1 1 Cross-Border Higher Education (CBHE) for Labor Market Needs: Mobility of Public-Funded Malaysian Students to Japan over Years Paper presented for the 14th UNESCO-APEID Conference on October 23, 2010 (Session 5.B.2 Cross-border Higher Education for Regional Integration and Labor Market in East Asia: Case of Malaysian-Japanese Cooperation for Human Japan International Cooperation Agency Research Institute (JICA-RI) Yoshiko Koda ([email protected]) Takako Yuki ([email protected]) Yeeyoung Hong
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Cross-Border Higher Education (CBHE) for Labor Market ... · 4 Motivation: Why Labor Market Outcomes of CBHE? (1) • CBHE is considered as an effective tool for HRD but also involves
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Cross-Border Higher Education
(CBHE) for Labor Market Needs:
Mobility of Public-Funded Malaysian
Students to Japan over Years
Paper presented for the 14th UNESCO-APEID Conference on
October 23, 2010 (Session 5.B.2 Cross-border Higher
Education for Regional Integration and Labor Market in East
Asia: Case of Malaysian-Japanese Cooperation for Human
(2) Human Resource Development (HRD) • HRD policies
• Domestic Higher Education Institution (HEI) Development
• Cross-Border Higher Education (CBHE)
(3) Manufacturing firms‟ view on high level HRD
3. Malaysian Students in Japan
4. Findings of labor market outcomes of CBHE: a case between Malaysia and Japan (i.e., “HELP”)
(1) Post Graduation Activities
(2) Sectors of Employment (Relevance)
(3) Location of Employment (Brain Drain)
5. Changing roles of Japanese ODA
3
Introduction
4
Motivation: Why Labor Market
Outcomes of CBHE? (1)
• CBHE is considered as an effective tool for
HRD but also involves risks such as low
quality and brain drain for sending
countries (OECD and World Bank 2007)
• Not many evidence-based research on the
effectiveness of CBHE
5
Motivation: Concentration of Japanese ODA for
High Level Human Resource Development
• Post-secondary education accounts for the largest share in Japanese ODA in education
• Japanese ODA loans has been financing Malaysian as well as other ASEAN countries‟ CBHE programs over years
0
200
400
600
800
1000
1200
1400
2001 2002 2003 2004 2005 2006 2007
UnspecifiedPost-SecSecondaryBasic
(source) By author based on OECD.Stat Extracts, accessed on Apr.16, 2009
Figure 9b. Japan's ODA for Education by Subsector (Commitment, Calendar year, current US$ million)
(Source: Yoshida 2009 Background paper for UNESCO EFA GMR 2010)
6
Motivation: Why Malaysia as a Case?
1. Rapid economic development of Malaysia• Needs to transform its economy to a next phase
• Needs of high level human resource development
2. Active in high level human resource development (HRD) through
• Domestic higher education system development
• CBHE both as a sending and host country
3. Japan assisting Malaysia in HRD over years, Also unique case of using various modality of ODA (grant, loans) and various forms (traditional and new forms of CBHE) can be a model?
⇒ lessons &policy implications for Japanese ODA
⇒ research significance, opportunity, feasibility
7
Research Question
• How and to what extent have the cross-border higher education programs, assisted by the Japanese ODA loans, met the HRD needs of the manufacturing industry, under changing economic and educational contexts over time?
