FURTHER EDUCATION IN MALAYSIA

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1 FURTHER EDUCATION IN MALAYSIA Education in Malaysia is the responsibility of the federal government. The education system is highly centralised, with little or no input from local or state governments into the curriculum or the delivery of courses. Primary education and secondary education make up to eleven years of tuition free education. Upon completion of secondary education, students can choose to enrol on a course of post-secondary education. These are preparatory course for university. Pre-tertiary education (pre-school to secondary education) is under the jurisdiction of the Ministry of Education (MOE) while tertiary or higher education is the responsibility of the Ministry of Higher Education (MOHE). Despite its name, the MOHE is the main government body which supervises the further education providers in Malaysia. 1. Types of Further Education Providers The types of providers can be divided into two main groups, those which are government funded and those which receive no public funding and are therefore privately funded. Government funded providers include polytechnics, community colleges and teacher training institutes. Private funded providers make up roughly 40% of the higher education sector which include private colleges. Such Private Higher Educational Institutions can lead to the awarding of certificates and diplomas, along with private universities being able to offer degrees. The polytechnics and community colleges serve as alternative paths for secondary school graduates to further their education apart from public universities. Polytechnic education also provides relevant technological or entrepreneurial education and training. These are aimed at upgrading basic skills as well as to promote research and development projects in collaboration with businesses and industries. Community colleges aim to provide life-long learning opportunities for the community and high school graduates particularly those who study under the vocational stream. Students will be trained, re-skilled or up-skilled, leading to the award of certificate qualification. 2. Current Situation There are currently 22 polytechnics, 37 community colleges and about 500 private colleges currently in Malaysia. There has been a large number of foreign providers entering into the higher education and the further education sector in Malaysia in recent years from countries such as the UK, USA, Australia, Canada, France, Germany and New Zealand. cam_1b\ \1 1

2 3. Responsibility for Further Education in Malaysia The Ministry of Higher Education was created in March 2004 to take charge of post-secondary education in Malaysia, encompassing both further and higher education. The MOHE is divided into two departments, the Department of Higher Education and the Department of Polytechnic and Community College Education and two sectors, the Management Sector and the Development Sector. The Department of Polytechnic and Community College Education Department is tasked with providing education and training at Polytechnics and Community Colleges to meet the needs of the country s economy through the strategic management of the polytechnics and colleges. The Department also has to draw up and keep up to date curricula, effective training and career development programmes. It has the responsibility of ensuring continuous quality assurance and strong support services based on the National Education Philosophy. The Management Sector of the MOHE is responsible for the administration, the corporate image and other management functions of the MOHE. It consists of various divisions including the Corporate and Management Service Division, The Human Resources Management Division, the Finance Division and the Sports Division. The make-up of the Development Sector of the MOHE is similar to that of the Management Sector in that it has various sub-divisions. Its functions include preparing physical development plans that cover the five year Malaysia Plan and facilities of the institution it oversees. It also deals with the finances for managing and developing institutions and making monthly, quarterly and half yearly reports into education. There are various legal regulatory frameworks that support the provision of higher and further education in Malaysia. Perhaps the most significant piece of legislation was the Private Higher Education Institutions Act 1996 which allowed for the establishment of private universities and university colleges. This allowed these private institutions to offer degree awarding powers. Another important aspect of this Act was it made provisions for the establishment of branch campuses of foreign education providers. Other significant pieces of legislation include the Malaysian Qualifications Agency Act 2007 which replaced the National Accreditation Board Act. The purpose of this Act is to ensure that high academic standards, quality and control are maintained in private institutions. Also the National Higher Education Fund Corporation Act 1997 established a fund that provides financial assistance through study loans to students at institutions in Malaysia. Education in Malaysia has been heavily subsidised by the government and there are various types of financial support available to students in Malaysia including scholarships, study loans and commercial bank study loans. The three most popular sources of funding come from the scholarship division of the Development Sector of the MOHE, the National Higher Education Fund and the Public Services Department Sponsorship programme. cam_1b\ \1 2

