Advancing Outward‐Oriented Internationalisation of Higher Education Through Development Assistance: Malaysia's Evolution and Future Outlooks

ABSTRACT As an emerging donor in the Global South, Malaysia has increasingly advanced development assistance (DA) through its internationalisation of higher education (IHE) agenda. DA can be understood as a policy domain at the intersection of HE and foreign policy, requiring alignment between the two agendas. Assessing how these policies and practices have evolved in the Malaysian HE sector is therefore important for generating evidence‐based insights into future strategic directions, particularly as Malaysia advances towards developed‐nation status. Adopting a historical approach, this article traces the development of Malaysia's DA‐HE policies and practices through the lens of outward‐oriented internationalisation of higher education (OIHE). Malaysia's DA‐HE trajectory across four phases: the first phase marks the establishment of technical cooperation as the core instrument of DA–HE engagement; the second reflects its embedding within IHE policy; the third captures diversification through innovative and multilateral modalities; and the fourth signals a stronger strategic alignment with global prominence and educational diplomacy. These developments occur mainly through two modalities: financial and technical support, primarily underpinned by South–South Cooperation (SSC) and South–South and Triangular Cooperation (SSTC). This case study not only provides empirical evidence of the OIHE typology's real‐world case but also demonstrates how DA functions as a strategic instrument for advancing IHE, enhancing national positioning (including place, image, and influence internationally), and soft power.