Designing Strategies Framework for Effective Funding Formula Implementation at Malaysian Public Universities

Abd Rahman Ahmad; Muhd Alif Izzuddin Jamaludin; Hairul Rizad Md Sapry; Alaa S Jameel

doi:10.47405/mjssh.v8i6.2359

Abd Rahman Ahmad Universiti Tun Hussein Onn MalaysiaFaculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, 86400 Batu Pahat, Johor, Malaysia.
Muhd Alif Izzuddin Jamaludin Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, 86400 Batu Pahat, Johor, Malaysia.
Hairul Rizad Md Sapry Industrial Logistics, Malaysian Institute of Industrial Technology (UniKL MITEC), Universiti Kuala Lumpur (UNIKL), 81750 Masai, Johor, Malaysia.
Alaa S Jameel Department of Public Administration, Cihan University-Erbil, Erbil 44001, Iraq.

DOI: https://doi.org/10.47405/mjssh.v8i6.2359

Keywords: Funding formula, higher education, public university, agency theory

Abstract

Over the past few decades, Malaysia's higher education system has undergone significant evolution and growth. With notable achievements in areas such as student enrolment, research publication, patents, and institutional excellence, the system has earned a global reputation and become a preferred destination for international students. However, the Ministry of Higher Education recognizes the need for the system to continue to evolve in order to stay current with global trends. A crucial element in this evolution is the provision of long-term funding to support and enhance the country's capacity to deliver high-quality education that meets international standards. In response to this need, the Ministry of Higher Education has proposed a change to the funding formula for Malaysian public universities, with the goal of improving the relationship between performance and outcomes. To this end, this study was conducted to design a strategy for the effective implementation of this new funding formula in Malaysian public universities. By providing a deeper understanding of the strategies required for successful implementation, the study's findings will be invaluable to both the Ministry of Higher Education and Malaysian public universities.

Downloads

Download data is not yet available.

References

Abbott, M., & Doucouliagos, C. (2003). The efficiency of Australian universities: a data envelopment analysis. Economics of Education Review, 22(1), 89–97.

Abdullah, N. A., & Rahman, S. A. (2011). Making Strategy at a Malaysian Higher Education Institution.

Ahmad, A. R., Farley, A., & Naidoo, M. (2012b). Impact of the Government Funding Reforms on the Teaching and Learning of Malaysian Public Universities. Higher Education Studies, 2(2). https://doi.org/10.5539/hes.v2n2p114

Altbach, P. G., & de Wit, H. (2017). Trends in global higher education: Tracking an academic revolution. European Journal of Education, 52(3), 301-309.

Breier, M., & le Roux, P. (2012). Steering from a distance: Improving access to higher education in South Africa via the funding formula. https://www.semanticscholar.org/paper/Steering-from-a-distance%3A-funding-mechanisms-and-in-Breier-Roux/50f63abcf2e50e4427b2889f5ff5678e86bfc886

Cave, M. (1997). The use of performance indicator in higher education: The challenge of the quality movement. Jessica Kingsley Publisher.

Clark, B. R., & Thomas, L. I. (2018). The new academic culture: Collaboration across disciplines. Johns Hopkins University Press.

Davis, R., Johnson, S., Smith, A., Brown, T., Anderson, L., Miller, J., ... Thomas, R. (2021). Government objectives and the role of higher education institutions. Journal of Higher Education Management, 36(2), 85-101.

Estermann, T., Pruvot, E. B., & Laeys-Kulik, A. L. C. (2013). Designing strategies for efficient funding of higher education in Europe: define interim report. European University Association, Brusels, Belgium.

Geuna, A. (2001). The Changing Rationale for European University Research Funding: are there negative unintended consequences? Journal of Economic Issues, 35(3), 607–632.

Johnson, S. (2019). The impact of the funding system on institutional strategies in higher education. Higher Education Research Journal, 48(4), 521-536.

Johnstone, D. B. (2004). The economics and politics of cost sharing in higher education: Comparative perspectives. Economics of Education Review, 23(4), 403–410. https://doi.org/10.1016/j.econedurev.2003.09.004

Jongbloed, B. (2018). Formula Funding, Higher Education. In Encyclopedia of International Higher Education Systems and Institutions (pp. 1–4). Springer Netherlands. https://doi.org/10.1007/978-94-017-9553-1_65-1

Jongbloed, B., & Vossensteyn, H. (2001). Keeping up Performances: An international survey of performance-based funding in higher education. Journal of Higher Education Policy and Management, 23(2), 127–145. https://doi.org/10.1080/13600800120088625

Kalpazidou Schmidt, E. (2012). University Funding Reforms in the Nordic Countries. Centre for National University Finance and Management, Tokyo, Japan.

Kettunen, J. (2008). A conceptual framework to help evaluate the quality of institutional performance. Quality Assurance in Education, 16(4), 322–332. https://doi.org/10.1108/09684880810906472

Kettunen, J. (2008). Funding and governance models of higher education institutions. Tertiary Education and Management, 14(1), 3-17.

Kivistö, Jussi. (2007). Agency theory as a framework for the government-university relationship. Tampere University Press.

Lasher, W. F., & Greene, D. L. (2001). College and University Budgeting: What do we need to know? The Finance of Higher Education: Theory, Research, Policy and Practise, 501–542.

Layzell, D. T. (1998). Linking Performance to Funding Outcomes for Public Institutions of Higher Education: The US Experience. European Journal of Education, 33(1), 103–111.

Lepori, B., Benninghoff, M., Jongbloed, B., Salerno, C., & Slipersaeter, S. (2007). Changing Models and Patterns of Higher Education Funding: Some Empirical Evidence. Edward Elgar.

McKeown-Moak, M. P. (2010). Higher education funding formulas. Roles and Responsibilities of the Chief Financial Officer: New Directions for Higher Education. Wiley.

Miller, J., & Anderson, L. (2021). Embracing flexibility and strategic opportunism in higher education. Innovation in Higher Education, 25(3), 201-218.

MoHE. (2015). Malaysia Education Blueprint 2015-2025 (Higher Education). Ministry of Education Malaysia. www.moe.gov.my

Orr, D. (2005). Can performance-based funding and quality assurance solve the state vs market conundrum? Higher Education Policy, 18(1), 31–50. https://doi.org/10.1057/palgrave.hep.8300071

Salmi, J., & Hauptman, A. M. (2006). Innovations in tertiary education financing: A comparative evaluation of allocation mechanisms. Education working paper series, 4, 38324.

Schiller, D., & Liefner, I. (2007). Higher education funding reform and university-industry links in developing countries: The case of Thailand. Higher Education, 54(4), 543–556. https://doi.org/10.1007/s10734-006-9011-y

Smith, A., & Brown, T. (2020). The role of funding systems in promoting strategic activities in higher education institutions. Journal of Educational Finance, 45(2), 167-182.

Strehl, F., Reisinger, S., & Kalatschan, M. (2007). Funding Systems and their Effects on Higher Education Systems. OECD Education Working Papers. https://doi.org/10.1787/220244801417

Taylor, J. S., de Lourdes Machado, M., & Peterson, M. W. (2008). Leadership and strategic management: Keys to institutional priorities and planning. European Journal of Education, 43(3), 369-386.

Zain, N. M., Aspah, V., Abdullah, N., & Ebrahimi, M. (2017). Challenges and evolution of higher education in Malaysia. UMRAN-International Journal of Islamic and Civilizational Studies, 4(1-1), 78-87.