SharifStudy Best way to Study in Malaysia
Are you considering studying in Malaysia? The Malaysian economy plays a crucial role in making it a top destination for international students. From its stability to affordable living costs, Malaysia offers a vibrant environment for education. In this article, we’ll delve into the Malaysia economy, how it impacts students, and why studying in Malaysia might be the best decision you make for your academic future.
Understanding the Malaysia Economy
Malaysia is one of Southeast Asia’s most dynamic and rapidly growing economies. Over the past few decades, it has evolved from being heavily reliant on agriculture to becoming a leader in manufacturing, services, and technology. The country’s economy is categorized as an upper-middle-income economy, according to the World Bank, and it boasts strong ties to global trade.
Malaysia’s economy is built on a foundation of diversity. Key sectors include electronics, automotive production, palm oil, tourism, and finance. This diversification has provided economic resilience, even in times of global financial challenges. The country’s strategic location in the ASEAN region has also allowed it to serve as a gateway to other Asian markets, making it an attractive destination for businesses and, importantly, international students.
Key Sectors of the Malaysian Economy
Understanding the key sectors of the Malaysian economy can help you grasp why studying in Malaysia could benefit your career. Let’s break down some of the major sectors driving economic growth:
1. Manufacturing
Malaysia is known for its robust manufacturing industry, particularly in electronics and electrical products. Companies like Intel and Samsung have established significant operations here, creating thousands of jobs and contributing to the country’s exports. Studying engineering or technology in Malaysia puts you in the heart of this industrial powerhouse, potentially opening doors to internships and job opportunities with these global giants.
2. Services and Finance
The services sector, including banking and financial services, is one of Malaysia’s fastest-growing industries. Kuala Lumpur, the capital city, is home to regional offices of international banks and financial institutions, making it an excellent location for students interested in finance, economics, or business studies. The government is keen to develop Malaysia into a global Islamic finance hub, which could offer unique opportunities for students studying this specialized area of finance.
3. Tourism
Tourism is another critical sector, contributing significantly to Malaysia’s GDP. Famous for its natural beauty, from tropical beaches to rainforests, Malaysia attracts millions of tourists each year. This sector presents numerous opportunities for students studying hospitality, tourism management, and marketing. With such a strong tourism industry, you can also find part-time jobs or internships in hotels, travel agencies, and tour companies, enriching your education with real-world experience.
How the Malaysia Economy Benefits International Students
The steady growth of Malaysia’s economy means better infrastructure, quality education, and a lower cost of living compared to other study destinations like the US, UK, or Australia. But how exactly does this economy benefit international students?
1. Affordable Cost of Living
One of the major advantages of studying in Malaysia is the affordable cost of living. In cities like Kuala Lumpur, you can live comfortably for around USD 300-500 per month, depending on your lifestyle. This includes rent, transportation, food, and entertainment. The lower cost of living allows students to focus more on their studies and less on financial stress, making Malaysia an attractive study destination for students on a budget.
2. High-Quality Education at Lower Costs
Tuition fees in Malaysia are significantly lower than in Western countries, but that doesn’t mean you’ll be sacrificing quality. Malaysian universities offer a wide range of programs that are recognized globally, and many institutions collaborate with top universities in the UK, Australia, and the US, allowing students to obtain joint degrees. This provides excellent value for international students seeking high-quality education without breaking the bank.
3. Strong Job Market
The diverse sectors of the Malaysian economy translate to a strong job market for both part-time student jobs and post-graduation employment. Many industries, particularly in manufacturing, technology, and finance, actively seek young, educated talent. Malaysia’s strategic location in Southeast Asia also makes it easier to explore job opportunities not just locally but across the ASEAN region.
How to Maximize Your Study Experience in Malaysia
While Malaysia offers affordable education and a stable economy, there are practical steps you can take to make the most of your study experience.
1. Leverage Industry Connections
Given Malaysia’s robust sectors, it’s wise to make connections early in your academic journey. Join university-organized networking events, attend industry conferences, or participate in student groups that focus on entrepreneurship or your chosen field. Building connections can lead to internships, research opportunities, and jobs after graduation.
