A-G’s report: IIUM didn’t collect over RM9m in fees despite struggling to pay debt

A-G’s report: IIUM didn’t collect over RM9m in fees despite struggling to pay debt

This file photograph shows an entrance to the International Islamic University of Malaysia. — Picture by Ahmad Zamzahuri

Thursday, 04 Jul 2024 6:12 PM MYT

• IIUM could not repay debts due to its dependency on government grants
• The university ran at a net loss despite higher revenue
• Fee revenue fell as fewer students were accepting offers to join IIUM

KUALA LUMPUR, Jul 4 — The International Islamic University of Malaysia (IIUM) failed to collect RM9.17 million in arrears from 5,016 paying international students, according to the Auditor-General’s report (LKAN) 2/2024 released today.

As of July 2023, total arrears for all classes of IIUM students was RM 14.04 million.


“As a whole, IIUM's financial position is less stable as it recorded a cumulative deficit of RM17.06 million as at December 31, 2022.

“IIUM is also unable to repay current debt and long-term debt as it depended on government grants for the period from 2020 to 2022,” the report disclosed, despite recording surpluses for three years in a row.


Although revenue increased to RM1.252 billion in 2022 from RM1.190 billion in 2021, IIUM still operated at a net loss due to rising costs.


The Islamic university’s expenditure climbed 9.5 per cent to RM1.131 billion in 2022 compared to 2020.

IIUM also struggled to bear operational costs due to falling fee income as only 66 per cent of local students and 44.7 per cent of foreign students accepted offers to study at the university from 2020 until July 2023.

Further, the university also struggled with managing its current assets

“A total of 306 medical equipment costing RM12.34 million could not be optimally used by the SASMEC (Sultan Ahmad Shah Medical Centre) teaching hospital until the measures to comply with the provisions of Act 586 (Private Healthcare Facilities and Services Act 1998) are not finalised by KPT (Higher Education Ministry) and KKM (Health Ministry)," the report read.

The university’s properties were also under-utilised as 39.6 per cent of its real estate was left idle from 2019 to 2023.

For the period spanning 2019 to 2022, IIUM received a government grant of RM4.859 billion and it has never been audited by the government since its inception in 1983.