Kuala Lumpur, June 14 - The phasing out of the 1,500 scholarships offered by the Public Service Department (PSD) for undergraduate studies overseas next year will be done gradually, Minister in the Prime Minister's Department Datuk Seri Mohamed Nazri Abdul Aziz said Monday.

He said the move was to reduce expenses incurred by the government in sending students to study abroad.

"We will reduce in stages...because the cost per student is too high," he told Bernama.

He said this when asked to elaborate on his statement in the media today that the PSD scholarship for undergraduates studies overseas would be phased out.

However, those who have secured entry for undergraduate studies at top foreign universities such as Oxford and Cambridge may still apply for the scholarship.

Health Minister Datuk Seri Liow Tiong Lai said he welcomed the proposal to phase out the scholarship as it would reduce government expenditures.

"We welcome the move to provide mire scholarships for local students. If we provide scholarships to 1,500 students studying overseas, it will also be not enough because every year, the number of those who appeal is also huge.

"Many foreign universities have campuses in our country. Now, RM1 million is only enough for three students and for those taking medical course, it will be more than RM1 million. If we want to send (overseas), it is for specialisation courses," he added.

Liow, who is also MCA deputy president, said he saw the move to phase out the PSD scholarship as a step towards internationalising local universities.

-- BERNAMA