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Education
Last Updated : 17/3/2017 11:22 AM
 Where we are today

Education is one of the most critical drivers for our transformation from a middle to high income nation due its impact on productivity and human capital development. It is also an engine of growth in its own right. The sector contributes approximately RM27 billion or 4 percent of GNI in 2009. There are several important opportunities for improvement as the current education sector is filled with sub-scale SMEs, has limited international focus and lacks harmonised regulations.

Vision for the future
The focus of the Education NKEA will be on strengthening the private education services sector by increasing private consumption and investments as well as expanding education exports. We envision a rebranding of Malaysia—from a stopover location for education to a major education centre of choice and a pivotal hub in the global education network. We envision a 2020 where education is a big business that delivers significant, widespread and sustained GNI impact, while raising standards and widening access. Only then will Malaysia be able to develop the first-world talent base that it both needs and deserves.

Targets and aspirations
The Education NKEA is targeted to raise total GNI contribution by RM34 billion to reach RM61 billion by 2020. As public sector growth is expected to be limited, this goal will require the private education sector to grow six-fold. 

In achieving this, an additional 536,000 jobs will be created, with the majority of them in professional and technical fields. We also aspire to triple our foreign student enrolment from around 70,000 today to 200,000 by 2020.

A total of 13 EPPs have been developed across three themes to raise overall education standards and deliver significant results within a 10-year time frame.

  1. Rapid scale-up initiatives
    A major challenge for the industry is fragmentation and lack of scale. Accordingly, we need to encourage existing providers to increase capacity, or make it easier for new providers to enter the market. At the same time, we need to maintain high-quality standards and prevent any crowding out of existing providers.

  2. Concentration and specialisation initiatives
    A discipline cluster is a network of academic institutions and industry players that partner to improve offerings and raise standards so as to expand their reach and recognition. Such clustering will enable Malaysian institutions to address the challenges of scale and quality that beset the industry by allowing them to leverage shared resources, jointly mitigate risks and develop proprietary quality standards in coordination with industry. Multiple discipline clusters can be developed to meet the human capital pipeline needs of each NKEA sector.

  3. Demand generation initiatives
    There are significant opportunities across the education sector to substantially increase individual willingness to pay for high-quality course offerings as well as to export education by developing Malaysia as a regional education hub.

Enabling growth
Achieving our aspiration of six-fold growth will require RM20 billion in funding over the next 10 years, of which only 6 percent constitutes new public funding.

We have also identified five sector-wide enablers critical to unleashing the full potential of the private education market, ranging from improving access to supply-side financing to raising quality through regulatory reform. These enablers will help private providers meet demand opportunities, promote more public-private partnerships in the funding of education and empower students and families as paying consumers.

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