Imagine an Education Hub: Leveraging Penang’s International School Ecosystem

EXECUTIVE SUMMARY

• The growing number of international schools in Penang presents a unique opportunity for the state to capitalise on these educational assets. Initially providing education for the children of expatriate families, international schools are now also an option for Malaysians who are able to send their children there and who prefer them to graduate under British, American, Australian, or Canadian syllabuses, or the International Baccalaureate Diploma Programme.
• By strategically enhancing and leveraging this ecosystem, Penang has good possibilities to elevate its regional standing in education, while stimulating economic growth and cultural exchanges.
• A strong international school ecosystem in Penang adds to the liveability of the state, and attract high-skilled expatriates and Malaysians with deep pockets who may be considering relocation for the sake of their school-going children.
• Apart from value-adding to the state economic status, a strong international school ecosystem will help retain local talents. In the long run, having diverse educational institutions is an investment in the state’s human capital.
• Diversity in international schools also encourages cultural exchanges. The interaction of students from different backgrounds revives Penang’s cosmopolitan environment, enriching the local community and creating a globally-aware citizenry.

Introduction

The international school ecosystem in Penang has come a long way since its first international school, The International School of Penang (Uplands) was established in 1955 at its first location on Penang Hill. Two decades later, Dalat International School opened in 1971 at Sandycroft, previously a British military base at Tanjung Bungah. While some of the earlier international schools in Penang started as boarding schools for children of expatriates or missionaries, the enrolment for these schools, and more recently established ones now also accept Malaysian students.

Today, Penang boasts a rich tapestry of international schools, each offering unique curricula and each fostering a multicultural environment of its own; the nationalities in each of them vary quite substantially. This diversity not only enriches the educational experience but also provides students with a global perspective, thus equipping them for an increasingly interconnected world.

The Ministry of Education defines international schools as schools that utilise renowned foreign curricula. These schools may enroll local and international students.

International schools in Malaysia differ from government schools in that the former are managed by private entities under the purview of the Department of Private Education in the Ministry of Education, while the latter are fully funded by the government through the ministry. A strict accreditation process is also in place to ensure that the quality of education in these schools is up to the standards set by MOE.

Given that international schools charge school fees while national schools are free of charge, there are expectations that the quality of education in international schools are at higher standards and that the premises are equipped with better facilities. More teacher attention being paid to individual students is also expected since these schools usually have a lower student-to-teacher ratio. International schools in Penang predominantly follow the British curriculum, with several offering American syllabuses.

Attracting Property and Capital Investments

International schools in Penang acts as a magnet for expatriates and globally mobile families, and the long history is often a deciding factor in these families’ relocation. The economic ecosystem that emerges around these schools bring much economic activities and monetary inflows. The fees are far from being the only economic benefits for the economy of Penang, Apart from attracting parents with much-needed expertise into the state, the investments and expenditures of these added population are often substantial—in property, vehicle purchase, general consumption, tourism generation, and so on and so forth.

Table 1: Guideline by the Ministry of Education for matters on Ownership/ Company, Capital/ Equity, and Location, Land, Premise and Facilities

Source: Private Education Division, Ministry of Education

These requirements for capital and property ownership or lease, as well as the construction of facilities for extra-curricular activities create inflow of revenue to the state and simultaneously develop surrounding areas. As stated in the guideline, international schools are encouraged to be located at new economic development corridors, meaning a spillover effect is anticipated. The presence of an international school with good infrastructure can spur local authorities and developers to match public infrastructure and new development projects in surrounding areas to the standards of the school. Housing and business districts can with great likelihood thrive in the vicinity of the school, raising the services on offer, and the liveability of the neighbourhood as well. Needless to say, cultural exchanges will flourish, and perhaps most importantly, employment opportunities will increase exponentially.

Generating Human Capital

Penang’s economic wellbeing has for several decades relied on the E&E manufacturing sector and on tourism, and to a much lesser extent, on the agriculture industry. However, competition abounds in the region. It is therefore vital for Penang to diversify its sources of income, even while it does its best to stay one step ahead in the traditional sectors.

The size of the E&E sector may be incomparably huge, but it is susceptible to aggressive fluctuations in market demand and to geopolitical shifts. For more holistic development, and in order to avoid having most of its eggs in one basket, Penang’s economic evolution will be more promising if it capitalises on other potentially profitable industries. Education across the board, including TVET, is such a one.

MNCs based in Penang continue to grow in number, and it is natural that there should be a growing demand for international schools from their schooling-age children. In addition, more Malaysian parents are choosing to send their children to international schools, for reasons we do not need to discuss here. Added to that are the children of Malaysian returnees who have already started their education overseas, who, despite the benefit of joining the national school system, would find it difficult to fit in. Enrolling in international schools is an appealing—if not sole—option for them.

Table 2: Guidelines from the Ministry of Education on the appointment of international school principals and teaching personnel

Source: Private Education Division, Ministry of Education

Strategic investments in faculty development will naturally attract top-tier educators, create a positive feedback loop and encourage knowledge exchange with local educators. This, in turn, ensures that local educators remain competitive.

Penang’s growing international school ecosystem can create opportunities for collaboration with local industries by aligning their curricula with the needs of the state’s key industries such as manufacturing, technology, healthcare, and other service sectors. The schools can play a pivotal role in producing a skilled workforce that meets the needs of the local job market through collaborations for internship placements, mentorship programmes, and research initiatives, thus fostering a symbiotic relationship between education and industry.

These schools can also be a significant draw for educational tourism if strategic policies to attract families seeking high-quality international education for their children are undertaken. This presents opportunities for ancillary services, such as accommodation, transportation, and recreational facilities, to develop.

