Education as a commodity for the masses

Education as a commodity for the masses

By Thong Lay Kim

The extraordinary growth of higher education in Malaysia will propel the country's industrialization plane.

SINGAPORE: Since the late 1980s, Malaysia has embarked on an intensive industrialization program in pursuit of its aspiration to become a developed industrialized nation by the year 2020. The economy has recorded a national growth rate of more than 8 percent per annum for the past seven years. The economic boom looks set to continue unabated into the 21st century.

In meeting the increasing demand for manpower, Malaysian higher education is undergoing a dramatic transformation. This transformation is marked by two related phenomena - "massification" and "commodification" of higher education. Higher education, which was historically elitist, is now available to the masses because of its rapid expansion especially with the active participation of the private sector in the industry. It is also being marketed as a commodity.

The massification and commodification of higher education has occurred as a result of the broader process of economic globalization. This process was first exemplified in America, then continental Europe and Britain. The trend is now manifesting itself in Malaysia as its economy is rapidly being integrated into the global market.

The current shortage of manpower has resulted in the increasing demand for higher education in Malaysia. This demand is expected to intensify. The overall enrollment of full-time students in public institutions is expected to increase by 63 percent, from 153,600 in 1995 to 251,100 in the year 2000. Out of the total of 153,600 overall enrollment in the local public tertiary institutions in 1995, a total of 89,600 were studying in programs at the degree, post-graduate and advanced diploma levels. In addition, a total of 50,600 Malaysians were enrolled for degree programs overseas while 6,100 were enrolled in local private institutions. Enrollment in private higher institutions continues to rise to meet the manpower shortage of the industrializing economy.

The Malaysian government has accorded high priority to education in nation-building in order to provide a sufficient pool of labor which is well-educated, highly-skilled and strongly-motivated. However, government efforts in the expansion of public tertiary institutions has been inadequate in meeting the demand. Efforts have to be supplemented by the participation of the private sector. Apart from high demand, a factor that encourages private sector participation in the education industry is that public institutions are usually slow in responding to market demand in terms of offering programs in emerging disciplines. The private sector, by being market-driven, is quick to capture the changing market in manpower needs.

Since the 1980s, there has been a gradual shift towards greater private sector initiative and a market-driven economy in Malaysia. Economic liberalism and deregulation linked to the New Development Policy (NDP) formulated in 1990 have led to the extensive participation of the private sector in the education industry. Thus, the 1980s saw the beginning of a proliferation of private colleges in Malaysia. Today, there are about 300 private colleges registered with the Ministry of Education. Private education is a thriving business, with active participation by large finance corporations and property developers which are public-listed companies on the Kuala Lumpur Stock Exchange.

The focus of the higher education curriculum has also shifted. Initially, the curriculum focused on the academic disciplines of pure arts and sciences, and the professional programs of medicine, law and engineering. The Malaysian public university was modeled after the traditional British university which was historically elitist, mainly preparing graduates for the public sector.

Today, the manpower needs of the industrializing economy are more in the applied disciplines especially in the science and technical-related fields, business and management studies, the professional fields of engineering, accountancy, and information technology and computer studies. A variety of qualifications ranging from pre-university or foundation program, certificates, diplomas, advanced diplomas, degrees and post-graduate degrees are offered in these fields.

As the status of private colleges do not permit them to grant degrees, partnership arrangements are made with foreign universities in most English-speaking countries (such as Great Britain, the US, Australia, Canada and New Zealand) whereby the Malaysian students study partly in the local colleges and then complete the rest of the program at the partner universities overseas. Such educational programs are very popular. From the parents' perspective, these twinning programs help to reduce their children's educational cost. The tuition fees for the years of study spent in the private local colleges are approximately only half those charged at the overseas partner universities. Also, students save on the living expenses which are usually higher overseas.

From the country's perspective, the availability of the twinning degree programs means less of an outflow of Malaysian currency overseas because part of the program is carried out locally.

Apart from twinning programs, there are also credit-transfer programs, modular programs, distance learning, part-time and weekend programs and so on. The various tertiary programs (some even packaged with financing facilities), are marketed aggressively to cater to the different needs of students, including mature working students who are looking for professional upgrading and a career change. The profile of tertiary students has changed. No one wants to be left behind in terms of qualifications and career advancement in times of an economic boom.

The direct economic relationship between higher education and economic growth is taking priority over the political and socio- economic restructuring objective of higher education. The present economic liberalism and deregulation are aimed at boosting the development of the private sector, including promoting higher education as an industry. To this end, the legal framework is already in place.

Since late 1995, five bills have been passed by the Malaysian Parliament to permit major reforms to higher education, namely, the Education Act, 1995; the Universities and University Colleges (Amendment) Act, 1995 (UUCA); the Private Higher Educational Institutions Act, 1996 (PHEIA); the National Council on Higher Education Act 1996 (NCHEA); and the National Accreditation Board Bill (NABB) 1996. These bills set the pace for the liberalization of education.

The amendments to UUCA 1971 provide for the corporatization of the public universities to enable the institutions to be more responsive to market demand and hence more competitive in the business of providing higher education. The PHEIA sets the stage for the establishment of private universities and branch campuses of foreign universities (the establishment of private universities was unthinkable not so long ago, when university education was highly state-regulated).

In the light of expanding higher education, the National Council on Higher Education was established to provide policy directions and strategies to plan and coordinate the development of both public and private higher education institutions (NCHEA 1996). The passage of NABB 1996 culminates in higher education reforms. The Board formulates and oversees policies on standards and quality control in the award of certificates, diplomas and degrees by private educational institutions.

The effective implementation of these legislations is crucial in ensuring that students are not short-changed in their education by the profit motive of the private sector. The government must ensure that social responsibility is discharged by the education providers.

Additionally, maintaining educational standards and quality are critical in view of Malaysia's aspiration to become a center of educational excellence.

Higher education is currently being developed further to cater not only to the domestic market but also as part of an overall strategy to promote education as an export industry and the marketing of Malaysia as a center of higher education. The manpower needs triggered by the current economic boom in Asia constitute conditions favorable to Malaysia's potential as a regional education center. The higher education institutions in Malaysia are already attracting a number of foreign students from neighboring countries, namely Vietnam, Singapore, Brunei Darussalam, Pakistan, Korea and Japan.

Dr. Thong Lay Kim is a Lecturer in the Faculty of Education, University of Malaya, Kuala Lumpur.