EDUCATION AS AN INDUSTRY

© Ministry of Education First Printing, 2020 www.mohe.gov.my Kementerian Pendidikan Tinggi@moheofficial

All rights reserved. No part of this publication may be reproduced, copied, stored in any retrieval system or transmitted in any form or by any means – electronic, mechanical, photocopying, recording or otherwise; without prior permission in writing from the Ministry of Higher Education Malaysia.

MOHE (KPT)@MoheOfficial @kementerianpendidikantinggi

WAY FORWARD FOR PRIVATE HIGHER EDUCATION INSTITUTIONS:

Kementerian Pendidikan Tinggi KPT/MOHE

Published by: Ministry of Education No. 2, Tower 2, Jalan P5/6, Precinct 5, 62200 WP Putrajaya, Malaysia

EDUCATION AS AN INDUSTRY (2020 - 2025)

“IN THE GLOBAL ERA, EDUCATION AND TECHNOLOGY HAVE TO BE INTEGRATED WITH HUMANITY. OUR FUTURE GRADUATES SHOULD BE AT THE FOREFRONT OF TECHNOLOGY AND BE INSTILLED WITH THE RIGHT VALUES. TECHNOLOGY AND HUMANITY MUST EVOLVE TOGETHER IF WE ARE TO SUCCEED AS A NATION”

Y.B. DR. MAZLEE BIN MALIK MINISTER OF EDUCATION

“IN DEVELOPING FUTURE READY GRADUATES, THE MINISTRY OF EDUCATION IS WORKING ON TRANSFORMING THE CURRICULUM AS WELL AS THE TEACHING AND LEARNING DELIVERY IN HIGHER EDUCATION TO ENABLE THE STUDENTS TO UNDERGO A MORE HOLISTIC ACADEMIC PROGRAM..”

“EXPERIENTIAL LEARNING, FUTURE-READY CURRICULUM AND LIFELONG LEARNING MINDSET ARE CRITICAL ELEMENTS IN UPLIFTING THE GRADUATES’ SKILLS AND ATTRIBUTES TO THRIVE IN THE GIG ECONOMY WHICH HAS BECOME A TREND NOWADAYS.”

DATO’ DR. MOHD GAZALI BIN ABAS

DATO’ IR. DR. MOHD. SALEH BIN JAAFAR

SECRETARY GENERAL MINISTRY OF EDUCATION

ACTING DIRECTOR GENERAL OF HIGHER EDUCATION / DATO’ IR. DR. MOHD. SALEH BIN JAAFAR DEPUTY DIRECTOR GENERAL OF HIGHER EDUCATION (ACADEMIC & DEVELOPMENT) MINISTRY OF EDUCATION

CHAPTER ONE

i List of Figure ii List of Table iii List of Exhibit iv Executive Summary

Page 17

Introduction: Private Higher Education Institutions (PHEIs) Landscapes in Malaysia 1.1 Introduction 1.2 M alaysia Private Higher Education Scenario 1.3 M alaysia Private Higher Education Landscape 1.4 P rivate Higher Educational Institutions Act 1996 (Act 555) 1.5 T he Roles and Importance of Education

CHAPTER TWO

Page 33

Way Forward for Private Higher Education Institutions (PHEIs) 2.1 Vision and Mission and System Value 2.2 Commitment Towards Shared Prosperity Agenda 2.3 Private Education As An Industry 2.4 Strategic Objectives 2.5 Five Pillars for PHEIs as an Industry 2.1 Vision and Mission and System Value

TABLE OF

CHAPTER THREE

Page 45

CHAPTER FOUR

Page 67

CHAPTER FIVE

Page 81

CHAPTER SIX

Page 97

Agile Governance

Institutional Sustainability

Transformed Delivery

Innovation and Teaching Excellence

3.1 Background for Agile Governance 3.2 Landscape of Agile Governance within PHEIs 3.3 The Regulatory Process in the Private Higher Education System 3.4 Objectives and Strategies For Agile Governance

4.1 Background for Institutional Sustainability 4.2 Landscape: Growth for Public and Private Education Institutions 4.3 Issues and Challenges for Developing Sustainable Institutions 4.4 Objectives and Strategies for Institutional Sustainability

5.1 Background 5.2 Landscape: Current Practices for Private Education Institutions 5.3 Issues and Challenges 5.4 Objectives and Strategies for Transformed Delivery

6.1 Background of Innovation and Teaching Excellence 6.2 Landscape: Aspirations of Innovation & Teaching Excellence 6.3 Issues and Challenges related to Innovation & Teaching Excellence 6.4 Objectives and Strategies to Produce Ready-Proof Talent

CHAPTER SEVEN

Page 121

Internationalisation 7.1 B ackground for Internationalisation 7.2 I ssues and Challenges related to Internationalisation 7.3 O bjectives and Strategies to Achieve Global Prominence

CHAPTER EIGHT

Page 139

Achievements

CHAPTER NINE

Page 155

Appendix Bibliography Acknowledgment

List of Figure

i

List of Table

Figure

Title

Table

Title

Figure 1-1

International student enrolment in Malaysia (2005-2019)

Table 1-1

List of Institutions with ODL License

Figure 1-2

Establishment of PHEIs

Table 3-1

The authorities that play a direct role in the operation of the PHEIs

Figure 1-3

Local and International Students Enrolment

Table 3-2

Objectives, Strategies, Initiatives and Action Plans Related to Agile Governance

Figure 1-4

Number of Student by Fields of Studies (2018)

Table 4-1

Objectives, Strategies, Initiatives and Action Plan for Institutional Sustainability

Figure 1-5

Student Enrolment by Level of Study (2018)

Table 5-1

Objectives, Strategies, Initiatives And Action Plan Related To Transformed Delivery

Figure 1-6

Teaching Staff by Qualification

Table 6-1

Objectives, Strategies, Initiatives and Action Plan Related To Innovation & Teaching Excellence

Figure 3-1

Governance Structures, Rules and Processes

Table 7-1

Working Hours for International Students

Figure 4-1

Quadruple Helix Model in Higher Education

Table 7-2

Objectives, Strategies, Initiatives And Action Plan

Figure 4-2

Value added and growth of public and private education services, 2015-2018

Figure 4-3

Size of private education by industry segment

Figure 5-1

Irrelevant, Outdated and Unnecessary Regulatory Processes

Figure 6-1

Criteria of Education Transformation

Figure 6-2

Malaysia Higher Education 4.0 Framework

Figure 6-3

Graduate Employability Rate from 2013 to 2017

Figure 6-4

Future of Jobs Survey 2018

Figure 6-5

Status of Graduate Employability (PHEI/Public University) (2013- 2017)

Figure 6-6

Status of Graduate Employability (local student) (2013 – 2017)

Figure 7-1

Population of International Students by Country

Figure 7-2

Field of Studies Choice by International Students in Malaysia

Figure 7-3

Type of programmes preferred by international students

Figure 7-4

International student enrolment in Malaysia (2005-2019)

Way Forward for Provate Higher Education Institutions EDUCATION AS AN INDUSTRY (2020-2025)

Way Forward for Provate Higher Education Institutions EDUCATION AS AN INDUSTRY (2020-2025)

ii

iii

Exhibit

Title

Exhibit 0-1

Issues And Challenges: Five Pillars To Transform PHEIs as Competitive Service Industry with Global Reputation

Exhibit 1-1

Service Industry with Global Reputation

Exhibit 1-2

Private Higher Education Landscape

Exhibit 1-3

The Roles and Importance of Higher Education

Exhibit 2-1

Strategic Objectives

Exhibit 2-2

Where we are now & where we want to be..?

Exhibit 2-3

Five Key Areas of PHEIs as an Industry

Exhibit 3-1

Agile Governance: Definition and Concept

Exhibit 3-2

Issues and Challenges for Agile Governance

Exhibit 3-3

Objectives and Strategies for Agile Governance

Exhibit 4-1

Issues and Challenges for Institutional Sustainability

Exhibit 4-2

Objectives and Strategies for Institutional Sustainability

Exhibit 5-1

Current Practices for Private Education Institutions

Exhibit 5-2

Issues and Challenges for Transformed Delivery

Exhibit 5-3

Initiative to Achieve Target of Transformation Delivery

Exhibit 6-1

Status of Graduates Employability

Exhibit 6-2

(A) Innovative Education Model: Institutional Operating Mode

Exhibit 6-3

(B) Programme Innovation: Students as Creators

Exhibit 6-4

(C) Spatial Innovation: Redesigning Learning Spaces

Exhibit 6-5

Objectives and Strategies for Innovation and Teaching Excellence

Exhibit 7-1

Assumptions: + based on MEB(HE) total 250,000; @ estimated 6% increase per year

Exhibit 7-2

Issues and Challenges for Internationalisation

Exhibit 7-3

Objectives and Strategies for Internationalisation

Way Forward for Provate Higher Education Institutions EDUCATION AS AN INDUSTRY (2020-2025)

EDUCATION AS AN INDUSTRY (2020 – 2025)

The P oli c

WAY FORWARD FOR PRIVATE HIGHER EDUCATION INSTITUTIONS

nce rna ve

List of Exhibit

gulatory & G Re o , y

FACILITATIVE

EMPOWERING

IMPACTFUL

VALUE DRIVEN

Way Forward for Provate Higher Education Institutions EDUCATION AS AN INDUSTRY (2020-2025)

11

Executive Summary

Education is an important vehicle for nation-building and human resource development. With globalisation and internationalisation, education has become a critical element in any planning for human resource and talent development, in particular through crossborder education and the export of education services. Therefore, Malaysia needs to leverage upon its advantages to remain competitive in the provision of quality which is recognised at the international standards.

Malaysia is home to innovative and diversified private education offerings such as foreign certifications, home-grown and twinning programmes, and rich with cultural experiences spanning over 50 years. The private higher education institutions (PHEIs) have provided access to quality higher education for all qualified and deserving students including underprivileged students, especially since there are a limited number of students that can be accepted into the public higher education institutions. This is significant as 50.3% of students pursuing higher education in Malaysia are in the PHEIs. In addition, the Sustainable Development Goal 4 (SDG 4) which is on Quality Education has several targets, such as to increase access and equity, inclusive education, to promote lifelong learning opportunities for all. SDG 4 is a global indicators for Asia and the Pacific.

12 iv

Way Forward for Provate Higher Education Institutions EDUCATION AS AN INDUSTRY (2020-2025)

The private education, both schools and tertiary levels, has great potential of growth in the services sector. This is as indicated in the Annual GDP 2015-2018 by the Department of Statistics Malaysia (DoSM). The data shows the contribution to the services sector has increased annually during 11th Malaysia Plan (2015: RM9.233 billion; 2016:RM9.856 billion; 2017: RM10.492 billion; 2018: RM11.120 billion) with a total share to Gross Domestic Product (GDP) valued at RM40.7 billion. This sum also indicated an increase compared to the RM7 billion recorded in 2008 for the 10th Malaysia Plan. The Private Higher Education Institutions has contributed RM31.5 billion from tuition fees and cost of living to the economy of Malaysia in 2018 and would potentially grow to RM65 billion by 2025 and RM84 billion by 2030 on a mere conservative extrapolation of 5-6% growth rate per annum.

As of 30th September 2019, there are a total of 1,325,699 students pursuing their tertiary education in Malaysia. This consist of 574,202 (49.7%) in public universities and 666,617 (50.3%) in PHEIs. The composition of international student in PHEIs and public universities are 92,415 (70%) and 39,099 (30%) respectively.

Malaysia has targeted to have 200,000 international students studying in the Higher Education Institutions (HEIs) in 2020 and a target of 250,000 in 2025.

Chapter 1: Private Higher Education Institutions (PHEIs) in Malaysia

The Fourth Industrial Revolution (IR4.0) has emphasised the need to redesign the education system as well as to enhance, reskill and upscale talents. It is crucial for Malaysian HEIs to produce talents who are agile and adaptive to the changing demands of the IR4.0. With the advent of Industry Revolution 4.0 (IR4.0), and the advancement of technologies, the current global economic power lies in the creativity, authenticity and imagination of our academicians and technopreneurs. The rapid expansion of these disruptive technologies with respect to connectivity and creation is at an exponential rate and the challenges to keep up and adapt to them is growing rapidly.

Connectivity through multimedia mobile devices, experiential learning through Virtual Reality (VR), Augmented Reality (AR), Mixed Reality (MR), Artificial Intelligence (AI), and the Internet of Things (IoTs) has created a new learning ecosystem in higher education. In order to effectively harness these new technologies and learning paradigms, higher education needs to develop and put in place an infrastructure of the right education, networks of people and quality assurances, hence raising innovation and productivity to the next level.

Private higher education institutions (PHEIs) must play their role in producing future-proof graduates tailored and prepared for the immersive education which combines the virtual worlds, simulators, learning games and sophisticated digital media. Learning and Teaching (L&T) must incorporate 21st Century learning skills in line with the Malaysia Education Blueprint (Higher Education) [MEB

(HE)] which include collaboration, digital literacy, critical thinking and problem solving that help students to thrive in the IR4.0 and necessitates future-proof graduates for the future jobs.

The Ministry of Education (MoE) is committed to ensure PHEIs moving towards a high impact industry-- competitive, innovative, productive, dynamic, progressive and vibrant -- in line with the Government vision of Shared Prosperity. The strategic action plan includes of five key areas such as (1) Agile Governance; (2) Institutional Sustainability; (3) Transformed Delivery; (4) Innovation and Teaching Excellence; and (5) Internationalisation.

Agile governance will strengthen the capability and functions of PHEIs and its company role in managing quality higher education providers. PHEIs need to establish a solid financial foundation to be responsive and inclusive to remain sustainable in the competitive market. In addition, the Ministry also needs to transform in its delivery system by enhancing on automation and adopting a customer-driven approach.

Besides all the initiatives proposed, PHEIs need to strengthen its academic programmes and retain the high calibre faculty and support staff to ensure continuous quality assurance in providing innovative teaching & learning to its stakeholders. Since Malaysia aspires to become a centre of international education hub, PHEIs must improve on their image and branding to become more visible. In conclusion, Malaysia needs to remain internationally competitive in providing quality education, build trusted brand, competitiveness, security and as well as globally recognised.

Way Forward for Provate Higher Education Institutions EDUCATION AS AN INDUSTRY (2020-2025)

13 iiv

Executive Summary

“The source of knowledge is experience” Albert Einstein

Exhibit 0-1 Issues And Challenges: Five Pillars To Transform PHEIs as Competitive Service Industry with Global Reputation

PHEIs as Highly Competetive Industry With Global Reputation

Agile Governance • Harmonisation & Review (Act, Policy, Regulation) • Autonomy & accountability (Separation of Power/Company) • Academic Integrity • Diversification of PHEIs

Institutional Sustainability • Partnership & Contribution • Incentive & Support • Alternative Business Model • Student Financial Aid • Shared Resources

Transformed Delivery

Internationalisation

• Business Friendly Policy • Digitalisation & Big Data • National Ratings • End-to-end, cross-agency processes

• Branding and Marketing • Education Hub • Global Prominence • Edu-Tourism

Innovation & Teaching Excellence • Innovative Programmes & Delivery • Technology Based Management & Administration • Industry Driven Curriculum • Flexible Education, Micro- Credential • Innovation & Society • Micro-campus

iiiv

Way Forward for Provate Higher Education Institutions EDUCATION AS AN INDUSTRY (2020-2025)

Way Forward for Provate Higher Education Institutions EDUCATION AS AN INDUSTRY (2020-2025)

15

Chapter One Page 16 - Page 31

Private Higher Education Institutions (PHEIs) in Malaysia 1.1 Introduction 1.2 Malaysia Private Higher Education Scenario 1.3 Malaysia Private Higher Education Landscape 1.4 P rivate Higher Educational Institutions Act 1996 (Act 555) 1.5 The Roles and Importance of Education

1.1 Introduction The Malaysian Higher Education system has grown from strength to strength over the past few decades. Over the last ten years alone, the system has made significant gain on student enrolment, risen in global recoginition on key dimensions such as research publications, patents and institutional quality, as well as become a top destinastion for international student. These achievements are a testament to the drive and innovation of the Malaysia academic community, the suppport of private sector, as well as the deep investments the government has made.

Way Forward for Provate Higher Education Institutions EDUCATION AS AN INDUSTRY (2020-2025)

Chapter 1: Private Higher Education Institutions (PHEIs)

Student Enrolment

Total Private Schools

347,865

186

6,750 (Source: MoE, as at Aug 2019)

473

Kindergartens Enrolment

Private Schools with KDN License

7,727

Others Institutuons

18

The Ministry of Education has also outlined several initiatives to support the Shared Prosperity Vision 2030 which was launched by our Honourable Prime Minister on 5th October 2019. The Shared Prosperity Vision 2030 refers to “a commitment to make Malaysia a nation that achieves sustainable growth along with fair and equitable distribution, across income groups, ethnicities, regions and supply chains”.

851,950

Kindergarten

The private higher education sector has achieved much for the nation and its people. It is now an equal partner with the public institution as a provider of higher education the achievements of private sector in the last two decades are owned at least partly to the Private Higher Educational Institution Act 1996 (Act 555). The Act was described by the then Minister of Education as a “great milestone in the history of

Private education as an industry within the services sector has a great potential of growth to accelerate Malaysia’s aspiration for services sector to contribute 70% of Gross Domestic Products (GDP). It has contributed RM 31.5 Billion from tuition fees and cost of living to the economy of Malaysia in 2018; and would potentially grow to RM 65 Billion by 2025 and RM 84 Billion by 2030 on a mere conservative extrapolation of 5-6% growth rate per annum The K12 education and private/international schools have provided access to quality pre-school, primary and secondary education and/or international education syllabus at an affordable price, exceeding 218,000 students within 470 private/international schools in 2018 (Exhibit 1-1 & 1-2).

Exhibit 1-1 Private Schools Education Landscape

School

The higher education in Malaysia need to keep evolving to stay abreast with global trends. Destructive technologies such as advanced robotics, the internet of things (IoT) and the automation of knowledge are expected to dramatically reshape the business and social landscape from what it is today. Preparing Malaysian youth to thrive in this complex and ever-changing future will require an equally fundamental transformation of how the higher education system currently operate. Malaysian higher education institutions must play their role in producing future-proof graduates tailored and prepared for the immersive education which combines the virtual worlds, simulators, learning games and sophisticated digital media.

higher education in Malaysia” and part of a “major educational reform” as had never been undertaken by the government until that date.

Liberalisation policies on higher education made it important to carry out more transparent and flexibility of the policies and regulations underlying and connected with the Act. This would have to support the competitiveness and quality of private higher educational institution and to bring them on par with those of developed countries.

9.5%

contribution based on tuition fees contribution based on enrolment of international students in Private Schools

Other Institutions Enrolment

236,873

of the students pursuing education in Malaysia are in Private Schools (Source: MoE, as at June 2018)

267,212

41,204

Schools Enrolment

International Students

PEIs’ contribution to Malaysia’s Economy

(Source: MoE, 2018)

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1.2 Malaysia Private Higher Education Scenario

1.1 Introduction Exhibit 1-2 Private Higher Education Landscape

1,325,699

Total PHEIs

447

178

(Source: MoE, as at Aug 2019)

50.3% Private College

University College

Foreign Branch Campus

Private University

10

37

666,617

PHEIs with KDN License

347

53

Total Higher Education Student Enrolment

of the students pursuing higher education in Malaysia are in PHEIs (Source: MoE, as at June 2018)

PHEIs Student Enrolment

contribution based on tuition fees and cost of living contribution from international students in PHEIs

92,415

RM31.5B RM11.3B (Source: e-IPTS, 2018)

574,202 Local Students

International Students

PHEIs’ contribution to Malaysia’s Economy

20

Way Forward for Provate Higher Education Institutions EDUCATION AS AN INDUSTRY (2020-2025)

Chapter 1: Private Higher Education Institutions (PHEIs) in Malaysia

The Malaysian educational system, evolved from a fragmentary system inherited from the British colonial administrators has complexities seldom found in other systems. These complexities are the result of hesitant, indecisive colonial policies on education, the demands of the different communities that have made up the population from colonial times for mother-tongue education and efforts by postindependent governments to integrate the population through a common education using Bahasa Malaysia (National Language) as the medium of instruction.

Private institutions worldwide are generally criticized for their profit orientation, their lack of quality or accessibility, or their contribution to the commercialization or commoditisation of higher education. On the other hand, it may be argued that private institutions can provide quality to the elite, vocational education to the needy, or conversely or it may provide low quality education to those who neither it nor to those who can afford a better education. Private higher education can also provide education to those who are already employed, through distance or online education on an “anytime, anywhere basis”.

There are two types of higher education providers in Malaysia.

