An Analysis of the Education Industry in Malaysia: PESTELED & SWOT

This report offers a comprehensive analysis of the education industry in Malaysia, focusing on both macro and micro-environmental factors. The report begins with an executive summary providing an overview of the Malaysian education system, highlighting the role of the Ministry of Education and the individual state departments. It then presents a detailed PESTELED analysis, examining the political, economic, social, technological, environmental, legal, ethical, and demographic factors influencing the industry. The political factors include the government's language policies and internationalization efforts. Economic factors cover the affordability of education, while social factors address cultural diversity. Technological factors focus on e-learning and online resources. Environmental factors consider student motivation and weather conditions. Legal and ethical factors are also discussed. The report then proceeds to a SWOT analysis of The International School of Penang (Uplands), evaluating its strengths, weaknesses, opportunities, and threats. The conclusion summarizes the key findings, providing insights into the current state and future prospects of the Malaysian education sector. The report also includes references to support the analysis.

Running head: EDUCATION MANAGEMENT
EDUCATION MANAGEMENT
Name of the Student
Name of the University
Author Note

1EDUCATION MANAGEMENT
EXECUTIVE SUMMARY
The education industry of Malaysia is overlooked by the Ministry of Education in the
Country that is headed by Mahdzir Khalid. The various states and the federal territories of the
country however, have their individual departments dedicated to the education. These
departments situated within the various states and the federal territories within the country are
entrusted with the duties of coordinating with the various institutions in matters pertaining to
the education in the concerned state or the federal territory. The International School of
Penang (Uplands) is one of the prestigious international schools situated in Penang in
Malaysia. The school was founded in the year 1955 and is situated in the Batu Ferringhi
region. This is one of the oldest and the most established of all the other schools of Malaysia.
The following report deals with the PESTELED analysis of the education industry in the
country of Malaysia. The report further proceeds to present a SWOT analysis of one of the
top schools in Penang, Malaysia, The International School of Penang (Uplands), Malaysia.

2EDUCATION MANAGEMENT
Table of Contents
Introduction....................................................................................................................3
Discussion......................................................................................................................4
PESTELED Analysis of the education industry in Malaysia.....................................4
Political Factors......................................................................................................4
Economic Factors...................................................................................................5
Social Factors.........................................................................................................5
Technological Factors............................................................................................6
Environmental Factors...........................................................................................7
Legal Factors..........................................................................................................8
Ethical Factors........................................................................................................8
Demographic Factors.............................................................................................9
SWOT Analysis of The International School of Penang (Uplands), Malaysia..........9
Strengths...............................................................................................................10
Weaknesses..........................................................................................................10
Opportunities........................................................................................................10
Threats..................................................................................................................11
Conclusion....................................................................................................................11
References....................................................................................................................13

3EDUCATION MANAGEMENT
Introduction
The education industry of Malaysia is overlooked by the Ministry of Education in the
Country that is headed by Mahdzir Khalid. The various states and the federal territories of the
country however, have their individual departments dedicated to the education. These
departments situated within the various states and the federal territories within the country are
entrusted with the duties of coordinating with the various institutions in matters pertaining to
the education in the concerned state or the federal territory. The major legislation that helps in
governing the matters pertaining to the education in the country is the Education Act of 1996
(Persekolahan & Permohonan, 2018). The education system of the country is divided into
some major subdivisions including the stages of preschooling, the primary education, the
secondary education, the post-secondary education and the tertiary forms of the education in
the country. The Malaysian government allows the concerned students to obtain education
from the multitude of the public schools that are available all over the country. There are also
a huge number of private schools and provisions that advocate homeschooling that are
recognized by the Malaysian government. The government of Malaysia has deemed the
conditions of the primary education to be mandatory for the citizens of the country. The
Malaysian country proudly boasts of the huge number of the educational institutions that are
present within the country. There are 9 branch campuses of the foreign universities, 414
privately owned colleges, 31 colleges registered under the privately-owned universities, and
43 universities in the country that are dedicated to the purpose of the higher education in the
country (Malaysiauniversity.net, 2018). The following report deals with the PESTELED
analysis of the education industry in the country of Malaysia. The report further proceeds to
present a SWOT analysis of one of the top schools in Penang, Malaysia, The International
School of Penang (Uplands), Malaysia.

