adminKUALA LUMPUR: The ringgit’s strengthening to its highest level in more than seven years against the United States (US) dollar is seen to be of great benefit to the education sector, especially in reducing the cost of studying for local students studying abroad.
This positive development also provides relief to parents and students, especially in planning and covering the costs of education and living abroad.
Through a statement, Permodalan Nasional Berhad (PNB) informed that the strengthening of the ringgit certainly provides advantages in terms of costs involving expenses in foreign currencies, such as sponsoring students’ education abroad.
“In a stronger ringgit environment, the overall cost of financing including tuition fees and living costs can be optimised, thus allowing education funds to be used more prudently and providing higher value for investment in the development of the country’s human capital,” PNB said in the statement to Bernama.
For over 30 years, PNB has played an active role in supporting talent development through educational sponsorship programs involving a total investment of RM462 million involving 5,230 recipients, with some of it for sponsoring student scholarships at leading global universities.
“PNB’s approach is always based on long-term sustainability and fiduciary responsibility to increase the country’s human capital so that it can be competitive and contribute back to the country’s economic and social development,” the statement said.
Earlier this week, the ringgit strengthened and surpassed the psychological level of 4.00 against the US dollar, continuing the rise that began a week earlier, thus displaying a recovery in sentiment towards the country’s economic fundamentals and political stability.
Meanwhile, Perak Foundation Education Manager, Megat Zarul Ekram Rusni, when contacted, said that the current strengthening of the ringgit is a significant development in the context of education fund management, especially for financial assistance for students going abroad under the Perak Foundation Student Incentive (INSISYP).
He said that the exchange rate that is more favourable to the ringgit makes the initial costs of studies such as registration fees, flight tickets and initial student needs more manageable in terms of the actual value of the expenses.
“This situation directly helps students begin their studies in a more organized and comfortable situation.
“This situation also allows the one-off cash assistance provided by the state government through the Perak Foundation to be utilized more optimally, providing higher value to students without requiring any additional allocation,” he said.
At the same time, according to him, the situation provides space for the Perak Foundation to strengthen the financial governance of sponsorship, ensuring that every ringgit allocated is translated into more efficient, effective and high-impact access to global education for state-sponsored students.
Sharing the same view, Azra Karim, 49, admitted that the strengthening of the ringgit could benefit her 21-year-old twin children who are studying abroad under the sponsorship of the Majlis Amanah Rakyat (MARA).
“One of my daughters is studying economics in Edinburgh (Scotland) while the other is studying at the Association of Chartered Certified Accountants (ACCA), Ireland.
“Thank God, they are now relieved because there is more spending than the allowances received by the students,” he said.
— BERNAMA