The public HEIs consist of all public universities, polytechnics and community colleges. The PHEIs on the other hand consist of private universities and university colleges, foreign branch campuses and private colleges. Most of the private HEIs offer certificate, diploma and degree programmes. Some of them do offer postgraduate degree programmes.

Malaysia aspires to be the hub for higher education excellence in the region. Therefore the ability to attract international student is important. Malaysia is considered unique in this sense because it offers high quality education at affordable prices an its multilingual and multicultural society appeals to international students. As of September 2019, 70% or 92,415 foreign students were enrolled in PHEIs compared to only 39,099 in public universities.

The involvement of private sectors in the Malaysia higher education began in 1996 after the passing of the Private Higher Educational Institutions Act 1996 (Act 555). Government at the time realized that strengthening the intellectual capabilities of the nation was important in supporting the country’s development. The enforcement of this act marks the rapid establishment of PHEIs in Malaysia.

A decline in the number of international students’ commencements by 39% from approximately 68,000 in 2015 to 41,400 in 2018 with significant reduction from Bangladesh and Nigeria. There is also a decline of 5.04% in international students’ enrolments in PHEIs from 2017 to 2018 (Figure 1-1). There is also an increase in competition in higher education where Malaysia along with China, Korea and Singapore is beginning to compete with destinations such as Australia and Japan for students from a few Asian markets.

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1.2 Malaysia Private Higher Education Scenario

1.3 Malaysia Private Higher Education Landscape (a) Establishment of Private Higher Education Institutions

30.00%

80,000

20.00%

60,000

10.00%

40,000

0.00%

20,000

-10.00%

University

University College

Foreign Branch Campus

College

347

100,000

380

40.00%

380

120,000

400

50.00%

402

140,000

Following enforcement of Private Higher Education Institutional Act 1996 (Act 555), PHEI in Malaysia began to expand rapidly. As of September 2019, the total number of PHEIs in Malaysia stand at 447 institutions. There were 90 local degree conferring PHEIs (53 universities and 37 university colleges) and 347 colleges compared to 20 public universities. In line with the government aspiration for liberalisation and massification of higher education, MOE has approved 10 branch campuses of foreign universities to be operated in Malaysia. Figure 1-2 shows the number of PHEIs registered under Act 555 within five years. In 2015, the total number of PHEIs amounted to 513 institutions. However statistics as of September 2019 shows a drop 12% of total number of PHEIs.

-20.00%

0

Public Higher education

10

Figure 1-1: International student enrolment in Malaysia (2005-2019) Source: Moe, 2019

2015 (513)

2016 (502)

2017 (480)

2018 (463)

10

2018

37

2017

53

2016

10

2015

38

Public Higher education

2014

53

2013

10

2012

37

2011

38

Public Higher education

2010

53

2009

10

2008

32

2007

54

2006

63

2005

2019 (447)

Figure 1-2: Establishment of PHEIs Source: Department of Statistics, Malaysia

22

Way Forward for Provate Higher Education Institutions EDUCATION AS AN INDUSTRY (2020-2025)

Chapter 1: Private Higher Education Institutions (PHEIs) in Malaysia

Way Forward for Provate Higher Education Institutions EDUCATION AS AN INDUSTRY (2020-2025)

23

1.3 Malaysia Private Higher Education Landscape (b) Students Enrolment

(c) Fields of Studies

As of December 2018, there were a total of 1,325,699 students in HEIs. From Figure 1-3, it is shown that 666,617 (50.3%) are in PHEIs. The enrolment in PHEIs consist of 574,202 local students and 92,415 international students. Statistics show the overall students’ enrolment in PHEIs is consistent. Compared to 2015 (580,928) there is an increase of 23% of students’ enrolment in PHEIs.

The current trend of local and international students’ enrolment for 2018 by fields of studies show that students’ enrolment in the field of social services, business and law are the highest interest at PHEIs. A closer look at the distribution of the students’ enrolment in the field of study for 2018 as indicated in Figure 1-4 reveals interesting trends among students. Meanwhile, in the field of engineering, manufacturing and construction the total number of student is amounted 186,970 (local-90,311; international-15,748). The least popular field of studies among students is agriculture and veterinary. In order to increase the popularity of some fields it is suggested that all programmes should be align with Industrial Revolution 4.0 (IR4.0).

43,612

600,000

222,371

15,748

576,982

493,926

400,000

493,725

500,000

565,852

595,347

Social Services, Business & Law Engineering, Manufacturing & Construction

90,311

5,552 Arts & humanities

57,819

3,376 Health & Welfare

300,000

44,816

7,529

91,707

99,679

100,000

87,002

74,996

200,000

100,765

Services 776

43,216

Education 9,328

43,081

Science, Mathematics & Computer 5,775

0

Basic Program

2014

2015

2016 Local

2017

2018

INTERNATIONAL

31,177

1,284

Source: Quick Fact Malaysia PHEIs 2014-2018

Way Forward for Provate Higher Education Institutions EDUCATION AS AN INDUSTRY (2020-2025)

11

Agriculture & Veterinary

Figure 1-3: Local And International Students Enrolment

24

42,907

0

50,000

100,000

150,000

200,000

Figure 1-4: Number of Student by Fields of Studies (2018)

250,000 International

Local

Source: Buku Statistik Pendidikan Tinggi 2018

Chapter 1: Private Higher Education Institutions (PHEIs) in Malaysia

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1.3 Malaysia Private Higher Education Landscape (e) Teaching Staff

Looking at the year 2018, Figure 1-5 shows the students’ enrolment by level of study. It can be said that PHEIs focus primarily on studies leading up to certificate, diploma and bachelors level. It is interesting to note that the highest number of student enrolment is at bachelor level at 329,136 followed by diploma level at 231,504 number of students’ enrolled. For the future, it is recommended that more students to be enrolled in postgraduate programmes such as masters and doctorate.

In general, there are diversification in quality of teaching staff with proper academic qualification. The faculty members in PHEIs are largely those with postgraduate degrees as shown in Figure 1-6. This shows that PHEIs will continue to provide quality higher education to its students.

However, MoE hopes that more teaching staff with industry experience or teaching staff from industry can be rob in to further improve the quality of programmes offered in PHEIs. Given the limited opportunity for teaching staff in PHEIs to go on-the-job-training, MoE would recommend PHEIs to work closely with industries to setup industrial scale facilities on campus for teaching purposes.

565,852

207,077

493,725

250,000

200,000

595,347

300,000

576,982

281,406

(d) Levels of Studies

3,250

4,567

8,878

22,696

47,730 4,781

24,427

7,422

50,000

14,771

100,000

41,684

150,000

0 Others

Certificate

Diploma

Advanced Diploma Local

Bachelor Degree

Masters

Doctorate

Advanced Certificate Diploma Dilpoma 1% 1% 1%

Levels of Qualifications

Title

International

Total

PhD

3,443

1,352

4,795

Masters

10,618

1,243

11,861

Bachelor Degree

5,285

317

5,602

Professional

-

-

-

Advanced Diploma

53

-

53

Diploma

189

15

204

Certificate

86

70

156

Total

19,674

2,997

22,671

Figure 1-6: Teaching Staff by Qualification

International

Figure 1-5: Student Enrolment by Level of Study (2018)

PhD 21%

2018

Masters 52%

Bachelor Degree 25%

Source: Buku Quick Fact Malaysia PHEIs 2014-2018

Source: Buku Statistik Pendidikan Tinggi 2018

26

Way Forward for Provate Higher Education Institutions EDUCATION AS AN INDUSTRY (2020-2025)

Chapter 1: Private Higher Education Institutions (PHEIs) in Malaysia

Way Forward for Provate Higher Education Institutions EDUCATION AS AN INDUSTRY (2020-2025)

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1.3 Malaysia Private Higher Education Landscape

1.4 Private Higher Educational Institutions Act 1996 (Act 555)

(f) Open and Distance Learning (ODL) Open and Distance Learning (ODL) is an emerging trend for the society to pursue their studies in higher education. This is in-line with Lifelong Learning (LLL) philosophy to provide opportunities for the people to obtain higher degrees through part time mode of study. ODL widens access to quality education and provide lifelong learning opportunities by leveraging on technology, adopting flexible mode of learning, and providing a conducive and engaging learning environment. At present, there are more than 10 ODL institutions approved to offer Open and Distance Learning Programmes in Malaysia. They have made significant contribution towards achieving national goal in human capital development through LLL. Accreditation for Prior Experiential Learning (APEL) is another initiative by the government to provide more opportunities especially for the working adults to further their education at tertiary level. Students also will benefit from robust cyber infrastructure for online learning through Massive Open Online Courses (MOOCs) and industry-academia collaboration thus, equipping them with the latest knowledge in line with current developments and labour market’s needs.

Open University Malaysia (OUM)

ODL

Universiti Terbuka Wawasan (WOU) GlobalNXT University Asia E-University SEGi University Veritas University College

Dual (Conventional and ODL)

The landscape of Malaysia Private Higher Education would benefit from an environment that promotes growth and continuous quality enhancement. The Private Higher Educational Institutions Act 1996 (Act 555) provides for the establishment, registration, management and supervision of, and the control of the quality of education provided by, private higher educational institutions and for matters connected therewith. The Act 555 also monitors the following activities: i. Institutional Constitution ii. Approval and Renewal of Courses iii. Role of the Chief Executive iv. Student Disciplinary Procedures v. Classification of private institutions of higher education vi. Inspection, Enforcement and Investigation vii. Closing Down Obligations of the Company

Act 555 includes the following notes:

MAHSA University UNITAR International University Universiti Tun Abdul Razak (UNIRAZAK) Al-Madinah International University (MEDIU Kolej Universiti Genovasi

Table 1-1: List of Institutions with ODL License

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“Education is the most powerful weapon which you can use to change the world”

WHEREAS higher education plays an important role in realizing the vision towards academic excellence and professional and technical enhancement whilst meeting the manpower needs of the nation.

AND WHEREAS recognizing the role of private higher educational institutions in providing sufficient educational infrastructure as well as increasing the capacity to meet the demand for higher education

AND WHEREAS it is imperative to facilitate and regulate private higher educational institutions so as to ensure its healthy development and the provision of quality education

Nelson Mandela

Chapter 1: Private Higher Education Institutions (PHEIs) in Malaysia

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1.5 The Roles and Importance of Higher Education Exhibit 1-3 The Roles and Importance of Higher Education

ACCESS SYSTEM ASPIRATIONS

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ACCESS

To increase access to and enrolment in higher education

QUALITY

The Ministry’s aspiration covers three aspects: quality of graduates, quality of institutions, and quality of the overall system

UNITY

A lack of comprehensive data to effectively assess equity in the system, the Ministry aims to ensure that all Malaysians have the opportunity to fulfil their potential regardless of background.

EQUITY

To create an education system that provides students with shared values, shared experiences, and common aspirations by embracing diversity.

EFFICIENCY

To maximise the return on investment in higher education and to maintain the current levels of Government expenditure per student across public institutions.

Way Forward for Provate Higher Education Institutions EDUCATION AS AN INDUSTRY (2020-2025)

STUDENT ASPIRATIONS ETHICS & SPIRITUALITY

Ethically and morally upright, spiritually grounded, compassionate and caring; appreciates sustainable development and a healthy lifestyle.

NATIONAL IDENTITY

Is an effective communicator, emotionally intelligent and able to work across cultures; is socially responsible, competitive, resilient, and confident.

LANGUAGE PROFICIENCY

Has pride in Malaysia and an understanding of Malaysia in relation to the world.

LEADERSHIP SKILLS

Proficient in Bahasa Melayu and English, and encouraged to learn one additional global language.

KNOWLEDGE

Appreciates diverse views, is able to think critically and be innovative, has problem-solving initiative, and an entrepreneurial mindset.

THINKING SKILLS

Has mastery of own disciplines, is able to harness, connect and apply knowledge learnt, and has an appreciation of culture, arts, and Science, Technology, Engineering and Mathematics (STEM).

Chapter 1: Private Higher Education Institutions (PHEIs) in Malaysia

QUALITY

UNITY

EQUITY

EFFICIENCY

SYSTEM STUDENT

Ministry of Education has made significant progress in fulfilling its core aspirations for higher education, most notably in broadening access and expanding overall system and institutional quality. The Malaysia Education Blueprint 2015-2025 (Higher Education) [MEB 2015-2025 (HE)] will therefore build on the five aspirations, namely access, quality, equity, unity, and efficiency. On the other hand, the Ministry also emphasizes the balance between both knowledge and skills (ilmu), as well as ethics and morality (akhlak). The student aspirations in the MEB are build around six primary attributes: ethics & spirituality, national identity, language proficiency, leadership skills, knowledge and thinking skills (Exhibit 1-3).

OBJECTIVES FOR SYSTEM & STUDENT ASPIRATIONS ACCESS

1 2 3 4 5

HOLISTIC STUDENT

QUALITY

WORLD CLASS EDUCATION SYSTEM

UNITY

ASPIRATIONS

EQUITY

MORE ACCESS TO TERTIARY EDUCATION

PRODUCE HIGHLY SKILLED WORKFORCE

EFFICIENCY

MALAYSIA AS AN INTERNATIONAL EDUCATION HUB

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Chapter Two Page 32 - Page 44

Way Forward for Private Higher Education Institutions (PHEIs) 2.1 Vision and Mission and System Value 2.2 Commitment Towards Shared Prosperity Agenda 2.3 Private Education As An Industry 2.4 Strategic Objectives 2.5 Five Pillars for PHEIs as an Industry

2.1 Vision, Mission and System Values Private higher education institutions aspire to contribute to the Malaysia education ecosystem where they provide equitable access to quality education of international repute.

INTEGRITY

VISION

SYSTEM VALUES

i. To create quality learning environment for students and staff to excel ii. To provide quality education producing future-proof talent iii. To provide an adaptive and agile ecosystem iv. To provide inclusive and equitable access to local and global community of learners v. To be a catalyst for economic development through knowledge transfer and research supporting enterprise and industry vi. To be an impactful contributor to community and the nation economy

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INNOVATION

MISSION

PHEIs provides equitable participation to all eligible students, practices academic integrity, always at the forefront of innovation in providing program offerings and delivery, and always in the pursuit for excellence to ensure quality programs of international repute.

EQUITABLE

Malaysia private higher education institutions as trusted brand and preferred international education destination

EXCELLENCE

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2.2 Commitment Towards Shared Prosperity Vision 2030 (SPV 2030)

SHARED PROSPERITY

L G CIA IN SO INEER G

-EN

RE

1.

Aspiration for services sector to contribute up to 70% of GDP 2.

Education has proven to have high multiplier effect to the economy 3. Contributed RM31.5 Billion in 2018 4. Expected to grow to RM65 Billion by 2025 & RM84 Billion by 2030

EM ECO PO NO WE MIC RM EN T

In tandem with the national agenda of shared prosperity, private education sector has commitment towards economic empowerment and social re-engineering. Malaysia aspires to have its services sector to contribute up to 70% of GDP and education has proven to have high multiplier effects to economy. Private education institutions also play significant roles to increase access to quality education and narrow the socioeconomic gaps. PHEIs have direct input to economic empowerment and social re-engineering as envisioned by the country’s Shared Prosperity Vision 2030 (SPV 2030).

ENVIRONMENT ENNHANCEMENT

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5. Increasing access to quality education for all including B40 & underprivileged students 6.

Narrowing gap between urban & rural through incentive to PHEIs 7. Widening students financial aids through scholarship, financial institution, soft loan, waqf, zakat, foundation, etc 8.

Providing high quality, high impact & future-ready programmes 9. Promoting Malaysian PHEIs as a global trusted brand

Chapter 2 : Way Forward for Private Higher Education Institutions (PHEIs)

2.3 Private Higher Education As An Industry The education sector in Malaysia is fast in fulfilling the definition of not only an industry, but also an almighty successful one. Local and international investors have increased in joining this successful industry where purportedly, there exist no recession. These investments are not only in terms of physical academic facilities, but also in terms of research and talent development.

“An investment in knowledge pays the best interest” Benjamin Franklin

Although some may argue that we cannot put a price on knowledge or education, we cannot deny the fact that the education sector, especially private higher education, is contributing to the country’s economic growth. Higher education in Malaysia has grown in quality and quantity, providing education not only to Malaysians but also to international students. From having only governmentowned universities to having more international renowned universities offering twinning programmes with private universities in Malaysia.

Some universities even have their own branch campus in Malaysia, for example Monash University Malaysia, Curtin University Malaysia, University of Southampton Malaysia and Xiamen University Malaysia. It is then, categorically right to claim that Malaysia is now a well-known and trusted education hub globally.

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2.3 Private Higher Education as An Industry

2.4 Strategic Objectives Malaysia’s higher education has transformed from importing higher education to exporting higher education. This is not a surprising fact as we are now not only hosting 10 international branch campuses, but we are also ‘exporting’ education through franchising Malaysian academic programmes abroad via twinning programmes and joint award with international universities. The influx of foreign students coming to study in Malaysia’s public and private higher education institutions marks a positive evolution in Malaysian education sector.

Private higher education in Malaysia has certainly transformed to become a significant industry as explain below:

“Education is not the learning of facts, but the training of the mind to think” Albert Einstein

i. It is a systematic investment from the students and guardians or parents; ii. It contributes to the technological capability and technical enhancement; iii. It contributes to the growth of research and innovative findings and output; iv. I t acts as a mechanism in fulfilling market labour force where institutions provide training and upskilling as finishing schools; and v. It contributes to the socio-economy of the community and also to the country’s GDP.

Malaysia aspires to be as an international education hub with a difference, one that is valued by students for its competitive advantage in providing value-for-money higher education and that balances quality and affordability with the added value of rich cultural experiences. The indicator of success for this industry can be measured by the number of international students and the economies it generates.

To achieve this aspiration, PHEIs need to be treated like any other industries where public-private collaborations are strengthened.

Private education as an industry is the way forward. The strategic objectives are as follows (Exhibit 2-1): i. ii. iii. iv. v. vi. vii. viii. ix.

To achieve the strategic objectives, the following initiatives are proposed: i. Increasing Malaysia Education’s brand visibility and international recognition for the quality of higher education. ii. Enhancing positive international students’ experiences through enhancing ecosystem and amenities. iii. Enhancing the role of PHEIs through broader incentive schemes avail for education service. iv. Attracting new markets through increase in marketing support from other governmental agencies.

Business friendly services Malaysia education as a trusted brand Empowerment, accountability and integrity Digital marketing and data intelligence Improved international-local students experience Exporting education Structured incentives for PHEIs Value-based future proof talents Enterprising graduates

Looking at the positive progress of private higher education institutions as an industry, the Ministry is confident that it will be a successful agenda.

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2.4 Strategic Objectives Exhibit 2-1 Strategic Objectives

Exhibit 2-2 Where we are now & where we want to be..?

Business-Friendly Services

Malaysia Education as a trusted brand

Value-based future proof talents Enterprising Graduates

Indicators and status

Private Education As An Industry

Empowerment, accountability and integrity

Improved internationallocal students’ experience

Digital Marketing & Data Intelligence

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… now

Structured incentives for PHEIs

Current Status :

• Private Education is a growing industry

Indicators : • RM 31.5 Billion to GDP • Number of International students = 171k

2025

Medium Term :

2030

• Private education as a high impact industry

Target • RM 65 Billion to GDP Indicators : • N umber of international students = 305k

Long : Term

• Malaysia as a preferred international education hub

Target • RM 84 Billion to GDP Indicators : • N umber of international students = 408k

Exporting education

Chapter 2 : Way Forward for Private Higher Education Institutions (PHEIs)

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2.5 Five Key Areas of PHEIs as an Industry

This strategic action plan addresses the five key areas of private higher education as an industry. Three of the key areas are the enablers - Agile Governance, Transformed Delivery and Institutional Sustainability. Good and agile governance will strengthen the capability and functions of PHEIs and its company in managing quality higher education providers. PHEIs need to establish a solid financial foundation to be a responsive, inclusive and collaborative in order for them to be sustainable. PHEIs also need to increase in the reputation, competitiveness, security and be recognised as a trusted and preferred international education destination.

Exhibit 2-3 Five Key Areas of PHEIs as an Industry

1

AGILE GOVERNANCE

2

TRANSFORMED DELIVERY

3

INSTITUTIONAL SUSTAINABILITY

4

INNOVATION & TEACHING EXCELLENCE

5

INTERNATIONALISATION

ENABLERS

• The National Key Economic Areas (NKEA) • Department of Higher Education Strategic Plan (2018-2022) • Malaysia Education Blueprint (Higher Education) (2015-2025) • Malaysia Education Blueprint 2013-2025 (Preschool to Post Secondary Education)

Two other key areas are the outcomes expected form a strong foundations of good governance and sustainable institutions which provide excellent services. The outcomes desired are Innovation and Teaching Excellence and Internationalisation. PHEIs need to strengthen and be innovative in their academic programmes offerings. The programmes must be relevant, sought after by students, parents and scholarship providers, produce employable and future proof graduates.

