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Petaling Jaya MP Lee Chean Chung called on the Ministry of Education (KPM) to clarify whether existing tuition centres that do not meet a 30% Bumiputera equity threshold will be denied registration renewal from 2027.

The requirement appears in official KPM registration guidelines covering all four categories of private education centres — tuition centres, language and skills centres, franchise education systems, and branches.

For tuition centres specifically, the rules go further: foreign equity is prohibited entirely.

Lee noted that MOE has not explained the legal or policy basis for linking education registration to the racial composition of company shareholding.

Education regulation should primarily focus on teaching standards, teacher qualifications, student safety, premises and compliance with the law.

The ministry has not responded publicly.

What The Rules Say

Under the KPM table, a tuition centre may be registered as a sole proprietorship or enterprise with minimum equity of RM10,000.

Bumiputera equity must constitute at least 30%, and foreign equity is not permitted.

Language, skills and training centres structured as Sdn Bhd carry a higher minimum equity of RM50,000.

The 30% Bumiputera requirement applies here too, though foreign equity is permitted — but only within limits set by Malaysia’s Free Trade Agreements (FTA), the bilateral and multilateral trade deals that determine how much foreign ownership is allowed in specific sectors.

Company directors and owners are separately barred from becoming employees of the same centre.

Branches must mirror the parent centre’s ownership structure.

The Question KPM Has Not Answered

Lee’s statement identifies the gap precisely: the document confirms the requirement exists.

What remains unconfirmed is whether it applies retroactively to operators already registered and operating legally.

The document has since circulated widely on social media.

A Facebook post from Ipoh community page 怡保吹水站 shared the KPM table two days ago with a single line: “MADANI 行动党 BOLEH：補習中心要至少30%土著股權” — roughly, “Madani and DAP, well done: tuition centres must now have at least 30% Bumiputera equity.”

The page, which serves the Ipoh Chinese community, tagged both the ruling coalition and its Malaysian Chinese-majority component party in the same breath.

If the requirement applies to existing operators, owners face a choice between restructuring shareholding — a transaction that affects ownership, investment and management control — or losing the right to renew.

Lee urged KPM to consult affected operators and issue clear guidance before any 2027 implementation.

KPM has been contacted for comment.

READ MORE: Malay Women’s Group Wants 50% Bumiputera Equity, Because The Non-Malay Population Is Shrinking