KUALA LUMPUR: Masterskill Education Group Bhd will not be affected by any change in funding requirements of the National Higher Education Fund Corp (PTPTN) as it will only apply to new programmes offered by private universities, according to Datuk Seri Edmund Santhara, CEO of Masterskill.
Speaking after Masterskill’s AGM, Santhara said 95% of its existing students who rely on PTPTN loans to fund their studies would not be affected by the new requirements, and Masterskill’s 18,399 students represent a small percentage of the total number of students receiving PTPTN loans.
“We have actually addressed the mechanism of funding and cost, whereas a lot of others in the industry have not started to touch on it,” he said, adding that based on the enrolment in its Kuching campus, which recorded 800 new students in its first year, the group’s brand among higher education providers is strong and Masterskill would continue to attract new students.
Masterskill posted a slightly lower revenue in 1QFY11 ended March 31 of RM73.7 million, compared with RM77 million a year earlier. Net profit decreased by 15.3% year-on-year to RM22.6 million in the quarter.
The group attributed the decrease to the fact that it did only one enrolment during 1Q compared with two in 1QFY10, as the second intake of the year was deferred to 2Q due to the late announcement of the Sijil Pelajaran Malaysia (SPM) results.
“Notwithstanding the delay of our second intake, Masterskill still managed to record RM73.7 million in revenue. With our strong financial foundation and growth strategies in place, we are very much on track to achieve our targeted results in 2011,” Santhara said.
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| Santhara (left) and Masterskill chairman Tunku Datuk Seri Kamel Tunku Rijaludin at the post-AGM press conference. |
“The public universities need longer term and longer time to recruit students. As a result, prospective students would have to wait until September to decide whether to enrol in a public or private university. That’s a 3½-month shift from the previous practice whereby students can make their decisions in July,” he said.
Nevertheless, he said the group would continue with its three-pronged strategy for growth in student population, course and curriculum offerings and campus expansion which is expected to contribute positively towards its bottom line in 2011.
Masterskill will turn its Cheras campus into a full-fledged university of allied health sciences in the near future. The group is currently expanding its number of branch campuses in other parts of Malaysia, such as in Kuching and Johor Bahru, and will build a new city campus in Petaling Jaya in its bid to increase its student intake.
It will also build a flagship campus in Bandar Baru Bangi, which is expected to commence construction in the coming months, with a total investment of RM33 million and scheduled for completion by 2013. Once completed, the campus will be able to house 15,000 students.
On the venture into Indonesia’s higher education sector, Santhara said although the hospitality and healthcare industry there has top- notch facilities, it is lacking in support services staff compared with Malaysia. He said this would provide ample opportunities for Masterskill to offer nursing and allied health sciences courses in the republic.
“Even though [there are] five-star hospitals, their support services are 30 years behind Malaysia.” he added.
Other than Indonesia, the group plans to expand into the Indian sub-continent in Pakistan and Bangladesh.
However, it would only do so via a franchising model, where the group would provide its local partner with the software and content, as it is not worth setting up facilities there given the high political risks, he said.
Masterskill ended two sen higher at RM1.89 yesterday on a volume of 1.22 million shares.
This article appeared in The Edge Financial Daily, June 2, 2011.
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