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Corporate Governance Models for Higher Educational Institutions: An Analysis

Tuan Fatma Tuan Sulaiman and Zuhairah Ariff Abdul Ghadas

Pertanika Journal of Social Science and Humanities, Volume 29, Issue S2, December 2021

DOI: https://doi.org/10.47836/pjssh.29.s2.11

Keywords: Corporate governance, framework, Higher Educational Institutions, theories

Published on: 17 May 2021

Since 2000, public and private higher education institutions systems in Malaysia are promoted to meet the nation’s needs. Consequently, restructuring the public university system took place in 2005 through the Ninth Malaysia Plan (2006-2010). Under the new structure, the system differentiates between the types of universities in Malaysia, including research, comprehensive, specialised, and technical universities. The new structure offers a strong answer to students’ diverse complexity of skills and attention and permits the best use of faculty with different skills subject to specific objectives. The higher education system in Malaysia responds to globalisation, marketing, and the information economy similar to other developing countries. This impact of the new initiative can be seen from the increment of the enrolment, combination of universities, better process in administration, the growth of private colleges and universities has been supported and all aspects of academic programmes that have been widened to cater the demands from the markets. Currently, in Malaysia, there are 20 public universities, 51 private universities and 10 foreign university branch campuses; 37 private university colleges and 338 private colleges. This growth and changes have made Malaysia into an education hub, especially in South East Asia. One of the issues concerned is the governance structure and framework applicable to these higher educational institutions. This paper deliberates on the theories and models of corporate governance and examines the governance structures and framework suitable and applicable to higher educational institutions. The research methodologies adopted by this paper are doctrinal and document analysis.

ISSN 0128-7702

e-ISSN 2231-8534

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