3 The Scholarship division is responsible for ensuring that all students have the opportunity to receive access to financial aid in the form of study loans and scholarships. The National Higher Education Fund established under the National Higher Education Act 1997, aimed to ensure that loans are provided to eligible students at higher and further education institutions who are pursuing courses at diploma and bachelors and masters degrees. The Public Services Department Sponsorship Programme offers scholarships to excellent students in order for them to pursue their studies at local or overseas institutions at diploma and degree levels. The scholarship is usually offered to students who are interested in pursuing courses which are classified as critical to the national interest. In 2007 there were 8,000 scholarships offered to excellent students although the majority of these were at public and private universities rather than further education providers. The Malaysian Qualifications Framework is designed to be a unified system of qualifications offered on a national basis by all education and training institutions in both the public and private sectors. The MQF secures standards of qualifications and reinforces policies on quality assurance and insures accuracy and consistency in qualifications. The entity responsible for ensuring quality assurance of higher and further education for both public and private sector and implementing the MQF is the Malaysian Qualifications Agency, which was established on 1 November The MQA has responsibility for accrediting post secondary educational programmes and qualifications and supervising and regulating the quality and standard of post secondary education providers. The implementation of the MQF means that there is a unified system to interlink all the qualifications awarded in Malaysia to act as a reference point for all Malaysian national qualifications. The MQA has developed a code of practice and criteria and standards for post secondary education in Malaysia which is benchmarked against international good practice and nationally accepted by stakeholders in the education sector. The code provides a guideline of general requirements in the following areas: mission, vision, mission and learning outcomes; curriculum design and delivery; student selection and support services; assessment of students; academic staff; educational resources; programme monitoring and review; leadership, governance and administration; and continual quality improvement. The MQA quality assures programmes through the provisional accreditation process and then the formal accreditation process. The provisional accreditation process is designed to help post secondary school education providers to achieve accreditation by enhancing the standards and quality set in the provisional accreditation evaluation. The formal accreditation process provides recognition of the awards granted by post secondary providers and confirms they are in accordance with the standards. There is also a self-accreditation process which can be awarded to mature post secondary education providers that have well established quality assurance mechanisms. To be awarded this self-accreditation status the provider needs to undergo an institutional audit, and if successful all qualifications it offers will be automatically registered in the Malaysian Qualifications Register. cam_1b\ \1 3

4 4. Establishing a Presence in Malaysia 4.1 A joint venture will need to be set up in Malaysia The Companies Act in Malaysia establishes that three types of company can be established, these are: an unlimited company; a company limited by shares; and a company limited by guarantee. Most companies in Malaysia are companies limited by shares. This category can be subdivided into public and private limited companies. Each of these companies requires that there be a minimum of two directors, two shareholders and a company secretary. Both the directors and the company secretary must have their only or principal place of residence in Malaysia. A foreign company wishing to do business in Malaysia may only do so by either: incorporating a local company in Malaysia; or registering the foreign company in Malaysia. 4.2 An application for approval of the joint venture company will to be sought from the Foreign Investment Committee. 4.3 An application for approval and licensing by the Minister for Higher Education must be made under the Private Higher Education Act An application for accreditation of the campus must be made, even if the UK parent is accredited here in the UK. cam_1b\ \1 4

