"Higher Education Business at the Crossroads"

 by Professor Dato' Dr Ahmad Ibrahim, Tan Sri Omar Centre for STI Policy Studies, UCSI University

Ali scored 8As in his 2021 SPM. That would have easily secured him a place in the university. Under normal times, it would be common practice for students who have scored well in their SPM to apply for a university degree. They look to studying for a degree to land a good career. 2022 is not a normal year though. This is because according to the latest information, more than 70% of SPM holders have not bothered to apply for a university place, a big departure from the normal year. This is quite unexpected and has taken the higher education business in the country by surprise. Ever since the government embarked on the strategy to make Malaysia an international hub in higher education, private investments in higher education have witnessed a jump. The business was doing well for several years until the pandemic. It was badly disrupted during the pandemic especially since overseas students could not come. 

     Admittedly, we are not quite there yet in making the country an attractive international hub for higher education. But we are making credible progress. Many of our universities are now internationally recognised, including a few privately run universities. However, the process of bringing in international students’ needs some fine tuning, especially the part which concerns the visa. Now that international students can travel as covid restrictions are lifted, universities are starting to reach out to the overseas market. Universities with excellent track record like UCSI do not face much problem attracting foreign students. But the biggest headache is the local students. It has become known that many among our recent SPM graduates have given a cold shoulder to university admission. They have opted to instead work first before thinking of a university degree. This may have resulted from the disappointment university graduates faced securing jobs. Many believe this may be the trend. The higher education business must strategize differently now that the game is changing.

     In the higher education business, the courses offered are essentially our products. Making sure that the products would fulfil the demand of the higher education market is key to the success of the business. Therefore understanding the marketplace is a critical prerequisite of the courses succeeding. This is where the market report must be comprehensive, not only looking at potential demand but also the competing suppliers of similar courses in the market. Very often, the market study is not done elaborately. In fact, many higher education institutions have established teams dedicated to deep market research on the courses to be offered. As is true for higher education courses, not much different from manufactured products, they become obsolete with times. The practice of reviewing and revamping courses is common among universities. It is done every few years. Unfortunately such exercise often does not take into account the changing market.

     The market does constantly undergo changes not only because of changing technology but also because of changing expectations from consumers. The expectations from consumers, which include the students and the industries, do change because of changes in business trends. There is no denying the fact that consumer expectations have shifted in recent years. One major driver of change is the world concern over the potential global climate crisis which looks more real by the day. Businesses which must take part of the blame for the looming crisis, mainly because of business practices which contribute to the rise in carbon emissions, are now under pressures to embrace the world sustainability agenda. The agenda encompasses making sure their businesses do not compromise the wellness of the environment, the wellbeing of society and practice of good governance, as embodied in the ESG international standards. The technology to deliver courses has also witnessed change as a result of the pandemic. Like most industries, the higher education business has also to go digital.

    Few would disagree that the higher education business is at a crossroads. The traditional way of doing business is no longer acceptable. The introduction of new courses must now undergo more rigorous market study. The courses must also take into account the changing consumer expectations as well as technological development. Not taking such measures would not augur well for the success of the higher education business.