Any business in education at the early childhood, primary, or secondary level in Malaysia falls under one of the Private Educational Institutions (PEIs) governed by the Education Act 1996.
This means PEIs are regulated by the Ministry of Education (MOE) and their list of requirements.
Naturally, requirements differ based on specific PEI – and there are easily over a dozen of them!
To help shed some light on the matter, here are seven general Education License requirements to prepare business owners for their Education License application regardless of what PEI they intend to set up.
Let’s begin.
Overview of requirements
Here’s a snapshot of the seven categories for you to read at a glance.
| Category | Requirements |
|---|---|
| Registered business entity | Only registered business entities can apply |
| Paid up capital | Required paid up capital starts at RM10,000 and goes up to RM1,000,000 depending on PEI |
| Management / ownership | Must be at least co-owned / managed by Malaysian Minimum 30% Bumiputera shareholding for PEI operating as a Sdn Bhd (higher in some states) |
| Principal | Generally must be Malaysian, except for international schools Must have relevant qualifications, experience, valid Teaching Permit, and pass police background check / health screening Must fall within minimum and maximum age limits (varies by state) |
| Board of governors | Must have a certain number of Malaysians serving on the board of governors |
| Teachers | Generally must be Malaysian, except for international schools Must possess relevant qualifications, valid Teaching Permit, and pass police background check / health screening |
| Teacher’s Assistants | Must meet minimum age limit and pass police background check / health screening. |
| Curriculum | Must follow established curriculum relevant to type of PEI (ex: national vs international syllabus) |
| Students | Enrollment limited to appropriate age range for the educational level Up-to-date student records required for all PEIs |
| Premises | Must comply with guidelines and receive approval letter from relevant local technical agencies, namely: 1. Fire and safety department 2. Health department 3. Local Authorities (Pihak Berkuasa Tempatan) Often requires physical premise inspection and / or interview |
| Naming Conventions | Must be relevant to education and reference specific type of PEI, preferably in Bahasa Melayu / English with Malaysian elements. |
Now let’s give these requirements some context by looking at some specific PEI requirements.
2 PEI license requirement examples
MISHU is by no means an expert in all PEIs, but we’ve helped set up tuition centres and private kindergartens, so let’s see what the requirements are for those.
1. Tuition centre license
By far our most requested type of PEI, the requirements for a tuition centre in Malaysia are relatively achievable for most, but teachers have an obvious advantage.
| Category | Requirements |
|---|---|
| Paid Up Capital | RM10,000 minimum. |
| Management | Malaysian board of governors; Principal must have a Teaching Permit and several years of teaching experience. |
| Teachers | SPM certificate and Teaching Permit required. Governors and Principal can also teach. |
| Premises | Must be on commercial premises unless exempted; cannot be near hazards or similar centres. MOE inspection required. |
| Naming Conventions | Must start with ‘Pusat Tuisyen,’ in Bahasa Melayu with Malaysian elements. Certain names are prohibited. |
To learn more, check out our complete guide to setting up a tuition centre in Malaysia.
2. Private kindergarten license
Kindergartens come with slightly stricter requirements but are generally more accessible for non-teachers. Same paid-up capital requirements though!
| Category | Requirements |
|---|---|
| Paid Up Capital | RM10,000 minimum. |
| Management | Malaysian-owned, with at least 3 governors. Sdn Bhd must have 30% Bumiputera shareholding. |
| Principal | Must be Malaysian, 25+ years old, with a Diploma in Early Childhood Education, Teaching Permit, experience, and must pass background and health checks. |
| Staff | Teachers must be Malaysian, 21+ years old, with Teaching Permit, SPM, and diploma. Teaching assistants must be 18+ years old, Malaysian, and pass background and health checks. Minimum teacher-student ratio is 1:25. |
| Curriculum | Must follow National Preschool Curriculum. If not in Bahasa Melayu, must be taught as subject. |
| Students | Ages 4-6 years old, with updated records. |
| Premises | Can be in various types of buildings; but must be approved by local authorities and inspected for compliance with MOH guidelines. |
| Naming Conventions | Must start with ‘Tadika,’ be relevant, and preferably in Bahasa Melayu or English. |
Our guide to setting up a private kindergarten in Malaysia goes into full details for those interested.
Let MISHU help obtain your Education License
If you’d like to open a kindergarten or tuition centre, we can help with the various state and ownership requirements. For other types of PEIs, no promises but get in touch and we’ll assist however we can!