Internationalisation is expected to be a natural consequence of excellent and reputable institutions. PHEIs need to be a global player where international students, collaborators and partners are confident to be associated (Exhibit 2-3).

OUTCOMES

The landscape of Malaysia PHEIs would benefit from an environment that promotes growth and continuous quality enhancement. PHEIs play an Important role in execution of :

“Technology is best when it brings people together” Matt Mullenweg

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Chapter Three Page 45 - Page 65

To strengthen the capability and functions of PHEIs in managing quality higher education. Agile governance is required for the institutions to adapt to changes quickly.

Agile Governance 3.1 Background for Agile Governance 3.2 Landscape of Agile Governance within PHEIs 3.3 T he Regulatory Process in the Private Higher Education System 3.4 Objectives and Strategies for Agile Governance

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3.1 Background for Agile Governance Private higher education serves a wide range of stakeholders and has an enduring impact on parents, learners, society as well as national development. Agile governance is essential for the organization and management of PHEIs as it determines the quality of education and the performance and sustainability of PHEIs. Governance structures, rules and processes at both the system and institutional levels must be agile so that they respond to the development of the higher education industry (refer to Figure 3-1). As a result, PHEIs must be accountable to the stakeholders, be transparent, responsive, honest, high integrity, observe the rule of law, ensure stability, equity, inclusiveness, promote empowerment, and broad-based participation of stakeholders.

The PHEIs is highly influence by the market. Even the betterestablished private universities and colleges with advanced facilities must be accountable with their reputation, image, branding and their market position both nationally and internationally. For these, and more particularly the other institutions in the sector, a miscalculation about market forces, competition from other educational institutions, international students trends, expectations in the employment market, and other factors can seriously jeopardize their survival.

Regulatory measures in the form of laws and regulations and particularly the approach of regulators must be built on governance measures that take cognizance of the market position of PHEIs. A better understanding of the private sector and the unique strategies devised by PHEIs will help grow the sector to better serve the nation and its population in higher education.

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This chapter examines the governance issues surrounding the private higher education industry. In addition, it examines the rules and regulations that shape the governance of PHEIs. Finally, the chapter proposes the strategies, initiatives and plans to be undertaken by both the regulators and PHEIs towards achieving agile governance.

Broad Participation

Transparent

Empowerment

Responsive

Honest

Inclusiveness

Exhibit 3-1 Agile Governance: Definition and Concept GENERAL DEFINITION Governance is about how decisionmaking structures are organized and decisions made, especially if the decisions affect others or if they are made for a specified purpose, whether private or public. Governance is widely used to articulate good practices and actions of not only governments and corporations but all bodies (and even individuals) that make and carry out decisions on behalf of larger interests including those of outsiders.

GOVERNANCE IN HIGHER EDUCATION Equity

Integrity

Stable

Observe

Figure 3-1: Governance Structures, Rules and Processes

Chapter 3 : Way Forward for Private Higher Education Institutions (PHEIs)

Governance is made up of the traditions, laws, regulations, rules, codes, processes and sets of values that are applied to achieve the purposes of the educational system and the institutions established in that system.

AGILE GOVERNANCE

Focus on the right priorities à Priorities and processes à Identify critical management decisions and optimize the key processes for timely and effective decision making

Agile governance means the ability of an organisation to react to changes in its environment faster than the rate of those changes. It enables organizations to make the right decisions, at the right time, with the right information.

Clear accountability for delivery à Structures & Roles à Create decision-making bodies and allocate clear accountabilities (to individuals, teams or committees) to reach and execute decisions

Informed decision making à Information & tools à Facilitate on-going quality decision making through timely information and decision support tools

M. W. Waldron, J. Vsanthakumar, and S. Arulraj (2019) Chapter 13 - Improving the organization and management of extension retrieved http://www.fao.org/3/w5830e0f.htm October 2019

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3.2 Landscape of Agile Governance (b) Business Models

The private higher educational system in Malaysia is one of the most diverse systems in the world. The Malaysian higher education programs and methods of delivery are benchmarked against those of institutions in the United Kingdom, Australia, the United States and New Zealand.

PHEIs operate under different business models, namely:

Other than the institutions that operate in it, the higher education system is also made up of several authorities that directly or indirectly influence how the institutions function. A proper coordination among the different agencies are vital for the continued development of the sector as a whole. The institutions and regulators should work towards a common purpose.

Institutions owned by listed companies with dispersed ownership

Small businesses operating PHEIs

Individual and family-owned businesses

Institutions owned by political parties

Institutions owned by philanthropists and philanthropist groups

State-owned institutions

Institutions set up by Government-linked companies

Institutions set up by State Islamic Religious Councils

Foreign branch campuses with local partners

(a) Private Higher Educational Institutions Act 1996 (Act 555) Private Higher Educational Institutions Act 1996 (Act 555) is the main legislation to regulate the establishment, registration, management and supervision of and the control of the quality of education provided by private higher educational institutions. PHEIs can only be established by a registered company under Companies Act 2016 (Act 777). In addition, PHEIs can be established by either companies limited by shares (CLBS) or companies limited by guarantee (CLBG).

Act 555 also deals with related processes of managing PHEIs such as registration of Chief Executive, approval and renewal of courses, approval of constitution, registration of teaching permit, closing down, enforcement related issues and others. All of the provisions in Act 555 are administered by the Registrar General of Private Higher Education. This Act had been amended five (5) times and the latest amendment was made in 2017.

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Chapter 3 : Way Forward for Private Higher Education Institutions (PHEIs)

Fully owned foreign branch campuses

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3.2 Landscape of Agile Governance (c) Legal attributes of the company

(d) Governance of PHEIs

Some legal attributes of the company are:

The authorities that play a direct role in the operation of the PHEIs are:

A legal person that is separate from the shareholders and the individuals who form the company Can enter into contracts in its own name and purchase land and other property Is liable for its debts and responsible for its actions that cause loss or damage to others opportunity to fulfil their potential regardless of background.

Shareholders/members’ liability is limited to any unpaid amounts for the shares or to the extent of the guarantee given Enjoys perpetual succession, which means that its existence continues until it is terminated through a legal process institutions.

Can own and dispose of property, including land

Can sue and be sued in its own name

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Table 3.1: The authorities that play a direct role in the operation of the PHEIs

1. The National Council on Higher Education (established by the National Council on Higher Education Act 1996) that is vested with the responsibility of formulating policies on higher education.

2. The Minister of Education who is given powers over the general direction of HE. However, what is often not acknowledged is that those powers may only be exercised subject to policies established by the National Council on Higher Education. The Minister’s powers over the private higher education sector are set out in the Private Higher Educational Institutions Act 1996.

3. The Ministry of Education through the Registrar General of Private education whose powers also emanate from the Private Higher Educational Institutions Act 1996. Most of the critical regulatory powers are exercised by the Registrar General such as approval to establish, registration of PHEIs, matters concerning student organisations and the approval of courses offered in PHEIs. 4. The Malaysian Qualifications Agency (MQA) and other professional bodies that are gatekeepers that regulate admission into the various professions, such as the General Medical Council and the Legal Profession Qualifications Board.

5. The Immigration Department or JIM established under the Immigration Act 1953. The Immigration department exerts considerable control, even over academic matters in issuing and renewing student visas. The Immigration Department directly affects PHEIs’ control over the recruitment of international students.

6. The Companies Commission established under the Companies Act 2016. The Act prescribes a governance structure for companies formed under its provisions. Since all PHEIs are formed by companies, the statutory governance system of the Companies must apply to all PHEIs subject to any modifications made in the company’s constitution.

7. Authorities administering International treaties on the liberalization of higher education such as MITI and MIDA.

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Chapter 3 : Way Forward for Private Higher Education Institutions (PHEIs)

Authorities

Roles

National Council on Higher Education

• Responsible for formulating policies on higher education (established by the National Council on Higher Education Act 1996)

Minister of Education

• Has the power over the general direction of PHEIs, as set out in the Private Higher Educational Institutions Act 1996

Ministry of Education through the Registrar General of Private education

• Has the power as set out in the Private Higher Educational Institutions Act 1996 • Most of the critical regulatory powers are exercised by the Registrar General such as approval to establish PHEIs, registration of PHEIs, matters concerning student organisations and the approval of courses offered in PHEIs

Malaysian Qualifications Agency (MQA)

• The national body to implement the Malaysian Qualifications Framework, to accredit higher educational programmes and qualifications, to supervise and regulate the quality and standard of higher education providers, to establish and maintain the Malaysian Qualifications Register and to deal with other related matters

Other professional bodies such as the General Medical Council and the Legal Profession Qualifications Board

• Gatekeepers that regulate admission into the various professions • Draw their authority from legislation, although they remain outside the purview of the National Council On Higher Education

The Immigration Department or JIM

• Exerts considerable control, even over academic matters in issuing and renewing student visas • Directly affects PHEIs’ control over the recruitment of international students

Companies Commission of Malaysia

• Regulates companies and businesses, and enforces among others, Companies Act 2016 • Since all PHEIs are formed by companies, the statutory governance system of the Companies must apply to all PHEIs subject to any modifications made in the company’s constitution

Authorities such as MITI and MIDA

• Administers International treaties on the liberalization of higher education

National Higher Education Fund (PTPTN)

• Provides education loans to students pursuing their studies at local higher education institutions

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3.3 The Regulatory Process in the Private Higher Education System The operations of PHEIs are governed by various Acts, Statutory Regulations, Circulars and Guidelines, some of which are as follows:

Key issues pertaining to the governance of PHEIs are identified as follows (refer to Exhibit 3-2):

(a) Acts • Private Higher Educational Institutions Act 1996 (Act 555) • Malaysian Qualifications Agency Act 2007 (Act 679)

“Education Is Power”

(b) Statutory Regulations There are 12 Statutory Regulations issued under the Act 555 that elaborate on some of the provisions of the Act by specifying forms and procedures to realize the requirements of the statutory provisions.

(C) Circulars and Guidelines In addition to Statutory regulations, the Ministry issues Guidelines and Standards and circulars/notifications/directives on matters beyond that provided by statute.

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3.4 Issues and Challenges in Agile Governance

Chapter 3 : Way Forward for Private Higher Education Institutions (PHEIs)

(a) Highly Regulated Industry

(b) Conflicting Policies on Private Higher Education Institutions

The agility of the higher education system is dependent on the Acts and other regulations that govern the system. Any weaknesses or problems with the Acts and regulations may hinder growth and sustainability of the PHEIs. While regulations are necessary to ensure academic integrity and quality of education provided by PHEIs, excessive regulations may stifle innovations. A PHEI is not an incorporated body with the attributes of a legal person. It must rely on the company to animate it, to give it the capacity to act. The institution emanates from the company and only the company can act on its behalf.

The existence, absence and unclear policies on certain issues of higher education may sometimes constraint student enrolment, diversity of academic programmes, and activities of PHEIs. Among them are: (i) There is no policy that restricts the setting up of new PHEIs resulting in the increasing number of public higher education institutions. This limits the enrolment of students into PHEIs. (ii) The moratorium on the course of study limits the private institution to implement the diversity of field and courses of study offered by the PHEIs. Examples are moratorium on Law, Medicine and Nursing programmes. Current justifications on the moratorium of courses is based on supply, but the way this is calculated is not made clear. (iii) The current Immigration policy restricts the recruitment of international students. (iv) Moratorium for the establishment of new PHEIs restricts new establishment of PHEIs by prominent companies (local or international). (v) No clear policy on the number of foreign university branch campuses to be allowed to operate in Malaysia. (vi) There is a restriction on bridging courses. (vii) Public higher education institutions served a special group of students who undergo a selection process, offering lower fees and receiving subsidies in providing good facilities. The subsidies come from tax payers which include PHEIs; however, there is a lack of incentives that acknowledge the contribution made by PHEIs. Way Forward for Provate Higher Education Institutions EDUCATION AS AN INDUSTRY (2020-2025)

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3.4 Issues and Challenges in Agile Governance (c) Separation of Power There is no clear demarcation on the separation of power between academic governance and corporate governance. In some PHEIs academic matters are discussed at company Board of Directors‘ meeting. Sometimes, the owners take on the role of the Chief Executive or Vice Chancellor post and taking charge of the academic, financial, administrative and support services.

(D) Legality of the Constitution to Manage PHEIs PHEIs constitution is drafted on the erroneous assumption that the PHEIs established under Act 555 is an entity capable of acting on its own. Based on this assumption, the constitutions ignore the role and position of the company that established the institution and instead directs all its provision at the PHEIs as if it can be separated from the company and be treated separately and exclusively.

Some of the governance provisions in Act 555 are rigid and restrict the activities of PHEIs. PHEIs must in the first place be governed according to the governance code of registered companies, which is a legal requirement. Establishment of PHEIs is the responsibility of the company and the latter is answerable to shareholders for the way the PHEIs are managed.

Any attempt to presribe a constitution for the management of PHEIs must direct the requirements at the company establishing those institutions and require the company to apply the prescribed constitution in managing the institution it created. The PHEI is, in reality, a company carrying on the business of univerity, university college or college.

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Further, since the institution exists under the aegis of the company, one must look to the locus of control in the company to carry out the activities of the PHEIs, which is the Board of Directors (BOD) of the company. Section 211(1) of the Companies Act 2016 provides that ‘the business and affairs of the company shall be managed by, or under the direction of the Board’. It is questionable therefore if a document such as the draft constitution which is issued through delegated powers of another enactment can transfer the management powers of a registered company to another body such as the Board of Governance (BOG) created under the draft constitution.

Any attempt by the constitutions to place management functions on a BOG will not be effective in law unless the BOG is created by the company and managed through its BOD or under the direction of the BOD. The BOG cannot usurp the powers of the board of directors of the company. For this reason alone, the regulations may not be enforceable under existing laws on the validity of such regulations.

The bicameral governance system that is prescribed in the constitution is also unwieldy, bureaucratic and inefficient as a management structure. The ‘prescribed’ constitutions with a single governance model may also not fit the vastly different ownership models that are amongst PHEIs.

Chapter 3 : Way Forward for Private Higher Education Institutions (PHEIs)

(e) Excessive penal provision under Section 33A of Act 555

(f) Unclear Statutory Stipulation of The Relationship between PHEIs and the Company in Act 555

Section 33A of the Act requires PHEIs to keep and maintain a register in a format prescribed by the Registrar General containing various information such as those on the students, teachers, and programmes.

While the requirement is not unreasonable, the penal provisions seem to be excessive. The section imposes a fine not exceeding RM50,000 or a term of imprisonment of six months for contravention of any of the provisions of the section. Ironically, the same penalty is imposed on any PHEIs that provide information that is false, misleading or for intentionally suppressing material fact. It is ironic because the act of not carrying out an administrative requirement is equated with the act of providing false information or suppressing material facts.

Act 555 treats the PHEIs as if it is a separate entity, separate from the company establishing it. Yet, the existence of a PHEI is dependent on the company, because if the company is wound up, the PHEI will cease to exist.

Many provisions of the Act 555 treat the PHEIs as if it is capable of acting on its own, with powers of its own. These provisions cannot be enforced. They also create awkward inconsistencies in the Act, the regulations and the proposed constitution.

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3.4 Issues and Challenges in Agile Governance (g) Highly Regulated Tuition Fees

(i) Act 555 and AUKU not in Harmony

(k) Excessive Power given to MQA in Act 679

(l) Minimum Management Commitment Towards IR4.0

Tuition fee should be competitive and market driven. The tuition fees of PHEIs are already low as opposed to those charged by other countries. Thus, controlling the fees will not add any value. It is reasonable to charge a relatively high fee when it commensurates with the facilities and services provided by PHEIs. Currently, the proposal to increase tuition fees needs to have an approval from the MOE, and PHEIs are only allowed to increase their fees after every 3 years, and the increment shall not be more than 30% from the approved previous fees.

PHEIs are facilitated by Act 555 on the justification that public universities govern by AUKU do not have the capacity to meet demand nor the government the money to expand capacity. The two Acts create a private/public divide.

It appears awkward that the Act 679 makes no reference to the Act 546. Although the Council’s powers do not expressly extend to making policies on accreditation, it nevertheless is the body that determines several issues on higher education which also fall within the accreditation process. One of the areas in the Act 679 over which the MQA has almost complete powers is in procedures for self-accreditation.

The Malaysian Employers Federation (MEF) mentioned that the country is illprepared for IR4.0, warning that Malaysia will no longer be competitive if it is not able to embrace it quickly. A survey finding revealed that many students think they are not well-prepared for IR4.0. Hence, it appears that there is a need for more focused strategies and efforts to future-proof students in response to IR4.0. PHEIs need to transform to a more futuristic and advanced teaching and learning environment.

(h) Confusing Circulars and Guidelines from MOE Tuition fee should be competitive and market driven. The tuition fees of PHEIs are already low as opposed to those charged by other countries. Thus, controlling the fees will not add any value. It is reasonable to charge a relatively high fee when it commensurates with the facilities and services provided by PHEIs. Currently, the proposal to increase tuition fees needs to have an approval from the MOE, and PHEIs are only allowed to increase their fees after every 3 years, and the increment shall not be more than 30% from the approved previous fees.

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(j) Inactive Roles of National Council on Higher Education (NCHE) (Act 546) The responsibility of Act 546 is to formulate policies on higher education. The package of laws that established the private higher education system in 1996 also established the National Council on Higher Education as the single policy-making in the system. The terms of its establishment give it comprehensive policy powers over higher education.

These provisions need greater coherence. Currently, they lack clarity as to the criteria for self-accreditation and the role of the Minister in the process. The problem in the accreditation process is that different panels express different views in determining the accreditation of programmes. In addition, the MQA and its panels do not give enough consideration to the diversity in the origins and structure of the programmes developed in the sector.

In addition, the governance of PHEIs should show more commitment in embracing technology and innovation in the management of their institution. As a way forward into the 21st century higher education, the management needs to redesign the education models to effectively develop future-proof graduates.

Act 546 makes it mandatory for the Minister of Education to implement the strategies, guidelines and policies once these are formulated or determined by the council. Notwithstanding these statutory provisions, higher education policies are being made by different agencies, including the regulators of the system. It is important that the policy making agency is separate from the regulators of the system.

Chapter 3 : Way Forward for Private Higher Education Institutions (PHEIs)

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3.4 Issues and Challenges in Agile Governance

3.4 Objectives And Strategies For Agile Governance

Exhibit 3-2 Issues and Challenges for Agile Governance Highly Regulated

• Highly regulated industry • Highly regulated fee

Excessive Penal Provision

Policies, Circular & Guidelines

• Excessive penal provision under Section 33A of Act 555

• Confusing and conflicting policies, circular & guidelines from MOE and other related agenciesAct 555

National Council on Higher Education (NCHE) (Act 546)

Constitution

• Legality of constitution to manage PHEI.

(a) Objectives

(b) Strategies

Good and agile governance will strengthen the capability and functions of PHEIs and its company in managing quality higher education. In addressing the challenges and issues faced by the institutions and regulators in the PHE industry, the following strategic objectives are to be achieved.

The above objectives are to be followed by appropriate strategies, which include:

• Ensure that the policies facilitate PHEIs instead of becoming a barrier.

• Govern PHEIs via flexible constitution and clear Act • Liberalise student tuition fees • Issuance of appropriate circulars and guidelines • Synchronise the over-lapping and excess power among authorities • Harmonise Act 555 and AUKU • Enhance the commitment of PHEIs towards IR 4.0

Inactive role of NCHE

Table 3.2 and Exhibit 3-4 outlines the objectives, as well as the strategies, initiatives and action plans to be undertaken by the MoE relating to the governance system of the private higher education in realising the aspiration of making the PHE sector an industry.

Separation of Power

• Lacking in separation of power of the Board of Governance and Board of Director • Unclear statutory stipulation of the relationship between PHEI and the company in Act 555.

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Act

IR4.0

Response to IR4.0

Minimum management commitment towards IR4.0

• MQA Act (Act 679) - Excessive power given to MQA • Act 555 and AUKU (Act 30) not in harmony • Companies Act (Act 777)

Chapter 3 : Way Forward for Private Higher Education Institutions (PHEIs)

• Limit the setting up of new HEIs. • Remove moratorium of educational programmes.

• Review the policy on recruitment of international students • Revise the policy on the restriction on bridging courses • Revise the constitution • Revise Act 555 • Introduce tax incentives to PHEIs • Policy on sharing of resources among public and private higher institutions • Let the market force controls the fees.

