Please cite this paper as: National Higher Education Research Institute (2010), “The State of Penang, Malaysia: Self-Evaluation Report”, OECD Reviews of Higher Education in Regional and City Development, IMHE, http://www.oecd.org/edu/imhe/regionaldevelopment OECD Reviews of Higher Education in Regional and City Development The State of Penang, Malaysia SELF-EVALUATION REPORT Morshidi SIRAT, Clarene TAN and Thanam SUBRAMANIAM (eds.) Directorate for Education Programme on Institutional Management in Higher Education (IMHE) This report was prepared by the National Higher Education Research Institute (IPPTN), Penang, Malaysia in collaboration with a number of institutions in the State of Penang as an input to the OECD Review of Higher Education in Regional and City Development. It was prepared in response to guidelines provided by the OECD to all participating regions. The guidelines encouraged constructive and critical evaluation of the policies, practices and strategies in HEIs’ regional engagement. The opinions expressed are not necessarily those of the National Higher Education Research Institute, the OECD or its Member countries. Penang, Malaysia Self-Evaluation Report Reviews of Higher Education Institutions in Regional and City Development Date: 16 June 2010 Editors Morshidi Sirat, Clarene Tan & Thanam Subramaniam PREPARED BY Universiti Sains Malaysia, Penang Regional Coordinator Morshidi Sirat Ph.D., National Higher Education Research Institute, Universiti Sains Malaysia Working Group Members Ahmad Imran Kamis, Research Centre and Management Office, Universiti Sains Malaysia Ahmad Nurulazam Md. Zain Ph.D., School of Educational Studies, Universiti Sains Malaysia Asyirah Abdul Rahim, Ph.D., School of Humanities, Universiti Sains Malaysia Azeem Fazwan Bin Ahmad Farouk Ph.D., School of Social Sciences, Universiti Sains Malaysia Azlan Osman, School of Computer Sciences Universiti Sains Malaysia Azlinda Azman, Ph.D., School of Social Sciences, Universiti Sains Malaysia Azrina Husin, Ph.D., School of Social Sciences, Universiti Sains Malaysia Benny Teh Cheng Guan Ph.D., School of Social Sciences, Universiti Sains Malaysia Chan Lean Heng Ph.D., School of Social Sciences, Universiti Sains Malaysia Fatimah Hassan,Socio-Economic and Environmental Research Institute (SERI) Fauziah Md.Taib Ph.D., School of Management , Universiti Sains Malaysia Fera Fizani Ahmad Fizri Ph.D., School of Industrial Technology , Universiti Sains Malaysia Hajar Zituakmar Mohd Fauzi, School of Pharmaceutical Sciences, Universiti Sains Malaysia Hasnah Haron, Ph.D., Graduate Business School, Universiti Sains Malaysia Ismail Baba Ph.D., School of Social Sciences, Universiti Sains Malaysia Ishak Ismail, Ph.D., School of Management , Universiti Sains Malaysia Janet Pillai Abdullah, School of Arts, Universiti Sains Malaysia Jamalludin Sulaiman, Ph.D., School of Social Sciences, Universiti Sains Malaysia Melissa Ng Lee Yen Abdullah Ph.D., School of Educational Studies, Universiti Sains Malaysia Mohd Nizam Saad, Research Centre and Management Office Universiti Sains Malaysia Morshidi Sirat, Ph.D.,National Higher Education Research Institute, Universiti Sains Malaysia Munir Shuib Ph.D., School of Humanities, Universiti Sains Malaysia Narimah Samat Ph.D., School of Humanities, Universiti Sains Malaysia Noor Hazlina Ahmad, Ph.D., School of Management, Universiti Sains Malaysia Nor Malina Malek, Ph.D., School of Social Sciences Universiti Sains Malaysia Norpisah Mat Isa, Ph.D., School of Social Sciences, Universiti Sains Malaysia Premalatha Karupiah, Ph.D., School of Social Sciences, Universiti Sains Malaysia Rozinah Jamaludin, Ph.D., Centre for Instructional Technology & Multimedia, Universiti Sains Malaysia Sabariah Ismail, Ph. D., Centre for Drug Research, Universiti Sains Malaysia Saidatulakmal Mohd, Ph. D., School of Social Sciences, Universiti Sains Malaysia Sarjit Kaur Ph.D., School of Humanities, Universiti Sains Malaysia Sharifah Rohayah Sheikh Dawood Ph.D., School of Humanities, Universiti Sains Malaysia Sivamurugan Pandian Ph.D., School of Social Sciences, Universiti Sains Malaysia Suriati Ghazali Ph.D., School of Humanities, Universiti Sains Malaysia Usman Hj.Yaacob Ph.D., School of Humanities, Universiti Sains Malaysia Wan Mohd Muhiyuddin Wan Ibrahim Ph.D., School of Humanities, Universiti Sains Malaysia Research Officers Thanam Subramaniam, Clarene Tan Chern Chieh and Ooi Poh Ling National Higher Education Research Institute, Universiti Sains Malaysia Technician and Photographer Asnizal Haidy Jasni, National Higher Education Research Institute, Universiti Sains Malaysia TABLE OF CONTENTS FOREWORD xix EXECUTIVE SUMMARY xxi Overview of the Region Characteristics of Higher Education System Contribution of HEIs to Research and Regional Innovation