Malaysia, a magnet for international students

 

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PETALING JAYA: Malaysia has the potential to attract more international students due to its quality education and affordable cost of living.

Malaysian Association of Private Colleges and Universities (Mapcu) president Datuk Parmjit Singh said factors that encourage students to study in Malaysia include the availability of high quality education programmes system delivered by universities with a strong international outlook and well-developed campuses and facilities.

“Tuition fees are relatively lower... (The same goes for the) living cost in Malaysia,” he said, adding that Malaysia also offers a student-friendly social ecosystem to provide the sort of lifestyle sought by international students.

“The tightening of regulations for international students is happening in a few countries, with some mainly due to shortages of accommodation in these countries.

ALSO READ: Growing worry over rising cost of studying overseas

“This does present opportunities for Malaysia to attract those students who are now unable to study in countries such as Australia, the United Kingdom and Canada.

“However, factors such as opportunities to work while studying and more inclusive post-study work opportunities – all of which are available to international students in those countries – may need to be enhanced in order to encourage these students to select Malaysia as a preferred alternative destination,” said Parmjit, who is also Asia Pacific University of Technology & Innovation (APU)chief executive officer (CEO).

Vice-Chancellors’ Council for Private Universities chairman Prof Mushtak Al-Atabi said in order to attract international students to our shores, Malaysia should make itself a more accessible destination.

“There are multiple countries in the region that are competing with Malaysia to be the regional education hub,” said Prof Mushtak, who is also Heriot-Watt University Malaysia provost and CEO.

National Association of Private Educational Institutions secretary-general Dr Teh Choon Jin said it is important for Malaysia to maintain a good reputation in terms of treatment of international students or foreigners in order to entice students to come here.

ALSO READ: INTERACTIVE: How the jobs mismatch may derail Malaysia’s drive to become a high-income nation

“If there is any negative report of ill treatment of foreigners, it may discourage potential international students from pursuing their studies in Malaysia,” he said.

Dr Teh also said these students may face challenges in finding employment opportunities in Malaysia after graduation as there are limited numbers for international graduates, compared to those in countries with more robust job markets.

On the plus side, Malaysia offers great cost savings due to the ringgit’s exchange rate being low compared with countries such as the UK, Australia, Canada and the United States, he added.

Malaysia’s location in South-East Asia with good connectivity to other countries within the region and those beyond the region also makes it an attractive destination to experience Asia, Dr Teh said.

He added that the nation is perceived as a safe country, Muslim-friendly and has a wide variety of food catering to different needs.

“Malaysia has relatively straightforward visa regulations compared to some other countries, making it easier for students to obtain study visas,” said Teh, who is also APU registrar.

Education Malaysia Global Services (EMGS) CEO Novie Tajuddin said the number of international students coming to Malaysia has been increasing over the years.

He said the principal body that manages the movement of international students in Malaysia, including facilitating visa processing, had received 65,207 applications by the end of 2023.

This is a huge increase compared with 10,453 applications in 2020.

“Malaysia is attractive to international students as (the living cost in the country) is affordable... The people are (also) friendly, and we are advanced in terms of transnational education,” he said when contacted.

“EMGS continues to promote our education, opening the door for new areas, looking into existing policy and working closely with the Higher Education Ministry and to work with other relevant ministries,”

Novie stressed.He also posited that the country could benefit from the tightening of regulations governing international students in other countries such as Canada, Australia and the UK.

Novie highlighted that Malaysia offers a graduate pass for students from 25 countries, including Brunei, Singapore, South Korea, Japan and Australia.

This year, he said, China and India were added to the list of countries that offer the pass.

“The graduate pass allows international students to stay for a year after completing their study.

“In this time, they can go on vacation, progress to the next study level or work in Malaysia,” he added.

The graduate pass is a long-term social visit pass that allows holders to gain multiple entries into the country.

The said pass is offered to international graduates who have completed their degree programmes at local universities and other higher education institutes

Source link:.https://www.thestar.com.my/news/nation/2024/04/10/a-magnet-for-international-students

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Grand plans for Malaysians working in Singapore

 

All-time high: The Singapore dollar surged to a new high against the ringgit two days ago. - Thomas Yong/The Star

JOHOR BARU: Many Malaysians working across the Causeway are planning holidays and home renovations as the Singapore dollar surged to a new high against the ringgit.

