Change won't lift enrolment (Friday May 19, 2006)

By KAREN CHAPMAN, SHARMILLA GANESAN

PETALING JAYA: International schools do not expect a surge in enrolment from Malaysian students that will warrant the setting-up of many more such schools, which are costly to establish and run.

Several schools said the 40% quota for Malaysian students were already practically filled up by those with one Malaysian parent or had studied abroad for three years, the current criteria for local students.

However, they welcome the tax incentives proposed for international schools which market their institutions abroad to enrol foreign students as well as the double deduction incentive on tax and a corporate tax deduction for the purchase of equipment and teaching aids.

Taylor's Education Group schools division president B.K. Gan said there was always the possibility of opening more international schools, but the cost was high.

"It would have to be a financial decision as schools have a much longer payback period than colleges, and therefore it is not a decision to be taken lightly," he said.

The Taylor's Education Group owns the Garden International School, the Australian International School and Sekolah Sri Garden, a private school following the Malaysian curriculum.

Gan was commenting on Education Minister Datuk Seri Hishammuddin Tun Hussein's announcement that international schools in the country could soon enrol up to 40% Malaysian students without the previous conditions. At present, only 0.05% of Malaysian students are studying in the country's 32 international schools.

Paramount Corporation Bhd managing director and chief executive officer Datuk Teo Chiang Quan said setting up international schools with foreign partners would be costly.

He added that if foreign students were one of the main targets, the school would have to be a boarding school and the cost and risk would be high.

"I think a more interesting model would be the homegrown product that we are capable of creating," said Teo, whose company's education division runs KDU College campuses in Petaling Jaya and Penang and private school Sekolah Sri KDU, among others.

Alice Smith Secondary School principal Nik Bishop said the school did not expect a big jump in its enrolment following the policy change although it would facilitate parents who want to enrol their children in international schools in the past but had been unable to.

On the tax incentives, Association of International Malaysian Schools chairman Margaret Kaloo, who runs the ELC International School, said they welcomed the move.

International School of Kuala Lumpur head of school William Powell said he was keen to learn more about the tax incentives.

In line with the ministry's focus on special education, Hishammuddin said international schools with special education units would be given a tax rebate.

However, there is some confusion regarding the establishment of new international schools whereby Malaysian equity ownership must be at least 51%.

"We are not sure what this means as the current practice is if the school is owned by a private company 30% of it must be owned by a bumiputra.
With this new requirement, does it mean the 51% can be owned by anyone as long as he is Malaysian or 30% bumiputra and the rest non-bumiputra?" asked Kaloo.