Reading takes £27m hit on Malaysia campus activities

The University of Reading lost £8 million on its Malaysia campus last year and is set to lose money there for a further four years, according to the university’s 2017-18 accounts.

The institution’s financial statement adds that provisions relating to RUMAL Reading Sdn Bhd, a wholly owned subsidiary of the university which is incorporated in Malaysia and operated the campus there, had resulted in “a total charge of £27.6m in the university’s statement of comprehensive income”. This includes a provision against “amounts due to the university” from RUMAL Reading, which may not be wholly recoverable.

“As well as incorporating the subsidiary’s operating deficit of £8 million for the year, the group results include provisions for contractual obligations associated with the main building lease and other contracts as well as impairment of the fixed assets,” the university says in the financial statement. “Financial results from the campus in Malaysia have been short of expectations with deficits recorded in recent years and this trend is expected to continue for some time.”