Jason Wong, 27, said he felt that his decision to cross the border daily to work was the right one as he now has more cash in hand due to the strong currency exchange rate of S$1 to RM3.50.

“One by one, many of my peers and relatives had gone to Singapore for work, which led to my decision to do the same. I started working there in March after finding it difficult to get a stable job in Johor Baru.“I start my commute at around 6am and reach home after 8pm every day. It is tiring but the exchange rate makes it worthwhile. I can give more money to my elderly parents now that I have extra disposable income,” he told The Star.

Wong added that he was also saving to take his parents on a holiday for the first time next year.

The Singapore dollar shot to a new high of 3.5086 against the ringgit on Tuesday morning.

Ardy Zainuddin, 33, who works as a purchasing executive in Singapore, was happy to have extra money to renovate his new home here.

“My wife and I have just got the keys to our new house and with a second baby on the way, anything extra is welcome,” said Ardy, who has been commuting across the border for work for the past five years.

However, he hopes that the Malaysian government would come up with policies to strengthen the ringgit.

“The strong Singapore-Malaysia currency exchange is good for those working across the border, but I am concerned that the weakening ringgit will make things more expensive for other Malaysians.

“My relatives living in Johor and Melaka have been complaining that it is costly to eat out or even cook at home. They are also hesitant to travel overseas because of the weak ringgit,” he added.

Checks by The Star at several popular money changers in the city found that they were well-stocked with the ringgit to cater to the expected higher demand.

A money changer who only wanted to be known as Wan said, “This is the first time I have seen the ringgit dip so low against the Singapore dollar in my 10 years of being in the industry.

When the exchange rate was S$1 to RM3.41 in May, our business rose by about 30% as those working across the border as well as Singaporeans rushed to buy the ringgit in large quantities,” she said.

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Higher growth projected for 2023

Lee said interest rates may stay elevated for some time and expects Bank Negara to hold the OPR at the current level in 2023 and into 2024.

The commendable first-quarter showing augurs well, says the Socio-economic Research Centre

'STRUCTURAL REFORMS ARE KEY TO SUPPORTING THE ECONOMY AND RINGGIT' - Lee Heng Lee 

KUALA LUMPUR: The combination of declining exports, persistently high core inflation and cautious consumer spending will likely see the economy experiencing a moderation in growth in the second half of the year (2H23).

Despite anticipating a deceleration in economic growth in the upcoming quarters, Socio-economic Research Centre (SERC) has raised its 2023 gross domestic product (GDP) growth projection to 4.5% year-on-year (y-o-y) from 4.1% previously, to reflect the strength in the first-quarter (1Q23) economic growth.

The GDP expanded by 5.6% in 1Q23, exceeding the 4.8% growth achieved in 1Q22, thanks to sustained domestic demand underpinned by strong private expenditure and improvement in labour market conditions.

SERC executive director Lee Heng Guie said the robust consumer spending witnessed last year may not be replicated this year due to the high interest rate environment and more cautious consumer spending.

“The cash stimulus has already been spent and the spending boom, such as the ‘revenge spending’ that we saw post-pandemic, has already faded,” he said during SERC’S media briefing on the quarterly economic tracker for 2Q23.

Lee pointed out that the country’s exports had also started to ease as global demand weakens under the strain of high inflation and interest rates.

For 1H23, exports contracted by 4.5% y-o-y and Lee projects exports to decline by between 5% and 7% for the full year on the back of lower demand.

With these factors at play, SERC expects GDP to grow in a range of between 4% and 5% in 2H23, with consumer demand continuing to be the key growth driver in the remaining months of the year.

He added the elevated base effect in 2H22 will present another challenge to the 2H23 GDP performance.

On the overnight policy rate (OPR), Lee believes the current rate of 3% is at an “accommodative and supportive” level for sustainable economic activity.

He said interest rates may stay elevated for some time and expects Bank Negara to hold the OPR at the current level in 2023 and into 2024.

“Any change to the OPR is dependent on how resilient the economy is and how consumer inflation behaves.

“I think the current level is just right, (as) it will not significantly hurt the people.

“Structural reforms are key to supporting the economy and the ringgit.” Lee Heng Guie

“It is still supporting the economy, but does not overburden businesses and the people. Even though central banks are likely to end their rate hike cycles, it does not necessarily imply that they will reduce rates either,” he explained.

