PETALING JAYA: The National Association of Private Educational Institutions said steering more foreign students towards private universities could hold the key to sustainable growth in Malaysia’s higher education sector.
Its deputy president Dr Teh Choon Jin said private institutions operating on fee-driven models have the capacity to take in more international students without compromising places for Malaysians in subsidised public universities.
“This approach safeguards fairness for locals and strengthens the private higher education sector.
“When private universities grow, the ripple effects boost demand for housing, food, transport and local services. Stronger finances also allow these institutions to reinvest in teaching quality, facilities and student support.”
He said Malaysia’s ambition to host 250,000 foreign students by 2030 is attainable, provided enrolment is managed wisely to benefit both public and private institutions.
He added that public universities, funded by taxpayers, should continue to prioritise Malaysians at the undergraduate level, while admitting more foreigners at the postgraduate and research stages, in which their contribution adds value in collaboration, innovation and global rankings.
“Implementing a fair cap on foreign student enrolment in public universities would also reassure locals that opportunities remain protected.
“Private universities, which currently host about 60% of foreign students, are better positioned to absorb additional international enrolment. Their business models rely on tuition fees and they have the capacity to expand without displacing local students.”
He also said by dividing roles clearly, with public universities leading postgraduate internationalisation and private universities driving undergraduate enrolment, Malaysia could build a balanced and sustainable higher education system.
“Malaysians benefit, private institutions grow and the country strengthens its global standing.”
Teh said policy reforms are essential to keep private universities competitive as foreign intake grows.
He added that immigration, police and government agencies, including Education Malaysia Global Services, the Higher Education Ministry and the Home Ministry, must work in sync to streamline regulations, ensure smooth visa approvals and prioritise student safety and welfare.
“Expanding work rights and post-study opportunities to more nationalities is also key. Currently, such opportunities are limited, placing Malaysia at a disadvantage compared with regional competitors.
“Allowing international students to take on part-time jobs without layers of red tape would make Malaysia far more attractive.”
Teh also raised concerns over financial clarity, particularly regarding the application of the Sales and Service Tax to scholarships and international student fees.
“Clear and fair rules would prevent students and universities from being caught off guard or unfairly burdened.”
He urged the government to place private universities at the centre of Malaysia’s internationalisation strategy, complementing public institutions with their scale, agility and industry linkages.
“They could act as the main access providers for foreign students, allowing public universities to focus on postgraduate research and specialised disciplines.”