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Discussion
PESTELED Analysis of the education industry in Malaysia
Political Factors
The education industry has been regarded to be one of those industries that are
influenced by the political environment of the country. The education industry of the country
might be held responsible for the promotion of the integration and the racial harmony of the
country, thereby affecting the political conditions of the country. The educational industry in
Malaysia is affected by the political condition in the country as well. The government of
Malaysia has been trying to implement the Malay Language as the national language in the
country. This might pose to be an issue for the government due to the fact that the Malaysian
country comprises of people who belong to different linguistic backgrounds (Akareem &
Hossain, 2016). The schools that impart primary education to the students tend to impart
education in the various mother tongues of the students although as an elective subject. The
introduction of the Malay language as the primary mode of education might have led to the
promotion of the usage of the national language of the country. The internationalization of
the education industry of the country has led to the voluptuous growth of the education
industry of the country. The political conditions of the country have been favorable for the
students who have been visiting the country with the intention of continuing their academic
career in the concerned country. The cultural compatibility of the students belonging to the
middle eastern regions and the Asia-Pacific areas play a major role in boosting the education
industry of the country. The stability in the political scenario of the country might also help
the education industry of the country to experience a huge growth within the relatively short
span of time. The students find the rates of gaining a visa for the purpose of study in
Malaysia to be cheaper than the other countries that they might choose for their higher
education.

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Economic Factors
The economic factors refer to the various factors that deal with the economic growth
and the inflation rate of the concerned business. In the concerned case, the various economic
factors that affect the education sector are the fees that are levied by the various educational
institutions of the country. The cost of education in Malaysia is affordable by the concerned
students who might wish to continue with their studies in the concerned country (Singh,
2016). The cost of the higher education in the country ranges from the 8600 USD to 14,300
USD in all the various academic courses that are available in the various courses of the
bachelor’s degree programs. The branch that is dedicated to the medicine tends to be a bit
costlier but the foreign students find it cheaper than the other universities that are present
over the world (Vaz & Mansori, 2013). The cost of living in Malaysia is comparatively low
than that in the other countries of the world. This attracts a huge number of students to the
Malaysian lands and thus helps in contributing to the economy of the country. The other
courses offered by the various institutions in the country tend to cost around 2300 USD to
3100 USD for the duration of one year which is comparatively cheaper than the similar
courses in the other countries of the world (Universitymalaysia.net., 2018). The cost that the
students might incur for pursuing courses related to the preparation for the external
examinations on a professional level might be comparatively less and might be ranging from
2900 USD to 4500 USD depending on the market value of the concerned profession
(Malaysiauniversity.net, 2018). The Malaysian education industry is one of the most
flourishing industries in the country that helps to provide a huge boost to the economy of the
country.
Social Factors
The social factors that need to be kept in mind while performing the PESTELED
analysis of the concerned education industry of Malaysia include the various cultural

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conditions, the growth rate of the population in the country, the distribution among the
various areas within the industry based on the age of the participants in the various
educational institutions of the country. The social points of view claims to point at the
restoration of the various cultures and the endemic languages that have been present and are
used within the country.it also focusses on the comprehension of the culture and the
languages of the students who have been getting themselves enrolled in the country for the
various educational purposes (Abdullah, 2013). The internationalization of the education
industry has led to the merger of the various cultures and he languages within the country.
This has led to the internationalization of the Malaysian education industry and thus has
helped in the increase in the economic conditions of the country. The other social factors that
affect the education sector of the country help in the internationalization of the various
universities that have been operative within the country. The different cultural and social
conditions in the market however also result in the practice and upholding of the cultural
diversity among the students who have been pursuing their education in the various
universities in the country (Bell, 2004). The cultural diversity also helps the concerned
management of the schools to put forth an improvement in the quality of the teaching that is
imparted to the students and the quality of the researches that are undertaken by the
concerned students who have been pursuing higher educational courses at the various
international and the local universities in the country.
Technological Factors
The technological factors that are involved in the education industry tend to depend
on the various technologies that might be implemented in the field of education in order to
enhance the effectiveness of the education that is imparted to the concerned students. The
huge amounts of improvements in the various technological aspects might help in the overall
improvement of the education industry of the country (Chukwumah, 2015). The education

