Economic and social impact of Malaysian higher education: stakeholders' perspectives

Abstract

PurposeThis study examined the economic and social impact of Malaysian universities on their communities from stakeholders' perspectives. It analysed whether university stakeholders' spending, human capital (HC) and knowledge exploration (KE) will impact aggregate income (AI), quality of life (QOL) and business growth (BG) in surrounding communities.Design/methodology/approachA survey was conducted among 540 university stakeholders from the southern, northern and eastern regions of Malaysia, representing the alumni, community and industry. Data were subjected to factor analysis using structural equation modelling (SEM).FindingsResults showed that universities impacted communities' economic development and wellbeing, thereby fulfilling their community-related role.Originality/valueThis study addressed universities' role in communities' economic growth and social development. Universities' contributions towards communities can be improved through the proposed model, which suggests ways to maximise their impact. A more detailed study of a particular university is needed to identify other factors that can strengthen universities' impact, even at national and global levels.

The Role of Higher Education in Economic Growth in ASEAN: Systematic Literature Review

“…The results also argue that human capital is enhanced by financial development, which positively affects economic growth. Moreover, confirm a bi-directional relationship between economic growth and human development (Muhamad et al, 2022;Prasetyo, 2020).…”

“…It is interesting to see the different approaches and findings on improving graduate employability in higher education in Indonesia, Malaysia, and Thailand. The study conducted by Muhamad et al (2022); Indra et al (2020) highlights the importance of developing effective teaching abilities to improve graduate employability. Such as (1) specifically, (2) cooperative relationship competency, (3) interflow communication abilities, and (4) teaching resource distribution of resource satisfaction competency were identified as key competencies that can help enhance graduate employability and employment rate.…”

“…Innovation is postulated to be the main driver for robust economic growth in a knowledgebased economy (Muhamad et al, 2022;Hernita et al, 2021;Law et al, 2020;Muhamad et al, 2018). The finding indirectly reveals the crucial impact of quality innovation rather than quantity concern.…”

“…Most of the previous studies do not doubt the essential role of education in economic growth. Increasing unemployment with a high-level degree is expected to produce a negative impact on the growth of the country (Muhamad et al, 2022).…”

“…Strengthening social capital is very important in efforts to increase economic growth and improve development performance (Firman et al, 2021;Dahal, 2017;Rambeli et al, 2021). A knowledge-based typology of university spin-offs in the context of regional economic development (Muhamad et al, 2022;Prasetyo & Kistanti, 2020;Firman et al, 2021).…”