The Effectiveness of Moratorium Policy on the Establishment of the Private Higher Education Institutions in Malaysia

Abstract

Since the year 2013, the government of Malaysia has implemented a moratorium policy which aims to control the number of private higher education institutions and to improve the management of the existing system. This study seeks to bridge the gaps in the literature in examining the effectiveness of the ongoing moratorium policy and aims to address the question of whether the policy has achieved its main objectives after six years of implementation. This qualitative study utilizes primary data which was obtained from the face-to-face interviews and online survey, as well as secondary data which was obtained from the reports and policy books, published by the Ministry of Education Malaysia and related agencies. The study found that during the moratorium period, the performance of the existing institutions is improved, there are 28 institutions that have been upgraded, more institutions received self-accreditation status, as well as more representation of private institutions in the world university rankings. With 76 institutions which have been closed down during the period, the capacity of private institutions to enroll students has not affected significantly. However, it is recommended that the moratorium policy be discontinued in three to five years to come in order to boost the market and enhance the competitiveness of the higher education industry in Malaysia.