The Impact of Globalization on Malaysia's Private Higher Education Sector

Introduction

Much as been said about globalization, which is synonymous with the opening of national borders to the international flow of goods, services, raw materials and resources, information and technology, and human resources.

In the area of higher education, universities have become factors of the competitive advantage of nations (Porter, 1998). They are the locus of scientific discoveries that move economies forward, and the primary means of educating and generating the talent or human capital required in order to obtain and sustain competitive advantage in various industries.

In response to the same forces that have propelled world economies, universities have become more self-consciously global, especially universities of the advanced nations – seeking students from around the world who represent the entire spectrum of cultures and values, sending their own students abroad in educational exchange programmes to prepare them for global careers, offering courses of study that address the challenges of an interconnected world and collaborative research programs to advance science for the benefit of all mankind.

Of the forces shaping higher education none is more sweeping than the people movement across borders. Prospective students travel from one developed nation to another, and from developing or less-developed to the developed countries to seek good education.

However, cross border movements in higher education is not limited to students. Universities have also undertaken the setting up of branch campuses in suitable foreign countries, such as:

• University of Nottingham Malaysia Campus http://www.nottingham.edu.my/Pages/default.aspx
• University of Nottingham, Ninbo, China http://www.nottingham.edu.cn/
• Monash University Malaysia http://www.monash.edu.my/
• Monash University South Africa http://www.monash.ac.za/
• Curtin University of Technology, Sarawak, Malaysia http://www.curtin.edu.my/
• Swinburne University of Technology Sarawak Campus, Malaysia http://www.swinburne.edu.my/
• University of Chicago Booth School of Business, London, England http://www.chicagobooth.edu/visit/london/index.aspx
• University of Chicago Booth School of Business, Singapore http://www.chicagobooth.edu/visit/singapore/index.aspx
• INSEAD Asia Campus, Singapore http://www.insead.edu/singapore_campus/getting/index.cfm

The British Open University http://www.open.ac.uk/ alone has 43 branch campuses outside the UK. In Malaysia, the Open University Malaysia http://www.oum.edu.my/portal/ has an enrollment of over 79,000 local and foreign students. It operates in Yemen, Bahrain, and Maldives via partnerships with the local higher educational institutions. By September 2009, it will operate in Vietnam and Ghana (OUM to spread, 2009). INTI University College http://www.newinti.edu.my/ has a branch campus in China focusing on teaching English language to Chinese students to equip them with the global communication language (Ramli, 2006). Limkokwing University of Creative Technology http://www.limkokwing.net/malaysia/ has campuses in Indonesia (Bali), Botswana, Cambodia, Lesotho, and the UK (London).

Where branch campuses are not possible, twinning and transfer programmes with local private institutions of higher education have become another avenue brought about by globalization, for e.g. in Malaysia, the University of Northumbria, UK and KDU College; University of East London, UK and UCSI University College; University of Southern Queensland, Australia and SEGI University College, and the University of London, UK, external degree programmes with several local private colleges (Uda Nagu, 2006a).

Rapid advancements in digital and Internet technology, and e-learning courseware have also significantly contributed to cross border delivery of higher education, for e.g., University of Phoenix, USA http://www.phoenix.edu/ is recognized as the leading accredited online degree course provider. Universitas 21 Global http://www.u21global.edu.sg/Education/home formed by 19 world-class universities, is the leading accredited online MBA course provider. Technology has made access to quality education easier irrespective of nationality and location. While the impact of globalization appears to deliver overall positive effects to higher education, what are the issues and challenges?

Literature Review

Today’s era is characterized by globalization that is changing, among others, the economic environment that in turn affects institutions of higher education irrespective of their physical locations, traditions, and current practices and aspirations. Continuous growth in economic relationships among nations, a global shift towards free-market dynamics, and increasing consumerism are some factors affecting institutions of higher education i.e. universities. The changes in the economic environment are also causing significant changes to national and international organizations, and to governmental systems such as moving from a centrally controlled economy towards a free-market economy. The explosive growth in digital and Internet technology, and telecommunications represented another catalyst of environmental change (Magrath, 2000). Thus, universities, traditionally operating on a highly individualized basis will experience increased competition, a need for increased national and international collaboration in research, and introduce new educational delivery and support methodologies.