Specifically, we focus on initial post graduation activities (i.e., employment, skill relevance, and brain drain) of “HELP” graduates between 1999 and 2008 (studied from mid-1990s) in this paper
8
Definition, Methods, and Data
• Background research
• Our definition of CBHE in this paper
includes conventional study abroad as well
as newer modes, namely twinning
• Descriptive statistical analysis
• Use of project data for Higher Education
Loan Project (HELP) with limited scopes
• Other published and unpublished data
9
Contextual Background
10
Context 1: Changing Malaysian
Economy
• Rapid economic development
• Malaysia has been a preferred location of FDI and its economy has grown rapidly in the past few decades
• Japan has been one of the main foreign investors, especially in E&E industry
Japanese Foreign Direct Investment (FDI) in Malaysia
by Industry (5 year average in Manufacturing Field),
1990-2004
0%5%
10%15%20%25%30%35%40%45%50%
Elect
ric
Ferro
us/N
on-fer
rous
Che
mistry
Tra
nspo
rtatio
n
Woo
d an
d Pul
p
Mac
hine
ry
Tex
tile
Food
Oth
ers
Sh
are
in
to
tal
man
ufa
ctu
rin
g
1990-1994
1995-1999
2000-2004
Source: Taigai Oyobi Tainai Chokusetsu Toshi Jokyo, Ministry of Finance of Japan
Downloaded from http://www.mof.go.jp/1c008.htm on 5/21/10
11
Context 1: Changing Malaysian
Economy
• but…
– Other countries (e.g. Thailand) caught up
around 2000, losing comparative advantage as
a low cost production site
• Need to transform its economy to high
value-added one
– Relatively small pool of high-quality workforce
for Malaysia to become a preferred location for
higher value-added industries (PICS 2003)
12
Prior to the 9th Plan
• Private higher education institutions not allowed to award first degrees before 1996
– Formed partnerships with domestic or foreign universities to offer first degrees (Sirat 2006).
• 1996: A series of laws including Private Higher Education Act
• 1998: Private higher education institutions started to award degrees when the Ministry of Higher Education introduced the 3+0 arrangement (Sirat 2006).
The 9th Plan (2006-2010) addresses:
• Human resource development at tertiary level
– 40 % tertiary education participation rate (17-23) by 2010
– Increase of post-graduate enrollment, especially science and technology.
• Improvement of Malaysian higher education institutions
– Benchmarking to international standards
– Development of regional center of excellence for education and training and Malaysia will receive 100 thousand foreign students by 2010
Context 2: HRD Policies
13
Context 2: Domestic HEI Development
Number of HEIs with University Status by the Year of
Establishment (as of 2007)
0
1
2
3
4
5
6
7
8
9
10
pre199
6199
7199
9200
0200
1200
2200
3200
4200
5200
6200
7
Nu
mb
er
IPTA
(Public)IPTS
(Private)
Source:Tables 2.27 (IPTA), 3.42(IPTS),Malaysia Higher Education Statistics,Ministry of Higher Educatiion
Data downloaded from www.mohe.gov.my/web_statistik/#data_macro on 7/9/10
Note: IPTA (INSTITUT PENGAJIAN TINGGI AWAM): Public University
IPTS(INSTITUT PENGAJIAN TINGGI SWASTA):Private University
14
Context 2: Rapid Increase of
Enrollment at Domestic Universities
• The number of engineering students enrolled at undergraduate level almost doubled from38,649 in 2002 to 75,170 in 2009
• But stayed around 15 to 17% of the total number of undergraduates since the latter also nearly doubled during this period
Share of Students Enrolled in Technology-related
Fields to Total Enrollment at Each Level (%)
2002-2009
0%
5%
10%
15%
20%
25%
2002
2003
2004
2005
2006
2007
2008
2009
Under-gradaute
Master
PhD
Note : Technology-related fields include engineering, architecture, manufacturing etc.
For details, see individual table in original source.