Contribution of HEIs to teaching and Learning to Labour Market and Skills Contribution of HEIs to regional networking Contribution HEIs to Social, Cultural and Environmental Development Capacity Building for Regional Co–operation Challenges for Increasing the Contribution of HEI to Regional Development INTRODUCTION: REVISITING THE ROLE OF THE UNIVERSITY xxv University and Beyond xxv Roles of the University xxv The Role of Universities in Malaysia xxvi CHAPTER 1: OVERVIEW OF THE PENANG REGION/CITY-REGION Introduction 1 1.1 The Geographical Situation 1 iii 1.1.1 Age Groups and Dependency 7 1.1.2 Ethnic Groups 9 1.2 The Demographic Situation 9 1.2.1 Key Demographic Indicators 9 Crude Birth and Death Rates, Fertility and Infant Mortality and 1.2.2 9 Life Expectancy 1.2.3 Internal Migration 10 1.2.4 Levels of Education 10 1.3 The Economic and Social Base 12 1.3.1 The Economic Base of The Region 12 1.3.2 The Social Base of The Region 17 1.4 Governance Structure 19 1.5 Emerging Issues 21 CHAPTER II: CHARACTERISTICS OF THE HIGHER EDUCATION SYSTEM Introduction 23 2.1 Profile of Higher education system and Student enrolments 23 Governance and Regulatory Framework for the Higher 2.2 31 Education System 2.2.1 Quality Assurance Practices 31 2.2.2 Funding Mechanism 32 iv 2.2.3 Characteristics of Institutional relationships 34 Regional Dimension ‗inside‘ the National Higher Education 2.3 35 Policy Regional Higher Education System and Governance (Penang 2.4 35 region) Profile of Private Higher Education Institutions and Universiti 2.4.1 35 Sains Malaysia (USM) Corporatisation of Universiti Sains Malaysia: A Strategic Response 2.4.2 45 to Market Forces. 2.5 Emerging issues 51 CHAPTER III: CONTRIBUTION OF RESEARCH TO REGIONAL INNOVATION Introduction 53 3.1 Responding to Regional Needs and Demands 53 3.1.1 Regional Dimension of Research Policy 53 Research Activities of HEIs: Drawing upon the Characteristics of 3.1.2 54 the Region 3.1.3 Research Links with Other Regions 57 Technology Transfer Offices: Regional, National and International 3.1.4 60 Roles 3.1.5 Research Activities Linkages: Mechanisms 60 3.1.6 Meeting Regional Technology and Innovation Needs 61 Rewarding and Acknowledging Regionally Based Research: 3.1.7 64 Mechanism 3.2 Framework Conditions for Promoting Research and Innovation 65 3.2.1 Introduction 65 v 3.2.2 National Legal Framework for Research and Innovation in HEIs. 66 Policies or Funding Programs to Encourage Co-operative Research 3.2.3 68 or Staff Mobility between HEIs, Industry and Public Organisations. 3.3 Interfaces Facilitating Knowledge Exploitation and Exchange 70 Developing to Commercialise the Research Base of the HE sector 3.3.1 and Promote Technology Exchange between HEI and Regional 70 Stakeholders: Mechanisms Promoting Mechanisms for Interfaces between HEIs and 3.3.2 72 Stakeholders Roles of the Central Government, Regional Authorities, HEIs, 3.3.3 Regional Research Institutes and Business in Creating Such 74 Mechanisms. Specific Mechanisms that have been created within or between 3.3.4 74 HEIs 3.4 Conclusion 74 Collaboration between Regional Stakeholders Related to Contribution 3.4.1 74 of Research to Regional Innovation Strengths, Weaknesses, Opportunities and Threats Related to 3.4.2 75 Contribution of Research to Regional Innovation in the Region. 3.5 Emerging Issues 77 CHAPTER IV: CONTRIBUTION OF TEACHING & LEARNING TO LABOUR MARKET AND SKILLS Introduction 79 4.1 Localising the Learning Process 79 4.1.1 Regional Characteristic in Aiding Teaching and Learning 79 4.1.2 Students Integration in the Region 82 4.1.3 Mechanisms Exist to Monitor/Accredit Extra-Curricular Activities 85 4.1.4 Postgraduate Activity in Meeting the Regional Needs 85 vi 4.1.5 Coalitions of Regional Experts 86 4.2 Student Recruitment and Regional Development 86 4.2.1 Regional Recruitment Policies 86 Attraction to Students outside the Region and Mechanisms to Help 4.2.2 86 Students Adapt in the Region 4.2.3 HEIs as part of a Regional Education Supply Chain 86 4.2.4 Pathways between Regional HEI and Regional Firms 87 Gather Labor Market Information and Monitor Graduates Flow into 4.2.5 87 the Labor Market Support for Graduate Enterprise and Recruitment of Alumni to 4.2.6 87 return to the Region. Promoting Lifelong Learning, Continuing Professional 4.3 87 Development Activity. Continuing Education and Continuing Professional Development 4.3.1 87 Activity 4.4 Changing Forms of Educational Provision 88 4.5 Enhancing the Regional Learning System 89 4.5.1 Coherent Vision of an Education System 89 4.5.2 Demand and Supply of HEIs Product 89 4.5.3 Support for Regional collaboration 89 4.5.4 Multiple Pathways and Transfer System 89 4.5.5 Other Links between HEIs 90 4.6 Conclusion 90 vii 4.6.1 Collaboration between HEIs and stakeholders