UNIVERSITI TEKNOLOGI MARA

CAWANGAN PAHANG, KAMPUS JENGKA

FACULTY OF BUSINESS MANAGEMENT

DIPLOMA IN OFFICE MANAGEMENT TECHNOLOGY (BA132)

ECO 120

THE COST OF LIVING OF IPT STUDENTS IN MALAYSIA

PREPARED BY:

MUHAMMAD HARITH DANISH 2022894558

MOHD AZIZI
MUHAMMAD IKHMAL DARWISY 2022454598
BIN ILZALNIZAM

BA132-3E

PREPARED FOR:

MUHAMMAD ZAHRAN BIN ABD RAHMAN

SUBMISSION DATE:

15 JANUARY 2024
 TABLE OF CONTENT

1.0 INTRODUCTION

2.0 ANALYZING THE PROBLEM

2.1 BEFORE

2.2 CURRENT

2.3 FUTURE

3.0 APPROPRIATE MEASURES TO OVERCOME THE PROBLEMS

3.1 GOVERNMENT POLICIES

3.2 OTHERS (PRIVATE COMPANY, NGOs, UNIVERSITIES)

3.3 GROUP OPINIONS

4.0 CONCLUSION

5.0 APPENDIX
1.0 INTRODUCTION

For students enrolled at Malaysian IPTs (Institusi Pengajian Tinggi, or Higher

Education Institutions), the cost of living is an important factor. With the help of this brief
introduction, which offers an economic analysis of living expenses, students will be able to
make wise financial decisions while they are in school. In Malaysia, different cities and areas
have different economic realities. The cost of living is influenced by a number of factors,
including location, lodging, transportation, food, medical care, and leisure activities. For
students to properly handle their funds, they must comprehend these economic factors.

The cost of living is the sum of money needed in a certain place and period of time to
cover necessities including housing, food, utilities, and medical care. Although the term "cost
of living" is usually used to compare the prices of living in different regions, we will talk about
the cost of living for IPT students who are enrolled in higher education.

Why do people first enroll in universities? A university's job is to protect pure inquiry
from popular opinion while standing up for reason, inquiry, and philosophical openness.
Attending a university also comes with a somewhat significant cost. For this reason, we are
discussing the living expenses of IPT students.

The expense of living is rising for students enrolled in IPT. It's because the cost of
textbooks, renting a house or a room, and the cost of necessities are all increasing. For
students, student loans are their only source of income, which they must use to pay for
tuition. They will have financial troubles because they do not have enough money to pay the
remaining sum for the remainder of the semester. If the students could just get a side job to
complement this, they would perform far better.
2.0 ANALYZING THE PROBLEM

The cost of living is a major concern for IPT students in Malaysia. These include
rising real estate prices, rising costs of transportation, food, medical care, lack of financial
support, and costs of recreational activities. A lack of affordable supply and strong demand
means finding acceptable housing is difficult, and commuting is expensive due to poor public
transportation. Students' ability to eat healthily is affected by increased food costs, and
medical costs can be especially high for international students. Without adequate financial
support, students are forced to rely on their own savings or part-time jobs, and the cost of
extracurricular activities puts an additional strain on already limited budgets. Overcoming
these barriers requires increasing the availability of affordable housing, improving
transportation systems, providing easily accessible food, and expanding financial assistance
programs. This allows students to continue their education without undue strain and creates
a developmentally friendly environment.

2.1 BEFORE

The first of many difficulties in the cost of living for IPT students in Malaysia is the
high expense of housing. Due to the frequently high cost of rent in areas like Kuala Lumpur,
Penang, and Johor Bahru that are close to major colleges, students are forced to look
elsewhere for reasonably priced housing.

Expenses for transportation raise the financial burden even further, especially for students
who live off campus. Daily commute costs can add up, whether one drives their own car or
uses public transportation, making budgeting difficult for many.

Even though there are inexpensive food options, the diversity and convenience of university
campuses generally come at a greater cost, adding to the overall burden of food bills. This
puts additional strain on students' finances and affects their capacity to cover basic
necessities.
The cost of healthcare is another financial barrier, particularly for overseas students who
may not have comprehensive coverage. The cost of obtaining healthcare services increases,
which strains students' general wellbeing.

There is still little funding, even with certain scholarships and financial help initiatives. Many
students struggle to pay for all of their expenses, which makes them more dependent on
loans or part-time work and negatively impacts both their experience and academic
achievement.

The financial strain is exacerbated by the lack of opportunities for part-time work or
internships that work with students' schedules. Limited prospects affect their capacity to
augment their earnings, posing more difficulties.

The problem is worsened by the growing cost of educational resources, which puts more
pressure on students' budgets due to the cost of textbooks, school supplies, and technology
required for schoolwork.

