The falling ringgit is affecting foreign education; how does this bode for students and learners overseas?

By D. KANYAKUMARI

To Leonard Tee, getting into his dream university in Cambridge was not the difficult part. The 20-year-old student worked hard and got the grades to earn a place in the institution's biological and biomedical sciences programme.

Yet, now that he has earned his place, Tee and his family worry that they may be unable to afford it.

"My family had a budget. I also ran errands and worked part-time at my uncle's car workshop.

"So, by the time I completed my foundation programme in 2022, we had enough money saved to take me through the three years (of the degree). However, with the state of our currency now, I might only have enough to get me through halfway," he says.

Tee adds that the university has offered him a partial scholarship, and that it is one of the few institutions that provides aid to international students. Plus, his parents and his uncle have promised additional monetary support.

However, he is not sure it will all be enough.

Declining value

The ringgit has been struggling against other currencies over the past few years, falling to a 26-year low in February. This has affected a wide range of things, including the cost of essential goods, imports and travel.

It has also profoundly impacted education, particularly for Malaysians who intend to or are currently pursuing tertiary courses abroad.

According to the Ministry of Higher Education (MoHE), over 50,000 Malaysians are currently studying in universities overseas.

This is why it has formulated initiatives to ease the financial burdens of families, introduced scholarships aimed at sponsoring targeted groups of students and provided financial assistance.

It is also set to roll out special education programmes and awards to both motivate and help students pursue higher education locally and internationally.

But the government has not been alone in its efforts. Private institutions in Malaysia have also been playing their part.

For instance, Brickfields Asia College (BAC) has a sports fund to aid students who have previously competed at the state or international levels. It has also introduced an education fund and easy payment plans.

Similarly, other varsities, such as Taylor's University and Sunway University, offer a variety of scholarships and financial aid plans, all of which are targeted at helping students in need.

The question, however, is whether these initiatives are enough to aid parents and students affected by a rise in the cost of education due to the declining ringgit.

Uphill battle

To Johnsson Raj, whose son is currently pursuing a medical degree in Russia, the answer is no.

The chartered accountant said scholarships and financial aid are largely meant for students who do well academically and have achieved notable scores. As such, they do not address the larger issue of rising costs.

"Don't get me wrong. Those children (who qualify) deserve the aid and scholarships 100 per cent. But people like me, with kids who are not as bright, have to be financially prepared to ensure our children have a shot (at higher education).

"I know what my son's capabilities are. That's why we invested in an education investment plan and set up a fund for him when he was eight. Of course, our economic situations were different (then), and things like the pandemic were nowhere in our foresight.

"But, now with everything that has happened and the dwindling ringgit, I don't know how much longer he can continue his studies in Russia," he said, adding that costs are not just limited to tuition but necessities such as accommodation and food plus allowances for extra-curricular activities and supplies.

K.R. Janaki, similarly, said that the depreciating ringgit has had an impact on her 22-year-old daughter's studies in Melbourne, Australia.

"She used to live on campus, and the university is right in the middle of Melbourne's Central Business District (CBD). So you can imagine how much everything costs.

"Her father and I had meticulously planned everything because her brother also studied at the same university seven years ago. However, the state of our currency and inflation as well as the pandemic badly affected our finances," Janaki said.

So, one of the first things the family did was move their daughter to a more affordable living space, which is, unfortunately, an hour away from the university.

"We also went up sometime in November last year, to help her set up her place, so she can cook. It's much cheaper to fund her groceries than pay for meals outside," said Janaki, who is a financial director at a university hospital.

"It's an adjustment for her. But at the rate things are going, we have no choice. Last month, we also spoke to someone about the possibility of her continuing her studies here (in Malaysia), as that would be cheaper. But we're keeping that option as a last resort."

For the record, Bank Negara Malaysia has maintained its overnight policy rate and recently announced that the Malaysian government and central bank are taking coordinated action to ensure the ringgit is stable.

The reality, however, is that the currency's steady decline over the past few months is likely to have a continuing impact on foreign education.

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