Lee expects most central banks to likely keep interest rates at current levels till inflation, both headline and core, subsides to a “comfortable range”.

In the majority of advanced economies, a comfortable range of inflation is around 2%, Lee observed. Although headline inflation has eased in Malaysia, Lee stressed the battle against inflation has not been won.

“This is because subsidy rationalisation is still on the table of the government. The government needs to address that following the state elections to control the budget deficit,” Lee noted.

Given the volatility in crude oil prices, Lee said the current oil subsidy scheme was fiscally unsustainable and would further contribute to deficits.

He added the ringgit had strengthened against the currencies of Japan, China, Australia, Taiwan and India since the US Federal Reserve’s (Fed) first federal fund rate hike in March last year.

However, against the greenback, the local unit is among a basket of currencies that have experienced a significant weakening after having declined by about 7.4% since the start of the rate hike cycle.

“Structural reforms are key to supporting the economy and the ringgit,” Lee stressed.

He said the proposed progressive wage model (PWM) plan, which is currently under consideration by the government, is a right step towards a productivity-linked wage system which will foster competitiveness by forging a stronger correlation between wages and productivity.

Lee, however, contends that a more comprehensive and practical analysis should be undertaken on the plan by a tripartite body, which includes representatives from the government, employers and employees.

This is due to the presence of valid concerns and areas of uncertainty within the proposal, such as whether the PWM would be extended to foreign workers and specific sectors.

In keeping the economy resilient, Lee emphasised on the importance of private investment.

He reiterated that private investment not only helped stimulate economic growth, but also generated jobs and thus benefiting both the community and the nation as a whole.

Speaking on the US economy, Lee believes that it is still resilient, citing the strength of its labour market and wage growth as indications. However, he said consumer spending remained robust and asserts inflationary pressure.

“In the United States, headline inflation has not reached the targeted 2% level, while core inflation remains sticky.

“This is something the Fed would be observing. If there is risk of inflation resurgence, it may still continue to increase rates,” Lee said.

Globally, Lee pointed out that the purchasing managers’ index for the manufacturing sector has continued its downtrend, sustaining below the 50-point threshold. The services sector, meanwhile, recorded a slight slowdown in its latest figures.

“We are worried the slowdown in the manufacturing sector has broadened and impacted the services sector,” Lee added.

On world trade volume and industrial production, Lee pointed out that both have been moderating, owing to slower demand. “This is why we saw a decline in exports for regional countries, including Malaysia, recently.”

The Star - StarBiz By KIRENNESH NAIR kirennesh@thestar.com.my 3 Aug 2023

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US dollar downtrend seen

THERE seems to be growing expectations among financial analysts that the US dollar strength will dissipate in the medium term as the global economy recovers from the fallout of the Covid-19 pandemic.

According to an analyst survey compiled by Bloomberg, the ICE US Dollar Index, which is a gauge of the greenback’s strength, could weaken about 2% to 94.1 points by the second quarter of next year. The index is currently trading around the 96 level.

Bloomberg also notes that the Deutsche Bank’s Trade-Weighted Dollar Index, which is a gauge of the currency against the United States’ most-important trading partners, has fallen to test the trend line in place since 2011. The report says a breach of that point would be an important signal for dollar bears.

This month alone the index has dropped more than 1% amid the weakening demand for safe-haven assets such as US Treasury bonds, an ongoing rally in risk assets such as equities and a shift in sentiment towards other currencies such as the euro and yuan.

Standard Chartered Bank (StanChart), at a virtual press conference over the week in conjunction with the release of its Global Market Outlook for the second half of 2020, asserts its bearish view on the US dollar over the medium term.

The multinational financial group points to massive US dollar liquidity provision and real interest rate differentials between the United States and other countries as among the factors that should facilitate a reversal in the US dollar decade-long bullish trend.

“The longer-term cyclical US dollar uptrend that began in 2008 has likely peaked, with its downtrend expected to gain momentum over the coming year as the global economy rebounds and US exceptionalism fades, ” StanChart says.

“We expect some bumps on the road for the US dollar downtrend, particularly in the near term. These are likely to be driven by US political and policy uncertainty ahead of the November election, broader geopolitical risks and the evolution of the pandemic, ” it adds.