Government agencies, stakeholders, and educational institutions must work together to

address these issues. Enforcing price controls on accommodation, enhancing accessibility
for transportation, providing all-inclusive financial aid, and guaranteeing reasonably priced
healthcare are all important issues that need to be addressed. Working together, the public
and private sectors can provide long-term solutions that reduce the cost of higher education
for IPT students in Malaysia.

2.2 CURRENT

As of 2023, the cost of living for students in public universities in Malaysia has
changed significantly. The government's efforts to foster economic growth and increase
accessibility to higher education are yielded positive results. On-campus housing options
have expanded, providing more affordable accommodations for students. This expansion
has increased the availability of affordable and convenient housing options and alleviated
some of the financial burden.

Firstly, rents are rising. According to upgradabroad.com, the average monthly rent
for an apartment in Kuala Lumpur is RM2192, while much cheaper outside of the City
Centre. As can be seen, students have to spend nearly RM 1000 to RM1500 average on
rent. This scenario has a huge impact on students. We all know that housing is necessary to
protect students from harm, but spending more than RM 1000 on accommodation is not
realistic.

Second, the prices of goods and necessities are also rising. The rising prices of
goods and daily necessities are having a negative impact on students. This is because they
are not employed and do not have a comfortable life where they can buy basic necessities at
high prices. In addition, there are also students who are willing to starve to save with the
money available. Food is also included in the rise in prices of goods and consumer goods.
At supermarkets, the prices of products such as bread have soared, and you can see that
the price of food items has increased considerably. For example, the price of the bread is
RM3.57 and 1kg of bananas cost RM5.38 now. This is certainly a good thing for the
company, but not for the students.

Last but not least is the increase in the price of university fees. University fees
nowadays are very expensive and increasing compared to in the past. The increase in the
price of fees has caused some people not to want to continue their studies due to insufficient
money and are living a difficult life. An example that can be taken is the increase in tuition
fees at Universiti Malaya. Tuition fees for the bachelor of science in environmental
management increased from RM44,600 to RM54,868.40 and the bachelor of biomedical
engineering increased from RM92,860 to RM101,200.40. The increase in the price of fees
that has been made by the university is too much and exorbitant. Additionally, transportation
services have been enhanced, with improved connectivity and affordable fares. Students
now have access to an efficient public transportation network that facilitates their mobility,
making it easier to commute to and from campus and explore the surrounding areas.

2.3 FUTURE

Looking ahead, the future of the cost of living for students in public universities in
Malaysia appears promising, thanks to the government's commitment to enhancing access
to education and addressing economic disparities. Anticipated ongoing initiatives will
contribute to improving the cost of living for students in several ways. Firstly, the government
may introduce expanded financial aid programs and scholarships, with a particular focus on
students from disadvantaged backgrounds. By providing additional financial support, these
measures will help alleviate the burden of expenses and make higher education more
accessible to a broader range of students.
 Continued investment in expanding on-campus housing options is also expected.
This commitment will ensure that more students have access to affordable accommodations,
whether through the construction of additional dormitories or the development of affordable
student apartments. By increasing the availability of affordable housing, students will have
greater opportunities to live comfortably without straining their finances.

Furthermore, the government's investment in sustainable transportation

infrastructure, such as the expansion of bus and train networks, will improve accessibility
and reduce transportation costs for students. Enhanced connectivity will not only make it
easier for students to commute to and from campus but also provide affordable
transportation options for exploring the surrounding areas, further enhancing their university
experience.

Collaborative efforts between universities, NGOs, and private companies will play a
crucial role in establishing food security initiatives. These initiatives may involve the
establishment of food banks or community gardens that provide affordable and nutritious
food options for students. By promoting food security and reducing living expenses, students
will have access to quality meals within their budget, supporting their overall well-being.
Through the implementation of these measures, the cost of living for students in public
universities in Malaysia is expected to become more affordable. By reducing financial
burdens, students will be able to focus more on their academic pursuits and fully engage in
university life. The government's commitment, coupled with collaborative efforts, will create a
conducive environment for students to thrive and succeed in their educational journey.
3.0 APPROPRIATE MEASURES TO OVERCOME THE PROBLEM

3.1 GOVERNMENT POLICIES

To aid students, the Malaysian government has put in place a number of financial aid
programs. A significant endeavor entails providing financial assistance for upskilling
programs, with up to RM4,000 being provided for professional certifications and micro-
credentials and up to RM2,500 for short courses at public or private higher education
establishments.

To lessen the financial strain on students, the government provides living allowances
in addition to educational help. This consists of a standard RM208.33 monthly financial aid
living allowance, plus supplementary allowances for community college students, individuals
enrolled in special education programs, and persons with disabilities (PwD).
The FLYsiswa project provides a flight ticket subsidy to students who want to travel,
especially those enrolled in public higher education institutions (IPT) who want to go back to
their hometowns.