Source: Authors' calculation using the data from Malaysia Higher Education Statistics,
Ministry of Higher Educatiion
Data downloaded from www.mohe.gov.my/web_statistik/#data_macro on
15
Context 2: Increasing Number of Graduates
with Domestic University Degrees
Number of Higher Education Graduates in Malaysia by Level, 2002-2008
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
2002 2003 2004 2005 2006 2007 2008
Year
Nu
mb
er
of
gra
du
ate
s
Diploma
Phd
Master
Undergradaute
Source: Malaysia Higher Education Statistics, Ministry of Higher Educatiion. Data downloaded from
www.mohe.gov.my/web_statistik/statistik_pdf_2008_05/data_makro_1-3.pdf on 7/9/10
University
degrees
16
Context 2: Cross-border Higher Education
(CBHE)
• Active student outbound mobility: Malaysia is among top 10
sending countries in the world & top in ASEAN,
highest as share of total TE
• Japan is among top 5 destinations for Malaysian students
(among 10 for MOHE source)
Outbound
mobile
students
% of Total tertiary
enrollmnet
China 421,148 1.7%
India 153,312 1.0%
Republic of Korea 105,327 3.3%
Germany 77,534 NA
Japan 54,506 1.4%
France 54,021 2.5%
United States 50,265 0.3%
Malaysia 46,473 6.3%
Canada 43,918 3.3%
Russian Federation 42,881 0.5%
Source: UIS
Outbound mobile students,
Top 10 countries in 2007 or Circa2002 2007
Top 5 countries as destination
Australia 17,574 17,691 United Kingdom 9,011 11,811 United States 7,395 5,398 Japan 1,613 2,052 New Zealand 893 1,727
Total (All countries) 41,896 45,952
Source:UNESCO Institute for Statistics (UIS) database
Malaysian Students Studying Abroad
%-authors‟ calculation
17
Context 3: Manufacturing Firms’ Views on
High Level HRD• According PICS 2007 report, some improvement in availability of
professionals, including engineers, but not enough
• More concerns about quality and relevance: “shortage of basic & technical skills of knowledge and skills” as the important constraint for filling vacancies
• Non-negligible percentage of employees with university degree holders are educated overseas
Industry Educated locally
(univ grad)
Educated abroad
(univ grad)
Foreigners
(univ grad)Total
Food processing 85% 14% 2% 100%
Textiles 85% 12% 3% 100%
Garments 88% 13% 0% 100%
Chemicals 81% 14% 5% 100%
Rubber and plastics 93% 5% 2% 100%
Machinery and equipment 69% 17% 14% 100%
E&E 87% 11% 2% 100%
Electric applian 96% 3% 2% 100%
Electronics 79% 19% 2% 100%
Auto parts 75% 18% 6% 100%
Wood and funiture 85% 4% 11% 100%
Total 86% 11% 3% 100%
Source: Authors' calculation using the data from Productivity and Investment Climate Survey(PICS)2
2007, World Bank
Share of Newly Recruited University Degree Holders within Each Industry in 2006
% within Industries
18
Context 3: Manufacturing Firms’ Views
on High Level HRD
Malaysians
Professionals
educated
abroad are
viewed fare
well
Comparison of Performance of Professionals
by Types of Education in 2006
0%
10%
20%
30%
40%
50%
60%
70%
Overseas educated vs.
locally educated
Overseas educated vs.
foreigners
Lower
Higher
No
differenc
e
Note: This table only shows the firms with at least one engineer.
Source: Authors' calculation using the data from Productivity and Investment
Climate Survey (PICS)2 2007, World Bank
Those in
Japan, too?
19
Malaysian Students in Japan
20
Malaysian Students in Japan
They are mainly publicly-funded students
2000-2004 2005-2009
Japanese government scholarships 14% 11%
Malaysian government scholarships 50% 56%
Private funds 36% 33%Total 100% 100%
Malaysian Students in Japan by Fund Type, 2000-2009
All Levels of Post-Secondary Education (excluding short-term exchange students)
Note:
The data collection methods between 2000 and 2004 are not unified, thus, the figures are indicative figures. The
data for 2005-2009 exclude short-term exchange students
All levels means post graduate, undergraduate, and other tertiary education such as junior colleges
Source: 2005-2009: Japan Student Service Organization (JASSO). Unpublished data (received on May 26, 2010)
2000-2004: Tsujii (2006) "Ryugakusei Fea to Mareshia no Kyoiku Seido."
