the country – culminating in a challenging externally-administered national exam. Matriculation colleges offer a one year programme, teaching a narrower syllabus in a fully residential setting, where the examination is coordinated internally by the Education Ministry. In 2023, 41,548 students took the STPM exam while 25,239 were enrolled in matriculation, making these two pathways the primary means of access into the subsidised placement in public universities. STPM students outnumber matriculation peers but they are outscored. The disparity in academic results is stark. Sim disclosed data from the Education Ministry he obtained through Parliament showing 3% of STPM graduates obtained the maximum CGPA of 4.0, compared with 16% of matriculation college graduates. These results are significantly driven by self-selection after secondary school for several reasons. Given the public perception that matriculation colleges are “guaranteed” a place in public universities, SPM top scorers, including non-Bumiputera students, would flock to apply. This is despite matriculation colleges implementing a 90% Bumiputera quota. Conversely, all students who have not been offered a place in a matriculation college but meet the minimal requirement will receive an offer to enrol in Sixth Form. In other words, matriculation college entrants are already higher achieving – the gap between them and STPM students widens further as they progress through pre-university programmes. Importantly, 72% of STPM students are from low-income (B40) households. The achievement disparity further extends to university admissions.
Brightening university prospects for STPM students
Targeted subsidies are not merely an economic policy; they are a national strategy to protect citizens, modernise administration and safeguard fiscal sovereignty. While the early stages may be marked by confusion and technical shortcomings, the long-term dividends are far greater – a Malaysia that is resilient to its people and respected on the world stage. Lt Cdr Farizha Ibrahim (Royal Malaysian Navy) is a former senior lecturer at the Faculty of Defence Science and Technology, National Defence University of Malaysia (NDUM) and a former research fellow at the Maritime Research Excellence Centre at NDUM. Comments: letters@thesundaily.com omitting identity traits such as ethnicity, gender or residential location in the selection criteria. Yet, the system differentiates students on whether they took STPM, matriculation, foundation programmes from public universities or other pre-university programmes. One of the recent additions to the UPU portal is the publication of the “average merit” score for each programme, specifically for applicants from the STPM, matriculation and foundation routes. This is a progressive move but admission scores over the past two years should be disclosed on the portal, including the median, mean, mode, minimum and maximum as well as the number of students admitted according to the different programmes. The STPM process needs a reform and should fall within the scope of the 13th Malaysia Plan. Despite the challenges and poor public perception of STPM, along with superficial interventions to popularise this pre-university pathway, STPM continues to have significant educational and socioeconomic roles to play in the Malaysian education system. On the one hand, it remains the most comprehensive and rigorous university preparation programme in preparing students for university. On the other hand, STPM continues to serve a huge proportion of B40 students. Neglecting the double disadvantages of STPM students heightens the risk of many missing out on tertiary education. Madani should look out for their interest. Dr Lee Hwok Aun is a senior fellow with the Iseas-Yusof Ishak Institute. Dr Wan Chang Da is a professor at the School of Education at Taylor’s University. Comments: letters@thesundaily.com
own citizens. By introducing targeted mechanisms, every ringgit disbursed becomes a precise investment in the welfare of Malaysians. It is a signal that the nation is serious about protecting its fiscal sovereignty and will not tolerate the misuse of public funds. By restricting subsidies to MyKad holders, the message is unequivocal: these privileges are reserved for citizens. This approach fortifies the social contract between people and government, fostering trust and reinforcing the bonds of national solidarity. The initiative serves as a test bed for Malaysia’s capacity to build a modern digital governance ecosystem. The MyKad evolves beyond an identity card into a gateway for social assistance and future policies underpinned by big Among the entering cohort of STPM and matriculation graduates to public universities, STPM graduates comprised an abysmal 2.4% (23 per 962) in medicine and 0.9% (two out of 235) in dentistry. For the 2018 public university intake, the most recent publicly disclosed data, 24,375 out of 33,197 STPM applicants (73.4%) were admitted to a public university, compared with 20,269 out of 20,907 matriculation graduates (96.9%). About 9,000 STPM graduates did not make it to a public university that year. Most of them likely could not afford private university fees. We have tended to focus on top-scoring students and the conventionally popular and prestigious fields, like medicine or law, but the problems with university admissions must be addressed at the systemic level and with a commitment to fairness for students of all backgrounds and diverse achievement levels. The vast majority are not “straight A” students and many, especially STPM graduates, may be languishing without a place to go after Sixth Form. However, the UPU system places matriculation grades on par with STPM grades, which compounds the disadvantages faced by STPM graduates because it is harder to score in STPM’s more expansive and advanced curriculum. What can be done for STPM graduates? The system is deeply embedded and seemingly rigid but needs some constructive tweaks that are practical. We suggest three interventions. Firstly, it is important to recognise that between the two programmes, STPM is more rigorous in breadth and depth. The most distinctive component of STPM is the compulsory subject of
The UPU system places matriculation grades on par with STPM grades, which compounds the disadvantages faced by STPM graduates because it is harder to score in STPM’s more expansive and advanced curriculum. – BERNAMAPIC
the initial phases, difficulties will arise – confusion at service counters, delays in system performance or a sense of burden among citizens unfamiliar with new procedures. Yet, such frictions are the inevitable cost of transformation. What matters is that the government provides helplines, avenues of appeal and clear public communication to mitigate disruption. Once the system matures, the country will benefit from subsidies that reach their intended recipients with greater precision, an integrated data stream to analyse consumption patterns and more disciplined public expenditure. Funds saved can be redirected towards education, healthcare and national development while public and investor confidence in Malaysia’s governance will be reinforced. distinction with a distinction in other qualifications but should rigorously evaluate the pool of STPM applicants. Secondly, we should equip STPM students better for their university applications. They may fare worse in programmes that require interviews if they lack advisory and coaching help from their schools or are less proficient in English or unaware of language requirements. Many, especially in smaller schools, may not be provided sufficient information and counsel on university programmes, course selection and strategies for maximising the chances of their applications. Providing such service nationwide will be daunting but instructional videos and engaging content can be disseminated digitally. Thirdly, the UPU centralised admissions portal officially operates a computerised “meritocratic” system that only considers academic and extra-curricular activity scores, in STPM
data governance. The systematic roll-out of targeted subsidies sends an unmistakable signal internationally: Malaysia is serious about curbing fiscal leakages, reducing over-reliance on blanket subsidies and committing to disciplined economic stewardship. Such reforms will bolster investor confidence, reassure trade partners and enhance the assessments of international rating agencies. Uncontrolled spikes in the cost of food or fuel can trigger social unrest. Targeted subsidies ensure that support is channelled to those who genuinely need it, thereby preserving societal stability. In the realm of national security, this is no less vital than fortifying borders or strengthening the armed forces. It must be acknowledged that in General Studies. Every candidate is required to sit for this subject, which is essential to develop key academic skills in preparation for university, such as analytical skills, presentation of data and critical thinking. Equally important, the citizenship component in General Studies is instrumental in developing informed citizens for the nation. Thus, it may be timely for the university admissions points system to be reconfigured in recognition of the STPM’s strengths. A more systematic solution would be to decouple STPM and matriculation and not evaluate students from these two programmes using the same template. A separate evaluation exists in the current system whereby students with other pre-university qualifications, such as the A-levels or International Baccalaureate Diploma Programme, are assessed independently for admission. In the same vein, the admissions criteria should not equate a
COMMENT by Lt Cdr Farizha Ibrahim Targeted subsidies: From blanket support to precision aid
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