Last but not least, the e-Belia program offers RM200 through e-wallet purchases to
young people between the ages of 18 and 20 as well as full-time college students. The
combined goal of these diverse programs is to improve Malaysian students' financial
stability.

3.2 OTHERS (PRIVATE COMPANY, NGOs, UNIVERSITIES)

Private companies regularly collaborate with universities in Malaysia to offer

scholarships, internships, and sponsorships to college students in order to help them
financially. These programs have the capacity to provide financial assistance, substantial
work experience, and potential career choices for students.

For IPT students to have access to a variety of grants, scholarships, and programs,
non-governmental organizations (NGOs) are crucial. These organizations provide financial
aid, educational resources, and mentorship to students who are pursuing higher education.
They might focus on specific industries or problems.
 Malaysian institutions frequently establish work-study programs, scholarships, and
internal financial aid initiatives to assist their students financially. These institutions may also
collaborate with other entities, including companies and non-governmental groups, in order
to broaden the range of support available to students.

In general, cooperation between businesses, non-governmental organizations, and

academic institutions results in a more comprehensive plan for providing financial aid to IPT
students, promoting chances for learning and career advancement.

3.3 GROUP OPINIONS

In our opinion, this matter is worth discussing because there are many high school
graduates that will face life in universities and we hope that our research will reach out to the
right audience and alert the responsible parties to create a solution or an improvement for all
the IPT students so that they can further their studies without worries.

In our group conversation regarding financial assistance for IPT students in Malaysia,
we acknowledge the significant work that the Malaysian government has put into carrying
out various programs. A member highlights the government's dedication to funding upskilling
initiatives, offering living allowances, and launching specific programs such as FLYsiswa and
eBeliaRahmah. They contend that this demonstrates a comprehensive strategy for meeting
students' financial requirements and guarantees a wide range of assistance.

Meanwhile, we also emphasize how important it is for private businesses to work with
academic institutions. We emphasize the value of the internships, sponsorships, and
scholarships that these businesses provide. Financial aid is a valuable tool that helps
students overcome obstacles and develop transferable skills that help them transition from
college to the workforce. We contend that this demonstrates the private sector's dedication
to fostering talent and making investments in the labor force of the future of the nation.

Moving on to the non-profit sector, we concur that NGOs play a significant role in
providing support to IPT students. We have observed that non-governmental organizations
(NGOs) offer a variety of services, such as mentorship programs and scholarships, which
offer a customized and nuanced approach to student support. The other participant
highlights how important non-governmental organizations (NGOs) are in meeting the needs
of particular groups of students, like those who are enrolled in special education programs or
have impairments.

Finally, when debating the role of the university, our group agree on the proactive
actions done by these establishments. A member is in favor of the implementation of work-
study and internal financial aid initiatives. They also highlight the cooperative efforts made
with outside partners, such businesses and non-governmental organizations, to increase the
scope and effectiveness of the financial aid offered to students.

In summary, our group acknowledges that the collaboration of the Malaysian

government, corporate sector, non-governmental organizations, and academic institutions
can create a strong financial aid framework for IPT students. Every organization makes a
distinct contribution, demonstrating a shared dedication to guaranteeing that financial
limitations do not impede education in Malaysia. These stakeholders' diversity and
cooperation highlight the necessity for a comprehensive strategy to meet the diverse
requirements of students.
4.0 CONCLUSION

Our group discussion concludes by highlighting the joint efforts of key stakeholders in
strengthening the financial support system for IPT students in Malaysia, including the
educational institutions, the corporate sector, NGOs, and the Malaysian government.
Initiatives like living allowances and upskilling program subsidies show that the Malaysian
government is committed to meeting the various financial demands of students in all
educational fields.

As our group have pointed out, private enterprises are essential because they offer
internships, sponsorships, and scholarships that go beyond financial aid. Their participation
represents a calculated risk taken to develop a knowledgeable and competent labor force,
bridging the knowledge gap between the classroom and real-world application.

NGOs play a crucial role in the student community by providing focused help that
addresses individual needs. The range of offerings, which includes mentorship programs
and grants, ensures a more individualized approach to student support by reflecting a
sophisticated grasp of each person's needs.

Universities are proactive in creating internal financial aid programs and work-study
options, as our conversation made clear. Working together with outside partners increases
the impact of these programs and gives students pursuing higher education access to a
more extensive and welcoming support system.

Overall, the diverse strategy that includes funding from the government, participation
from the commercial sector, NGO projects, and university-led initiatives strengthens the
flexibility and durability of Malaysia's financial aid program for international preparatory
teachers. In addition to solving immediate financial issues, this cooperative synergy
enhances the educational process overall and creates an atmosphere that supports
students' success both academically and professionally. These varied parties' cooperation
and inclusivity demonstrate a common commitment to preventing financial barriers from
impeding Malaysian students' desires for an education.
APPENDIX

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Jeevita, J. (2023, October 5). Higher tuition fees surprise international students at UM. The
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