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industry in the country has been going through major changes in the factors that pertain to the
technological matters involved in the education industry. The education industry in Malaysia
has been heavily dependent on the technological factors like the e-learning portals, the online
lecturing facilities, the round-the-clock support that is available to the concerned students.
This might help the students to continue with their concerned academic activities without
having to be physically present in the concerned classroom. These advancements of the
technological factors might also help the students to clarify the doubts that they have beyond
the class hours (Bidin & Ziden, 2013). This would prevent the conditions wherein the
concerned educators would have to solve all the doubts of the concerned students during the
class hours that might hamper the progress of the concerned class of the students due to the
shortage in the time allotted for the same.
Environmental Factors
The environmental factors that majorly affect the education industry are the factors
pertaining to the motivation of the students who have been studying at the various
educational institutions of the country. This might help the students to get motivated and
remain so without losing on to their own cultural uniqueness (Chong, Teh, & Tan, 2014).
There are students studying in the various universities and the other educational institutions
of the country who belong to different linguistic backgrounds and the various ethnic and
cultural backgrounds. The concerned management of the educational institutions should look
into the matter that the students do not face any discrimination on the basis of the various
ethnic groups that they belong. The students should not be discriminated on the basis of the
differences in their cultural backgrounds. The environmental factors that affect the education
industry in Malaysia are majorly dependent on the weather conditions that are prevalent
within the country. The major seasonal change that affects the country and the educational
systems is the heavy monsoon season that affects the country. The education industry of the

8EDUCATION MANAGEMENT
country might be highly affected by the weather conditions in the country. The education
ministry of the country might also arrange for the conditions wherein the students of the
various institutions could log into the various portals at their own convenient space and time
(Grapragasem, Krishnan, & Mansor, 2014). This might help them to study and carry on with
the various activities related to their education without having to be physically present at the
concerned institution. This might help the concerned educators to continue with the lessons in
cases wherein the students would not be able to remain present in the concerned class of the
institution.
Legal Factors
The various legal factors that might affect the education industry of Malaysia include
the educational laws of the country, the modifications that are imposed by the Ministry of
Education of the country. The legal factors might also include the various matters related to
the educational visas that are granted to the students who arrive in this country to continue
with their higher education in various fields. The Ministry of Education in the country has
ensured the fact that all the children of the country do receive the primary education. the
education ministry of the country has ensured this by making it mandatory for the children of
the country to get themselves enrolled at the various educational institutions that provide free
education at the primary stages of education (Abedalaziz, Jamaluddin, & Chin, 2013). The
administration of the country further states that the rates of procuring an education visa in the
country is a lot more cheaper and hassle free in comparison to the other countries that offer
similar courses to the students. This has helped the Malaysian education industry to turn into
an ever-growing hub for the high-quality education. The students who have been visiting the
country do face issues regarding their educational visas and have to renew them in order to
continue with their courses of study in case the concerned visa expires.

9EDUCATION MANAGEMENT
Ethical Factors
The ethical factors that are involved in the education industry in Malaysia include the
discrimination of the students based on the ethnic groups wherein they do belong. The
government of the country have demonstrated a greater control on the implications of the
rules that might help the restoration of the socio-economic positions that were held by the
various ethnic groups in the country (Kenayathulla, 2015). The majority of the Malay
population consists of the Bumiputera ethnic group that consists of almost 67.3% of the total
population, the Chinese population make up 24.5% of the total population while the Indian
population is responsible for only 7.2% of the Malay population of the country.
Demographic Factors
The demographic factors that affect the education industry of Malaysia are the
socioeconomic status of the concerned students like the age of the student, the educational
level of the students, the level of income of the student, the religious and cultural background
of the students and the occupation of the student (Cheng, Mahmood, & Yeap, 2013). These
demographic factors might hugely impact the educational industry of Malaysia. The
education industry of Malaysia is known to tend to a huge number of the foreign students
who arrive in the country in order to continue with their educational careers in the country
(Zamberi, 2013). The attrition rate of the students who display the poor usage of English is
quite high in the country.
SWOT Analysis of The International School of Penang (Uplands), Malaysia
The International School of Penang (Uplands) is one of the prestigious international
schools situated in Penang in Malaysia. The school was founded in the year 1955 and is
situated in the Batu Ferringhi region. This is one of the oldest and the most established of all
the other schools of Malaysia. The school boasts of having over 700 students and 72 teachers
who belong to 18 different countries. The total population of the school represents over 40

