The announcement by the Deputy Education Minister, Datuk Khalid Yunus in Parliament yesterday that Dong Jiao Zong’s application for the establishment of the New Era College cannot be approved as it does not comply with one important requirement in having 30 per cent bumiputra equity participation has come as a shock to everyone.
Khalid Yunus made public the government’s latest position on the proposed New Era College during the winding-up of the debate on the Ministry of Education estimates for the 1997 budget.
This is what Khalid said in Parliament:
“Kertas cadangan permohonan penubuhan Kolej New Era di Kajang diterima pada 8hb Oktober 1996. Dalam memproses kertas cadangan, didapati permohonan tidak menepati salah satu syarat penting penubuhan IPTS, iaitu syarikat hendaklah mempunyai 30% ekuiti bumiputera. Syarikat yang memiliki Kolej New Era, iaitu Dong Jiao Zong Higher Learning Sdn. Bhd. dilaporkan sebagai sebuah syarikat berhad menurut jaminan dan tidak mempunyai pemegang saham. Oleh yang demikian, permohonan penubuhan Kolej New Era agak sukar dipertimbangkan setakat ini.”
When I interjected to ask about the this new requirement, and whether there is flexibility for such a requirement, Khalid said that private institutions of higher learning which had been set up before the coming into force of the Private Higher Education Institutions Act 1996 are not affected by this new requirement for at least 30 per cent bumiputra equity participation, but all new private institutions of higher learning to be established under the new law would be affected.
When I pursued the matter and asked under what regulation such a requirement had been imposed, how the Barisan Nasional component parties could have agreed to such an “unfair condition” for the establishment of private higher education institutions, and under what regulation such a requirement had been imposed, Khalid responded that it is in the Private Higher Education Institutions Act 1996 as well as in the regulations made thereunder.
What Khalid said is untrue, for I have checked with the Ministry of Education which had confirmed that although regulations under the Private Education Institutions Act 1996 are being drafted, no regulation had been finalised, approved or gazetted.
Furthermore, there is nothing in the Private Higher Education Institutions (PHEI) Act 1996 which imposed the requirement that a private higher education institution has to comply with the condition of 30 per cent bumiputera equity participation.
The Private Higher Educational Institutions Act 1996 was given the Royal Assent on 13th September and gazetted on 26th September 1996. On 27th September, the Education Minister, Datuk Najib Tun Razak exercised his powers under the new PHEI Act to bring into force Sections 2, 21 and 22 of the PHEI Act with effect from 1st October 1996.
The giving of a new reason to reject the application for the establishment of the New Era College is clearly an act of bad faith, especially as the MCA and the Deputy Education Minister, Datuk Dr. Fong Chan Onn, had promised to “smoothen” the way for the approval and establishment of the college.
DAP calls on the Cabinet to give immediate approval for the establishment of the New Era College and to exempt it from any 30 per cent bumiputra equity participation for five major reasons:
1. Non-profit college
Firstly, New Era College is a non-profit college supported by the Chinese community and an important contribution to higher education and the training of qualified human resources in the country - just as the Prime Minister, the Deputy Prime Minister and the Barisan Nasional Government had belatedly acknowledged during the 1995 general elections that the 60 Chinese Independent Secondary Schools in Malaysia had made great contribution to national development and nation-building all these years.
2. Promotion of mother-tongue education up to university level and be a regional centre of educational excellence for mother-tongue education
Secondly, full recognition of the multi-racial, multi-lingual and multi-cultural character of Malaysia by promoting mother-tongue education up to university level and be a regional centre of educational excellence for mother-tongue education.
3. No breach of faith
The rejection of the New Era College on the ground of a new requirement of 30 per cent bumiputra equity participation will be a breach of faith by the Barisan Nasional Government, as communicated through MCA Ministers and the MCA Deputy Education Minister that New Era College would be approved.
4. No Regulations requiring 30 per cent bumiputra equity participation
There are at present no regulations which had been enacted under the PHEI Act imposing the requirement of 30 per cent bumiputera equity participation for the establishment of private colleges. At most, there is only an intention on the part of the Education Ministry to enact such a regulation.
Such a draft regulation cannot become law, unless it receives the approval of the Cabinet. Have the Ministers from all the Barisan Nasional component parties already given approval and consent for such a draft regulation to allow the Deputy Education Minister, Khalid Yunos to inform Parliament that this was the reason why the New Era College application cannot be approved?
In any event, Dong Jiao Zong first submitted its application for the establishment of the New Era College before the April 1995 general elections - well before the PHEIA was introduced in Parliament in January this year.
The New Era College application should therefore be considered under the previous law.
If the MCA Ministers had been responsible for advising Dong Jiao Zong for submitting a new application dated 8th October 1996, so that it is caught by the new law, then the MCA Ministers are even more duty-bound to ensure that the New Era College college application is not defeated by a completely new and unfair regulation.
5. PHEIA does not impose a compulsory condition of 30 per cent bumiputra equity participation
A close study of the PHEIA shows that the Act does not impose a compulsory condition of 30 per cent bumiputra equity participation before New Era College can be approved.
Under Part III of the Act, (from sections 6 to 20) on “Establishment of Private Higher Education Institutions”, the Minister for Education may impose conditions on the equity structure of the company applying for the establishment of a private higher education institution.
However, this Part had not been brought into force by the Education Minister by way of any gazette notification as required by law - and any imposition requiring Dong Jiao Zong to comply with 30 per cent bumiputra equity participation for the approval of the New Era College is therefore not only unfair and improper, but unlawful as well.
Finally, however, the fundamental issue is not the question of any law, regulation or even the question of legality, but whether the government is prepared to keep faith with the people that its nation-building policy is now more open and liberal, recognising the multi-racial, multi-lingual and multi-cultural resources and potentials in the country which should be fully exploited for the greater good of the country.
If the establishment of New Era College must face so many obstacles and hurdles, it confirms the DAP’s analysis that although there is “minor liberalisation”, Malaysia still needs “major liberalisation” in the government nation-building policies with regard to language, education and culture.
(28/11/96)