As higher educational institutions everywhere begin to face similar challenges, and with increased competition in the higher education industry, the institutions i.e. universities respond by becoming more market driven and adopt a more global perspective by focusing to increase foreign student enrollment especially from less-developed countries. A global shift to knowledge economies is also increasing the importance of higher education. Further competition is in the form of new entrants to the higher education industry in response to increasing global demand for higher education (The Futures Project, 2000). Globalization is also affecting methods of educational delivery and support. Traditional classroom delivery is now enhanced with electronic learning support. Online courses, virtual classrooms and Web-based tutorials are some delivery methodologies for distance education across borders as a result of globalization.

However, the effects of globalization in the higher education industry cannot be left completely to free market mechanisms as issues such as quality and quality control, accreditation, educational relevance, the effective use of new technology, and ethics needs to be in place and regulated. Higher educational institutions cannot be allowed to only focus on profitability but must develop a strong sense of responsibility to educate and assist less-developed nations establish or acquire sound educational systems for future generations (The Futures Project, 2000; AUT and DEA, 1999).

The Impact of Globalization

Globalization is rapidly reshaping the landscape of higher education. Driven by global shifts to free market mechanisms that cause continuously increasing international trade, foreign direct investments and other economic relationships among nations, multinational or transnational corporations constantly need to obtain and maintain their core competencies and competitive advantages to generate economic wealth with scarce resources. An increasing awareness of the need to focus on the consumer, and growth of new consumer experience and consumer satisfaction business thinking has also contributed to changes in customer relationship models. A continuous flow of human capital talent and skills is required. Institutions of higher education, both public and private institutions are the source for current and future human capital.

So, how has globalization affected Malaysia’s higher education sector, especially the private institutions of higher education or Institusi Pengajaran Tinggi Swasta (IPTS)? We can group the impact of globalization in the Malaysian private higher education sector into four major categories:

1. Creation of world-class education – Curriculum, Research, Technology and Collaboration
2. Quality assurance and accreditation – Ethics, Branding and Ranking
3. Academia and Industry collaboration
4. Malaysian Government as catalyst

Creation of world-class education – Curriculum, Research, Technology and Collaboration

Globalization and the transition to a knowledge-driven society or economy have created a greater demand for higher education. This demand will constitute a good market for cross border or transnational education providers. Transnational education can take the form of franchising, twinning programmes, offshore courses, distance learning and the setting up of branch campuses and other forms of collaboration. In other words, there is a need to create world-class institutions of higher education or world-class universities. What is meant by “world-class”?

According to professor Dr. Stephanie Fahey, the common yardsticks that make a university world-class are staff and student performance, which includes research output and impact, students’ academic results, graduation rates and employability (Aiming for world-class, 2006). Phang argues that, “we need to produce world-class graduates who possesses the ability to bring in a range of relevant variables into our thoughts and decision-making processes. It means being international in outlook and possessing a keenness to expose ourselves to issues and happenings around us” (Phang, 2005).

Therefore, it becomes very important for the Malaysian private higher educational institutions to possess the ability to design, develop and deliver the correct curriculum to meet industrial changes and development brought about by globalization, for e.g. globalization has created the need for international management or know-how to manage across borders with different cultures and practices. Thus, the curricula needs to educate our students in international management and cultures, and problem identification and solving.

To create and provide world-class education, Malaysia’s private universities need to also conduct relevant international-level research, for e.g. we should conduct research into understanding and learning global competitive advantages so that our small and medium enterprises (SMEs) and industries can grow and compete at the international or regional economic level instead of continuing to depend on government incentives and protection, and foreign tariff exemptions. In 2007, Malaysian SMEs make up 99 percent of the total number of registered businesses, 56 percent of total employment, but accounts for 32 percent of the GDP and 19 percent of total exports (Government to ensure, 2008).

