Abstract:

The aim of higher education in Malaysia is to produce graduates who are knowledgeable and competent in their fields, as well as to be able to put into practice knowledge gained. Accordingly, higher education institutions play an important role as the centre of learning and human development to produce scholars, skilled and semi-skilled workers who can contribute to the socio-economic development of the country. Over the last two decades, university enrolment in Malaysia has experienced rapid expansion of enrolments. What factors play roles behind these movements of university enrolment in Malaysia? A number of recent studies have shown that conditions in the labour market for university graduates influence higher education enrolment. The purpose of this paper is to determine factors that influence the demand for higher education in Malaysia. The demand for higher education may thus be specified as a function of the cost of education as own price variable and disposable income as a measure of both amounts and sources of funds to purchase enrolment. In addition, wage rate and unemployment rate may be incorporated to reflect labour market conditions.

Keywords:

Higher Education.