Human and Capital IT

Human Capital and Information Technology

Basic Statistics:

Education in Malaysia has developed along the British model. Students spend six years in primary school followed by six more years in secondary school and high-school. Tertiary education towards the first degree takes from three to six years depending on the discipline. Typical IT degrees take about three years after high-school. The Malaysian government has long recognized the importance of education to its national development and has increased the funds allocated to education; in 1980 only 7.5% of national development funds were allocated to education; in 1989 the figure was 17.2% which has resulted in a more educated workforce.

STATISTICAL DATA/INDICATORS

Category 1980 1990 Latest 1995
Adult literacy rate (%) Male 79.6% 87% 96.0%
Adult literacy rate (%) 59.7% 74% 85.7%
Female % of primary school children reaching grade 5 N/A 98% 96%
% of GNP spent on education N/A 6.0 5.5
Source UNESCO Jan 1996

Presently the Malaysia educational system needs to be overhauled as the University training for computer science and software engineering is inadequate according to a recent report from Stanford University.

The GoM has recently been allocating an increased amount of funds to the Education Sector and increased educational benefits for the Malaysian people will start to show up in an increased educated workforce and more IT professionals able to propel Malaysia’s strong economic growth in the IT field. These improvements will not have much of an immediate affect but will have a big payoff in the 10 to 20 year time period.

There are approximately 44 higher learning institutes; 26 private institutes; and about 45 student and club associations. A comprehensive index can be found by clicking here.

Software Professionals Per Thousand

There are approximately 50,000 software professionals (estimate) out of a working population of about 8 million but their educational background is not strong. This number represents a severe shortage of IT professionals and the GoM is working hard at improving educational institutions to improve this problem over the long term.

Emigration (Brain Drain) of computer professionals

Malaysia has a sever brain "drain problem" especially in information technologies, as the more talented look for a better technical education and more challenging work abroad. The labor force that is presently manning the assembly plants does not have the highly-skilled qualifications required to man the new industries that the GoM wants to attract.
http://www1.american.edu/initeb/to2115a/human.htm