The education and exposure to high technology and information and communication systems in the areas of enterprise systems, business intelligence systems, supply chain management and customer relationship management systems are necessary.

Where our private universities lack in ability and know-how, they need to collaborate with more advanced higher educational institutions and also with industry. We can benefit from such collaborations with the transfer of knowledge and technology and maintain abreast of industry needs and changes. We cannot continue to produce human capital graduating with irrelevant and obsolete knowledge, technology and skills.

Quality assurance and accreditation – Ethics, Branding and Ranking

Prospective students of higher education are consumers, and consumers have rights. Students have rights to quality education. The Malaysian government is responsible to ensure that our private higher educational institutions provide quality education by providing official accreditation and annual evaluations (Azizan, 2006; Uda Nagu, 2006b).

Quality education can only be assured when the private higher educational institutions meet the necessary criteria in terms of relevance of curricula, qualifications of academia, graduation results and performance, quality and employability of graduates, research and collaborations, and policies and practice of ethics and corporate governance.

Ethics and corporate governance of some private higher educational institutions are questionable as some act as a front for illegal immigration activities, declaring foreign workers as students (Karim, 2006; Sujata, 2006).

With these criteria and quality accreditation in place, private higher educational institutions can build their respective branding and establish respectable ranking positions in the educational field they pursue, for e.g., excelling in providing management education, information technology or engineering education. With these credentials, we can attract more foreign students to study in Malaysia and more international collaborations with other institutions of higher education (All out to, 2006; Martin, 2006).

Academia and Industry collaborations

Another important aspect for our private higher educational institutions is to establish academia and industry collaborations. Why is this important? As Malaysia transitions to a knowledge economy or society, a strong collaboration between academia and industry will “create the impetus for the creation of a new workforce that will strengthen the Malaysian economy. On the other hand, a weak link between academia and industry will create unemployable graduates who do not fit the requirements of the new economy and will cause Malaysia to lose its competitiveness” (Phang, 2003; Help shape varsity, 2006).

Academia and industry collaborations will benefit both parties. Academia gets more aligned to the needs of the industry and will be able to produce graduates relevant to the industry. Companies in the industry will benefit from the research capabilities of the universities and may even be able to commercialize some of the research findings of the universities. A close collaboration will establish the academia as a knowledge providing resource to the industry value chain and will help improve the competitiveness of Malaysia. A higher educational institution that establishes cooperative ties with industries can rise in recognition surpassing its more established peers (Gomez, 2009; Ramachandran, 2007; Ismail, 2007; Indramalar, 2003).

Malaysian Government as catalyst

The Malaysian government, through the ministry of higher education, in addition to being the guardian to ensure quality education and ethical practices in the private higher education sector, needs to also play an active role in promoting private higher education and enabling academia and industry collaborations.

The government needs to develop a vision and sustainable roadmap for the growth of the private higher education sector. This is important as the private educational institutions are managed like commercial corporations and hence, lesser administrative barriers exist in order to respond quickly to market and industrial changes and developments.

Development and research funding, and tax incentives should be made available to the private higher educational institutions to enable them to grow and produce industry relevant graduates thereby helping Malaysia build and maintain competitiveness and build human capital so vital for our country’s future and economic well-being (IPTS, 2006; Private colleges want, 2006).

Conclusion

While globalization is changing the landscape of the private higher education sector, Malaysia has already embarked on transitioning to a knowledge economy (Malaysia on course, 2009). Higher education represents the nucleus of the knowledge economy. In order to continue our economic growth, maintain and generate new competitive advantages in the global market place, we need to invest in and build our human capital. This can be achieved through creating and delivering world-class education.

