Director: Daniel C. Levy

Rapid Growth in Malaysian Private Higher Education

(Submitted by Molly Lee and Daniel Levy)

PROPHE Summary:
Enrollment in private higher education institutions in Malaysia has grown rapidly, especially after the economic downturn in 1997. The government has restricted funding for study abroad while demand for higher education is strong. Today Malaysia has 691 private colleges, 10 private universities and 4 foreign university branch campuses. These fall into five main categories: (i) universities run by large government corporations, (ii) colleges established by publicly listed companies (for-profit), (iii) universities and colleges set up by political parties, (iv) independent private colleges, and (v) local branches of foreign universities established to meet the increased demand for foreign degrees. Malaysia is hoping to attract 50,000 foreign students by 2010 and establish itself as a regional education hub. Private higher education is key to this goal as its foreign enrollments grow rapidly (60%, 1997-2000).

For the full story (shown with permission and going beyond private higher education) see EdInvest News, July 2003, "EdInvest Country Snapshot focuses on Malaysia." http://www.worldbank.org/edinvest.

PROPHE Observation:
Malaysia is among the Asian countries where the government long allowed private higher education without allowing it full status but now relies heavily on private institutions to meet demands for access and to bring revenue from abroad. Also as seen in other countries, the large challenges to private higher education presented by the economic crisis of the late 1990s also presented special opportunities. The notion of a special role for private higher education institutions in attracting students from less-developed neighboring countries is a matter PROPHE is exploring in other settings as well (e.g., South Africa and Kenya).