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Aligning Private Higher Educationwith National Human CapitalDevelopment Agenda

Malaysian Development Institute (MDI), EPUPrime Minister Department

National Private Higher Education 2008,Putrajaya International Convention Center, 19 November, 2008.

* Views and opinions expressed in this presentation are those of the presenter and do not necessarily reflect the views of the Economic Planning Unit or the Government of Malaysia.

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Talent

Economic-growth Driven Agenda

Features of Human Capital

InvestmentDriven

FactorDriven

InnovationDriven

P-economy

K-Economy

Transition

Transition

Stage of Development

PAST AS-IS FUTURE

R-economy

Knowledge & Skill

Innovative &Creative Capability

Strong ethics &universal values

Shifting the Economy

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Income-driven Agenda

International Education Hub - New sourcesof growth (Service Sector)

100,000 foreign

students studyingin Malaysia by2010

-10.7 -10.2

-4.5

11.2

18.1

34.4

-15

-5

5

15

25

35

Services Travel

2005 20102000

Source: Ninth Malaysia Plan 2006-2010; The National Higher EducationStrategic Plan Beyond 2020

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The national agenda is good

for all and critical for nation’ssustainable growth BUT…

….if we leave it to free

market , will the alignmenttakes place?

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Growth vs Income vs Socio Agenda

Economic-Growth

SocioIncome

New growth areas(Nanotech, Biotech,Agri, Aerospace,etc.) vs Provenmarket (Business,Accounting, IT, etc.)

Foreign vs Local(Institutions,talents, etc.)

International

Education hub vsEthnic balance

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National Agenda vs Private Motives

My Brain 15 (100,000PhDs by 2020)

60:40 for S&T

100 RSE/ 10,000workers by 2020

increase facultieswith PhD

more laboratoryfacilities

increase graduatestudent intake

Lesser students(Out of 365,800 students in IPTS,

only 3,814 (~1%) enrolled ingraduate level – Masters & PhD)

Higher CapitalInvestment

(Only 0.63% of GDP for R&D,compare to 3.12% for Japan)

High cost(Only ~ 2% teaching staffs in

IPTS with PhD)

Source: The National Higher Education Strategic Plan Beyond 2020; Perangkaan PengajianTinggi Malaysia 2007

Naturally, there will be only partialalignment to the National Agenda, i.e.those that are parallel to privatemotives – needs for alignment

strategies

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Checklists for alignment

• What prevents free market to take it up?

Address Natural Market Failures

• Will the measures effect market development?Ensure Pro-Market Development

• Will the measures compromise private profit target?

Non-conflicting with Private Motives

• Will the alignment be costly and self-running?

Cost to Comply & Self-sustain

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Thank YouMalaysian Development InstituteLevel 1, Block B5, Economic Planning Unit(EPU)Prime Minister’s DepartmentParcel B, Federal Government AdministrativeCentrePUTRAJAYATel: +603 88883910Fax: +603 88883961