5 HIGHER EDUCATION IN MALAYSIA Education in Malaysia is the responsibility of the federal government. The education system is highly centralised with local and state governments generally having very little input into the curriculum or how education is delivered. The national education system encompasses the following stages: pre-school; primary education, secondary education; tertiary education and post-graduate education. Only primary education, which begins at 7 years of age and finishes at 12 years of age, is compulsory. Pre-tertiary education (pre-school to secondary education) in government schools is under the jurisdiction of the Ministry of Education (MOE) while tertiary education is the responsibility of the Ministry of Higher Education (MOHE). 1. Types of higher education providers The types of higher education institutions can be divided between those that are government funded institutions and private institutions of higher education which receive no public funding. Government funded institutions of higher education are comprised of universities, polytechnics and colleges. Private higher education institutes include: non-university status institutions, such as private colleges; university status institutions, such as private universities; and finally, foreign university branch campuses. 1.1 Public sector Malaysia has various teacher training colleges as well as other public colleges which provide certificate, diploma and pre-university programmes. Malaysian universities provide diploma, undergraduate and post-graduate study programmes. At present, however, Malaysia still relies heavily on foreign universities, especially in the United Kingdom, United States, Australia and New Zealand to provide higher education for its students. Polytechnics were originally established in 1969 to provide training in engineering and commerce to students specialising in vocational areas. They now provide a range of technological and entrepreneurial education and training and offer students an alternative route to further their education at certificate level (2 years) and diploma level (3 years). 1.2 Private sector Many private colleges offer programmes whereby the student does part of the degree course in Malaysia, and the other part at a foreign institution. These twinning programmes are mainly run with universities in the United Kingdom, United States, Canada, Australia and new Zealand. Some foreign universities and colleges have also set up branch campuses in Malaysia, including: Monash University, Australia; SAE Institute, Australia; Swinburne University of Technology, Australia; Curtin University of Technology, Australia; Raffles Design Institute, Singapore; and the University of Nottingham, UK. cam_1b\ \1 5

6 2. Current situation Malaysia has 20 public universities, 32 private universities and 6 foreign university branch campuses; 485 private colleges, 24 polytechnics and 37 public community colleges. There are also various higher educational institutions from the UK, US, Australia, Canada, France, Germany and New Zealand which offer twinning with Malaysian colleges and universities. Four of the 20 public universities in Malaysia have been assigned research university status with additional funding for R&D and commercialisation of research. 3. Students Malaysia s higher educational institutions currently house an estimated 942,000 students of which about 50,000 are international students from more than 100 countries. there are about 50,000 Malaysian students studying overseas. 4. Responsibility for higher education in Malaysia In 2004, the government formed the Ministry of Higher Education (MOHE) to oversee higher education institutes (both public and private), community colleges, polytechnics and other government agencies involved in higher education in Malaysia. The MOHE is comprised of two departments, the Department of Higher Education and the Polytechnic and Community College Education Department, and two sectors, the Development Sector and the Management Sector. The Department of Higher Education is supported by several sectors, divisions and an administrative unit, responsible for the development of both public and private higher education in Malaysia. This Department is also involved in the marketing of Malaysian Higher education to international markets and ensures that the universities and colleges are of international standing and is responsible for managing the welfare of international students. The sector designated with the jurisdiction over public higher education is known as the Sector of Public Higher Education Management, while the sector designated with the jurisdiction over private higher education is known as the Sector of Private Higher Education Management. The Department of Polytechnic and Community College Education is responsible for the education and training at Polytechnics and Community Colleges. It ensures that there are effective development and training programmes in place that meet all the quality assurance guidelines. The Management Sector of the MOHE is responsible for administration, the corporate image and other management functions of the MOHE. It consists of various divisions including the Corporate and management Service Division, the Human Resources Management Division, the Information Technology Division, the Finance Division and the Sports Division. The make up of the Development Sector of the MOHE is similar to the Management Sector in that it is also made up of various divisions, including the Development Division, the Policy and International Division, the Planning and Research Division, and the Scholarship Division. Its functions include preparing physical development plans that cover the five year Malaysia Plan, facilities of public higher educational institutions as well as the Polytechnics and Community cam_1b\ \1 6