• Review the current process of approval and increase of tuition fees • Consult and engage stakeholders before issuing any circulars and guidelines • Re-activate National Higher Education Council (NHEC) (Act 546) • Review MQA Act (Act 679) • Introduce an entirely new Act/ Legislation which covers both public and private institutions • Inculcate the awareness and importance of IR4.0 to PHEIs and students, among top management of PHEIs • Introduce a policy on the reporting of IR4.0 initiatives

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3.4 Objectives And Strategies For Agile Governance Table 3.2: Objectives, Strategies, Initiatives and Action Plans Related to Agile Governance

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Objective

Strategy

Initiative

Action Plan

Objective

Strategy

Initiative

Action Plan

A. Ensure that policies facilitate PHEIs instead of becoming a barrier

A(I). Limit the setting up of new HEIs.National Council on Higher Education Act 1996)

A(I) -I Introduce a formula to limit the number of higher education instituton being established in the future.

A(I)-II New institutions, if formed must be on a formula and criteria that is transparent.

A(I)-III Introduce a policy to limit the number of foreign branch campuses.

a) Conducting a study and coming up with a formula and criteria for the establishment of a new PHEI and foreign branch campuses. b) One of the criteria to be considered is company prominence. c) Establishing guidelines and good practices for the consolidation/ merger/ consortium of small PHEIs

B. Govern PHEIs via flexible constitution and clear Act 555

B(I).

Revise the constitution

B(I)-I Redraft the constitution, while considering the following: • The constitution should not ignore the position and role of the company that establishes the PHEI. • The constitution is sufficiently flexible to cater for PHEIs with different sizes and ownership models.

Forming of a task force to study and revise the constitution.

A(II).

Remove moratorium of educational programmes

A(II)-I Institutions must be given the liberty to decide on the courses they wish to offer.

A(II)-II Introduce a more flexible approach on the approval of courses of study.

a) Forming proper criteria for the moratorium of course offerings b) Establishing a flexible approach for the approval of course offering by observing international developments on duration of programmes, choice of subjects and credit values of the programmes

B(II).

Revise Act 555

A(III).

Review the policy on recruitment of international students

A(III)-I Exempt international students from detention as under current practice A(III)-II Introduce Student Protection Policy

a) Drawing in the Immigration Department and the EMGS to the purpose of the industry b) Setting a task force to work together with the Immigration Department (JIM) and the EMGS to: - Review the current regulations under the administration of JIM with respect to detention.

- Introduce Student Protection Policy

B(II)-I Revise Section 33A of Act 555 B(II)-II Revise the provisions of the Act that treat PHEIs as a body capable of acting on its own, with powers on its own, while considering the lack of separation of power between academic governance and corporate governance.

B(II)-III Remove restrictions on the business decisions of the company that do not affect educational matters - Examples are ss. 18 and 19 of the Act.

A(IV).

Revise the policy on the restriction on bridging courses

A(IV)-I Introduce revised policy that identify the disciplines that require bridging courses.

Forming a task force to study the needs for bridging courses in the disciplines identified.

a) Close attention must be given to the legal status of PHEIs. They are the business extensions of registered companies formed under the Companies Act 2016.

The current Act needs to be amended to reflect the legal situation. b) HEIs must in the first place be governed according to the governance code of registered companies, which is a legal requirement. c) A PHEI is the responsibility of the company establishing it. It is answerable to shareholders for the way the PHEI is managed. d) The obligation of the company to comply with the educational provisions of the PHEI may be made more explicit, but the obligation is with the company and not the institution. e) Allowing a member of the BOD to become Chairman of Board of Governance (BOG). f) CEO of PHEI must sit on the BOD of company.

C(I).

Introduce tax incentives to PHEIs

C(I)-I MoE to propose appropriate tax incentives

Task force to study the effect of tax incentives on the economy and society

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3.4 Objectives And Strategies For Agile Governance Table 3.2: Objectives, Strategies, Initiatives and Action Plans Related to Agile Governance

Objective

D. Liberalise tuition fees

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Strategy

Initiative

Action Plan

C(II).

Policy on sharing of resources among public and private higher institutions

C(II)-I Task force to study and propose the mechanisms for sharing of resources

Tabling of the proposal to National Higher Education Council (NHEC)

D(I).

Let the market force controls the fees.

D(I)-I Allowance of market driven tuition fees for institutions with outstanding achievement in MyQuest and SETARA

a) Benchmarking exercise to identify fee gaps, gauge standards, engage in data inquiry and utilize the findings b) Promoting the criteria of outstanding achievement in MyQuest and SETARA c) Should consider access to facilities and services available at PHEIs.

E. Issuance of proper circulars and guidelines by the MoE

E(I).

Consult and engage stakeholders before issuing any circulars and guidelines

E(I)-I Identify appropriate stakeholder groups E(I)-II Get proper approval before issue

Study the long term consequences of issuing the circulars and guidelines.

F. Synchronise the over-lapping and excessive of power among the authorities

F(I).

Re-activate NHEC

F(I)-I The MoE to discuss with the Minister on the current status of the Council and its re-activation F(II)-I MQA should act as a regulator, not as a policy maker F(II)-II The role of policy making is passed to the NHEC

a) Identifying of members of the Council to be approved by the Minister b) Preparing termof reference for members c) Calling the first National Higher Education Council (NHEC) meeting d) Making the MQA administrators and staff aware of their roles and functions e) Making the National Higher Education Council (NHEC) members aware of their roles and functions

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Objective

Strategy

Initiative

Action Plan

F(II).

Review the MQA Act

F(II)-I MQA must be brought within the general policymaking powers of the National Council of Education (NCHE).

F(II)-II Issues of language and the structure of courses shall be determined by the National Higher Education Council (NCHE).

F(II)-III The process for self-accreditation must be open to all, and not by invitation. The Act must state clearly what the criteria are, and the application process for self-accreditation.

F(II)-IV Review MQA’s accreditation process.

Forming of a task force to study and revise the MQA Act (Act 679).

G. Harmonise Act 555 and AUKU (Act 30)

G(I).

G(I)-I Ministerial Power.

Introduce an entirely G(I)-II Remodeled roles of public and private HE. new Act/ Legislation which covers both public and private institutions

a) Commissioning a study on the new ministerial role for both public and private institutions b) Designing a policy that allocates different and new roles for public and private institutions without jeopardizing the quality of higher education c) Formalizing consultative mechanism which involves representatives fromboth public and private HE

H. Enhance commitment of PHEIs towards IR4.0

H(I).

Inculcate the awareness and importance of IR4.0 to PHEIs and students, among top management of PHEIs

H(I)-I Discussion or forum on IR4.0 to be organized a) Organising talks and roadshows at PHEIs by the MoE.

H(II).

Introduce a policy on the reporting of IR 4.0 initiativesof PHEIs

H(II)-I Require PHEIs to report on the initiatives taken with respect to IR 4.0.

a) Introducing guidelines of the preparation of the report, covering the following: - IR 4.0 Initiatives - Frequency of the report - Effects on students and other stakeholders

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3.4 Objectives And Strategies For Agile Governance Exhibit 3-3 Objectives and Strategies for Agile Governance

A. Modest incentives for investors engaged with private education

A(I). Limit the setting up of new HEIs.

A(II). Remove moratorium of educational programmes

C. Incentivise/ acknowledge the contribution of PHEIs towards the society and economy

C(I). Introduce tax incentives to PHEIs

C(II). Policy on sharing of resources among public and private higher institutions

F. Synchronise the over-lapping and excessive of power among the authorities

F(I). Re-activate NHEC

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F(II). Review the MQA Act (Act 679)

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A(III). Review the policy on recruitment of international students

A(IV). Revise the policy on the restriction on bridging courses

D. Liberalise tuition fees

D(I). Let the market force controls the fees.

D(II). Review the current process of approval and increase of tuition fees

D. Liberalise tuition fees

G(I). Introduce an entirely new Act/ Legislation which covers both public and private institutions

Chapter 3 : Way Forward for Private Higher Education Institutions (PHEIs)

B. Govern PHEIs via flexible constitution and clear Act 555 B(I). Revise the constitution

B(II). Revise Act 555

E. Issuance of proper circulars and guidelines by the MoE E(I). Consult and engage stakeholders before issuing any circulars and guidelines

H. Enhance commitment of PHEIs towards IR 4.0 H(I). Inculcate the awareness and importance of IR4.0 to PHEIs and students, among top management of PHEIs

H(II). Introduce a policy on the reporting of IR4.0 initiatives

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Chapter Four Page 66 - Page 95

Institutional sustainability comprises the social, economic, environmental and institutional dimensions. Interactions between and among these four dimensions will ensure institutional functionality and effectiveness on in the profitability and sustainability of the PHEIs.

Institutional Sustainability 4.1 Background of Institutional Sustainability 4.2 L andscape: Growth for Public and Private Education Institutions 4.3 I ssues and Challenges for Developing Sustainable Institutions 4.4 O bjectives and Strategies for Institutional Sustainability

GOVERNMENT

INDUSTRY

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6.1

40 38.7

6.5 5.7

4.4

4.1

38.7

42.8

6.0 4.7 42.6

20 10

17.58

7.0

15.15

6.0 5.0 4.0 3.0 2.0

3.48

1.0 9.2

9.9

10.5

11.1 -0.5

2015

2016

2017

2018

0

0.0 -1.0

GOVERNMENT

COMMUNITY

Figure 4-1: Quadruple Helix Model in Higher Education

Chapter 4 : Institutional Sustainability

3.02

9.72

5.99

9.02

0.90 0.85

1.63 1.49

2010

Figure 4-2:. Value added and growth of public and private education services, 2015-2018

10.38

1.98

Private education value added Private education value added Public education growth Private education growth GDP growth (in constant 2015 prices)

¹Spangenberg, H. Joachim (2002). Institutional Sustainability Indicators: An Analysis of The Institutions in Agenda 21 and A Draft Set of Indicators for Monitoring Their Effectivity. Sust. Dev. 10, 103–115. ²Shriberg, M(2002). Institutional Assessment Tools for Sustainability in Higher Education: Strengths, Weaknesses, and Implications for Practice and Theory. International Journal of Sustainability in Higher Education, Vol 3, No. 3 (254-270).

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6.7

50

30

Out of the 125 industries classified in the 2015 Input Output Tables of Malaysia, private education is ranked 35th in terms of the size of value added or share to GDP. While its contribution to total employment is relatively small at 145,000 or 1% of the country’s total, the jobs created are akin to smaller industries such as utilities (172,000) and ICT (235,000).

8.0

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The Private Higher Education Act was passed in 1996, allowing for privatisation and liberalisation of higher education (HE), alongside on-going privatisation in other sectors of the Malaysian economy.

In the Malaysian context, many PHEIs were established as business entities prior to their registration as a private HEI as required by Part III of Act 555.

Quadruple Helix Model in higher education allows interactions between academia, industry, community and governments, to foster economic and social development. As shown in Figure 4.1, these interactions develop the building blocks of success among stakeholders.

In 2018, private education services contributed RM11.1 billion in 2015 prices to real GDP compared to RM42.6 billion by the public education sector. The growth of private education industry valueadded which eased from 6.7% in 2016 to 6.0% in 2018 continues to outpace real GDP growth as well as that for public education services (Figure 4-2).

RM billion

Sustainability initiatives need to be encouraged as they lead to effective sustainable policies, objectives and institutional programs.

This chapter focuses on the transformation needed to secure the institutional sustainability of Malaysian PHEIs. In order to be sustainable, solid key strategies and action plans are needed for the PHEIs to be responsive, inclusive and enduring. It is imperative that the institutional sustainability of the PHEIs is given due importance if Malaysia is keen in establishing a private education sector with global branding.

Despite the successful business conduct, there are several pressing concerns which impede the private higher education sector to be regarded as an industry. These include the declining number of tertiary students, high dependency on students’ fees, lack of students’ financial aids, small number of foundation and waqf-based institutions and limited incentives for investors.

RM billion in constant 2015 prices

Institutional sustainability is defined as comprising the social, economic, environmental and institutional dimensions. Interactions between and among these four dimensions will ensure the institutional functionality and effectiveness in ensuring the profitability and sustainability of the PHEIs.

4.2 Landscape: Growth for Public and Private Education Institutions

Annual change %

4.1 Background of Institutional Sustainability

Other education

2015

1.94 1.77 2017

College & university education (PHEIs)

Figure 4-3:. Size of private education by industry segment

Source: Department of Statistics, Malaysia

The private education industry has generated RM17.58 billion in gross revenue (or output) in 2017, a significant proliferation from RM15.15 billion in 2015 and RM9.72 billion in 2010 (Figure 4-3). The industry sustained a compounded annual growth rate of 8.8% between 2010 and 2017. The higher education segment (PHEIs), which expanded 8.2% annually over the corresponding period, accounted for RM10.38 billion or nearly 60% of the total in 2017.

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4.3 Issues and Challenges for Developing Sustainable Institutions (Exhibit 4-1) (a) Declining number of tertiary students The gradual decrease in the number of students undertaking higher education for the past few years. Such reduction, together with the declininwhich are entirely dependant on tuition fees, while simultaneously stg birth rate in the Southeast Asian countries (a drop from 5.5 in 1970 down to 2.11 in 2017³) are affecting the profitability enjoyed by the PHEIs which in turn impinge their market sustainability.

(b) High dependency on students’ fees PHEIs are generally supported by students fees. This is a challenge to small PHEIs ruggling to maintain the quality standards imposed upon them. The liberalization of tuition fees might exacerbate the dynamics of competition thereby affecting revenues and financial sustainability of PHEIs.

(c) Lack of students’ financial aid The most popular student loan nationwide is the National Higher Education Fund Corporation (PTPTN) which aims to ensure that no student should be denied access to higher education because of financial reasons. However, the PHEIs students rely heavily on PTPTN as well as limited scholarships/ loan offers due to the unavailability of other types of financial aid.

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(d) Small number of foundation and waqf-based educational institutions The Islamic tradition defines waqf as a pious endowment of land, buildings and money made by Muslim people for religious, charitable or educational causes (Islamic Relief Worldwide, 2019)4. The introduction of the university endowment mode will empower Malaysian PHEIs and would be a gamechanging move.

With the endowment, PHEIs can break free of the high reliance on tuition fees and can do more to provide opportunities which will improve the life of deserving students.

Institutional stability of PHEIs has been demonstrated by poor student intakes and decreased flow of international students. These are the results of inconducive policies such as VISA restrictions and changes in language entry requirements. Hence, PHEIs will need to enhance their operational policies on sharing of resources and facilities which will help improve cost optimization, since current policy prohibits private HEI to share resources. Shared Campus schemes could also be introduced in regions that are concentrated with private HEI to allow for the sharing of centralised resources.

There should also be a strategic push for a structured merger of private HEIs, in particular those with poor performance over a period of time. PHEIs will also need to foster and forge a multiagency effort especially in reviewing and re-examining the current policies affecting the flow of international students. Apart from that, alternative financing schemes as well as public – private partnerships can also be introduced to the PHEIs in order to reduce their financial burden. New financing model for students is also anticipated to boost the student number in the PHEIs in the next few years.

(e) Limited incentives for investors There is a spectacular increase in the number of private higher education providers, both from local and the ASEAN region. This has increased the number of PHEIs and their academic offerings.

Such intensified competitions has resulted in a lower return on investment (ROI) experienced by the PHEIs i.e. ROI of 0.17 recorded during the 2015-2016 period as compared to 0.35 during the 1998-2016 period. Consequently, this has made the higher education industry less lucrative for investors. Not only that business owners need to be more creative in generating additional income, the government will have to play a role in undertaking national branding strategies to attract students to its PHEI tax incentive initiative.incentive initiative.

Chapter 4 : Institutional Sustainability

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4.3 Issues and Challenges for Developing Sustainable Institutions (Exhibit 4-1)

4.4 Objectives and Strategies for Institutional Sustainability

Exhibit 3-2 Issues and Challenges for Agile Governance The goal of institutional sustainability, therefore is to support a progressive and competitive education industry that is reflective of private sector dynamism, entrepreneurship, good governance, innovativeness and competitiveness. The following objectives are the basis of building institutional sustainability of PHEIs:

STUDENT NUMBERS Declining number of tertiary students enrolled in Malaysian higher education sector

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PHEIS’ FINANCIAL RESOURCES PHEIs’ high dependency on students’ feeseducation sector

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STUDENT FINANCIAL AID Lack of students’ financial aid has affected access to higher education

FOUNDATION AND WAQFBASED EDUCATION INSTITUTION

MODEST INCENTIVES FOR INVESTORS Modest Incentives For Investors

Limited number of foundation and waqf-based educational institutions in providing financial assistance to local communit

Chapter 4 : Institutional Sustainability

• Strong public-private partnership • Increased student enrolment and enhanced teaching, learning and research capabilities • Diversified revenue to become financially independent

The strategies to be pursued in achieving the institutional sustainability goals are listed below: i.

Strengthen the public-private partnership by encouraging the adoption of best practices, strategic alliances, mergers and acquisitions, supportive government policies and targeted measures and orderly exits. ii. Promote incentives and support for PHEIs at both individual and enterprise levels to increase student enrolment, teaching, learning and research capabilities. iii. Boost

revenue diversification strategies that enable institutions to become financially independent, thereby strengthening the financial sustainability of the whole industry.

• New financial model for all students

iv. Expand student financial aid via a new financing model by assisting the government in achieving 100% financing for B40 students.

• Optimisation of shared resources

v. Optimise shared resources by way of sharing resources, facilities, and academic staff

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4.4 Objectives and Strategies for Institutional Sustainability Table 4.1: Objectives, Strategies, Initiatives and Action Plan for Institutional Sustainability

Objective

Strategy

Initiative

Action Plan

A. Strengthen Public-private partnership

A(I).

Redesigning publicprivate platform

A(I)-I Regular stakeholder consultation and public private sector dialogue

a) Conducting regulatory impact analysis b) Creating inter-agency steering group

A(II).

Shifting regulatory supervision to impactful value-added service

A(II)-I Institutional autonomy for PHEIs

a) Granting PHEIs with institutional autonomy in shareholding structure and governance ecosystem

A(III).

Institutionalizing tripartite collaboration between UniversityGovernmentIndustry (UGI Alliance)

A(III)-I UGI Alliance

a) Forming the Government University Industry Research Roundtable which brings together leadership from the government, public & private universities and industry to craft overarching solutions on matters of national importance. b) Establishing a platform to strengthen publicprivate university partnership with the government and industry in areas of resource sharing, talent development and R&D collaboration.

B. Incentives and support for PHEIs

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B(I).

Reviewing the category of incentives for PHEIs in learning and teaching (L&T), research, agile governance and talent development

Objective

B(I)-I A Taskforce to study the multi-level incentive a) Enhancing quality PHEIs in L&T, research, agile model for PHEIs for proper incentive effects governance and talent development B(I)-II Best Practices Programme from PHEIs b) Learning from the experience of others for PHEIs

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Chapter 4 : Institutional Sustainability

C. Boost Revenue Diversification Strategies

Strategy

Initiative

Action Plan

a) Enhancing quality PHEIs in L&T, research, agile governance and talent development b) Learning from the experience of others

B(II)-I Waqf/ Foundation/ Endowment/ Gifts & Donations. B(II)-II Tax exemptions for new financing scheme.

B(II)-III Legislative reform for new financing scheme.

a) Empowering innovative funding sources such as endowment, educational thrusts and donations as financial sources for PHEIs b) Granting tax-exempt status on targeted tax incentives to recalibrate the balance of solvency for PHEIs c) Promoting voluntary tax-exempt contribution to PTPTN fund. d) Revising and improving legislations and guidelines for waqf/ foundation/ endowment in the education sector e) Designing legal framework to facilitate the establishment of charitable thrusts and endowment funds for PHEIs f) Designing regulatory framework for tax relief

B(III).

Incentives for L&T

B(III)-I Incentives for designing new academic programme.

Designing new academic programme relevant to the current national agenda e.g. Edutourism

C(I). Diversification of revenue

C(I)-I Remove regulatory Impediments.

C(I)-II A Taskforce to study the need to remove fee controls and allow fees to be determined by market forces.

a) Reviewing the present regulatory framework for private higher education institutions b) Enhancing healthy competitions among the PHEIs in regards to programme differentiation, specific target group students, etc.

C(II). Introduction of voucher system for students

C(II)-II Students have the liberty to choose between public or private higher education institution.

Implementing a voucher system for the selection of institution

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4.4 Objectives and Strategies for Institutional Sustainability Table 4.1: Objectives, Strategies, Initiatives and Action Plan for Institutional Sustainability

Objective

Strategy

Initiative

Action Plan

Objective

Strategy

Initiative

Action Plan

D. New Financing Model for Students

D(I). Narrowing the gap between urban and rural students

D(I)-I Qualified B40 students to be financed for entry into PHEIs. D(I)-II Double tax deduction incentives for companies/ individuals awarding scholarships/ funds to B40 students.

