THE ESTABLISHMENT OF STATE-FUNDED PRIVATE HIGHER EDUCATIONAL INSTITUTION IN MALAYSIA

Malaysia aims to be a developed nation. Due to that Malaysia needs a highly skilled workforce, especially in the field of TVET. The expenditure for higher education has increased from year to year. The contribution of federal and state agencies is an alternative to meet the challenges. This study examines the pattern of establishing and developing state-owned Private Higher Education Institutions in Malaysia. The sources analyzed included reports from ministries, international and local agencies, and articles from journals. Public agencies contribute to private higher education in three types of ways. This may be the form of privatization of federal agencies, the establishment of state foundations, and subsidiaries, or collaboration with corporate organizations. The ability of the institutions to expand and upgrade from training centers to private colleges, university colleges, and private universities gives the indicator of the federal and state agencies to contribute to the development of the national higher education system. However, there are still doubts that the establishment of institutions is politically motivated and does not respond to the needs of the industry sector.