MCA secretary-general Chong Sin Woo said a letter from Treasury secretary-general Johan Mahmood Merican to Utar to notify it of the Cabinet’s decision also stated that the university and its foundation, the Utar Education Foundation (Utaref), must operate as separate entities with distinct audited accounts from next year.

Chong claimed that this contradicts the Private Higher Educational Institutions Act 1996 (Act 555), which requires that a private university be established by a foundation.

“Starting next year, we have to separate (Utar and Utaref) and have two accounts, which raises questions about how it aligns with what is required under the Private Higher Educational Institutions Act for establishing a university,” he told a press conference today.

“It’s not possible to separate the foundation (Utaref) from the university (Utar) because all the funds received by the foundation are used to administer the university.

“(Separating Utar and Utaref) does not serve as a ‘formula’ to resolve the problem. Instead, it raises new issues and will impact all NGOs and other foundations.”

He said MCA president Wee Ka Siong will meet Utar representatives to review the Cabinet’s decision and discuss the next steps to be taken.

Yesterday, Malay Mail reported that while the finance ministry has granted Utar income tax exemption for the years 2017 to 2023, the university will be subject to taxation starting from the 2024 assessment year.

MCA AGM to be held next weekend

Chong said the 49th Wanita MCA and the 60th MCA Youth annual general assembly will be held on Oct 19, followed by the party’s AGM on Oct 20.

He said Barisan Nasional chairman Ahmad Zahid Hamidi is scheduled to officiate the AGM, marking a return to the tradition after years of pandemic-related restrictions.

During the AGM, the party plans to address a range of resolutions related to internal issues, politics, the economy, culture and religion.

About 5,000 delegates are expected to attend, including 1,733 from Wanita MCA and 1,033 from MCA Youth.