D(I)-III Tax relief for payers who finance own children education in local higher institutions.

a) Identifying qualified B40 students to be financed for entry into PHEIs b) Identifying companies/ individuals awarding scholarships/ funds to B40 students c) Identifying individuals d) who finance own children education in local higher institutions

E. Optimize Shared resources by way of sharing resources, facilities, and academic staff

E(I). Encourage publicprivate universities and other agencies to pursue cost optimization strategies

E(I)-I Encourage shared resources.

E(I)-II Incentives for private investments in Education Corridors.

E(I)-III Tax incentives and grants to promote Education Corridors.

a) Liberalizing shared campus scheme in regions that are concentrated with PHEIs to allow sharing of centralized resources b) Proposing Education Corridors that are concentrated with PHEIs to allow sharing of centralized resources e.g. PJ-SubangSunway and Cyberjaya- Putrajaya corridors c) Developing and promoting edu-tourism packages in a joint collaboration between MOE, MOTAC, MATRADE, MOFA and PHEIs.f) Designing regulatory framework for tax relief

D(II)-I Double tax deduction incentive for PHEIs which award scholarship for local students.

D(II)-II Tax exemption for companies which create funds/ scholarship awarded to staff’s children.

a) Listing of PHEIs which have awarded scholarship for local students b) Listing of companies which have created funds for awarding scholarship to staff’s children

E(II). Structured merger of PHEIs

E(II)-I Identify poor performing PHEIs via SETARA and MyQUEST. E(II)-II Consortium of PHEIs to enhance academic offerings.

a) Developing improvement KPIs for identified PHEIs which is to be fulfilled over a designated time frame. b) Establishing a special PHEIs “Management Consulting Taskforce” responsible to analyze the performance and guide poorly performing PHEIs. c) Incorporating flexible education through micro-credentials offerings from the Consortium of PHEIs

D(III). Malaysian scholarship for foreign students

D(III)-I Double tax deduction incentives for PHEIs which award Malaysian scholarship for foreign students.

Listing of PHEIs which have awarded Malaysian scholarship for foreign students

E(III). Harmonize policies and regulations governing the public and private higher learning institutions

a) Engaging with several ministries on concerned issues e.g. KDN, Malaysian Immigration Department, etc. b) Designing guidelines in regards to staff mobility, shared facilities and shared professors/ academics

D(IV).

Foreign students and employment

D(IV0-I Inter-ministerial discussion i.e. Malaysian Immigration Department

Deliberating the issue with the Immigration Department to allow international students to work part time for a maximum of 20 hours per week during the course of their study

E(III)-I Identify disparity in regulations concerning licenses, permits, etc. for public and private higher learning institutions.

E(III)-II Strengthen public universities and PHEIs partnership on shared resources.

E(IV). Reduce tedious processes involving multiple government agencies e.g. MOE, MQA, KDN, EMGS, JIM

E(IV)-I A Taskforce to work on simplifying the processes governing the PHEIs, and uphold private higher education as an industry for Malaysia.

Simplifying the regulatory processes

D(II). Scholarships for local students

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4.4 Objectives and Strategies for Institutional Sustainability Exhibit 3-3 Objectives and Strategies for Institutional Sustainability A. Strengthen Public-private partnership

A(I). Redesigning public-private platform

A(II). Shifting regulatory supervision to impactful value-added service

C. Revenue enhancement

C(I). Diversification of revenue

C(II). Introduction of voucher system for students

B. Incentives and support for PHEIs

A(III). Institutionalizing tripartite collaboration between University- Government-Industry (UGI Alliance)

D. New Financing Model for Students

D(I). Narrowing the gap between urban and rural students

D(II). Scholarships for local students

B(I). Reviewing the category of incentives for PHEIs in learning and teaching (L&T), research, agile governance and talent development

B(II). Alternative financing scheme

B(III). Incentives for L&T

D. New Financing Model for Students

D(III). Malaysian scholarship for foreign students

D(IV). Foreign students and employment

E. Optimize Shared resources by way of sharing resources, facilities, and academic staff

E(I). Encourage publicprivate universities and other agencies to pursue cost optimization strategies

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E(II). Structured merger of PHEIs

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E(I). Encourage publicprivate universities and other agencies to pursue cost optimization strategies

E(II). Structured merger of PHEIs

Chapter 4 : Institutional Sustainability

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Chapter Five Page 81 - Page 96

The Ministry and all relevant agencies need to have coordinated efforts to assist PHEIs to thrive as an industry. Automation in delivery services, wide-support services, facilitate agenda for shared resources and promote digital and smart campus initiative’s

Transformed Delivery 5.1 Background 5.2 Landscape: Current Practices for Private Education Institutions 5.3 Issues and Challenges 5.4 O bjectives and Strategies for Transformed Delivery

5.1 Background

5.2 Landscape: Current Practices for Private Higher Education Institutions

The Contribution and Significance of the Sector

(a) Optimal and Lean Processes

(b) Processes that Add Value

The private higher education sector now accounts for over 50% of the total higher education enrolments in Malaysia and is therefore responsible for generating a significant proportion of the nation’s highly trained human capital (StudyMalaysia.com., 2015).

In order to get the best performance from the private higher education sector, processes concerned with regulation and control should be as efficient as possible, optimal and lean.

It should also be a guiding principle that regulatory processes should add value to the private higher education sector.

Guaranteeing standards and compliance to legal requirements is only one small part of adding value.

This is to enable the institutions to devote more of their resources to the core business of educating and supporting students and meeting the needs of industry. Institutions need to keep their costs low in order to make their educational provision affordable.

It is essential for economic development that this sector is able to respond rapidly to changes in employers’ needs and fully support the expansion of high value-added industries which is the sector’s main contribution to the nation.

Bloated administrative processes imposed by inefficient governmental controls can inflate the cost of education to students and their families unnecessarily.

It is therefore necessary for all of those involved in the business of private higher education and its regulation to adopt lean processes and ideally minimal processes that regulate or control only that which is entirely necessary.

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Chapter 5 : Transformed Delivery

True value adding processes are those that are also developmental and help the institutions improve and take advantage of new opportunities. For example, curricular models that constrain students to follow narrow educational pathways in the interest of enforcing compliance to out-of-date models of education do not help individuals innovate at the interfaces between academic disciplines where truly mold-breaking innovations and discoveries might occur.

Regulatory processes focused on helping institutions experiment and try out new ideas are likely to be welcomed by the institutions and would enable them to view the regulatory bodies as partners in new ventures to take the sector to new heights where real value is added.

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5.2 Landscape: Current Practices for Private Higher Education Institutions Exhibit 5-1 Current Practices for Private Education Institutions

(c) Adopting New Technologies to Optimize Performance In addition to minimizing regulatory processes and making them more developmental, there is a need to make effective use of the latest technologies. IR4.0 is very relevant to higher education and all stakeholders should examine ways of using new technologies to streamline processes. This should embrace all processes and procedures so that inefficient ways of working are eliminated.

Data should be captured once and shared electronically. The need for paper records and physical meetings should be eliminated as much as possible. Shared databases of information among agencies, work flow technologies, and use of data mining should support regulatory processes in a minimalistic way.

OPTIMAL & LEAN PROCESSES

MARKET AS REGULATOR

Processes concerned with regulation and control should be as efficient as possible, optimal and lean to get the best performance

The market itself provides a significant level of control and regulation.

CURRENT PRACTICES FOR PRIVATE EDUCATION INSTITUTIONS

(d) The Market as Regulator It should also be recognized that in the context of private higher education, the market itself provides a significant level of control and regulation. Institutions that fail to provide good quality education will lose the students. With a sector comprising more than four hundred institutions, there is plenty of competition that can ensure that weak providers will not last long. Market forces therefore impose a certain level of control which means governmental regulatory bodies can do less and confidently adopt leaner processes.

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PROCESSES THAT ADD VALUE True value adding processes are those that are also developmental and help the institutions improve and take advantage of new opportunities

Chapter 5 : Transformed Delivery

PROCESSES THAT ADD VALUE IR4.0 is very relevant to higher education and all stakeholders should examine ways of using new technologies to streamline processes and performance optimization.

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5.3 Issues and Challenges Related to Transformed Delivery (a) The Need to Adapt Regulation to The Maturity of the Sector

(b) Transforming Delivery to Catalyse Rather Than Constrain

(c) The Experience of Duplicative Processes and Approvals Delays

(e) I mpact of Delays and Multi-Agency Involvement

The current regulatory and control mechanisms for the private higher education sector were initially designed for an immature system. This was to ensure that students received an education of a guaranteed standard for their financial investment, using appropriate curricula, adequately qualified staff, and facilities of a necessary minimum standard, as well as to ensure that Malaysian higher education qualifications were comparable to those offered in other countries. But the private higher education sector is now mature and most institutions offer a high-quality educational experience, achieve high levels of students’ satisfaction and high levels of graduate employability.

Regulatory mechanisms need to take into account the diversity of institutions in the sector and the overall progress that have been made over the past twenty years. Such mechanisms should be fit-forpurpose in the 21st century and enable the private higher education sector to reach its full potential. In particular, there is a need for the focus of official interventions and processes to shift from regulation, control and compliance enforcement towards development and facilitation of high achievement, supporting innovation, creativity and giving students the very best opportunities.

The governmental regulatory processes need to be re-look into to ease the burden of private higher education institutions.

There should be a centralized body which have all the necessary information to avoid redundancy due to private higher education institutions have limitations such as shortage of staff where the necessitating staff to be diverted from their normal working duties to respond to the one-off official requests for complex information by respective parties. The most timeconsuming processes are those related to program approvals, premises approvals, accreditation and KDN license approvals. Delays in each of these significantly reduces the effectiveness of the higher education institutions concerned.

Any delays in getting programmes approved, or premises approved, or in getting a license to take international students, will reduce the efficiency of the institutions and reduce their capacity to build their businesses, train more students with the most advanced up-to-date knowledge and skills, and bring in revenue generating students from overseas. One of the main reasons for slowness is the involvement of multiple government agencies (e.g. MOE and MQA, MOE and KDN) and the fact that they often work sequentially on aspects of the overall approval process rather than in parallel.

Furthermore, some of the leading private higher institutions are now ranked among the top few percent of universities in Asia and in the world, as indicated by the QS and Times Higher Education (THE) rankings. For example, Universiti Teknologi Petronas (UTP) is listed as number 99 in QS Asia Ranking 2019 and 482 in QS World ranking 2020, meanwhile UCSI University ranked at 442 in QS World ranking 2020 (QS World University Ranking, 2019 and QS Asia University Ranking, 2019). This means the regulatory processes imposed on the sector should be updated to be more relevant to a more mature sector. Good universities and colleges are themselves leaders in ideas, creativity, and innovation and should be allowed to thrive within regulatory frameworks that guarantee continued high quality and integrity but leave them unburdened with excessive bureaucratic control that may stifle or slow down their contributions.

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This can be summed up as “transformed delivery”, where the government’s focus would be to catalyze the development of the sector rather than to constrain it. To do this in a highly efficient way utilizing the most effective processes and technologies (Mandefro, Noor, & Stel, 2012). Such a transformation should enable the major regulating bodies, such as the Ministry of Education (MOE) and the Malaysian Qualifications Agency (MQA), to focus on innovation and to use their resources primarily to help build the capacity and quality of the sector in a constructive developmental partnership with the institutions.

Chapter 5 : Transformed Delivery

(d) Process Improvements Must Embrace External Components Recent efforts to reduce the timescales for some approval processes are indeed welcome. However, they do not go far enough. For example, whilst MQA response times have been reduced, the procedure for new program approvals for institutions without selfaccrediting status still relies on convening external expert panels who may not be efficient themselves because of other constraints on their time. Improvements in processes must embrace all components including external aspects.

(f) Service Levels and Transparency Institutions experience significant variability in service from different official bodies, and even different levels of service from the same official body depending on the desk officers involved.

There is a general perception that individual officers have too much control over processes on a case by case basis and can become bottlenecks. It is also perceived that customer charters or service level agreements, where they exist, are not always met. There is also evidence of inconsistent or opaque decisions, for example on fee level approvals where different institutions are given different approved fee levels for the same type of degree program without any explanation or clear rationality for the decisions.

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5.3 Issues and Challenges Related to Transformed Delivery (g) The Need for More Regulatory Flexibility and Acceptance of Creativity

(i) Irrelevant, Outdated and Unnecessary Regulatory Processes

There can also be rigidity or lack of flexibility in interpreting rules.

For example, it is entirely reasonable for institutions to be required to provide appropriate learning resources such as well-stocked libraries or eresources. However, if institutions use ingenuity and creativity to provide such resources in partnership with others this should be seen as a strength not a weakness, especially if it provides more efficient use of resource and cost savings. High quality does not always follow directly from rigid adherence to rules, but can also come from creative approaches to delivery. Regulatory bodies should therefore be flexible in their approach and take sensible decisions based on pragmatism and holistic effectiveness. Where multiple bodies or agencies are involved, the holistic effectiveness needs to bridge all of them and ineffective coordination needs to be eliminated, such as duplicate inspections or audits of the same things, or multiple requests for the same data or information which are often experienced by the institutions.

Some regulations and policies are now considered to be irrelevant to a modern highly effective private higher education sector, or outdated or unnecessary. Time spent by official agencies in monitoring or enforcing compliance to such regulations and policies is wasteful of resources for the agencies concerned as well as for the institutions. There are many examples of this:

(h) Disruptive Forces Driving Change

i. The requirement to apply for teaching permits is unnecessary for most private higher education institutions and does not apply to public institutions. The institutions themselves need to ensure they have good quality teachers and deliver an excellent student experience otherwise they will soon lose their customers. ii. Fees approval is another area of irrelevant regulation. The private higher education sector is so competitive that market forces alone can determine fee levels. Those institutions that charge too much will simply lose market share. Also, decisions on fees by the MOE seem arbitrary without any transparency for the institutions.

iv. A nother area of unnecessary regulation is the approval of Boards of Directors (BOD) members. Institutions should be free to choose their own Board members. Institutions should be trusted to select a mix of Board members with appropriate skills to help set their strategy and direction and give adequate oversight to management. Institutions that fail to do this well would suffer so they are naturally incentivized to get it right.

As the pace of advancement has become many times faster and the degree of instability that ensues, many times greater, it is imperative that collectively we understand that global forces are constantly impacting the higher education sector which stakeholders have limited control of but together will shape the future of higher education.

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iii. Program standards implemented by MQA might have been appropriate in the early days of allowing immature institutions to determine their curricula. However, with many private higher education institutions reaching globally excellent standards in educational delivery and with changes in subject disciplines now occurring so fast, forcing compliance to program standards can stultify the sector. A healthy private higher education sector that makes a strong contribution to economic development would innovate in curricula and delivery methods and look for niche opportunities at the cross-overs between subject borders.

Such a sector would set the pace on contemporary education at the forefront of ideas and not be restricted by pre-existing frameworks constructed in a previous era. Institutions should be freed up to design innovative curricula and programme titles to meet emerging society and industry needs. Requirements to include compulsory subjects (MPU) need to be reviewed to ensure that programme content is outcome-based and focused on what society and industry needs in the 21st century.

Chapter 5 : Transformed Delivery

Teaching Permits

Fees Approval

Approval of Boards of Directors Members

Program Standards

Figure 5.1: Irrelevant, Outdated and Unnecessary Regulatory Processes

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5.3 Issues and Challenges Related to Transformed Delivery

5.4 Objectives and Strategies for Transformed Delivery

Exhibit 5-2 Issues and Challenges for Transformed Delivery Most private higher education institutions now find the regulatory processes and procedures to be burdensome and inefficient, reducing the effectiveness of the sector. The following objectives are the basis of overcoming the transformed delivery for PHEIs:

• Efficient Delivery Adopting IR4.0 and Society 5.0 The Need to Adapt Regulation to The Maturity of the Sector

The Experience of Duplicative Processes and Approvals Delays

Process Improvements Must Embrace External Components

The Need for More Regulatory Flexibility and Acceptance of Creativity

Irrelevant, Outdated and Unnecessary Regulatory Processes

• Agile and streamlined services through Light-Touch RiskBased Regulation

The strategies to achieve the transformed delivery objective 1 are as follows: 1.

Reduce the burden of regulatory control and to empower the private higher education sector to do more with greater efficiency 2. Institutions to self-accredit their programmes subject to a minimum or threshold score of 6 stars in SETARA or MyQUEST for a period of 5 years 3.

Allow more autonomy in the areas where non-governmental organizations such as professional bodies are already conducting quality reviews The strategies to achieve the transformed delivery objective 2 are as follows: 1. Adopting a risk-based approach to institutional regulation, quality inspections, audits or reviews should ideally be “light-touch” involving the minimum amount of bureaucratic overhead and institutional intrusion

Transforming Delivery to Catalyse Rather Than Constrain

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Impact of Delays and Multi-Agency Involvement

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Service Levels and Transparency

2.

Inspection, review and auditing processes should focus on institutional development and services towards stakeholders

Disruptive Forces Driving Change

Chapter 5 : Transformed Delivery

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5.4 Objectives and Strategies for Transformed Delivery Exhibit 5-3 Initiatives of Transformed Delivery

Digitization of Documents & Digitalization of Processes

Table 5.1: Objectives, Strategies, Initiatives And Action Plan Related To Transformed Delivery

Big Data Analytics (BDA) for The Higher Education Ecosystem

The Needs to Address Inefficient Regulation in the Context of IR4.0

OBJECTIVE

Reengineering & Optimization of Processes

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Comprehensive Regulatory and Digital Service Portal

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Key Performance Indicators (KPI)

Aim for Agility through LightTouch Risk-Based Regulations

Chapter 5 : Transformed Delivery

Objective

Strategy

Initiative

Action Plan

A. The Need to Address Inefficient Regulation in the Context of IR4.0

A(I). Reducing the burden of ntrol and to empower the private higher education sector to do more with greater efficiency

A(I)-I Reengineering and Optimization of Processes

a) Reducing the current two-tier provisional accreditation (MQA) and approval (MOE) to a single approval b) Establishing a database for the renewal of registration and KDN license to avoid unnecessary audit visits where the regulatory body gather almost identical information c) Encouraging secondment of academics from private HEIs to MoE, where the respective private universities need to pay for the differences between the salary given to the secondee and the remuneration provided by the ministry framework for tax relief

A(II). Institutions to selfaccredit their programmes subject to a minimum or threshold score of 6 stars in SETARA or MyQUEST for a period of 5 year

A(II)-I Digitization of Documents & Digitalization of Processes

a) Establising digital form which includes all the needed documents and forms b) Encouraging electronic signatures (with appropriate security mechanisms) to be recognized and accepted for signing all documents used in work processes c) Forming a system that workflows are documented and converted into digital workflows and this should be implemented through a robust and flexible computerized system the Consortium of PHEIs

A(III). Allowing more autonomy in the areas where nongovernmental organizations such as professional bodies are already conducting quality reviews

A(III)-I Comprehensive Regulatory and Digital Service Portal

a) Enhancing the communication and interaction between regulatory bodies and an institution b) Continuity of services when the officer-in-charge goes on leave or is away, transparent backend processes, and timely response on queries c) Designing a digital (self-) service portal by MOE which includes each institution dashboard that feature vital information; AI chatbot that receive service requests and route them to the designated officer; summary of recent policy and regulatory changes that affect the particular institution and summary of the status of workflows executed in response to service requests.

