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18 2 TOWARDS UNDERSTANDING THE INTERNATIONALIZATION OF HIGHER EDUCATION AND ITS CHALLENGES Faridah Karim and Nooreiny Maarof INTRODUCTION Higher education (HE hereafter) in Malaysia from the 1990s onwards has been restructured to meet the changing demands arising from globalization and its attendant “knowledge economy”. The restructuring of the HE sector came in the form of privatization, corporatization and internationalization. Higher or tertiary education comprises universities, university colleges, polytechnics, community colleges and colleges. During the 1990s, the HE landscape changed visibly with the proliferation of education institutions, both public and private, to cope with the increasing demand for a diploma or degree as a passport to job prospects in an increasingly borderless work environment or for upward social mobility. In the 1970s, there were only three public or government-sponsored universities in the country. By 2011, there are 20 public universities and 452 private universities and colleges (see Chapters 3 and 4). Towards Understanding the Internationalization of Higher Education and Its Challenges 19 As for private universities, in the 1980s there was no private university in existence. By 2011, there are forty-four private education institutions with university status (see Chapter 4). The main reason for this proliferation of higher education institutions (HEIs) was due to a policy shift to deregulate HE and encourage more participation by the private sector due to the inability of public universities to cope with the increasing demand (Morshidi 2006). The Private Higher Educational Institutions Act of 1996 allows the establishment of private universities and university colleges and for these institutions to confer their own degrees. In addition, these institutions offer a wide range of programmes from pre-university to postgraduate levels. A distinguishing feature of these private institutions compared to their public counterparts is the nature of their transnational programmes which include twinning with foreign universities, credit transfers, external degrees and distance learning programmes. The policy on corporatization of public universities inevitably affects the governance structure, the diversification of revenue and the institutionalization of corporate managerial practices (Lee 2004, p. 36). In other words, public universities are managed as enterprises, operating like business organizations and developing corporate culture and practices that enable them to compete in the local and global market. Public universities have to increasingly finance part of their operating costs through market-related activities such as consultancy, partnership with industry through research grants, franchise educational programmes, rentals from university facilities and charging higher fees on international students. Internationalization is a term that is commonly used to discuss the international dimensions of HE (Knight 2008). The practice of internationalization has been going on for a long time, and it has been labelled with different terminologies with different emphasis on varied activities. Nonetheless, internationalization is one of the seven key strategic thrusts for transforming HE in Malaysia to become comparable with the best in the world. It is also regarded as a necessary step towards producing graduates who are marketable in the globalized work-place as well as to attract more international students. Prior to 2004, HE in the country was managed by a department in the Ministry of Education. The creation of a new Ministry of Higher Education (MOHE) in 2004 reflects the growing significance of the role and contribution of the HE sector in the national development of the country, specifically in achieving the status of a fully industrialized nation and in producing highly “knowledge” and skilled human capital (Sarjit Kaur, Morshidi and Norzaini [18.119.143.4] Project MUSE (2024-04-18 11:31 GMT) 20 Faridah Karim and Nooreiny Maarof 2008). Today, education has become a big industry, not only in Malaysia, but also in developed societies (Wolf 2002). DEFINING INTERNATIONALIZATION How is internationalization understood in Malaysia? What is the common understanding of the concept of internationalization? Admittedly, internationalization has over the years increased in importance, scope and volume. However, limited research and studies in this area has made it difficult to comprehend what internationalization means to the many and varied players in the HE sector in Malaysia, although MOHE has provided directions, guidelines and some targets for internationalization. HE, both public and private, has been pursuing internationalization although for different reasons, forms and levels (Tham and Kam 2008). What are the challenges faced by HE and what are the approaches to internationalization that they practise? As there is no single and universal definition for the term, it is essential to have a basic working definition and a common interpretation of the term to enable and assist policy-makers and academic...

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