7 Colleges. It also handles the finances for managing and developing public higher educational institutions besides making monthly or quarterly and half-yearly reports. There are various legal regulatory frameworks that support the provision of higher education in Malaysia. Perhaps the most significant piece of legislation was the Private Higher Education Institutions Act 1996, which made the establishment of private universities and university colleges possible. Prior to the enactment of this piece of legislation, private institutions of higher education existed, but were not authorised to confer their own degrees. Instead they acted as preparatory institutions for students to undertake courses of instructions in preparation for externally conferred degrees. Another important aspect of the Act was that it made provisions for the establishment of branch campuses of foreign universities. Other significant pieces of legislation include the Malaysian Qualifications Agency Act 2007, which replaced the National Accreditation Board Act 1996, to ensure that high academic standards, quality and control are maintained in private higher education institutions. Also, the National Higher Education Fund Corporation Act 1997 established a fund that provides financial assistance through study loans to students at higher educational institutions in Malaysia. Education in public universities is heavily subsidised by the government and there are also various types of financial support available to students in Malaysia including scholarships, study loans, and commercial bank study loans. The three most popular sources of funding come from the Scholarship Division of the Development Sector of the MOHE, the National Higher Education Fund and the Public Services Department Sponsorship Programme. The Scholarship Division is responsible for ensuring that all students have the opportunity to receive access to financial aid in the form of study loans and scholarships. There are three key sources of financial aid which are offered: the Matriculation Studies Scholarship; the Student Loan Fund; and the Federal Training Award Scheme. The National Higher Education Fund, established under the National Higher Education Act 1997, aims to ensure that loans are provided to eligible students at higher educational institutions (both public and private) who are pursuing courses at diploma, bachelor and master degree levels. In addition, it also provides for the establishment of a savings scheme. The Public Services Department Sponsorship Programme offers scholarships to excellent students to pursue their studies in either local or overseas higher institutions at diploma and bachelor s degree levels. The scholarship is usually offered to students who are interested in pursing courses which are classified as critical such as medicine, dentistry, pharmacy, engineering as well as science and technology courses. In 2007, there were 8,000 scholarships offered to excellent students studying at public and selected private universities. The Malaysian Qualifications Framework (MQF) is designed to be a unified system of qualifications offered on a national basis by all education and training institutions, in both the public and private sector. The MQF secures the standards of qualifications and reinforces policies on quality assurance and ensures accuracy and consistency of qualifications. The entity responsible for ensuring quality assurance of higher education, for both the public and private sector, and implementing the MQF, is the Malaysian cam_1b\ \1 7

8 Qualifications Agency (MQA), which was established on 1 November The MQA also has responsibility for accrediting higher educational programmes and qualifications and supervising and regulating the quality and standard of higher education providers. The implementation of MQF means that there is a unified system to bind and interlink all the qualifications awarded in Malaysia and to act as a reference point for all Malaysian national qualifications. The MQA has developed a code of practice on criteria and standards for higher education in Malaysia, which is benchmarked against international good practices and nationally accepted by stakeholders through various consultations. The code provides a guideline of general requirements in the following areas: vision, mission and learning outcomes; curriculum design and delivery; student selection and support services; assessment of students; academic staff; educational resources; programme monitoring and review; leadership, governance and administration; and continual quality improvement. The MQA quality assures programmes through the Provisional Accreditation process and then the formal Accreditation process. The Provisional Accreditation process is designed to help higher education providers to achieve the accreditation by enhancing the standard and quality set in the provisional accreditation evaluation. The formal Accreditation process provides recognition of the certificates, diplomas and degrees awarded by the higher education institutes and confirms that they are in accordance with the set standards. There is also a self accreditation process which can be awarded to mature higher education institutions that have well established quality assurance mechanisms. To be awarded self accreditation status, the higher education institution needs to undergo an institutional audit, and if successful, all qualifications it offers will automatically be registered in the Malaysian Qualifications register. 5. Establishing a UK campus in Malaysia 5.1 A joint venture company will need to be set up in Malaysia. 5.2 An application for approval of the joint venture company by the Foreign Investment Committee (FIC). By way of information, such approval is required where (without limitation): there is a proposal for a joint venture that involves two or more parties in a local company; or the proposed acquisition of interest in a local company or business in Malaysia has a value of RM 10 million or more by local or foreign interests; or the proposed acquisition of interest in a local company or business in Malaysia results in the transfer of ownership or control (more than 50%) to a foreign interest; or the proposed acquisition of interest by: any one foreign interest that involves 15% or more of the voting rights in any local company or businesses in Malaysia; or cam_1b\ \1 8