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5.4 Objectives and Strategies for Transformed Delivery Exhibit 5-4 Objectives and Strategies for Transformed Delivery

Table 5.1: Objectives, Strategies, Initiatives And Action Plan Related To Transformed Delivery

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Objective

Strategy

Initiative

Action Plan

B. Aim for Agility through LightTouch Risk-Based Regulation

B(I). Adopting a riskbased approach to institutional regulation, quality inspections, audits or reviews should ideally be “light touch” involving the minimum amount of bureaucratic overhead and institutional intrusion

B(I)-I Big Data Analytics (BDA) for the Higher Ecosystem

a) Creating a Big Data Analytics platform accessible to all players through the appropriate data governance b) Helping the regulatory bodies to review, revise and improve services based on customer experience embodied in the data c) Helping the regulatory bodies to plan resources based on forecasted requests d) Building risk profiles of institutions in order to support risk-based audits e) Forming a platform to avoid multiple requests for identical data f) Providing content for the Digital Service Portal g) Reducing duplication of the information provided h) Minimizing manipulation of the data provided i) Ensuring validity and authenticity of the data provided

B(II). Inspection, review and auditing processes should focus on institutional development and services towards stakeholders

B(II)-I Key Performance Indicators (KPI)

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a) Encouraging 100% IPTS to participate in SETARA and MyQuest by 2021 b) Forming a platform for IPTS which score 5 & 6 stars in SETARA or MyQuest to enjoy autonomy c) 70% Digitalization of services by 2021, including digital dashboard d) Establishing Service Level Agreement (Service-based, Customer-based, and Multi-level or Hierarchical) by achieving 50% in 2021, 70% by 2023, 90% in 2025 e) Achieving 75% and 90% Customer Satisfaction by 2021 and 2024 respectively

Chapter 5 : Transformed Delivery

A. The Need to Address Inefficient Regulation in the Context of IR4.0

A(I). Reduce the burden of regulatory control and to empower the private higher education sector to do more with greater efficiency

A(II). Institutions to self-accredit their programmes subject to a minimum or threshold score of 6 stars in SETARA or MyQUEST for a period of 5 year

A(III). Allow more autonomy in the areas where non-governmental organizations such as professional bodies are already conducting quality reviews

B. Aim for Agility through Light-Touch Risk-Based Regulation

B(I). Adopting a risk-based approach to institutional regulation, quality inspections, audits or reviews should ideally be “light touch” involving the minimum amount of bureaucratic overhead and institutional intrusion

B(II). Inspection, review and auditing processes should focus on institutional development and services towards stakeholders

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Chapter Six Page 97 - Page 120

PHEIs to increase the image, build trusted brands, competitiveness, security and as well as recognize as an international education hub

Innovation & Teaching Excellence 6.1 B ackground of Innovation and Teaching Excellence 6.2 Landscape: Aspirations of Innovation & Teaching Excellence 6.3 I ssues and Challenges related to Innovation & Teaching Excellence 6.4 Objectives and Strategies to Produce Future-Proof Talent

6.1 Background of Innovation and Teaching Excellence

6.2 Landscape: Aspirations of Innovation and Teaching Excellence

Private Higher Education in Malaysia in undergoing a transformation so as to be adaptable to the new paradigm shift in education in the 21st century.

The private higher education sector is fast progressing towards IR4.0, and in order for PHEIs to attain and maintain institutional sustainability, it is of paramount importance that they continue to improve their teaching and learning delivery system (i.e. quality control) to produce graduates who are ready for workplace.

To support the new vision and mission of private higher education institutions, innovation and teaching excellence is a key strategic area aims to strengthen the competitiveness of the private higher education industry in Malaysia, and to develop future-proof talent for the country and the world at large.

IR4.0, FUTURE-PROOF SKILLS, FUTURE LEARNING & TEACHING Creativity & Innovation

Critical Thinking & Problem Solving

Global Perspectives

Values & Ethics

Digital Literacy & Competency

Figure 6-1: Criteria of Education Transformation

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Chapter 6 : Innovation and Teaching Excellence

WithFigure 6-2: Malaysia Higher Education 4.0 Framework4.0 upon, and the advancement of technologies, the currency of global economic power lies in the creativity, authenticity and imagination of our academicians and technopreneurs. It is through their innovations and drives will a society rise to the challenges of today’s industrial revolutions, culminating in success and prosperity.

The rapid expansion of these disruptive technologies with respect to connectivity and creation is at an exponential rate and the challenges to keep up and adapt to them is growing rapidly. Connectivity through multimedia mobile devices, experiential learning through Virtual Reality (VR), Augmented Reality (AR), Mixed Reality (MR), Artificial Intelligence (AI), and the Internet of Things (IoTs) has created a new learning ecosystem in higher education. In order to effectively harness these new technologies and learning paradigms, higher education needs to develop and put in place an infrastructure of the right education, networks of people and quality assurances.

PHEIs play an important role in producing future-proof graduates through the immersive higher education which combines the virtual worlds, simulators, learning games and sophisticated digital media.

Learning and Teaching (L&T) must Future-Proof Talents are graduates who are problem solvers, job incorporate 21st Century learning skills is in line with the MEB (HE) which include creators and technology inventors who possess self-management skills collaboration, digital literacy, critical thinking and problem solving that help and intangible human elements such as civilizational literacy, students to thrive in the IR4.0 and necessitates future-proof graduates for the compassion, resilience, adaptability with Future-Proof Skills which future jobs.

MALAYSIA HIGHER EDUCATION

FRAMEWORK 4.0

Redesigining Higer Education Initiatives

Fluid & organic Curriculum

Transformative I&T Delivery

Alternative Assessments

Digital Ethics & values

Autonomous Governance

Ace Delivery

Sustainability

Smart Campus

Future Curriculum Ready

Agile Governance

Research & innovation

Pioneer Culture

Transnational Research

Reasearch & Alliance Partnership Commercialasion on Research & Innovation

Talent Planning

Neoteric Value Driven Academia

Cognitive Flexibility

Source: MOHE, 2010

Figure 6-2: Malaysia Higher Education 4.0 Framework

Future-Proof Talents are graduates who are problem solvers, job creators and technology inventors who possess self-management skills and intangible human elements such as civilizational literacy, compassion, resilience, adaptability with Future-Proof Skills which incorporate AKHLAK (ethics & spirituality, leadership skills and national identity) as well as ILMU (language proficiency, thinking skills and knowledge) with the elements of IR4.0 as shown in Figure 6.2.

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6.3 Issues and Challenges Related to Innovation & Teaching Excellence (a) Low Graduate Employment Rate In 2017, the graduate employment rate is 79.1%2 and MoE aspires to achieve 85% of graduate employment rate by 2025 (see Figure 6.3). While the graduate employability rate of the country has increased to 79.1% in 2018, there is still a gap compared to the ministry’s aspiration of 85% graduate employability rate by 2025.

Various studies have been conducted to identify the critical skills or competencies required to thrive in the IR4.0. For example, the Future of Jobs Report by the World Economic Forum suggests the following trending critical skills, as seen in Figure 6.4 below:

TODAY, 2018 2013

n:202,347

2014

2015

n:209,838

n:229,586

2016

2017

n:238,187

n:255,099

75.0

75.1

76.1

77.3

79.1

25.0

24.9

23.9

22.7

20.9

Working Not Working * Includes continuing education, improving skills and waiting for job placement

Figure 6-3: Graduate Employability Rate from 2013 to 2017 Source: MoE, 2019

2013

n:111,080

2014

n:114,330

2015

n:113,014

2016

Working

2017

n:112,547

Not Working

n:124,075

75.3

75.2

76.0

77.3

78.4

24.7

24.8

24.0

22.7

21.6

* Includes continuing education, improving skills and waiting for job placement

TRENDING, 2022

Analytical thinking and invitation

Analytical thinking and invitation

Complex problem-solving

Active learning and learning strategies

Critical thinking and analysis

Creativity, originality and Initiative

Active learning and learning strategies

Technology design and programming

Creativity, originality and Initiative

Critical thinking and analysis

Attention to detail, trustworthiness

Complex problem-solving

Emotional intelligence

Leadership and social influence

Reasoning, problem solving and ideation

Emotional intelligence

Leadership and social influence

Reasoning, problem solving and ideation

Coordination and time management

System Analysis and evaluation Figure 6-4: Future of Jobs Survey 2018 Source: World Economic Forum, 2019

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6.3 Issues and Challenges Related to Innovation & Teaching Excellence Exhibit 6-1 Status of Graduates Employability 73.5

75.3

73.8

76.0

74.9

76.0

75.0

76.1

79.1

26.5

24.7

26.2

24.0

25.1

24.0

25.0

23.9

20.9

n:68,354

n:111,080

n:85,665

n:113,014

n:98,816

n:113,014

n=202,347

n=229,568

n=255,099

2013

2014

2015

2016

2017

2014

2015

2016

n:66,557

n:114,330

n:93,191

n:113,014

n=209,838

n=238,187

74.4

75.2

72.8

77.3

75.1

77.3

25.6

24.8

27.2

22.7

24.9

22.7

Working

Public Universities

Not Working

PHEIs

* Includes continuing education, improving skills and waiting for job placement

Figure 6-5: Status of Graduate Employability (PHEI/Public University) (2013-2017)

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2013

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Chapter 6 : Innovation and Teaching Excellence

Working

2017

Not Working

* Includes continuing education, improving skills and waiting for job placement

Figure 6-6: Status of Graduate Employability (local student) (2013 – 2017) Way Forward for Provate Higher Education Institutions EDUCATION AS AN INDUSTRY (2020-2025)

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6.3 Issues and Challenges Related to Innovation & Teaching Excellence Exhibit 6-2 (A) Innovative Education Model: Institutional Operating Model

(b) Graduates Readiness to Thrive in IR4.0 The Malaysian Employers Federation(MEF) mentioned that the country is ill-prepared for IR4.0, warning that Malaysia will no longer be competitive if it is not able to embrace it quickly. A survey finding revealed that many students think they are not well-prepared for IR4.0. Hence, it appears that there is a need for more focused strategies and effort to future-proof students in response to IR4.0.

Malaysia is not prepared for IR 4.0 (Malaysian Employers Federation (MEF).

Malaysia will no longer be competitive if not able to embrace IR 4.0 quickly.

Therefore, need more focused strategies and efforts to future-proof students in response to IR 4.0.

PHEIs with conventional license can convert fully accredited conventional programmes to dual (conventional and ODL) modes, and vice versa. However, required to go through the same process as a new programme approval, and a maximum 30% of programmes can be in dual mode.

UBIQUITOUS LEARNING

INNOVATIVE EDUCATION MODEL: MICROCAMPUS

CONCURRENT STUDY

FAST TRACK PROGRAMMES

PATHWAY COLLEGES WITHIN UNIVERSITIES (SMART PARTNERSHIPS)

Required to identify specific premise for delivery of programme (conducting of class) due to safety and health concerns.

Regulation does not permit a microcampus within HEIs.

Recognition of prior learning is not an entry to higher level of studies.

Requirement to set minimum duration of study and maximum credit that can be taken per semester.

Colleges must have separate premises, and not share physical resources.

(c) Constraints to innovate Lack of autonomy & flexibility for PHEIs that have demonstrated accountability to innovate due to over regulation by MOE and MQA.

Constraints to innovate

If delivered outside approved premise, to apply for approval of additional premise.

A. Innovative Education Model: Institutional Operating Model

B. Programme Innovation – Students as Creators

MOE requires clear demarcation for teaching and learning resources for different licenses.

C. Spatial Innovation: Redesigning Learning Spaces PHEIs to identify a special model of delivery in a programme (which does not allow flexibility).

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6.3 Issues and Challenges Related to Innovation & Teaching Excellence Exhibit 6-3 (B) Programme Innovation: Students as Creators

Exhibit 6-4 (C) Spatial Innovation: Redesigning Learning Spaces

i. Students have limited opportunities to curate their learning journey

(i) Campuses as Education Villages

ii. Programme standards (single discipline oriented) limits the possibility of students being able to pick and choose modules for their programme

Barriers to policy-making

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Inconsistencies in interpretation of policies and standards by regulatory bodies

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• Regulations do not allow PHEIs to ‘share’ premises or adopt the concept of an ‘institution within an institution’ (registration of separate addresses must be made) • Shrinking market enrolment because of excessive number of private higher education institutions with licenses to operate, results in waste, duplication, and inefficiency in use of physical resources between different PHEIs, affecting PHEIs’ sustainability

iii. Nomenclature policy also limits possibility for this

Lack of clarity and understanding of implementation of policies by HEI with the existing programme standards in place

Registration & Scrunity of Learning Spaces in PHEIs

Inconsistencies in interpretation of policies and standards by regulatory bodies

Chapter 6 : Innovation and Teaching Excellence

Pedagogical Innovation

Campus as Education Villages

SPATIAL INNOVATION : REDESIGNING LEARNING SPACES

People Innovation

Spatial Innovation: Offshore campuses/ delivery of PHIE Programme

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6.3 Issues and Challenges Related to Innovation & Teaching Excellence Exhibit 6-4 (C) Spatial Innovation: Redesigning Learning Spaces

(iii) Spatial Innovation: Offshore campuses and delivery of PHEIs programmes

(iv) P eople Innovation: Increase practitioners in programme delivery

a. Flexible : Space can be reshaped (i) Campuses as Education Villages • Strictly tied to specific learning spaces in an institution

b. Agile : Space can be reshaped quickly

• Any changes/additions require approval • Stringent auditing of learning and administrative spaces is carried out

c. Intention : Space are designed to support learning

PHEIs invest in design and development of intellectual property, programme curricula, teaching & learning strategies and technologies, management, operational and administrative support processes.sustainability

Intellectual property (programme curricula, teaching/ learning strategies and technologies, management, operational and administrative support processes

DESIGN PRINCIPLES d. adaptive : Space adapt to changes in expectations of student’s learning experience

Can be exported to other countries/institutions within the country (allowing PHEIs to recover development costs and diversify)

e. Technological : Space support a variety of technologies

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There is no need for the appropriate qualification level and discpline

(v) Pedagogical Innovation: Global Classrooms Enhancement & Clarify on implementation of MOOC as part of programme delivery, not just credit tansfer.

QA issues on student attending online learning from other institutions locally and abroad.

(vi) Pedagogical Innovation: Alternative Assessment Methods

Offshore campuses/franchises (complying with Quality Assurance mechanisms) f. Interconnected : The physical and digital space for learning are connected

Criteria for academic staff too rigid and perspective

MQA Programme Standards dictate assessment structure and breakdown

THis restrict the ability of PHEIs to ensure achievement of Programme Learning Outcome defined

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6.4 Objectives and Strategies To Produce Future-Proof Talent

a. Enhancing excellence in private higher education via strengthening existing niche and expertise, and developing new niche and expertise

b. Strengthening

excellence in research and innovations in PHEIs through funding and increase in value for money

c. Producing futureproof talents based on IR4.0 needs with humanistic values

d. Providing greater access to quality private higher education to wider community

c. Connectivism - Learning takes across networked environments, and is the current theory for the digital age, where learners share information across the Internet in ways not possible before.

a. Socio-constructivism - Learning is a social activity, and where collaboration and cooperative learning strategies are practice, and incorporated into the learning environments. b. Situated learning - Learning is embedded and communities of practice are developed within an authentic context and learners are skilled to solve real-life problems together.

Strategies: • Design future ready curriculum through the redesigning of teaching and learning processes and delivery, incorporating alternative assessments that go beyond tests and cognitive level examinations and creating fluid and organic curriculum that maximises the learning potential with the support/use of experiential learning technologies: AR (Augmented Reality), VR (Virtual Reality), MR (Mixed Reality), AI (Artificial Intelligence), Learning Analytics, and Internet of Things (IoTs).

• Strengthen research and innovation capabilities by providing a research funding for PHEIs and increase strategic alliances with industry to generate commercialisation and marketability of research and innovation outputs from PHEIs.

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To be able to achieve excellence as a way forward for PHEIs, learner-centric solutions need to be developed, in order to cater to the generation of IWWIWWIWI (I Want What I Want When I Want It). These solutions should be grounded in the following theoretical frameworks:

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• Produce future-proof talents that have the skills and competencies required for IR4.0, and embrace modern and neoteric values/ humanistic values.

• Incentivise new niche programmes (e.g. edu-tourism) and/or investment in the state-of-the-art/fore-front teaching and research facilities, and/or experiential learning technologies.

• Provide greater access to quality private higher education including B40 group, special needs etc. through scholarships by corporate and individual to the education trust fund, and provide double tax deduction incentives.

Chapter 6 : Innovation and Teaching Excellence

Combinations of the three frameworks give rise to new educational solutions that would

SOCIOCONSTRUCTIVISM

SITUATED LEARNING

CONNECTIVISM

move PHEIs towards

NEW EDUCATIONAL SOLUTION

learning & teaching excellence.

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6.4 Objectives and Strategies To Produce Future-Proof Talent Table 6.1 : Objectives, Strategies, Initiatives and Action Plan Related To Innovation and Teaching Excellence

Objective

Strategy

Initiative

Action Plan

A. Enhancing excellence in private higher education via strengthening existing niche and expertise, and developing new niche & expertise

B(I) Strengthen research and innovation capabilities by providing research funding for PHEIs

B(I)-I Redefined and readdressed R&D funding to cater to the needs of PHEIs today

a) The provision of merit-based allocation of grants, funding and research opportunities through a research funding for PHEIs. b) Allocating funds (at national level) to encourage research at colleges should also be merit-based. c) Allocating more funding for applied and action research (Applied- and Actionbased Research Grant Scheme, AARGS), and community-based research (Community-based Research Grant Scheme, CRGS) for PHEIs. Much of the research at PHEIs are in close ties with industries and are therefore very actionbased. d) Providing National-level SoTL (Scholarship of Teaching & Learning) funding to encourage research in teaching and learning.

B(I)-II Upgrade and upskill teaching competencies

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Objective

a) Providing affordable National-level training programmes (e.g. AKEPT) to universities and colleges that seek to improve staff competencies and skills. b) Establishing a consortium of PHEIs (universities and colleges) to share talents and resources in research and teaching & learning and to motivate optimal use of expertise, technology, facilities and manpower across member institutions.

Chapter 6 : Innovation and Teaching Excellence

Strategy

Initiative

Action Plan

A(II)-II Interdisciplinary Study

a) Reducing MQA Programme Standards minimum requirement for core components of a single major from 50% to 60% of graduating credits. This will allocate heavier credit weightage to elective components to encourage interdisciplinary learning that nurtures students with interdisciplinary perspectives to solve complex problems.

A(II)-III Nurturing Entrepreneurs

a) Nurturing entrepreneurs amongst students by leveraging PHEIs’ entrepreneurial culture and its academics with industrial experience through curricula, as well as dedicated effort through business start-up incubator or accelerator programmes.

A(II)-IV Fast Track Education

a) Allowing learners to undertake higher learning load to graduate faster. b) Allowing undergraduate degree students to take 30% of postgraduate degree courses during their final year of their undergraduate degree without the need to complete 100% of that undergraduate degree. c) Allowing 1st class bachelor’s degree students to pursue their PhD, subject to passing rigorous assessments by PHEIs.

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6.4 Objectives and Strategies To Produce Future-Proof Talent Table 6.1 : Objectives, Strategies, Initiatives and Action Plan Related To Innovation and Teaching Excellence

Objective

B. Strengthening excellence in research & innovations in PHEIs through funding, and increase in value for money

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Strategy

B(I) Strengthen research and innovation capabilities by providing research funding for PHEIs

Initiative

Action Plan

Objective

A(II)-V Flexible Education

a) Allowing APEL or micro-credentials leading to a qualification (APEL-Q), so that degrees can be acquired through credential accumulation, which is also important for continual professional education of matured talents. b) Elevating accreditation to institutional level, with less emphasis on programme level for institutions with good reputation or that have demonstrated credibility. This allows institutions to have more autonomy, and be more responsive to industry and market needs.

A(II)-VI Ubiquitous Learning

a) Allowing PHEIs flexibility and accountability to conduct learning activities beyond their approved and registered premises.

B(I)-I Redefined and readdressed R&D funding to cater to the needs of PHEIs today

a) The provision of merit-based allocation of grants, funding and research opportunities through a research funding for PHEIs. b) Allocating funds (at national level) to encourage research at colleges should also be merit-based. c) Allocating more funding for applied and action research (Applied- and Actionbased Research Grant Scheme, AARGS), and community-based research (Community-based Research Grant Scheme, CRGS) for PHEIs. Much of the research at PHEIs are in close ties with industries and are therefore very actionbased. d) Providing National-level SoTL (Scholarship of Teaching & Learning) funding to encourage research in teaching and learning.

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C. Producing future-proof talents based on IR4.0 needs with humanistic values

Strategy

Initiative

Action Plan

B(I)-II Upgrade and upskill teaching competencies

a) Providing affordable National-level training programmes (e.g. AKEPT) to universities and colleges that seek to improve staff competencies and skills. b) Establishing a consortium of PHEIs (universities and colleges) to share talents and resources in research and teaching & learning and to motivate optimal use of expertise, technology, facilities and manpower across member institutions.

B(II) Increase strategic alliances with industry to increase value for money funding for PHEIs

B(II)-I Generate pathway to commercialisation and marketability of research and innovation outputs from PHEIs

a) Creating and facilitating a direct pathway from AARGS to commercialisation or from CRGS to community benefit. In doing so, there is a clear direction of utilisation for the outputs from these two grant schemes, and the ministry would have a rich database of innovations and community projects to monitor and display.

C(I) Support the need to transform students into future-proof and IR4.0-ready graduates

C(I)-I a) PHEIs need to put in place a fit-for-purpose technology ecosystem comprising Provide an ecosystem connected infrastructure, applications and info structure, to enable and and access to support access to technology-enabled learning anytime, anywhere on any disruptive technologies device. and tools that students b) E xposing students to technologies e.g. Data Analytics, Artificial Intelligence would integrate into and the Internet Of Things (IOTs), Fintech, Blockchain and other emerging their core domain skills technologies and providing opportunity to develop students’ ability to exploit development these technologies to support their future work.

