If you live in Malaysia, you would know that the fees for
Tertiary Education is not something to brush off. Even with help from the
government like the Baucar Buku 1 Malaysia (BB1M) and bursary aid, some could
not even afford to study in college or universities due to the expensive
tuition fees.
However in recent years, Malaysia has emerged as an
unexpected contender in the world for higher education. Many international
students have lately took their attention into Malaysia. Infact, Malaysia is
ranked 11th for the most sought after country for tertiary education
among international students. Malaysia serves as a cost effective option as
Malaysian education offers a lot to these students. What and how does this
affect the economy in Malaysia?
The most obvious answer would be the increase in Gross
Domestic Product. The Gross Domestic Product (GDP) is the market value of all
final goods and services produced in the nation in a certain period. There are
plenty of ways to measure GDP. In this case, we will look at the Expenditure
Approach where consumption + investment + government purchases + net exports.
The increase in total students abroad would increase
consumption. Students who study in Malaysia from abroad needs to follow the
cost of living here. Consumption like transportation, food, accommodation along
with services like haircuts, laundry and air travel would all increase the
total consumption in Malaysia and thus the GDP would increase.
Besides increasing consumption, international students who
decide to take up a part time job would increase the labor force in the nation. As the labor force is increased, the total production in the country would also increase. This leads to a healthy economic growth.
As more and more international students are studying in the country, money will increase the cash flow and this will increase the real GDP which refers to the national income. Malaysia aims to attract at least 200,000 international students by the year 2020 and this is worth an estimated RM600,000 billion to the economy.
Done by,
Deric Low 0314152
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