10EDUCATION MANAGEMENT
nationalities and is also known to depict excellent results in the national level examinations
(Uplands.org, 2018). The school also boasts of having the boarding facilities that the
international students might avail.
Strengths
The strengths of the school lie in the fact that the school promotes a dynamic
environment wherein there might be found a number of cultures that are co-existent. The
school encourages the each and every member of the school to be engaged in the various
activities that are organized by the management of the school. The school authorities claim to
encourage the learners to get themselves engaged with the local as well as the wider
community residing in the area. The brand value that is upheld by the school is one of the
major strengths of the school. The brand value of the school in this case refers to the values
of the cash flow that is dedicated towards the brand name of the school (Shahijan, Rezaei, &
Preece, 2016). This school being one of the most established and oldest schools of the
country has a high brand value.
Weaknesses
The weaknesses of the International School of Penang (Uplands), Malaysia lie in the
fact that the teaching staff at the school is not seen to be happy with the remuneration that
they receive for the huge amount of labor that they put in in order to take care of the students
of the concerned academic institution. This might result in the decrease in the quality of the
education that is provided to the students who have been studying in the concerned school
(Dyson, 2004). The staff of the school further put forth their grievances regarding the act that
they do not receive benefits enough in lieu of the labor that they put in the concerned job.

11EDUCATION MANAGEMENT
Opportunities
The opportunities for the school might lie in the various areas that might attract the
students to the school. The school might aim to develop the leadership strategy that is
followed by the concerned authority in order to help boost the overall performance of the
school. The school might bring about an improvement in the effectiveness of the management
and the leadership by ensuring the fact that the managers and the leaders are involved directly
in the assessment of the performance of the school. The school is also advised to bring about
a rise in the quality of the teaching and the assessments that are conducted by the authorities
of the school. This might be taken care of by ensuring the better quality of the education that
is imparted to the students and the brisk pace of learning of the concerned students (Gleeson
& Donnabháin, 2009). The concerned authority of the school is also advised to take care of
the fact that there is and improvement in the use of the assessment so that the concerned
assignment meets the need of the concerned student.
Threats
The school might face the threats on the matters concerning the funding that the
school requires for functioning in a smooth manner. The lack of funds in the school might
lead to the conditions wherein the school authorities might be forced to impose a hike on the
fees that it levies on the students or might have to pull off certain facilities in order to
compensate for the low funds that are received (Arokiasamy, Tat, & Abdullah, 2013).
Conclusion
Thus, from the above discussion it might be stated that the Malaysian education sector
is presently at a position wherein there are scope of further improvement and flourishing. The
growing number of the students in the country of Malaysia have resulted in the huge growth
in the economy of the country. The education industry of Malaysia has been the attraction of

12EDUCATION MANAGEMENT
the students from all over the world due to the low cost of education and the low costs
incurred in the living conditions of the country. The high use of the technology in the
education sector also serves as an attracting factor for the foreign students. The PESTELED
analysis of the education industry of the country provides a clear in sight into the various
factors that influence the education sector of the country. The analysis helps the concerned
readers to have a better understanding of the education industry of Malaysia as well as the
boost that the country receives on the economic front. The SWOT analysis of the
International School of Penang (Uplands) helps the readers to identify the various strengths
of the educational institution as well as the opportunities that the concerned educational
institution might face in the near future. The analysis also points out the weaknesses and the
threats that are faced by the educational institution during the current times as well as in the
future.

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