Malaysia: The economic problems of south-east Asia are starting to impact on schools. The education ministry has announced a cut in administrative expenditure of 12.86 per cent for most schools. Non-curriculum subjects are likely to be hit hard. Cash for libraries, resource centres, counselling and guidance services has been frozen. Schools can expect a significant reduction on last year's grant. Government policy is to make only minimal cuts at the chalk face while targeting other areas of the education service.