The International School Ecosystem in Malaysia

According to ISC Research, there are 13,614 international schools globally, as of July 2023. 14.3% of the world’s international schools—i.e. 1.940 of them—are located in Southeast Asia. In fact, Malaysia alone accounts for 1.6% of the total international schools found in the world.

Table 3: Number of primary and secondary international schools in Malaysia by region

Source: Private Education Division, Ministry of Education

Table 4: Enrolment in primary and secondary international schools in Malaysia by region

Source: Private Education Division, Ministry of Education[1]

Selangor and Kuala Lumpur—in the central region—have the highest number of international schools in the country. In the southern region, Johor has the third highest number of international schools in Malaysia. In the northern region, Penang has by far the most international schools. Notwithstanding the larger numbers in the central region, the many benefits that come from being based in Penang—for the young and the old—and the good selection of international schools with British and American curricula found there make any ambition to turn Penang into an educational hub allied to its cultural and manufacturing assets a very promising one.

Table 5: Enrolment in international schools by citizenship

Source: Private Education Division, Ministry of Education[2]

In fact, the total enrolment in international schools has been increasing steadily over the years, excepting 2021 and 2022 where non-citizens are concerned. This is likely due to the disruptions in people’s lives and the family re-strategising needed during the pandemic. Many expatriates returned home or relocated during this period. As expected, enrolment jumped in the months before March 2023, indicating a return to normalcy in the education sector and evidently-increased interest in international schools.

Table 6: List of international schools in Penang

Source: International School Database

There are twelve international schools in Penang, all based on the island except for two on the mainland. The higher concentration of international schools is in the Northeast district of Penang, particularly in Tanjung Bungah, Tanjung Tokong, and Batu Ferringhi. These are also the areas that expatriates have traditionally preferred to live in, and also where the middle class local population have chosen to settle over recent decades. In the Southwest district, more and more international schools have set up shop, particularly in the Bayan Lepas area where the Free Industrial Zone is located.

Without these international schools in Penang, there would be little reason for married members of the high-skilled foreign workforce working here to bring their family along. If plans to move Penang’s service sector up the value chain, from blue-collared to white-collared professions, such as the proposal to create a special financial zone (SFZ) in the state in the near future, more international schools are bound to mushroom. As international schools climb offer better and better quality in education, they become more and more a deciding factor in attracting foreign talents and retaining local high-skilled talents.

In summary, Penang’s international school ecosystem is a valuable asset that, if strategically capitalised upon, can yield immense benefits for the region. Building and branding Penang as an international school hub can be economically beneficial to neighbouring states, and to the whole of the Northern Corridor Economic Region. By fostering collaboration between educational institutions and local industries, attracting global talents, and elevating its academic eocsystem, Penang can indeed become a regional education hub. The economic and cultural dividends of this will help propel Malaysia’s economic growth more steeply upwards.

Policy Recommendations

1. Finances

Expectations that Malaysian parents who send their children to international schools are wealthy and that they do not need assistance in financing their children’s school fees is a skewed perception. Many middle-income earners struggle financially in order to provide the best education they can afford for their children. While free education in national schools has its advantages, choosing to send one’s children for an international education is a personal one.

Some form of incentives such as putting a ceiling on school fees increment as the children go up the grades every year would ease the burden on parents sending their children to international schools. According to the guidelines from the Ministry of Education, any increase in fee should obtain prior approval from the Registrar General with the condition that it can only be sought only three years after the previous approval. Additionally, only an increase not exceeding 30 percent is allowed. The jurisdiction regarding school fees and many other matters regarding international schools fall on the federal government. Therefore, at the state level, other creative ways to ease the finances of parents sending children to international schools will have to be identified. For instance, the state can provide discounts on public transport especially for buses plying areas where there are many international schools. The state can also encourage businesses to give discounts for students’ electronic devices. Additionally, students attending international schools from abroad or out of state should be given a discount on accommodation rentals if they are not staying at school dormitories.

2. Ease of information

A quick search on the internet for international schools in Penang yields official websites of several international schools and other websites provided by international databases attempting to advise potential interested parents on what to choose. However, many of the latter do not have up-to-date and complete data. A reliable and central website for information on Penang’s various international schools would help interested parents compare options.

3. Collaboration with Local Universities and Companies

Collaboration between international schools and local universities can facilitate smoother transitions for students seeking higher education in Penang. Partnerships with local universities can offer scholarships, joint programmes, and research opportunities.

Local companies or multinational companies located in Penang should be encouraged to work with international schools. Initiatives such as summer programmes, internship opportunities or mentorship programmes can encourage students to consider staying in Penang or Malaysia to work after completion of their studies. Another possibility is for these companies to offer bonded scholarships for higher education to the students.

4. Support for Local Educators

Investing in professional development programmes for local educators ensures that they remain competitive within the international school ecosystem. This can help retain and attract local talent. While matters of employment, salary, and employee benefits in international schools are beyond the jurisdiction of the state government, other ways to support local educators can be taken, such as offering incentives and scholarships for local students interested in pursuing their higher education in education-related diplomas and degrees which lead to employment in international schools.

Editor: Ooi Kee Beng
Editorial Team: Alexander Fernandez and Nur Fitriah (Designer)

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Footnotes

[1] Up to 30 June 2022

[2] Up to 31 March 2023

Sources

International Schools in Malaysia. (2023). International School Database. Retrieved from https://www.international-schools-database.com/country/malaysia

Data on International Schools. (2023). ISC Research. Retrieved from https://iscresearch.com/data/ISC Research (2023).