To create world-class education, we need to be nimble, flexible and global in outlook – basic characteristics expected from the private higher education sector, but possessing these characteristics are insufficient, as we also need to develop core competencies in:

• Designing, developing and delivering industry relevant curricula
• Achieving and maintaining the gold standard in educational and ethical excellence
• Establishing a high technology focus and usage
• Establishing international collaborations in educational technology and research
• Establishing academia and industry collaborations
• Establishing infrastructure and support programmes by the government to nurture and grow the private higher education sector

References:

Aiming for world-class. (2006). The Star: Education, July 30, p. 8

All out to attract foreign students. (2006). The Star: Education, September 3, pp. 2-3

AUT and DEA (1999). Globalisation and Higher Education: Guidance on Ethical Issues Arising from International Academic Activities. London, England: Association of University Teachers http://www.aut.org.uk/, and Development Education Association http://www.dea.org.uk/

Azizan, Hariati. (2006). "Setting a new standard". The Star: Education, July 16, p. 7

Gomez, Terence. (2009). "Strengthening linkages: Effective partnerships between industry and universities will help cultivate entrepreneurial skills". The Star, March 28, p. SBW8

Government to ensure economy continues to prosper. (2008). Daily Express, December 5. Downloaded from http://www.dailyexpress.com.my/news.cfm?NewsID=61445 as at 6 July 2009

Help shape varsity education, industry urged. (2006). The Star, August 23, p. N3

Indramalar, S. (2003). "Intel's strong links with academia". The Star: Education, August 3, p. 19

IPTS: Goodies still elusive. (2006). The Star, September 10, p.

Ismail, Izwan. (2007). "Collaboration to drive innovation". New Straits Times: Tech & U, July 2, p.

Karim, Farah N. (2006). "1,200 foreign students missing from classes". New Straits Times, September 9, p. 8

Magrath, C. Peter (2000). Globalization and its effect on higher education beyond the Nation State. Salzburg Seminar / Universities Project 12th Symposium: The Impact of Globalization on Higher Education.

Malaysia on course towards full-fledged k-economy. (2009). New Straits Times, August 7, p. B4

Martin, Sumitha. (2006). "Quality first". New Sunday Times: Learning Curve, August 20, p. H2

OUM to spread wings to Vietnam, Ghana. (2009). New Straits Times, July 25. Downloaded from http://www.nst.com.my/articles/23thir/Article/index_html as at 26 July 2009

Phang, J. (2003). "Academia and industry: The Stanford experience". The Star: InTech, July 29, p. 39

Phang, J. (2005). "Creating world-class education". The Star: InTech, April 26, p. 29

Porter, Michael. (1998). The Competitive Advantage of Nations. New York, NY: Free Press

Private colleges want more government backing. (2006). New Straits Times, February 28, p.

Ramachandran, Sonia. (2007). "When industry and university forge ties". New Sunday Times: Learning Curve, July 22, p. H2

Ramli, June. (2006). "More foreign universities eager to set up campuses in Malaysia". New Straits Times, August 9, p. 14

Sujata, V.P. (2006). "Kedah college under probe". The Star, September 9, p. N8

The Futures Project (2000). The Universal Impact of Competition and Globalization in Higher Education. The Futures Project: Policy for Higher Education in a Changing World, Brown University, Rhode Island http://www.futuresproject.org/

Uda nagu, Suzieana. (2006). "Fruitful tie-ups". New Sunday Times: Learning Curve, July 9, p. H2

Uda Nagu, Suzieana. (2006). "A gold standard for education". New Straits Times, August 20, p. 24

Managing Change: How to Change Your Corporate Culture (Part 2 of 3)

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ACKNOWLEDGEMENT

This article was published in the April-June 2009 (Vol. 44, No. 2) issue of
Management – the quarterly magazine of The Malaysian Institute of Management

Reproduced here with permission from the author Dr. Victor S. L. Tan

and from
The Malaysian Institute of Management
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Changing corporate culture is unlike a heart transplant operation which can be done overnight. Instead, it is an ongoing process that takes time and requires constant monitoring. It is certainly not about transplanting alien cultural elements into an organisation. Changing corporate culture is about transforming the organisation through continuous influence and the shaping of beliefs, assumptions, values and patterns of behaviour of people towards creating a desired work environment. It is about changing the mindsets of people to a new way of thinking and working, which will enable the organisation to be effective, efficient and competitive. Thus, changing corporate culture is about opening minds and winning hearts of people to a new way of working, which is not just about increasing the bottom line but also about improving relationships amongst people and seeking meaning in work through a sense of belonging, shared values and satisfaction.

