The saying, “Nothing in life is truly free,” isn’t just about lunch. It’s a reminder that everything has a cost, even if it’s not immediately clear who’s paying.
So when Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg floated the idea of free tertiary studies for Sarawakians by 2026, the Centre for Market Education’s (CME) chief executive officer (CEO) and economist Carmelo Ferlito, raised an eyebrow.
“Think about it,” Ferlito began, speaking with New Sarawak Tribune recently, “When we say ‘free’ education, we’re just passing the bill around. Someone’s still footing it.”
Breaking it down, Ferlito quipped, “Imagine hiring someone to spruce up your place for RM70. Now, what if the government nicked that money from her to pay you, insisting spick-and-span homes are a birthright? Doesn’t sound ‘free’ now, does it? She’s scrubbed your floors, yet her pockets are still as empty as a politician’s promise.”
Someone has to foot the bill for this policy, and it will probably come from raised taxes or shuffling resources around.
Ferlito argued that such shuffling meant tapping into resources earmarked for other needs, sparking worries about how long such a system could last.
“The cost isn’t just ringgits and cents,” he pointed out. Other priorities might take a backseat to keep this ‘free’ promise running.”
He quickly threw in, recalling a statement by chief political secretary of Premier, Fazzrudin Abdul Rahman, which hinted at the costs lurking behind the scenes.
Fazzrudin reportedly mentioned, “Had we not splurged on projects the federal government usually handles, like bridges and schools– We could have allocated more resources towards education for Sarawakians.”
Ferlito, known for his unconventional takes on economics cautioned, “Government coffers aren’t bottomless. Revenues can be unpredictable, and we must always be prepared for unexpected rainy days.”
He emphasised that although students might feel they were on the winning side, the financial weight was merely transferred elsewhere. Finding the right policy balance, he noted, was no walk in the park.
While many voiced concerns that freebies might come at the cost of quality, Ferlito offered a different perspective.
“When everyone waves a degree, is it still the golden ticket?” he mused, challenging the common narrative. It’s not the quality of free education that keeps him up, but rather the potential oversaturation.
With Malaysia’s unique challenges in size and demographics, he queried “Considering our limitations on international workforce mobility, can our employment sectors accommodate a surge of graduates? More importantly, can Sarawak support more students with the right facilities?”
“It’s not just about ticking the technical feasibility,” he pointed out. “It’s about what the market requires. Such requirements emerge organically in the market, driven by price mechanisms, not pre-determined by a group of experts.”
Ferlito believed more competition among schools might make education more affordable and accessible. And perhaps, he suggested, “Instead of pushing everyone to university, let’s make our high school courses stronger. Some countries like Italy have high school grads doing jobs we think need degrees.”
Seeing promising students constrained by finances is truly distressing. “Do we roll out government-backed student loans, or give the private sector a nudge?” he wondered aloud, touching on the age-old debate of who should bear the educational cost.
While Ferlito appreciated government backing for primary and secondary schooling, he stressed that higher education operated on different principles.
“When students pursue university education, it’s an investment in their future,” he said. “More often than not, this venture yields dividends in the form of higher salaries. The major benefits are reaped by the students themselves.”
He referred to a 2001 study titled ‘Where has all the education gone?’ by economist Lant Pritchett from the World Bank and Harvard Kennedy School of Government. The research showed that there isn’t a direct correlation between higher education levels and economic growth in many countries.
According to Pritchett’s findings, in countries with weak governance, highly educated individuals often end up in bloated government roles or in inefficient state-run companies.
Instead of driving growth, an increase in educated people could hamper it. Furthermore, in countries where education standards are subpar, extended years of schooling might result in paper qualifications that lack practical value.
“We need to ask the right questions,” Ferlito said. “Does free tertiary education provide enough benefits to justify its implementation? Should we be more concerned about the quality of education, bureaucratic red tape, and ensuring students are truly job-ready?
“Why do we hear PTPTN borrowers lamenting their student debt? Didn’t their education equip them for high-paying jobs? If not, where did we go wrong?” he added.
