With a system that empowers students, more and more Malaysians are putting their children in international schools.
International schools are educational institutions that use international curricula such as the International General Certificate of Secondary Education (IGCSE). These schools normally employ English as the language of instruction, and have traditionally catered to expatriates living in Malaysia.
When the 40% cap on the number of local students allowed to enrol was lifted in 2012, the gates were opened for Malaysians to send their children for an international education without having to send them overseas. This was a huge factor in the doubling of international schools in Malaysia over the past five years – from 57 to 128, according to the International School Consultancy Group1. Obviously, the growth of international schools cannot simply be accounted for by the whimsical hand of the free market. Rather, the government always plays an immense role, through deregulation and policy changes, for example. According to a report by Brighton Education Group, “The Malaysian government has been a significant catalyst behind the growth of the international and private school market here2.” One of the initiatives under the Economic Transformation Programme launched in 2010 was called “Ramp up of International Schools”. This was followed by the implementation of numerous business-friendly policies which encouraged foreign companies to set up international schools locally.
In 2012, ownership of international schools was completely liberalised, with up to 100% of foreign ownership for international schools allowed3. At the same time, significant tax incentives were put into place. International schools could enjoy an income tax exemption of 70% for five years, or an Investment Tax Allowance of 100% on qualifying capital expenditure over five years4. In addition, the government, through publicity campaigns in key target markets, has been actively encouraging overseas students to enrol in our international schools. These policies have allowed the Performance Management and Delivery Unit (Pemandu) to comfortably surpass their target of 87 international schools being set up by 2020.