How does an organisation go about influencing and shaping its corporate culture? KL Strategic Change Consulting (KLSCC) Group has worked with over 200 Asian organisations, and in many of them the work has involved, to a great extent, changing their corporate culture to align to their respective visions, missions, goals and the environment.

The following diagram shows the KLSCC's Corporate Culture Change Model, which is comprised of four phases.

Phase 1: Culture Assessment

The Culture Assessment phase comprises two tasks. One is the assessment of the existing culture of the organisation, and the other is to determine the desired corporate culture. To get a more reflective picture of the real culture of an organisation, one should use a combination of tools. One way is to conduct personal interviews with a representative sample of participants in the organisation. One-to-one interviews as well as focused interviews with groups can be conducted to assess the existing culture as well as determine the desired culture of the organisation.

Besides interviews and discussions, Corporate Culture surveys can also be conducted on a representative sample of participants. To encourage accurate input, these surveys must be conducted in an anonymous fashion with the assurance of strict confidentiality. In this respect, KL Strategic Change Consulting Group has developed various corporate culture assessment questionnaires, tools and instruments to help organisations gauge their existing culture as well as determine their desired culture. A desired culture encompasses not just personal and organisational aspirations, but also the demand of the external environment (which includes competition, customers, shareholders and other stakeholders) that will enable the organisation to compete and succeed.

Phase 2: Culture Gap Analysis

This phase involves analysing the gaps that arise from the existing corporate culture and the desired one. This analysis looks into the people, policies, process, technology, strategy and structure of the organisation. One way this can be done is by analysing what currently impedes an organisation from achieving its desired vision, mission and goals. Another way is to define the missing links, be they resources, the appropriate leadership style or the behaviour of people that is required to enable an organisation to achieve the desired future state. The results from the gap analysis will provide sound input to the development of change programmes that influence and shape the culture of the organisation.

Phase 3: Changing Mindsets: Influencing Culture Change

The core of cultural change is the change in mindsets. This involves learning new ways of thinking, new ways of working and interacting with one another. It enables the acquiring of new attitudes and new skills in the workplace. To do this, there is a need to influence and shape the beliefs, assumptions and values of people in the workplace. There are many ways to do this. For a start, the change agents who lead the culture change should become role models. Their attitudes and daily behaviour in the workplace must reflect those defined as desired culture. Their consistent behaviour with the desired culture will encourage others to emulate them. Albert Schweitzer said it best, when he remarked, “Setting an example is not the main thing in influencing others. It is the only thing.”

The next change should be to revamp company policies, procedures and the systems of the company to be aligned with the new culture. Thus any inconsistent practices that are not aligned to the desired patterns of behaviour should be abandoned. To ensure wide influence of the new culture, the organisation should undertake company-wide training to communicate the new belief systems, core values and desired patterns of behaviour.

Orientation programmes can be conducted for new recruits as well as existing staff to help them modify their beliefs, attitudes, values and behaviour to the desired patterns of behaviour in the workplace. The company must capitalise on every communication channel possible to widely publicise and communicate the new corporate culture. Newsletters, e-mails, department meetings, branch managers' meetings, management meetings, family day gatherings, sports club activities and company anniversary events can be useful channels and opportunities for promoting and reinforcing the new culture within organisations.

Another very effective way to start the culture change process in an organisation is through the recruitment process. Potential candidates are screened for the right values and behaviour patterns that will fit the desired culture. Candidates are then interviewed thoroughly and selected on the basis of possessing the relevant values, thinking and behaviour patterns. Some organisations we worked with, have also undertaken a thorough workforce reorganisation, whereby people with the beliefs, values and behaviour that are consistent with culture of the organisation are put in charge whereas those who are not, are being sidelined.

“The crux of effective change will come from how organisations implement a performance reward system to recognise, encourage and reinforce the practice of the desired culture.”

