PETALING JAYA: As international enrolment grows in public universities, education experts say Malaysia must establish a clear and sustainable funding framework to strike a balance between safeguarding the placement of local students and tapping foreign fees as income.
Universiti Putra Malaysia Putra Business School Assc Prof Dr Ida Md Yasin said a transparent system is needed to determine how much of university costs should be borne by taxpayers and how much by international students or their governments.
“For bachelor’s degrees, public universities heavily subsidise local students, while foreign students pay higher fees. At the postgraduate level such as master’s and PhD, universities accept foreign students more freely, with fees significantly higher compared with locals.
“So, the ideal balance between public funding and foreign student revenue depends on the level of study.”
She added that the balance also varies between public and private institutions.
She said public universities prioritise Malaysians for bachelor’s programmes, with limited places for foreigners, while private universities could admit as many international students as they deem fit.
“Public institutions are subsidised by the government, which allows for lower tuition fees for locals, whereas private universities rely solely on student fees, so tuition cost is much higher.
“The challenge is finding a sustainable system that generates revenue without reducing opportunities for local students.”
She also said the country has adapted funding models from the UK, Singapore and Australia, with the Higher Education Ministry having tested various approaches.
“We provide scholarships and other financial support not only to students from partner countries, but also to others with good academic results.
“In short, (there are) a variety of funding options that could be further refined to strengthen our higher education system.
“When foreign students come to study here, it not only benefits the universities financially but also strengthens Malaysia’s profile as a welcoming destination for international education.”
Ida said Malaysia is positioned to seize opportunities from shifting global demand, particularly as more Chinese families look beyond the US for postgraduate options.
“Students appreciate that Malaysia is nearby, culturally welcoming and offers familiar comforts, such as Chinese cuisine. African students also feel respected and at home here, something they may not experience in other countries.
“By attracting more international students in a structured way, universities could generate revenue while continuing to safeguard opportunities for locals.”
She added that Malaysia should also capitalise on the potential of educational tourism in the coming decade.
“There are many types of tourism, including health tourism and education tourism. If we could promote education tourism, it would be good for the country’s income and further strengthen Malaysia as a destination for international students.”