StanChart says it considers such events as opportunities for medium-term investors to sell US dollar rallies.

“We expect a 5%-7% US dollar decline over the next 12 months, with the euro, Australian dollar and British pound being the primary beneficiaries. There may be a more difficult passage for emerging-market currencies that are sensitive to an uneven global recovery and idiosyncratic risks, ” it says.

Viable alternative

Similarly holding a bearish view on the US dollar, Nomura says it expects the greenback to follow a path of reduced dominance and weaken over the long term.

In its recently released report titled “The World After Covid-19”, the multinational brokerage projects the US Dollar Index (DXY) to see a sharp depreciation of up to 20% in the coming years.

“Macro drivers include the significant deterioration of the US twin deficits, scope for European Union fiscal coordination, the undermining of the US dollar by US President Donald Trump through verbal and potential policy actions, and substantial foreign exchange (FX) overvaluation, ” Nomura says of what will lead to the weakness of the greenback.

“However, there are other developments that could reduce the role of the US dollar, some of which are structural, such as deglobalisation, yuan internationalisation, digital FX, Bitcoin and Facebook Libra, ” it adds.

Nomura also points out that the end of the US dollar’s role as the world’s reserve currency has long been foretold, but it has yet to materialise due to the lack of a viable alternative. For instance, it notes, the greenback accounted for 88% of all global FX trades last year, up from 85% in 2010.

Nevertheless, Nomura says, the process of creating a viable alternative is gathering momentum, thanks to innovations from other global central banks and private financial institutions.

“Combined with worsening fundamentals for the US dollar, the risk over the coming years is not only one of a reduced role, but also what could be a relatively sharp DXY depreciation, possibly 20%, ” it says.

According to Nomura, the US dollar is overvalued by an average of 17.5%. The greenback on the real effective exchange rate model is overvalued by about 22%, while on the fundamental equilibrium exchange rate model, it is currently overvalued by about 15%.

Positive for emerging market

A weakening US dollar, Nomura says, will provide some breathing space for emerging-market currencies, especially those of countries with sizeable current account deficits. This is because they tend to be more vulnerable to capital outflows and hence, FX volatility.

The brokerage expects in a world of low interest rates in developed markets and ample liquidity due to global central bank easing, investors will be on the lookout for economies that offer higher risk-adjusted returns.

“Emerging markets, which offer a relative growth advantage, could benefit from such easy developed-market policies, by tapping low cost funds for high-return investment projects, ” Nomura says.

StanChart is positive on the FX of Asian emerging markets as US dollar weakness feeds through.

“Gradual emerging market FX appreciation should continue amid a recovery in global growth, easing restrictions and a broadly weaker US dollar, ” it says.

Nevertheless, it reckons a pick-up in US-China trade tensions and an uneven global economic rebound could pose a risk to its optimistic view on emerging-market FX.

Gradual ringgit recovery

On the ringgit, StanChart says further policy rate cuts by Bank Negara could potentially weigh on the performance of the Malaysian note. It points out that the ringgit remains relatively more exposed to external financing shocks.

At present, StanChart expects Bank Negara to keep the overnight policy rate at its current level through 2020. The central bank early this month cut the benchmark interest rate for the fourth time this year by another 25 basis points to 1.75%, the lowest since 2004.

Meanwhile, the longer-term valuations for US dollar to the ringgit remain attractive, StanChart says, adding that this should limit a sharp sell-off in the ringgit, while a stronger-than-expected rebound in commodity prices will bode well for the Malaysian currency.

Year-to-date, the ringgit is among the worst-performing currencies in Asia.

It has weakened by around 4% against the US dollar since the start of the year due to a number of factors, including political uncertainties following the fall of the Pakatan Harapan-led government, and risk aversion amid geopolitical tensions and the Covid-19 pandemic.

The ringgit is currently trading around 4.27 against the US dollar, compared to around 4.09 to the greenback at the start of 2020.

According to Hong Leong Investment Bank (HLIB), the still positive yield differentials between Malaysia and the United States should be supportive of the ringgit over the medium term. A potential return to emerging-market assets as risk appetite improves should also support the local note, the brokerage says.

HLIB projects a gradual improvement in the ringgit, which it expects to end this year at 4.20 against the US dollar, before improving further to 4.15 against the greenback by end-June 2021.

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