As Malaysia prepares to table Budget 2026, we are at an important crossroad. The decisions made now will influence the future of our higher education system and the nation’s ability to compete globally. The increase to RM18 billion allocated to higher education last year was a positive step. However, the changing global economic landscape requires more decisive action and forward-thinking investment.
I believe Budget 2026 should not only maintain funding levels but set clear priorities to nurture graduates who are innovative, inclusive, and resilient. These qualities will define the success of our country in the years ahead.
One key area is internationalisation. Malaysia has made significant progress, with international student numbers rising steadily, especially from countries like China, Indonesia, and India. Data from Study Malaysia and Education Malaysia Global Services shows we are on track to meet the target of 250,000 international students by 2025. To build on this, the government should introduce targeted incentives that attract more international students, particularly to private institutions. This will strengthen Malaysia’s global reputation and bring economic benefits.
Research and innovation must also be a focus. Supporting “blue-sky” research, which may not have immediate applications but leads to breakthrough discoveries, is essential. It is through this type of work that Malaysia can transition to a knowledge-driven economy. Increased funding and stronger collaborations between academia and industry will create a dynamic research environment that fosters creativity and leadership.
Digital transformation is another critical priority. Education today is evolving rapidly. Investment in digital platforms, virtual learning, and smart campus infrastructure is necessary to prepare students for a workforce that demands flexibility and personalised learning experiences.
Inclusion must be at the heart of our education system. Supporting neurodiverse and disabled learners is not only a social responsibility but also a way to unlock untapped talent. Dedicated funding and inclusive policies will ensure education is accessible to all Malaysians. Enhancing Education Quality and Global Standing
We also need to raise the quality and global recognition of our institutions. Establishing unified national quality frameworks and incentives will help align Malaysia’s higher education standards with international benchmarks, improving graduate employability worldwide.
Finally, Malaysia must lead in STEM and Artificial Intelligence (AI). These fields are the foundation of future innovation and economic growth. Investment in STEM education and AI initiatives will prepare the next generation of leaders and innovators.
Budget 2026 is more than numbers. It is an opportunity to invest in Malaysia’s future. By focusing on these priorities, we can develop purpose-driven graduates who will shape a resilient, innovative, and inclusive Malaysia. At Heriot-Watt University Malaysia, we are committed to working with the government and partners to realise this vision and ensure our nation’s universities continue to thrive on the global stage.
This article was written by Professor Mushtak Al-Atabi, the Provost and Chief Executive Officer of Heriot-Watt University Malaysia, and the Chairman of Vice Chancellors Council for Private Universities (VCCPU).
*Disclaimer: The views expressed are those of the writer and do not necessarily reflect those of NHA – News Hub Asia. 