9 any group of foreign interests whether associated or unassociated of an aggregate of 30% or more of the voting rights in any local company or business in Malaysia. Some of the equity conditions imposed by the FIC Guidelines are that Bumiputera (indigenous Malay) participation is maintained at least 30%; and the remaining 70% may be held by a foreign interest (or together with local interest). 5.3 An application for approval and licence by the Minister for Higher Education under the Private Higher Educational Institutions Act Submit an application for Accreditation of the campus. Even if the campus is accredited by a UK University, it will also need to apply to the MQA for the accreditation. 5.5 An application to the Ministry of Higher Education for recognition of the campus and the provision of education. This document has been prepared by Eversheds LLP. Unless expressly stated to the contrary, the material contained in this document is for general information purposes only. It does not constitute legal or professional advice. Professional or legal advice should be obtained before taking or refraining from any action as a result of the contents of this document. No liability is accepted by Eversheds for any action taken in reliance on the information contained in this document. Any and all information is subject to change. Eversheds LLP Unauthorised copying of this document is not permitted. If you wish to copy this document, please contact Eversheds LLP for approval. Eversheds LLP is a limited liability partnership. For further information on Eversheds LLP or the Education team, please contact Glynne Stanfield at Eversheds LLP on or cam_1b\ \1 9

10 HIGHER EDUCATION IN MALAYSIA Education in Malaysia is the responsibility of the federal government. The education system is highly centralised with local and state governments generally having very little input into the curriculum or how education is delivered. The national education system encompasses the following stages: pre-school; primary education; secondary education; tertiary education and postgraduate education. Only primary education, which begins at 7 years of age and finishes at 12 years of age, is compulsory. Pre tertiary education (pre- school to secondary education) in government schools is under the jurisdiction of the Ministry of Education (MOE) while tertiary education is the responsibility of the Ministry of Higher Education (MOHE). 1. Types of higher education providers The types of higher education institutions can be divided between those that are government funded institutions and those that are private institutions of higher education which receive no public funding. Government funded institutions of higher education comprise of universities, polytechnics and colleges. Private higher education institutions include: nonuniversity status institutions, such as private colleges; university status institutions, such as private universities; and finally, foreign university branch campuses. 1.1 Public sector Malaysia has various teacher training colleges as well as other public colleges which provide certificate, diploma and pre-university programmes. Malaysian universities provide diploma, undergraduate and post-graduate study programmes. However, at present Malaysia still relies heavily on foreign universities, especially those based in the United Kingdom, United States, Australia and New Zealand, to provide higher education for its students. Polytechnics were originally established in 1969 to provide training in engineering and commerce to students specialising in vocational areas. They now provide a range of technological and entrepreneurial education and training and offer students an alternative route to further their education at certificate level (2 years) and diploma level (3 years). 1.2 Private sector Many private colleges offer programmes whereby the student does part of the degree course in Malaysia, and the other part of it in the foreign institution. These twinning programmes" are mainly run with universities based in the United Kingdom, United States, Canada, Australia and New Zealand. Some foreign universities and colleges have also set up branch campuses in Malaysia, including: Monash University, Australia; SAE Institute, Australia; Swinburne University of Technology, Australia; Curtin University of Technology, Australia; Raffles Design Institute, Singapore; and the University of Nottingham, UK. cam_1b\ \1 10

