Private Education Malaysia

Types of  Institutions Registered under the Private Higher Educational Institutions Act 1996

The Private Higher Educational Institutions Act 1996 (the Act) embraces all levels and types of  higher educational institutions from colleges to universities, irrespective of size and regardless of their mode of delivery, whether by it is by traditional, face to face methods, online, or by distance education and includes universities established in this country as branches of foreign universities. 

Even professional bodies that offer courses leading to membership in those bodies are brought within the scope of the Act. The PHEI may be a provider of higher education or distance education either by itself or in affiliation, association or collaboration with another higher education or a professional body. The affiliation may be with an institution, whether local or foreign. The full statutory definition is reproduced to show the extensiveness of the definition. The complex definition was adopted to bring within the purview of the legislation all the different types of institutions that were in operation in the private sector when the Act was first passed in 1996. It also reveals the innovative evolution of the private sector of higher education.

The definition is as follows;

‘private higher educational institution’ means an organization or educational institution, including a University or a University College or a branch campus, approved and registered under this Act, which is not established or maintained by the Government—

(a)  providing higher education;

(b)  providing distance education; or

(c)  providing higher education or distance education in affiliation, association or collaboration with—

(i) a private higher educational institution approved and registered under this Act;

(ii) other higher educational institutions—

(aa) whether or not established under other written laws; or 

(bb) whether within or outside Malaysia;

(iii) a University or University College established under this Act;

(iv) a University or University College established under the Universities and University Colleges Act 1971 [Act 30];

(v) other Universities or University Colleges—

(aa)                whether or not established under other written laws; or

(bb) whether within or outside Malaysia;

(vi) a branch campus; or

(vii) a professional body whether within or outside Malaysia leading to the award of    professional membership of such professional body;’

The regulatory provisions of the Act apply equally to all institutions established under its provisions regardless of the level of education provided or the mode of delivery adopted.  

Institutions in the private sector include both for profit and not for profit institutions. Ownership models range from pure business enterprises, some of which are listed on the Kuala Lumpur Stock Exchange (Bursa Malaysia) to Government Linked Companies, state governments, political parties, and philanthropic entities. A number of universities are established as ‘foreign branch campuses’ of foreign universities and carry the names of those foreign universities. These institutions are also established under the same regulations that apply to local institutions that are established under the Act. Apart from the private universities and university colleges, there are about 400 institutions registered under the Act, also described as private higher educational institutions that have no degree awarding powers. Most of these colleges offer only diploma or professional programs, but a few teach to undergraduate and postgraduate levels through arrangements with local and foreign universities.

The vast and varied landscape of the private sector of higher education as seen today is the result of the phenomenal growth of private colleges that took place over the last four decades. What is especially remarkable about that growth is that many of the larger private institutions that are in operation today, including some of the private universities are the offspring of individual-owned small institutions registered as tuition centres under the then prevailing law.  

Today, there are as many private tertiary/post-secondary institutions as there are public institutions. Private sector student enrolments match those in public institutions. The impetus for the growth of the private sector of higher education continues to lie in the profound demand in the population for higher education.