Private universities and branch campuses “technically insolvent”
According to a new report by the Penang Institute, many of Malaysia’s private universities, including foreign branch campuses, are facing financial and managerial problems, and more than half will experience financial distress as a result of last November’s changes to the national student loans scheme, when the education ministry cut the level of student loans by 5% for public universities and 15% for private universities. The report notes that three quarters of foreign branch campuses and 70% of other private institutions could be affected in the coming year, and that 35% of all private universities are “running on negative reserves, meaning that their total debts exceeded their total assets”.
Source: University World News
URL: http://www.universityworldnews.com/article.php?story=20150415055241381