11 2. Current situation Malaysia has 20 public universities, 32 private universities and 6 foreign university branch campuses; 485 private colleges, 24 polytechnics and 37 public community colleges. There are also various higher educational institutions from the UK, US, Australia, Canada, France, Germany and New Zealand which offer twinning with Malaysian colleges and universities. Four of the 20 public universities in Malaysia have been assigned research university status with additional funding for R&D and commercialisation of research. 3. Students Malaysia s higher educational institutions currently house an estimated 942,000 students of which about 50,000 are international students from more than 100 countries. There are about 50,000 Malaysia students studying overseas. 4. Responsibility for higher education in Malaysia In 2004, the government formed the Ministry of Higher Education (MOHE) to oversee higher education institutions (both public and private), community colleges, polytechnics and other government agencies involved in higher education in Malaysia. The MOHE is comprised of two departments, the Department of Higher Education and the Polytechnic and Community College Education Department, and and two sectors, the Development Sector and the Management Sector. The Department of Higher Education is supported by several sectors, divisions and an administrative unit, responsible for the development of both public and private higher education in Malaysia. This Department is also involved in the marketing of Malaysian higher education to international markets. It ensures that universities and colleges are of international standing and is responsible for managing the welfare of international students. The sector designated with the jurisdiction over public higher education is known as the Sector of Public Higher Education Management, while the sector designated with the jurisdiction over private higher education is known as the Sector of Private Higher Education Management. The Department of Polytechnic and Community College Education is responsible for the education and training at polytechnics and community colleges. It ensures that there are effective development and training programmes in place that meet the quality assurance guidelines. The Management Sector of the MOHE is responsible for administration, the corporate image and other management functions of the MOHE. It consists of various divisions including the Corporate and Management Service Division, the Human Resources Management Division, the Information Technology Division, the Finance Division and the Sports Division. The make up of the Development Sector of the MOHE is similar to the Management Sector in that it is also made up of various divisions, including the Development Division, the Policy and International Division, the Planning and Research Division, and the Scholarship Division. Its functions include preparing physical development plans that cover the five year Malaysia Plan and facilities of public higher educational institutions as well as the polytechnics and cam_1b\ \1 11

12 community colleges. It also handles the finances for managing and developing public higher educational institutions besides making monthly or quarterly and half-yearly reports. There are various legal regulatory frameworks that support the provision of higher education in Malaysia. Perhaps the most significant piece of legislation was the Private Higher Education Institutions Act 1996, which made the establishment of private universities and university colleges possible. Prior to the enactment of this piece of legislation, private institutions of higher education existed, but were not authorised to confer their own degrees. Instead they acted as preparatory institutions for students to undertake courses of instructions in preparation for externally conferred degrees. Another important aspect of the Act was that it made provisions for the establishment of branch campuses of foreign universities. Other significant pieces of legislation include the Malaysian Qualifications Agency Act 2007, which replaced the National Accreditation Board Act 1996, to ensure that high academic standards, quality and control are maintained in private higher education institutions. Also, the National Higher Education Fund Corporation Act 1997 established a fund that provides financial assistance through study loans to students at higher educational institutions in Malaysia. Education in public universities is heavily subsidised by the government and there are also various types of financial support available to students in Malaysia, including scholarships, study loans, and commercial bank study loans. The three most popular sources of funding come from the Scholarship Division of the Development Sector of the MOHE, the National Higher Education Fund and the Public Services Department Sponsorship Programme. The Scholarship Division is responsible for ensuring that all students have the opportunity to receive access to financial aid in the form of study loans and scholarships. There are three key sources of financial aid which are offered: the Matriculation Studies Scholarship; the Student Loan Fund; and the Federal Training Award Scheme. The National Higher Education Fund, established under the National Higher Education Act 1997, aims to ensure that loans are provided to eligible students at higher educational institutions (both public and private) who are pursuing courses at Diploma, Bachelor s, and Masters degree levels. In addition, it also provides for the establishment of a savings scheme. The Public Services Department Sponsorship Programme offers scholarships to excellent students to pursue their studies in either local or overseas higher institutions at Diploma and Bachelor s degree levels. The scholarship is usually offered to students who are interested in pursuing courses which are classified as critical such as medicine, dentistry, pharmacy and engineering as well as science and technology courses. In 2007, there were 8000 scholarships offered to excellent students studying at public and selected private universities. The Malaysian Qualifications Framework (MQF) is designed to be a unified system of qualifications offered on a national basis by all education and training institutions, in both the public and private sector. The MQF secures the standards of qualifications and reinforces policies on quality assurance and ensures accuracy and consistency of qualifications. The entity responsible for ensuring quality assurance of higher education, for both the public and private sector, and implementing the MQF, is the Malaysian Qualifications Agency (MQA), which was established on 1 November The cam_1b\ \1 12

