STUDENTS who are studying abroad on Public Services Department (PSD) scholarships will receive a 15% increase in the cost of living allowance, Prime Minister Anwar Ibrahim announced today.

However, this does not apply to scholars pursuing a bachelor’s degree in the UK as their allowances have been increased by the previous government on November 7 last year.

Anwar also announced a RM100 rise in monthly cost of living allowance for PSD scholars studying locally.

“This will cost the government RM52.03 million over a six-month period from July, benefitting 43,595 scholars,” he said in a statement this evening.

On the other hand, Anwar said the increase in allowances was one of the government’s efforts to mitigate the rise in cost of living, especially for B40 students residing in cities.

“This initiative to review the allowances will enable students sponsored by the government to focus on achieving academic excellence without having to worry about their finances.

“This will also ensure government scholarships offered to students remain relevant and prestigious,” he said.

Last September, former prime minister Ismail Sabri Yaakob ordered the PSD to review the allowances for students pursuing their tertiary studies in Britain.

Citing a Mara-PSD survey in February 2022 on life in cities like London and Edinburgh, Ismail said 60% of Mara and PSD-sponsored students, the majority of whom are in the B40, were struggling with daily expenses.

He said the average monthly expenses for house rent and utility bills in major cities were between RM2,733 and RM3,990.

He added that this amounted to 60-70% of the allowances received by students. – June 13, 2023.