Thus the new leaders who are in charge will develop their people and inculcate the practices of the new culture in the organisation. This type of workforce restructuring, while it “rocks the boat” often is what is needed to change the culture of very old, bureaucratic and archaic organisations in crisis situations. Often the demands of competition and the fast changing environment dictate this type of approach to change quickly and effectively to enable the organisation to survive. Culture change requires constant monitoring and fine-tuning of approaches to achieve effective results. And ultimately, the crux of effective change will come from how organisations implement a performance reward system to recognise, encourage and reinforce the practice of the desired culture.

Phase 4: Sustaining the New Culture

Sustaining a new culture requires continuous improvement efforts in moulding, shaping, influencing and reinforcing actual behaviour in the workplace on a daily basis. The reality of whether a new culture is sustainable lies in what value and importance leaders place in maintaining the consistency of the desired practices and patterns of behaviour in the daily activities and tasks in the workplace.

Thus a constant flow of new ideas and suggestions to promote and reinforce the new culture is needed to get people to really internalise those beliefs, values and behaviour. And the constant linking of positive performance and results to the new culture will also add credibility towards the new corporate culture. And once people truly see the benefits of the new culture not just for the organisation but also for themselves as individuals, they will want to continue those practices.

To serve as a useful guide for change agents to implement culture change in their organisations, 1 would like to share our experience of the change efforts we made in working with over 200 Asian organisations. Overall, there is a common, desired work environment which employers and employees strive for.

While there are many issues and a lot of dissatisfaction raised by various levels of staff in the organisations we worked with, we feel that a lot of these are symptoms of some of their yet unfulfilled intrinsic needs. These needs could be the feeling of recognition and appreciation, a sense of importance, a sense of belonging, the joy of achievement, the pride of involvement or the fun of sharing.

In summary, there is a common thread running through the organisations which we have worked with. Overall, their staff members want the following:

• Good relationships between divisions, departments and individuals
• A conducive work environment
• Appreciation of good work done
• A sense of fairness
• Encouraging support and guide when needed
• Competitive salaries and staff benefits
• Relevant and timely information on what's going on
• More open communication without fear
• Promotion and growth opportunities in the company
• Tactful discipline

Overall, to create this environment and a conducive and productive corporate culture, top management, leaders, managers and staff must work in concert to achieve a win-win partnership to ensure the following are practised in the workplace:

• People are clear of the direction of the organisation
• People are involved and their views or input sought in the decision making process
• The workplace is friendly and meaningful, and people enjoy coming to work
• Communications are clear, timely and relevant
• People get the resources and support they need to do their jobs
• People are respected, recognised and appreciated for doing a good job
• People are kept informed about what is going on in the company
• People are held accountable for their jobs and own up to the problems
• Individual and team efforts are rewarded or recognised
• There are opportunities for learning and career advancement
• There is a spirit of enthusiasm, sense of belonging and teamwork
• Nurturing people is a practice of the organisation

Written by Dr. Victor S. L. Tan. Dr. Tan is the Chief Executive Officer of KL Strategic Change Consulting Group. He is an author of five management books. His latest book is The Secret of Change. For more information, visit www.klscc.com or contact the author at victorsltan@klscc.com

The Global Financial Crisis and the Optimal Period to Refresh Your PCs

With the current global financial crisis, many countries’ economies are depressed, and international trade and business volumes have reduced significantly in most industries.

The effect on desktop and laptop computer ownership and usage by companies and corporations is immediately to adopt an approach to prolong the equipment’s lifespan. While this is the normal course to take, owners need to be aware that prolonging the lifespan beyond ‘x’ number of years actually increases the total cost of ownership (TCO) of maintaining those desktop and laptop computers -- yes, the Law of Diminishing Returns also applies to extended ownership -- the longer you maintain old systems, its TCO increases.

So, this question, “When is the best time to refresh or replace the computers?” would probably be on your mind now.

This link http://communities.intel.com/docs/DOC-3144?dfaid=1&crtvid=0 will take you to an interesting article and whitepaper arguing that, “…for most firms, the optimal PC refresh lifecycle for both laptop and desktop PCs is three years.”