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6.4 Objectives and Strategies To Produce Future-Proof Talent Table 6.1 : Objectives, Strategies, Initiatives and Action Plan Related To Innovation and Teaching Excellence

Objective

116

Strategy

Initiative

Action Plan

C(I)-II Provide an ecosystem and access to disruptive technologies and tools that students would integrate into their core domain skills development (cont.)

c) Adopting disruptive technologies (e.g. IR4.0, Big Data, AI, IOTs) in facilitating, managing, and tracking overall student experience from enrolment to graduation and beyond. d) Applying intelligent AI Chatbots and Machine Learning to guide and support students in learning environments, and provide technology tools and solutions to support academics in enhancing learning and assessment effectiveness. e) Using Education Analytics (Big Data) to identify and aid at-risk students, to prevent failure/attrition, to ensure effective culling of data and enable immediate remedies and modifications to be made. f) Enabling learning beyond traditional Learning Management System (LMS) including the use of collaborative tools, and lecture capture tech to support blended learning and flipped classrooms, to create a culture of collaborations and interactions among learners and educators and to foster communities of learners 24/7. g) Using AR/VR to support immersive learning and simulated real-world experience where learners can acquire real-world and relevant content without having to wait for internship programs. Industries can be involved with their learning processes and learning outcomes can be tied to the solving of real-life problems. h) Facilitating PHEIs with policies of potential cost sharing among institutions, and enable incentives such as tax/SST exemption/deduction, reduce bandwidth rate, and more to be made available.

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Objective

Chapter 6 : Innovation and Teaching Excellence

Strategy

Initiative

Action Plan

C(II) Produce ready-proof talents with humanistic values

C(II)-I a) Categorising MPU subjects into broad objectives with competencies that are Allow PHEIs to IR4.0 defined (Ethics, Values, Community and Entrepreneurship). formulate the b) MPU courses should be designed with the mindset that they will build skills curriculum towards that drive the development of individuals. achieving the learning c) Allowing PHEIs to refine categorisation and modes of delivery accordingly as outcomes of the MOE long as the overall competencies and learning outcomes are achieved.

MPU courses without limiting themselves to the prescribed contents of the courses

C(III) Incentivise new niche programmes and/or investment of their surplus/profits

C(III)-I Encourage PHEIs to reinvest their surplus/ profits in the stateof-the-art/fore-front teaching and research facilities, and/or experiential learning technologies

a) Providing double tax deduction incentives for PHEIs to reinvest their surplus/ profit in the state-of-the-art/fore-front teaching and research facilities, and/or experiential learning technologies. This will discourage PHEIs to be profiteering. b) MoF to incentivise HEIs in providing TNE programmes and/or setting up branch campuses overseas (including offering transnational education programmes with HEIs overseas).

C(IV) Improved quality of educators

C(IV)-I Creating more engaging educators with IR4.0 competencies

a) Creating more engaging educators through competency-based trainings and upskilling facilities. b) Retaining the highest calibre faculty and staff within PHEIs through competitive salary packages and benefits.

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6.4 Objectives and Strategies To Produce Future-Proof Talent Exhibit 6-5 Objectives and Strategies for Innovation and Teaching Excellence

Table 6.1 : Objectives, Strategies, Initiatives and Action Plan Related To Innovation and Teaching Excellence

Objective

Strategy

Initiative

Action Plan

D. Providing greater access to quality private higher education to wider community

D(I) Provide greater access to quality private higher education including B40 group, special needs etc

D(I)-I Providing double tax deduction incentive for scholarships by corporate and individual to the education trust fund

a) MOF to provide double tax deduction incentive for scholarships by corporate and individual to the education trust fund. This funding will provide scholarships and financial funding for access to quality private higher education to wider community including the B40 group, special needs etc.

D(II) Innovative Education Model to provide greater access to quality private higher education to wider community

D(II)-I Allow more flexibility for franchising, and offshore campuses

a) Allowing colleges to offer franchised programmes without limit in number of programmes (subject to meeting other MOE and MQA requirements). b) Allowing PHEIs to export programmes after having achieved Full Accreditation or that have at least commenced delivery in Malaysia and for institutions with SETARA and MyQuest band 5 and above. c) The ‘exporting’ PHEIs should be required to provide the mechanisms and processes regarding quality assurance of the programmes being delivered by their partners overseas and period (annual) updates to MOE on status of these arrangements.

D(II)-II Review institutional license in terms of mode of delivery

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a) Private university license to have more autonomy and flexibility to offer up to 50% conventional mode and 50% Open and Distance Learning (ODL) mode which is different from the current policy of 70% (conventional mode) and 30% (ODL mode) for conventional license and 30% (conventional mode) & 70% (ODL mode) for ODL license. b) Allowing PHEIs to apply for both conventional and ODL modes during new programme application.

Chapter 6 : Innovation and Teaching Excellence

A. Enhancing excellence in private higher education via strengthening existing niche & expertise, and developing new niche & expertise.

A(I) Redesigning future ready curriculum.

A(II) Creating fluid and organic curriculum that maximises the learning potential.

B. Strengthening excellence in research & innovations in PHEIs through funding, and increase in value for money B(I) Strengthen research and innovation capabilities by providing a ring-fence research funding for PHEIs

B(II) Increase strategic alliances with industry to increase value for money

C. Producing ready-proof talents based on IR4.0 needs with humanistic values

C(I) Support the need to transform students into future-proof and IR4.0-ready graduates

C(II) Produce ready-proof talents with humanistic values

C(III) Incentivise new niche programmes and/or investment of their surplus/ profits

C(IV) Improved quality of educators

D. Providing greater access to quality private higher education to wider community

D(I) Provide greater access to quality private higher education including B40 group, special needs etc.

D(II) Innovative Education Model to provide greater access to quality private higher education to wider community

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Chapter Seven Page 121 - Page 138

PHEIs to increase the image, build trusted brands, competitiveness, security and as well as recognize as an international education hub

Internationalisation 7.1 Background for Internationalisation 7.2 Landscape: Growth in International Students 7.3 Issues and Challenges related to Internationalisation 7.4 O bjectives and Strategies to Achieve Global Prominence

7.1 Background The innovative and diversified private education offerings (i.e. foreign certifications, home-grown and twinning programmes) with rich cultural experiences spanning over 50 years, has attracted many international students to pursue their higher education in Malaysia.

Malaysia has targeted 250,000 international students in 2025 and 335,000 in 2030. Thus, with the target of 250,000 international students mostly in PHEIs in year 2025, international students will contribute RM11.6 Billion in tuition fees and another RM14.2 Billion in cost of living in Malaysia. In total, international students in PHEIs estimated to contribute RM25.7 Billion to Malaysia’ GDP and economy growth in 2025 and RM33.5 Billion in 2030. Exhibit 7-3 shows the assumption of international students contribution to the Malaysia economy.

As reported recently, Prime Minister stated an outflow of RM2 Billion a month is leaving the country through repatriation of funds by foreign workers in Malaysia. It was previously reported that at least RM1,500 per month per foreign worker being transferred out to the countries of origin of the foreign worker. This translates to an outflow of RM1.8 Billion per year per 100,000 foreign workers, not to mention the social and health issues related to these foreign workers. Thus, allowing international students to work part-time can reduce reliance on foreign workers particularly in the services industry and outflow of monies, increase in tax collection, and will boost economic activities domestically. Allowing parttime work to international students will also help open new markets of no less than 30 countries.

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1 e-IPTS (2018). Bahagian Governan IPTS, Kementerian Pendidikan Malaysia

Chapter 7 : Internationalisation

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123

7.1 Background

7.2 Landscape: Growth In International Students

Exhibit 7-3 Assumptions: + based on MEB(HE) total 250,000; @ estimated 6% increase per year

INTERNATIONAL STUDENT IN 2030 (ESTIMATED) @

60,487

116,102

155,577

Master

18,695

35,884

48,085

PhD

18,992

36,454

48,849

130,245

249,999

335,000

Total Tuition fee Contribution

40,000 35,000 30,000 25,000

INTERNATIONAL STUDENT TUITION FEE (RM) IN 2025 (ESTIMATED) @

INTERNATIONAL STUDENT TUITION FEE (RM) IN 2030 (ESTIMATED) @

10,000

DIploma

684,815,679

1,866,555,845

2,501184,833

Degree

1,935,851,535

5,276,419,780

7,070,402,512

5,000

Master

978, 062, 750

2,665,839,582

3,572,225,040

0

PhD

652,824,165

1,779,358,736

2,384, 340,707

4,251,554,129

11,588,173,943

15, 528,153,092

Additional Contribution International Student in PHEIs

5,209,800,000

14,200,000,000

17,956,000,000

Total Contribution from Private Higher Education

9,461,354,129

Total Tuition fee Contribution Additional Contribution from Cost of Living

124

15,000

CHINA

INTERNATIONAL STUDENT TUITION FEE (RM) IN 2018

BANGLADESH

DESCRPITION

Number of International Student by Country

20,000

2016

Way Forward for Provate Higher Education Institutions EDUCATION AS AN INDUSTRY (2020-2025)

25,788,173,943

2017

2018

33,484,153,092

Chapter 7 : Internationalisation

IRAN

Degree

LIBYA

82, 489

INDIA

61,559

IRAQ

33,071

PAKISTAN

DIploma

YEMEN

INTERNATIONAL STUDENT IN 2025 (ESTIMATED) +

INDONESIA

INTERNATIONAL STUDENT IN 2018

NIGERIA

DESCRPITION

Malaysia has targeted to have 200,000 international students studying in HEIs in 2020 and a target of 250,000 in 20252. International students studying in Malaysia are from a total 154 countries where mostly are from 90-100 countries with top 10 sending countries of international students to Malaysia for 2016- 2018, which in 2018, top 10 sending countries represent 67.6% of the total number of international students. Figure 7-1 shows the population of international students by country in 2016 to 2017.

Source: EMGS, 2018

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7.2 Landscape: Growth In International Students

Services

Others

Health & welfares

Professional

Agriculture and veteriny

PhD

Engineering, manufacturing and..

Master

Science, mathematics & computing

Degree

Social sciences, business & law

PG Diploma

Arts and humanities

Diploma

Education

Certificate

General

Foundation 0

20,000 2016

2017

40,000

60,000

2018 Source: EMGS, 2018

Figure 7-2: Field of Studies Choice by International Students in Malaysia

7.3 Issues And Challenges Related to Internationalisation (a) Decline in the number of international students

0

10,000 2016

20,000 2017

30,000

40,000

50,000

60,000

2018 Source: EMGS, 2018

Figure 7-3: Type of programmes preferred by international students

70,000

The enrolment for international students has decline from 128,531 in 2017 to 122,048 in 20182. The international students’ commencements also decline by 39% from approximately 68,000 in 2015 to 41,400 in 2018 with significant reduction from Bangladesh and Nigeria3. Figure 7-4 shows the trend changes of international enrolment for more than 10 years. The concern on safety and security matters (e.g. increase in social issue, nonrecognition of i-card as valid document, inefficient visa processing and renewing, etc.) and ineffective promotional activities contribute to the decline in the number of international students4,5,6.

Other difficulties faced by international students are related to process to bank payment for admission application fees from their countries, access to bank services, affordability to pay processing fee, condition of their accommodation, scarce support services, insufficient information provided by the agents, unequal treatment by certain lecturers, insufficient socialization activities, inefficient visa processing, lacking in training and employment opportunities, and quality of private higher education5,6. There is no International Student Protection Framework, International Students’ Charter and Student’s Ombudsman to ensure safety and security of international students in Malaysia.

There are various problems and challenges faced by international students who studied in Malaysian PHEIs, namely lacking in professionalism and competence staff in managing international students, cultural difficulties, language, teaching instructions, curriculum, frustration with the administrative process, lack of sufficient facilities, different social environment, lack of international service programmes and many more5,7,8,9.

There is also an increase in competition in higher education where Malaysia along with China, Korea and Singapore is beginning to compete with destinations such as Australia and Japan for students from a few Asian markets3.

44.8% of the international students preferred to study social sciences, business and law in Malaysia HEIs as compared to STEM field of study. Most of the international students registered for degree programmes (i.e. 37% in 2016, 41% in 2017 and 46% in 2018) followed by diploma programmes, as compared to other type of programmes Figure 7-2 and Figure 7-3 show the trend of students preferred study by fields and level of programme.

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7.3 Issues And Challenges Related to Internationalisation (b) Growth of the current markets and penetration into new markets required

140,000

50.00%

120,000

40.00%

100,000

30.00%

80,000

20.00%

60,000

10.00%

40,000

0.00%

20,000

-10.00% -20.00%

0 2005

2006

2007

2008

2009

Public Higher education

2010

2011

2012

2013

Public Higher education

2014

2015

2016

2017

2018

Malaysia has successfully accessed into almost 90-100 countries as source of international students while there are 60 other countries unexplored yet. PHEIs recruit mainly from 10 countries currently. The most commonly cited challenges in approaching new markets were the need for financial assistance to help support individual institutions’ investments in market development, the need for effective market intelligence, expanded promotion and branding of Malaysia as a study destination, and effective and timely processing of student visas.

Limited work rights and difficulty process in employability after completion of studies deter international students from certain countries to further their higher education in Malaysia3,6. Without the ability to work while studying and employment after completion of study have hinder students from 60 countries (i.e. penetration into new markets) and B40 group from current 90-100 countries (i.e. growth of the current markets) to pursue their higher education in Malaysia. Notably, international students in Australia, UK, US

and Canada are allowed work while studying and full-time during vacation, and “talents” are retained after completion of their studies (see Table 1).

A study conducted in Australia6 found that 73% of international students surveyed considered the ability to work while studying was a significant factor influencing their study destination while 77% consider the employment after completion of study as another significant factor in influencing their decision. Top nationalities who consider ability to work important include India, Vietnam, Philippines, Bhutan, Nepal, Latin America, Indonesia, South Korea, etc. In other words, Malaysia will face difficulty to increase in the number of international students from the current markets (i.e. 90100 countries) and yet students from 60 countries will not come to Malaysia because they need to work parttime to enable them to pay

for their daily needs while studying in PHEIs (including students from B40 group in current 90-100 countries).

Public Higher education

Table 7-1: Working Hours for International Students US

UK

During Semester

20 hrs/wk

During Vacation

Full-time

Figure 7-4: International student enrolment in Malaysia (2005-2019) Source: Moe, 2019

AUSTRALIA

CANADA

SINGAPORE

MALAYSIA

20 hrs/wk

20 hrs/wk

20 hrs/wk

16 hrs/wk

None

Full-time

No restriction of hours

40 hrs/wk

Full-time

20 hrs/wk (restriced)

3 ICEF. (2019). Market Intelligence Study on International Education for Education Malaysia Global Services 6 Lawson, C. (2014). International higher education student satisfaction with opportunities for work experience and employment in Australia

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7.3 Issues And Challenges Related to Internationalisation (c) Inability to retain talent in Malaysia Good international students (i.e. talent) are required to leave Malaysia after completion of their programme due to student visa requirement, lacking in employment opportunity and/or post-study work visa not allowed. It is unfortunate that Malaysia unable to retain the talent to achieve talent equilibrium.

(d) Lacking in Exporting Malaysia Education brand overseas Few Malaysian universities have branch campuses overseas namely, Asia Pacific University (APU), Management and Science University (MSU) and Limkokwing University. There is no tax incentives to encourage setting up Malaysia branch campuses in overseas or offering transnational education programmes with overseas higher education institutions.

(f) Insufficient Tax Incentives And Grants To Grow The Private Higher Education Industry And Promotion Activities In Overseas Incentives are available for education service sector but utilisation is low due to its qualifying criteria. Current tax incentives are restricted to PHEIs offering at least 70% science, technical and vocational. MoF does not recognise locational incentives except for corridors where additional incentives are given. MATRADE’s Market Development Grant is limited to SMEs only but small PHEIs in SME category will not avail itself of this grant due to large investment required. The Services Export Fund which is meant for large companies is not available for PHEIs. Regulatory issues also hinder growth of PHEIs from foreign investments.

Exhibit 7-1 Issues and Challenges for Internationalisation

Lacking in exporting Malaysia Education brand

Declining number of International Student

Insufficient tax incentives / grants

ISSUES AND CHALLENGES

(e) New programmes for growth required

Programme Diversification as An Attraction

Slow Market Growth

Most international students prefer non-science courses/ programmes.

PHEIs to introduce edu-tourism programmes to attract international students into Malaysia and provide them with rich cultural experiences.

At the same time, provide growth to tourism industry in Malaysia.

Inability to Retain Talent in Malaysia

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7.4 Objectives And Strategies To Achieve Global Prominence Malaysia as an international education hub with a difference, one that is valued by students for its competitive advantage in providing valuefor- money higher education and that balances quality and affordability with the added value of rich cultural experiences. The following principles are the basis for building global reputation of the Malaysia Education brand:

Support the Malaysia Education Brand in its promotion and export.

Provide international students in Malaysia with safety and security protection

Provide equal opportunity for each PHEIs in access to incentives, grants and funds.

Retain talent in Malaysia.

Table 7.2: Objectives, Strategies, Initiatives and Action Plan OBJECTIVE

A. Support the Malaysia Education Brand

STRATEGY

A(I). Strengthening the current markets

The strategies for pursuing the goal of building global reputation of the Malaysia Education brand are as follow:

1. Strengthening current markets and penetrating into new markets

A(I)-I Increase Malaysia Education Brand’s visibility

a) MOE to develop a policy i.e. Plan for Exporting Malaysia Education Brand. b) Increase the Malaysia Education Brand’s visibility through a concerted marketing effort by interagencies. c) Provide a “green lane” for international students in the Kuala Lumpur International Airports could enhances their recognition as students in Malaysia. d) Review validity of visa based on duration of course/ programme to a maximum of 3 years. e) Allow PHEIs with SETARA/MyQUEST 6-Star, a 5-year KDN license for recruiting international students while 5-Star a 3-year license.

3. Incentivizing the private higher education institutions and newprogrammes

The Malaysia Education Brand’s visibility can be increased through a concerted marketing effort. International education hubs, work visa during course/programme and post-study work visa upon completion of studies for international students, to be made available to attract international students from new markets and B40 of the current markets. Intensify the promotional activities overseas.

Making incentives and grants available to benefit wider education industry and encouraging sharing of resources. Provide tax incentives and grants for promoting Education Malaysia brand in overseas, offering new innovative programmes and public-private partnerships and regional collaborations.

2. Ensuring safety and security of the international students in Malaysia

Inter-agencies co-ordination and collaboration are required to ensure

Post-study work visa upon completion of studies for international students be made available in an effort to retain talent in Malaysia and to achieve talent equilibrium.

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ACTION PLAN

No restriction of hours

A(II). Penetrating into new markets

Chapter 7 : Internationalisation

B. Safety and security protection

B(I). Ensuring safety and security of the international students in Malaysia

a) Effective marketing and branding strategies. b) Actively promote and engage with alumni overseas to build leads for international students to Malaysia.

A(II)-I Attract international students from new markets

a) Establish conducive international education hubs with state-of-the art facilities, in certain designated locations within Malaysia. b) Work visa during course/programme and post-study work visa upon completion of studies for international students be made available to attract international students from new markets and B40 of the current markets. c) Allow international students to work up to 20 hours per week parttime during their course of study and up to 40 hours per week during vacation, and to participate in voluntary internship (i.e. when it is not requirement of the course).

B(I)-I Interagencies coordination and collaboration

a) MOE to develop a policy i.e. Plan for Exporting Malaysia Education Brand. b) Increase the Malaysia Education Brand’s visibility through a concerted marketing effort by interagencies. c) Provide a “green lane” for international students in the Kuala Lumpur International Airports could enhances their recognition as students in Malaysia. d) Review validity of visa based on duration of course/ programme to a maximum of 3 years. e) Allow PHEIs with SETARA/MyQUEST 6-Star, a 5-year KDN license for recruiting international students while 5-Star a 3-year license.

4. Retaining talent inMalaysia

safety and security of the international students inMalaysia, and visa processing. Establish of a framework for International Students and Ombudsman to defend international students’interests.