2. Explore Government Scholarships
Malaysia offers various scholarships for international students, some of which are funded by the Malaysian government or specific industries. The Malaysian Technical Cooperation Programme (MTCP) and other scholarships offer financial support to students from developing countries, further reducing the financial burden of studying abroad.
3. Part-Time Work Opportunities
As an international student, you’re allowed to work up to 20 hours per week during semesters. Taking advantage of this opportunity can help cover your living expenses while gaining experience in your field of study. Many industries, such as hospitality, retail, and customer service, hire students for part-time roles, providing both financial support and practical skills development.
Cost of Studying and Living in Malaysia
One of the main factors that attract international students to Malaysia is the affordability of studying and living here. Let’s break down the costs associated with education and daily life in the country.
Tuition Fees
Tuition fees vary depending on the institution and the type of program you choose. On average, undergraduate programs cost between USD 4,000 and 6,000 per year, while postgraduate programs range from USD 4,500 to 8,000 annually. Courses in medicine or specialized technical fields may cost more, but they are still relatively affordable compared to other international destinations.
Accommodation Costs
Malaysia offers a range of accommodation options to suit different budgets. University dormitories, for example, can cost between USD 50 to 150 per month, depending on the location and facilities. Renting a room or apartment in cities like Kuala Lumpur may range from USD 200 to 400 per month. Shared accommodations are a popular option among students to further reduce costs.
Daily Expenses
The cost of food, transportation, and entertainment is also quite affordable. You can expect to spend between USD 100-200 per month on food, with options ranging from budget-friendly local eateries to more expensive international restaurants. Public transportation is efficient and cheap, with a monthly pass costing about USD 25. For entertainment, students can enjoy activities like movies, sightseeing, and social outings for around USD 50-100 monthly.
Malaysia Economy Growth
In 2014, Malaysia’s economy grew 6%, the second-highest growth in ASEAN behind the Philippines’ growth of 6.1%.
The economy of Malaysia in terms of gross domestic product (GDP) at purchasing power parity (PPP) in 2014 was $746.821 billion, the third largest in ASEAN behind more populous Indonesia and Thailand and the 28th largest in the world.
In 1991, current Prime Minister of Malaysia, Mahathir Mohamad outlined his ideal in Vision 2020. Najib Razak has said Malaysia could attain developed country status much earlier from the actual target in 2020, adding the country has two program concepts such as Government Transformation Program and the Economic Transformation Program.
According to an HSBC report, Malaysia will become the world’s 21st largest economy by 2050, with a GDP of $1.2 trillion (Year 2000 dollars) and a GDP per capita of $29,247 (Year 2000 dollars).
The report also says “The electronic equipment, petroleum, and liquefied natural gas producer will see a substantial increase in income per capita.
Malaysian life expectancy, relatively high level of schooling, and above average fertility rate will help in its rapid expansion”.
Viktor Shvets, the managing director of Credit Suisse, has said “Malaysia has all the right ingredients to become a developed nation”.
In 2024, Malaysia is projected to witness a 4.3 percent increase in its real gross domestic product (GDP), surpassing the expected 4.0 percent growth in 2023.
The driving force behind this growth, as per the International Monetary Fund (IMF), will be the heightened global demand for exports, with a notable emphasis on the technology sector.
Shanaka (Jay) Peiris, the Chief of the Asia Pacific Regional Studies Division at the IMF, highlighted Malaysia’s status as an extremely open economy, particularly in the realm of exporting electrical and electronics (E&E) products.
Port Klang in Selangor
The biggest and busiest port in Malaysia is Port Klang in Selangor. In the 1970s, the predominantly mining and agricultural-based economy began a transition towards a more multi-sector economy.
Since the 1980s, the industrial sector, with a high level of investment, has led the country’s growth. The economy recovered from the 1997 Asian Financial Crisis earlier than neighboring countries did.
It has since recovered to the levels of the pre-crisis era with a GDP per capita of $14,800. Economic inequalities exist between different ethnic groups.