13 MQA also has responsibility for accrediting higher educational programmes and qualifications and supervising and regulating the quality and standard of higher education providers. The implementation of MQF means that there is a unified system to interlink all the qualifications awarded in Malaysia and to act as a reference point for all Malaysian national qualifications. The MQA has developed a code of practice on criteria and standards for higher education in Malaysia, which is benchmarked against international good practice and nationally accepted by stakeholders through various consultations. The code provides a guideline of general requirements in the following areas: vision, mission and learning outcomes; curriculum design and delivery; student selection and support services; assessment of students; academic staff; educational resources; programme monitoring and review; leadership, governance and administration; and continual quality improvement. The MQA quality assures programmes through the Provisional Accreditation process and then the formal Accreditation process. The Provisional Accreditation process is designed to help higher education providers to achieve accreditation by enhancing the standards and quality set in the provisional accreditation evaluation. The formal Accreditation process provides recognition of the certificates, diplomas and degrees awarded by higher education institutions and confirms that they are in accordance with the standards. There is also a self-accreditation process which can be awarded to mature higher education institutions that have well established quality assurance mechanisms. To be awarded self accreditation status, the higher education institution needs to undergo an institutional audit, and if successful, all qualifications it offers will automatically be registered in the Malaysian Qualifications register. 5. Establishing a UK campus in Malaysia 5.1 A joint venture company will need to be set up in Malaysia. 5.2 An application for approval of the joint venture company by the Foreign Investment Committee (FIC) must be made. Such approval is required where: there is a proposal for a joint venture that involves two or more parties in a local company or the proposed acquisition by local or foreign interests of interest in a local company or business in Malaysia has a value of RM 10 million or more or the proposed acquisition of an interest in a local company or business in Malaysia results in the transfer of ownership or control (more than 50%) to a foreign interest; or the proposal will involve the proposed acquisition of an interest by: any one foreign interest that involves 15% or more of the voting rights in any local company or business in Malaysia; or cam_1b\ \1 13

14 any group of foreign interests whether associated or unassociated of an aggregate of 30% or more of the voting rights in any local company or business in Malaysia. Some of the equity conditions imposed by the FIC Guidelines are that at least 30% Bumiputera (indigenous Malay) participation is maintained; and the remaining 70% may be held either solely by a foreign interest or jointly with a local interest. 5.3 An application for approval and licensing by the Minister for Higher Education must be made under the Private Higher Educational Institutions Act An application for accreditation of the campus must be made. Even if the campus is accredited by a UK university, it will also need to apply to the MQA for the accreditation. This document has been prepared by Eversheds LLP. Unless expressly stated to the contrary, the material contained in this document is for general information purposes only. It does not constitute legal or professional advice. Professional or legal advice should be obtained before taking or refraining from any action as a result of the contents of this document. No liability is accepted by Eversheds for any action taken in reliance on the information contained in this document. Any and all information is subject to change. Eversheds LLP Unauthorised copying of this document is not permitted. If you wish to copy this document, please contact Eversheds LLP for approval. Eversheds LLP is a limited liability partnership. For further information on Eversheds LLP or the Education team, please contact Glynne Stanfield at Eversheds LLP on or cam_1b\ \1 14

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