This study is analysing about contribution among components of government funding (as subsidy) in the education industry to generate skilled labour. In this study, education institute as suppliers which offer education services at tertiary level. In another side, students as customers whose are using education services. The government funding in education will attract and encourage student from secondary level to continue study at tertiary level. It is also one of human capital investment to overcome inequality income distribution, poverty problems and economic growth by increasing the number of skilled labour in industries in the economic sectors.
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