PETALING JAYA: Private higher education institutions (PHEI) in Malaysia have boomed over the years, thanks to the quota system and limited seats in public universities, especially for high-demand courses such as medicine, engineering and technology.
However, National Association of Private Educational Institutions secretary-general
Dr Teh Choon Jin told theSun that PHEI face challenges in quality and credibility, as lengthy accreditation processes delay new courses, and institutions failing to meet standards risk losing public confidence.
“Higher Education Ministry statistics show that the number of PHEI fell from 437 in 2020 to 388 in 2023, or 49 institutions shutting down in the last four years.
“Many of these PHEI struggled under the weight of financial constraints as they receive little to no government aid despite their crucial role in reducing the burden on public universities.”
Teh said other key factors that drove students to private institutions include the growing middle class, 3+0 programmes introduced after the 1997 Asian financial crisis, and partnerships with renowned overseas universities that made private education appealing.
“PHEI evolved from offering diplomas to becoming an integral part of the country’s tertiary education system through online learning, micro-credentials (a series of courses that culminate in a digital badge from an accredited university), and technical and vocational education and training programmes to meet Industry 4.0 demands.
“Their growth came with challenges such as intense competition among PHEI, compounded by an oversupply of seats and affordability due to rising operational costs and a declining birth rate, which reduced the pool of prospective local students.”
To compensate for the local shortfall, international students were sought to make up 14% of PHEI enrolments to sustain the sector, and achieve a target of having 250,000 international students by the end of 2025.
“Most international students come from China, Indonesia, Bangladesh and the Middle East, and only licensed PHEI are able to recruit them. They were drawn to the country due to course affordability, English-medium instruction and cultural ties.”
Teh said while the Malaysian Qualifications Agency (MQA) ensures that academic programmes meet high standards, the lengthy accreditation process often delays the introduction of new courses, affecting the quality and credibility of PHEI to offer state-of-the-art programmes.
“Balancing compliance with innovation is essential. Institutions that fail to meet standards or student requirements risk (eroding) public confidence.
“So, there is an urgent need for the authorities to speed up approvals and help PHEI innovate by offering niche and industry-required programmes, even through micro-credentials and flexible learning options.
“The increasing demand for online education and emerging fields, like artificial intelligence and renewable energy, presents new avenues for institutions to differentiate themselves,” he said.
Teh added that government initiatives, such as promoting public awareness about accreditation and supporting collaborative efforts, could also bolster the PHEI sector. Strengthening industry connections and integrating advanced technologies are also key to staying competitive.
He urged students and parents to verify the accreditation status of programmes through the MQA portal.
“While the majority of programmes are accredited, new or specialised courses may still be pending approval.
“Public awareness about accreditation is particularly important in the context of online and distance learning models. Unregistered entities offering foreign qualifications can create confusion, potentially leaving students with unrecognised credentials,” he said.
Teh said the contributions of PHEI to the national economy and skilled labour development cannot be understated, but its future hinges on addressing financial and regulatory challenges, fostering innovation and maintaining high standards of education.
“The sector has the potential to thrive once again by adapting to market demands and leveraging growth opportunities.
“With stronger government support and a focus on quality, PHEI can continue to play a pivotal role in shaping the nation’s educational and economic landscape.”
