There is more to higher education than ROI

 

From Sivabala Naidu

I write in response to Professor Geoffrey Williams’s interesting article published in FMT on June 20, 2024, with the attention-grabbing headline, “Don’t waste money on university”.

Indeed, the enrolment rate in private higher education institutions has been recording a steady decline since 2016 when a record 695,026 students enrolled compared with 517,580 in 2021 as reported by the policy planning and research division of the ministry of higher education.

Similarly, the Malaysian Institute of Economic Research reported in 2021 that a downward intake trend in higher education institutions was recorded over five years with cumulative decrease of more than 39.6% for new intakes from 251,487 students in 2016 to 165,158 students in 2020.

The statistics presented highlight worrying trends in Malaysian higher education, but several points merit closer scrutiny and challenge.

Firstly, there are many reasons for the decline and perhaps, the poor return on investment (ROI) resulting in “savvy students” opting out can be one of the many factors.

In addition, the analysis is based on average and hence, I believe that the argument has been oversimplified with the broader context of the matter such as demographic shifts, economic conditions and global trends, which also have an impact on enrolment, dismissed.

The article seems to diminish the value of education to immediate salary calculations.

Indeed, initial salary figures are important. However, there is opportunity for career progression or specialisation.

In relation to this, it is common knowledge that employees experience significant salary growth over time, with experience and additional qualifications.

The assertion that it takes eight to 12 years to recover the opportunity cost oversimplifies individual career trajectories and sector-specific earning potential.

University education is known to also shape the personality and mould students into future leaders and critical thinkers, among others.

Calculating the ROI based solely on immediate income comparison overlooks the long-term benefits of higher education, such as career advancement opportunities, higher earning potential in the long run and intangible benefits like personal growth and expanded outlook.

Hence, a holistic ROI assessment should consider these factors rather than focusing narrowly on immediate income.

Perhaps, there are concerns about accreditation and quality in foreign branding outfits.

Yet, it must be acknowledged that many reputable international institutions maintain rigorous quality standards and offer valuable educational experiences that enhance global competitiveness for graduates.

So, what is crucial is for Malaysian private higher education institutions to choose wisely and establish legitimate international partnerships that are characterised by academic rigour.

While students are indeed consumers in the education market, equating education entirely with consumerism oversimplifies the educational process.

Factors such as academic reputation, faculty expertise, research opportunities, and alumni networks are critical in evaluating educational institutions beyond just cost.

Additionally, advocating for lower fees should not compromise educational quality, which requires sustainable funding for infrastructure, faculty development and student support services.

At the same time, the claim that middle-tier private universities will inevitably lose out to lower-cost alternatives overlook the diversity of student needs in the country.

Different institutions cater to different segments of the market based on income, academic strengths and specialisations.

High-price universities and foreign franchises often bring unique value propositions, such as specialised programmes or international exposure, which may justify higher costs.

In addition to the above views, the claim made in the article that universities are increasingly depending on foreign branding outfits for commercial value and are resorting to selling certificates from foreign organisations, which are not accredited in Malaysia is alarming.

We hope that the Malaysian Association of Private Colleges and Universities can investigate this “allegation”.

In conclusion, while challenges exist within the Malaysian higher education landscape in terms of student enrolment, addressing it requires a nuanced approach that considers the multifaceted nature of education quality, student outcomes and institutional sustainability.

Blanket assertions about declining enrolments and ROI overlook the complexities and potential long-term benefits that education, especially higher education, can offer to individuals and society. - FMT

Dr Sivabala Naidu is the dean of the Faculty of Social Sciences, Quest International University.

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.