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Education
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Malaysia’s education sector continues to evolve as a key driver of national and regional development, spanning early childhood education to tertiary levels and professional training. As the Malaysia Education Blueprint (2015-2025) nears its end, the Government is drafting the new Malaysia Future Education Blueprint 2026-2036, which introduces comprehensive reforms to enhance education quality, accessibility, and relevance. This blueprint focuses on modernizing the education system by integrating Artificial Intelligence (AI) and digital tools, while also strengthening English proficiency in STEM subjects alongside Bahasa Melayu. Additionally, it promotes equality and flexibility, allowing schools to tailor teaching methods to foster both academic excellence and personal growth.
Private Higher Education Institutions (PHEIs) continue to play a critical role in developing human capital for Malaysia and ASEAN. As of February 2025, over 270 colleges offer Diplomas and Bachelor’s degrees, while universities provide Master’s and PhD programs. With growing global competition, PHEIs are adapting by expanding STEM education, enhancing industry-driven curricula, and integrating AI-powered learning tools to equip students with future-ready skills.
According to the ‘Graduate Statistics 2023’ report by the Department of Statistics Malaysia (DOSM), the number of university graduates increased by 4.2%, reaching 5.74 million in 2023. However, the demand for highly skilled professionals continues to grow, prompting educational institutions to focus on digital literacy, critical thinking, and technical expertise to meet industry needs.
The Malaysian government is increasing its investment in education, research, and skills development to enhance technological capabilities and workforce readiness. Under Budget 2025, the Higher Education Ministry will see a total allocation of RM18 billion up from RM16.3 billion in 2024. The Government has allocated RM4 billion for scholarships, loans, and education allowances, while the National Higher Education Fund Corporation (PTPTN) will provide RM500 million in educational loans, with a focus on students pursuing STEM-related subjects.
The budget for research and development (R&D) has been raised to RM600 million, with RM50 million allocated for AI-related education and RM20 million dedicated to producing more electrical and electronics (E&E) engineers to support the semiconductor industry. In addition to advancing AI applications in healthcare, cybersecurity, and language development, the Government is also strengthening technical and vocational education and training (TVET).
Malaysia continues to attract international students, further solidifying its position as a preferred destination for higher education. Its PHEI landscape includes renowned international campuses, such as Swinburne University, Curtin University, Monash University, University of Nottingham, Heriot-Watt University, Newcastle University Medicine, University of Southampton, University of Reading, and Xiamen University Malaysia.
96
Approved Projects
RM613.5 mil
Total Approved Investment in 2024
640
Job Opportunities
Private Universities/Colleges: 27
International Schools/Pre-School/Tuition Centres/Language Centres: 21
TVET Institutions: 48
For more statistics, please click here.
Beyond higher education, the Government values TVET as mainstream education, essential for Malaysia’s industrial progress. The Government-Industry TVET Coordination Body (GITC) facilitates collaboration between sectors, aligning TVET with industry demands in areas like automotive, semiconductor, aerospace, and more.
Ensuring equitable education access is vital to address social disparities. Private Higher Education Institutions (PHEIs) provide avenues for high school graduates to pursue studies when public options are limited. Private TVETs, like Penang Skills Development Centre (PSDC), offer industry-oriented courses with strong job prospects. The National Higher Education Fund Corporation (PTPTN) currently provides loan options for students in both public and private institutions.
MIDA offers incentives under the Promotion of Investments Act (PIA), 1986, and Income Tax Act, 1967. New or expansion projects of TVET institutions and PHEIs are eligible for the following incentive:
Investment Tax Allowance (ITA) of 100% of the qualifying capital expenditure incurred within a period of 10 years. The allowance can be offset against 70% of statutory income for each year of assessment.
Equity Ownership