The Chinese makeup about one-quarter of the population, but accounts for 70 percent of the country’s market capitalization.
Chinese businesses in Malaysia are part of the larger bamboo network, a network of overseas Chinese businesses in the Southeast Asian market sharing common family and cultural ties.
International trade, facilitated by the shipping route in adjacent Strait of Malacca, and manufacturing are the key sectors. Malaysia is an exporter of natural and agricultural resources, and petroleum is a major export. Malaysia has once been the largest producer of tin, rubber and palm oil in the world.
Manufacturing
Manufacturing has a large influence in the country’s economy, although Malaysia’s economic structure has been moving away from it. Malaysia remains one of the world’s largest producers of palm oil.
The Petronas Towers house the headquarters of the national oil company Petronas and are the tallest twin-towers in the world.
In an effort to diversify the economy and reduce dependency on exports, the government has promoted tourism in Malaysia.
Consequently, tourism has become the third-largest source of foreign exchange for Malaysia. However, it faces challenges from the negative impacts of industrial growth.
It includes air and water pollution, as well as deforestation. It has an adverse effect on the tourism sector. Additionally, in 2014, Malaysia Airlines faced a series of unfortunate incidents.
It includes the mysterious disappearance of one of its planes in March and the downing of another by a missile over Ukraine in July.
These events resulted in a tragic loss of 537 passengers and crew members and exerted pressure on the tourism sector.
The state of the airline, which had been unprofitable for 3 years, prompted the government in August 2014 to nationalize the airline by buying up the 30 per cent it did not already own.
Between 2013 and 2014, Malaysia has been listed as one of the best places to retire to in the world, with the country in third position on the Global Retirement Index.
This in part was the result of the Malaysia My Second Home program to allow foreigners to live in the country on a long-stay visa for up to 10 years.
In 2016, Malaysia ranked the fifth position on The World’s Best Retirement Havens, while getting in the first place as the best place in Asia to retire. Warm climate with British colonial background made foreigners easy to interact with the locals.
Islamic Banking
The country has developed into a center of Islamic banking. It is the country with the highest numbers of female workers in that industry. Knowledge-based services are also expanding.
To create a self-reliant defensive ability and support national development, Malaysia privatized some of its military facilities in the 1970s.
The privatization has created a defense industry, which in 1999 was brought under the Malaysia Defense Industry Council. The government continues to promote this sector and its competitiveness, actively marketing the defense industry.
Technology and Innovation
Ministry of Science, Technology, and Innovation regulated Science policies in Malaysia. The country is one of the world’s largest exporters of semiconductor devices, electrical devices, and IT and communication products.
Malaysia began developing its own space program in 2002. In 2006, Russia agreed to transport one Malaysian to the International Space Station. It is as part of a multibillion-dollar purchase of 18 Russian Sukhoi Su-30MKM fighter jets.
The government has invested in building satellites in through the RazakSAT program.
FAQs About the Malaysia Economy and Studying in Malaysia
1. How stable is the Malaysia economy?
Malaysia has a stable economy with consistent growth over the years. It’s classified as an upper-middle-income country, with a diverse economic base that includes manufacturing, finance, and tourism. This stability provides a conducive environment for international students.
2. Is it easy to find part-time work in Malaysia as a student?
Yes, international students in Malaysia are allowed to work part-time up to 20 hours per week during term breaks and holidays. Jobs are readily available in industries such as retail, hospitality, and customer service.
3. What is the cost of living for international students in Malaysia?
The cost of living is affordable compared to many Western countries. Students can expect to spend around USD 300-500 per month on accommodation, food, and transportation, depending on their lifestyle.
4. Are scholarships available for international students?
Yes, Malaysia offers a range of scholarships, including government-funded scholarships like the Malaysian Technical Cooperation Programme (MTCP). Various universities also offer scholarships to international students based on merit.
5. Is Malaysia a good place to study finance or business?
Absolutely. Malaysia is a growing hub for finance and business, especially in Islamic finance. Many international banks and corporations have regional offices in Kuala Lumpur, providing excellent opportunities for internships and future employment.
