Universiti Malaya denies it is going bankrupt
University says it has taken measures to ensure an income of RM300 million this year from postgraduate fees, rentals and investments.
PETALING JAYA: Universiti Malaya (UM) has already implemented measures to deal with current drastic budget cuts.
The university said this in an immediate response to its former vice-chancellor Ghauth Jasmon who claimed UM would be bankrupt in three to five years if “the right people” are not hired to raise funds for its operations.
In a statement, UM vice-chancellor Prof Amin Jalaludin said UM respected Ghauth’s opinion but it did not reflect UM’s current situation as the university had taken the necessary measures to deal with the budget cuts.
Amin said UM would be enhancing its policy of income generation, optimisation and financial prudence to cope with the cuts.
“This year, we anticipate a projection of RM300 million from our internal income, postgraduate fees, rentals and investments.
“Besides that, UM has diversified its income through its subsidiaries, operating joint ventures between public and private institutions, including International University of Malaya Wales, University of Malaya Centre for Continuing Education, University of Malaya Specialist Centre, and through development of its land banks.
“The management has also started to invest in a few lucrative sectors, namely in the plantation business, with the aim of being self-sustaining in the near future.”
Amin said UM would also initiate other revenue streams by providing training, consultancy and smart partnerships with the corporate sector.
Ghauth, speaking at a seminar, had said UM received government aid of RM550 million yearly before funds were slashed two years ago.
“Now, UM face cuts of RM270 million. They are now dipping into their reserves as the top management are academicians.
“These VCs, appointed by the higher education ministry, have no clue as to how to raise money. They only have another three to five years’ of savings.”
He also said UM has 5,000 academic and administration staff. To survive these budget cuts, they will have to remove 2,000 people.
Universiti Malaya can’t stay afloat with budget cuts, says ex-VC
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