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INITIATIVE

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7.4 Objectives And Strategies To Achieve Global Prominence OBJECTIVE

STRATEGY

INITIATIVE

B(I)-II Increase in international students’ protection

B. Safety and security protection (cont.)

C. Incentivise the PHEIs and new programmes

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B(I). Ensuring safety and security of the international students in Malaysia

C(I). Stimulate growth of and investments in PHEIs

B(I)-III Sycronisation of varied processes

C(I)-I Make incentives and grants available for PHEIs

ACTION PLAN

OBJECTIVE

a) E stablish an International Student Protection Framework and International Students’ Charter at national level to ensure safety and security of international students in Malaysia. b) E stablish a Student Ombudsman within the PHEIs to help promote and defend the interests of students within university life. c) I nclude the element of international student voices into SETARA and MyQUEST instruments. d) Implement e-Supporting Letter and e-Check-Out-Memo via online. e) Develop Crisis Management Plan for international students. f) Develop a One-Stop Centre for international students’ complaints. g) Develop a new/improved International Students’ Management and Internationalisation Plan. h) I mprove role and function of International Students Arrival Centre (ISAC) in KLIAs. i) Review the need for PHEIs’ representative to be present physically in KLIAs to accept the international students and possibly the role of ISAC to assist PHEIs with SETARA/MyQUEST 4-Star, 5-Star and 6-Star status. a) V isa application of international students for mobility programmes to go through EMGS. b) V isa application of international students for studying in PHEIs in Sabah and Sarawak to go through EMGS. c) I mplement University Centralisation Admission System (UCAS) for admission of international students into PHEIs in Malaysia. d) International students in language centres are not required to leave the country when applying to pursue their higher education in PHEIs (including social/visitor pass, diplomatic pass etc.). e) Implement Visitor Pass (Mobility) for ODL programmes that require international students to be physically in country for less than 3-months.

STRATEGY

INITIATIVE

ACTION PLAN

C. Incentivise the PHEIs and new programmes (cont.)

C(II). Share resources

C(II)-I Encourage sharing of resources through publicprivate partnerships and regional collaborations

a) Provide double-tax deductions for private companies’ investments in international education hubs. b) Intensify Government-to-Government Economic Cooperation through leveraging on new or existing regional and bilateral FTAs for exporting Malaysia Education Brand.

D. Retaining talent in Malaysia

D(I). Retain talent

D(I)-I Made poststudy work visa upon completion of studies for international students available

a) Allow international students from low-risk countries to be given post-study work visa to allow employment opportunities after completion of their course as an effort to retain talents in Malaysia, particularly in the critical areas.

a) R eview of the current tax incentives with MIDA to benefit wider education industry (i.e. beyond science, technical and vocational) and to extend the benefits to existing PHEIs. b) P rovide tax incentives and grants for promoting Education Malaysia brand in overseas education fairs, exhibitions etc. c) D evelop and promote new innovative programmes e.g. edu-tourism programmes, and provide incentives and grants to PHEIs for promotion of such programmes through public-private partnerships. d) Incentivise PHEIs in providing TNE programmes and/or setting up branch campuses overseas (including offering transnational education programmes with HEIs overseas).

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7.4 Objectives And Strategies To Achieve Global Prominence Exhibit 7-2 Objectives and Strategies for Internationalisation

A.SUPPORT THE MALAYSIA EDUCATION BRAND

A(I). Strengthening the current markets

A(II). Penetrating into new markets

C. INCENTIVISE THE PHEIS AND NEW PROGRAMMES

C(I). Stimulate growth of and investments in PHEIs

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C(II). Share resources

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B. SAFETY AND SECURITY PROTECTION

B(I). Ensuring safety and security of the international students in Malaysia

D. RETAINING TALENT IN MALAYSIA

D(I). Retain talent

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Chapter Eight Page139 - Page 154

Achievements

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Chapter 1: Private Higher Education Institutions (PHEIs) in Malaysia

8.1 QS World University Rankings 2020 LIST OF PHEIS

8.2: QS World University Rankings by subject 2019 & 8.3: National Rating

2020

2019

2018

442

481

-

482

521 - 530

601 - 650

511 - 520

601 - 650

-

541 - 550

-

-

14th

51-100th

221th

751 - 800

-

-

801 - 1000

701 - 750

-

801 - 1000

801 - 1000

-

801 - 1000

-

-

395th

TAYLOR’S UNIVERSITY (Hospitality and Leisure) Management)

USCI UNIVERSITY (Performing Arts)

3

Private universities awarded with 6 Stars (Outstanding)

22

Private universities awarded with 4 Stars (Very Good)

UTP

(Engineering and Technology)

TAYLOR’S UNIVERSITY (Social Sciences)

15

398th

13

Private universities awarded with 5 Stars (Excellent)

UNITEN

(Engineering and Technology)

Colleges were awarded 6 Stars (Outstanding)

63

Colleges were awarded 5 Stars (Excellent)

61

Colleges were awarded 4 Stars (Very Good)

https://www.topuniversities.com

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8.4 Research Grants Awarded to PHEIs (2016-2018)

AIMST (15)

IMU (17)

8.5 International Achievements

TOP 10 CURTIN NOTTINGHAM UNIKL (18) (25) (39)

UNITEN (43)

UTAR (53)

MMU (65)

TYPES OF RESEARCH GRANTS

RESEARCH AREAS

• Fundamental Reseach Grant Scheme (FRGS)

• Pure & Applied Science

• Prototype Reseach Grant Scheme (PRGS)

• Allied Health Sciences & Clinical

MMU (65)

UTP (110)

4th March 2019 Four students from the Asia Pacific University of Technology & Innovation (APU) brought pride to their university and the country as they emerged as the Champion Team at the 2019 Ernst & Young (EY) Asia-Pacific Cyber Hackathon Challenge, took place in Hong Kong on 3rd March 2019. It was an international arena for top universities from across the Asia-Pacific to compete on strategic thinking, reasoning and technical programming skills. University teams from Australia, Hong Kong, Singapore and Malaysia were amongst the finalists.

• Engineering & Technology

• Social Science • Trans-Diciplinary Reseach Grant Scheme (TRGS) • Long Term Reseach Grant Scheme (LRGS)

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• Arts & Literature • Culture & Natural Heritage

2019 Just after emerging Champion at the Deloitte Tax Challenge 2018, TAR UC students – Thon Ding Fong, Tan Jia Lok, Liew Hung Hian and Yip Jia How once again stole the spotlight at the Deloitte SEA Tax Challenge 2019, held in Bangkok, Thailand from 28 February – 1 March 2019 where they won 1st Runner-up.

• Communication & IT

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8.5 International Achievements

April 2019

2018

A team of Business School students from the University of Nottingham Malaysia emerged as one of the winners of the Institute of Chartered Accountants in England and Wales (ICAEW) Malaysia Business Challenge 2019 held in April this year. The Nottingham team was one of two teams that represented Malaysia at the regional ICAEW China and South-East Asia Business Challenge 2019 in Singapore in 23 May 2019, where they met 11 other finalist teams from China, Indonesia, Singapore, Vietnam and Myanmar.

The national leg of the competition saw participation from 21 teams from private and public universities around Malaysia vying for two top positions.

Nottingham was represented by second-year Nottingham University Business School (NUBS) Malaysia students Alice Yong Jia Xin, Mohammad Uqail Esa, Qussay Al-Qirim, Sebastian Freeland and Shaarif Hooda, and third-year student Ri Ji Hyon. Thirdyear student Phung Pei Shan led the team in the regional finals. As National Champions, the Nottingham team received a cash prize of RM3000. -April 2019

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TAR UC student Wong Sheng Chuang demonstrated excellent skills and knowledge at the 12th WorldSkills ASEAN Bangkok 2018 in Thailand from 31 August – 2 September 2018 to claim the much coveted Medallion of Excellence award in the Web Design and Development category. Held biennially, the competition aims to promote and elevate skills standards in the ASEAN region, as well as to recognise highly skilled youths for their work excellence that complies with international standards.-

30th August 2018 Raffles College KL finalist, Lavendar Low took home the second runner-up prize at the recently concluded Sakura Collection × Japan Expo Asia Students Awards in Malaysia & Singapore Grand Prix Final 2018 / 2019. –

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8.5 International Achievements

19th December 2018 The 2018 Taiwan International Student Design Competition, organized by the Ministry of Education Taiwan. Congratulations to Raffles College of Higher Education student, Chrystal Chao Ci Xin for being awarded the Moscow Global Biennale of Graphic Design – Golden Bee Special Award & Shin for being awarded the Visual Communication Honourable Mention in 2018 Taiwan International Student Design Competition (Visual Design).-

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9th October 2018

2018

Dr Malini Eliatamby, Chief Academic Officer, INTI International University & Colleges, was named among the winners of the 2018 Blackboard Catalyst Awards in Asia for Leading Change. The award ceremony, which honours institutions who are at the forefront of educational innovation, took place at Blackboard’s annual Teaching and Learning Conference in Singapore on 9th October 2018.

Chapter 8 : Achievements

THE United Nations World Tourism Organisation (UNWTO) has awarded the TedQual certification to Taylor’s University, making it the only institution in Malaysia to receive the highest accreditation for excellence by the UN. The university was recognised for its Hospitality, Tourism and Leisure Management academic programmes and research, joining 52 other universities around the world, such as George Washington University in the United States, Hong Kong Polytechnic University and the University of Queensland in Australia. – 2018

September 2017 Management and Science University (MSU) has received the awards of Excellence in Quality International Education and Outstanding Contribution in International Education from UK accreditation body the Accreditation Service for International Schools, Colleges & Universities (ASIC). September 2017 Professor Tan Sri Shukri receiving the Excellence Award from ASIC Chairman Mr Maurice Dimmock

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8.5 International Achievements

2017

13th April 2019

Shahmeena Labeeb from Taylor’s University were recently crowned the Gold Award winners for the Interior Design and Architecture Category respectively in the 10th instalment of the AYDA, one of Asia’s premier design competition platforms that reaches out to 15 countries across Asia namely Malaysia, Singapore, the Philippines, Bangladesh, Thailand, Pakistan, Indonesia, Iran, Vietnam, China, Japan, Hong Kong, Taiwan, India and Sri Lanka. A decade in its running since 2008, this year’s AYDA had received over 5,000 student entries from more than 600 design schools across the region. –

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2019

Business students from University of Nottingham Malaysia win PwC Trust Builders Challenge. The Building Trust Challenge is a team competition for undergraduates studying in Malaysian universities or colleges. The competition challenges teams to showcase their critical thinking and business acumen by presenting a solution to rebuild trust in business.

Chapter 8 : Achievements

Asia Pacific University (APU) is the GOLD WINNER at the 2019 CyberSecurity Excellence Awards, under the Best CyberSecurity Education Provider category. This award recognize companies, products and professionals that demonstrate excellence, innovation and leadership in information security. The awards are produced by CyberSecurity Insiders in partnership with the Information Security Community on LinkedIn, tapping into the vast experience of over 400,000+ cybersecurity professionals to honour the world’s best cybersecurity products, professionals and organizations.

17th June 2019 Kolej Universiti Tunku Abdul Rahman, TAR UC reaffirms its status as the top institution of higher learning that delivers first-class theoretical and practical training in digital technology by retaining its Premier Digital Tech University recognition awarded by Malaysia Digital Economy Corporation (‘MDEC’) for the second time. The award was received by Prof Ir Dr Lee Sze Wei, President of TAR UC during the award presentation ceremony on 17 June 2019.

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8.6 National Achievements

11th April 2019 The University of Nottingham Malaysia has emerged as National Champions in the L’Oreal Brandstorm 2019 competition, which was held on 11 April 2019. The team of Business and Engineering students will represent Malaysia in at the L’Oreal Brandstorm World Finals in Paris, France, next month. L’Oreal Brandstorm is an annual international innovation competition that takes place in 60 countries and provides a platform to enhance students’ entrepreneurial and creativity skills, in addition to offering participants the opportunity to come up with innovations for the beauty industry. The business case to be solved differs each year.

Participants in the 2019 edition were challenged to ‘invent the future skincare experience for healthconscious consumers’. -

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2019

September 2018

Two gold and six silver awards - It was a clean sweep for all eight Monash University Malaysia research teams that participated in the recent 30th International Invention, Innovation and Technology Exhibition 2019 (ITEX 2019), held at the Kuala Lumpur Convention Centre (KLCC). The ‘World’s First Compact Photolithography Equipment to Manufacture Electronic Chips’ received the best score, and was awarded the prestigious Asian Invention Excellence Award 2019, the top ITEX award. The inventors were a team from the School of Engineering, led by Associate Professor N Ramakrishnan, together with his research team Dr Lee Neam Heng, Tay Jian Zhen, and Howgen Pratama Kesuma. -

Chapter 8 : Achievements

Strengthening the TVET at DRB-HICOM U. The DRB-HICOM U team comprised of Diploma and Bachelor degree students in Automotive Technology. Won 2nd and 3rd place in the Open Category of Prequalifying for National World Skills Competition 2018. It also witnessed Simon Wong from DRB-HICOM U qualifying for the final stage that will be held at CIAST in September 2018.

25th April 2018 Fatin Nadhirah Muhd Royani, a Bachelor of Civil Engineering (Hons) graduate from the Faculty of Engineering and Technology Infrastructure made Infrastructure University Kuala Lumpur (IUKL) proud when she was selected as one of the recipients of the IEM President Gold Award 2018. The award was presented at the IEM 59th Annual Dinner and Awards Night 2018, held in April at the Sunway Lagoon Hotel, Subang Jaya, Selangor.

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8.6 National Achievements

22nd May 2017 KDU was recently awarded The BrandLaureate Most Sustainable Brand Award 2016-2017 for Brand Excellence in the Education – Private University College category, a feat which is testimony to the institution’s dedication and commitment to its brand and academic excellence.-

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2017

2017

The WorldSkills Malaysia Belia (‘WSMB’) has always set out to unearth the best talents by giving them an opportunity to showcase their skills in their respective fields, and a Tunku Abdul Rahman University College (‘TAR UC’) student stepped up and stood out in the 2017 edition of the annual competition. Wong Sheng Chuang, a student of the Bachelor of Information Technology (Hons) in Internet Technology, overcame the odds to clinch a Gold medal in the Web Design category, beating 59 participants from 16 other institutions in the process.

Chapter 8 : Achievements

The International Invention, Innovation & Technology Exhibition (ITEX) is a showcase of ingenious creations. With a 2017 focus on commercialization and entrepreneurship, it provides a marketplace for the discoveries of research to be translated into commercial impact. Management and Science University (MSU) takes away from ITEX 2017, two gold and one silver for three innovations that add to living comfort.

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Chapter Nine Page155 - Page 159

Appandices • Abbreviation • Acknowledgement • Bibliography

Abbreviation

156

4IR

Forth Industrial Revolution

MEB (HE)

Forth Industrial Revolution

AARGS

Applied- and Action-based Research Grant Scheme

MOE

Applied- and Action-based Research Grant Scheme

AI

Artificial Intelligence

MQA

Artificial Intelligence

AKEPT

Akademi Kepimpinan Pendidikan Tinggi

MQF

Akademi Kepimpinan Pendidikan Tinggi

APEL

Accreditation for Prior Experiential Learning

MR

Accreditation for Prior Experiential Learning

AR

Augmented Reality

MYQUEST

Augmented Reality

AUKU

Akta Universiti adn Kolej Universiti

NCHE

Akta Universiti adn Kolej Universiti

CLBG

Companies Limited by Guarantees

NKEA

Companies Limited by Guarantees

CLBS

Companies Limited by Shares

ODL

Companies Limited by Shares

CRGS

Community-based Research Grant Scheme

PHEIs

Community-based Research Grant Scheme

ICEF

International Consultants of Education and Fairs

ROI

International Consultants of Education and Fairs

IoT

Internet of Things

SDG

Internet of Things

IR4.0

Industrial Revolution 4.0

SETARA

Industrial Revolution 4.0

KDN

Kementerian Dalam Negeri

STEM

Kementerian Dalam Negeri

T&L

Teaching and Learning

VR

Teaching and Learning

LLL

Life Long Learning

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Bibliography Amran, A., Sirat,M., Ibrahim, Y., Ismail, R., Yee, A. S. V., Wan, C. D., & Singh, K. (2019).

A study of model trends and changes in corporation that have established private higher education institutions. Putrajaya: Ministry of Education Malaysia.

AAris, N. A. (2019). Malaysia ill-prepared for IR 4.0, employers group agrees. Free Malaysia Today. Accessed on 11 September 2019 from https://www.freemalaysiatoday.com/category/nation/2019/08/17/ malaysia-illprepared- for-ir-4-0-employers-group-agrees/ International College of Economics and Finance (ICEF) (2019). Market Intelligence Study on International Education for Education Malaysia Global Services. Presented in the Symposium on International Education 2019 on 13 March 2019 at HELP University Convention Centre, Malaysia.

IDC-INTI. (2019). Graduate Readiness vs Industry’s Advancement Towards IR4.0. Malaysia: International Data Corporation & Inti International University & College.

Lawson, C. (2014). International higher education student satisfaction with opportunities for work experience and employment in Australia.

Department of Education, Australia.

MIDA. (2019). Investment Incentives. Accessed on 15 July 2019 from https://incentives.mida.gov.my/Incentives/Modules/Public IncentiveList.aspx

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Acknowledgement

Shekarchizadeh, A., Amran, R., & Huam, H. T. (2011). SERVQUAL in Malaysian universities: perspectives of international students.

Business Process Management Journal, 17(1), pp.67-81.

Shuib, M., Abdul Rahman, S., Mohd. Yusof, D., Tan, I. A. L., & Ali, A. J. (2018).

Enhancing International Student Experience for Global Prominence.

Putrajaya: Ministry of Education Malaysia.

Teng, R. (2016). The quality of private higher education in Malaysia.

The Edge Financial Daily. Accessed on 16 July 2019 from https:// www.theedgemarkets.com/article/quality-private-higher-educationmalaysia Shriberg, M (2002). Institutional Assessment Tools for Sustainability in Higher Education: Strengths, Weaknesses, and Implications for Practice and Theory. International Journal of Sustainability in Higher Education, Vol 3, No. 3 (254-270).

Spangenberg, H. Joachim (2002). Institutional Sustainability Indicators: An Analysis of The Institutions in Agenda 21 and A Draft Set of Indicators for Monitoring Their Effectivity. Sust. Dev. 10, 103–115.

Williams, G. (2018). Private universities facing major financial crisis, need help. Free Malaysia Today. Accessed on 16 July 2019 from https:// www.freemalaysiatoday.com/category/opinion/2018/12/02/ privateuniversities- facing-major-financial-crisis-need-help/ Zubaidi, K. O., & Rechards, C. (2010). Arab postgraduate students in Malaysia: Identifying and overcoming the cultural and language barriers. Arab World English Journal, 1(1), pp.107-129.

Chapter 9 : Appandices

The Minstry would like to express its sincere appreciation and gratitude to all who have contributed to the Way Forward for PHEIs: Education As An Industry (2020-2025). In doing so, the Ministry recognises that contibutions provided below. Many unnamed contributors directly and indirectly provided information, valuable advice, and opinions during the preparation of the working papers, consultative documents, as well as the drafts of the Way Forward for PHEIs: Education As An Industry (2020-2025).

Taskforce Team

Writers Team

• Datuk Ir. Dr. Siti Hamisah Binti Tapsir • Dato’ Ir. Prof. Dr. Mohd Saleh Bin Jaafar (MOE) • Dr. Zubaidah Binti Aman (MOE) • Dr. Siti Nor Afzan Binti Buyadi (MOE) • Pn. Nora Binti Razali (MOE) • Pn. Norul Husna Binti Ibrahim (MOE) • En. Shahril Aizat Bin Ahmad (MOE)

• Abdullah Sallehuddin B Abdullah Salim • Adibah M. Russ • Ahmad Izanee Awang • Amir Hamzah Md. Isa • Angelina Seow Voon Yee • Chan Teng Heng • Chin Yuk Fong • Dennis Wong • Elajsolan Mohan • Elizebeth Lee • Graeme Wilkinson • Guan Eng Chan • Gupardeep Singah • Hilmi Mukhtar • Ho Chin Kuan • Izham Abdul Kadir • Janice Yew • Kamarul Bakri • Khalid Yusof • Mahiswaran Selvanathan • Mohaizi Bin Mohamad

Editors Team • Prof. Dr. Ku Nor Izah Ku Ismail (UUM) • Prof. Madya Dr. Marlia Binti Puteh (UTM) • Dr. Angelina Seow Voon Yee (NMC) • Dr. Mahiswaran Selvanathan (IPPTN) • Dr. Mohamad Kamal Bin Mohamad Dasuki (UTMSPACE)

• Nakoe Bin Hj. Abu Bakar Mansor • Neo Mai • Nik Nasri Bin Nik Ahmad • Noor Rosmawati Yusuf • Nor Azila Mat Khan • Norayini Bt Ali • Noryasmin Jamaludin • Praba Koran • Pradeep Kumar Nair • Pramjit Singh • Preeti Chandran Nair • Ramlee B. Mohd Junus • Roshana Ariffin • Siti Fauziah Hassan • Tai Kong Chin • Thian Lok Boon • U K Menon • Wan Ahmad B Wan Yusoff • Wong Khen Thau • Yeah Kim Leng • Zubir Bin Che Embi

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Š Ministry of Education Malaysia 2019 All rights reserved. No part of this publication may be reproduced, copied, stored in any retrieval system or transmitted in any form or by any means – electronic, mechanical, photocopying, recording or otherwise; without prior permission in writing from the Ministry of Education Malaysia.