21
Malaysian Students in JapanThey Are Mostly in Engineering Fields
All Subjects Engineering Share of Engineering
Ave.2005-09 Ave.2005-09 Ave.2005-09
Malsyaian students
Japanese government scholarships 67 41 62%
Share in all foreign students 5% 9%
Foreign government funds 916 860 94%
Share in all foreign students 81% 87%
Private funds 348 114 33%
Share in all foreign students 1% 3%
Total 1331 1015 76%
Share in all foreign students 2% 17%
All foreign students
Japanese government scholarships 1309 465 36%
Foreign government funds 1171 1013 87%
Private funds 51313 4469 9%
Total 53792 5946 11%
Note: No. of students include both new entrants and existing students
Number of Malaysian Undergradaute Students in Japan and the Share in All Foreign
Undergradaute Students by Fund Type and Subject, 2005-2009
Source: Japan Student Services Organization(JASSO) unpublished data received 5/26/10 and 8/23/10 revised version
22
Japanese ODA Loans Cover a Large
Proportion of Publicly-funded Malaysian
Students in Japan (1999-2008)Share of Japanese ODA Loan Students(HELP and LEP) to Total Undergraduate Students Funded by Malaysian
Government Scholarships in Japan (excluding short-term exchange students), 2005-2008
Note: No. of students include both new entrants and existing students
Source: Japan Student Services Organization(JASSO) unpublished data received 5/26/10 and 8/23/10 revised version
Engineering
All foreign students
Number of Malaysian Undergradaute Students in Japan and the Share in All Foreign Undergradaute Students
by Fund Type and Subject, 2005-2009
Malsyaian students
All Subjects
37
Changing Roles of Japanese ODA
Next Step
① Graduates from HELP I and II [all identifiable],
mainly on their employment & educational
experiences
② Graduates from Look East Program for graduates
2004-06 (Bachelor of engineering) as a
comparator group for HELP II
③ Firms as actual and potential employers of HELP
and university graduates in engineering fields
(mainly Japanese affiliated firms in Malaysia)
38
Changing Roles of Japanese ODA
Changing Modality of CBHE Programs between Malaysia
and Japan
Profiles of Programs
HELP I HELP II Look East
Types of program Conventional
Study
Abroad
Twinning
(1+3)*
Conventional
Study
Abroad
Subject areas
Engineering Engineering
Mainly
engineerin
g
Expected years of
graduation1999-2003 2004-2008 2004-2008
No. of students 310 280 885+4
Entry requirement for
the programsTop level
(SPM)
Top level
(SPM)
Top level
(SPM)
* 1 year in Malaysia and 3 years in Japan
39
Changing Roles of Japanese ODA
Next Step
• Differences in the above CBHE programs (i.e. modality) are not considered in the analysis of this paper due to the limited scope of the data
• In the subsequent paper, we will explore the question whether there are any differences in labor market outcomes between different modalities of CBHE programs
• Newly collected data for this research will be used for the next paper
40
Key Literature
CBHE• Jane Knight. 2008. Higher Education in Turmoil. Sense Publishers
• OECD and World Bank. 2007. Cross-border Tertiary Education: A Way
Towards Capacity Development. Washington, DC
• Sirat, Morshidi. 2006. “Transnational higher education in Malaysia:
Balancing benefits and concerns through regulations”. In Huang, F. (ed.),
Transnational Higher Education in Asia and the Pacific Region. Hiroshima:
Research Institute for Higher Education. Hiroshima University
Twinning (not many empirical research comparing newer forms of CBHE with
more conventional forms?)
• Lewis, Philip E. and Graham R. Pratt. 1996. “Growth in Malaysian Demand
for Business Education: the Australian Response.” Journal of Higher
Education Policy and Management, 18, 2:207-216
Tracer study
Graduate Tracer Study=Laporan Kajian Pengesanan Graduan 2007(Malaysia), Destinations of Leavers from Higher Education (UK), National
Graduate Survey (Canada), Japan Scholarship Program (ADB), Tracer
Study-Joint Japan/World Bank Graduate Scholarship Program (World