Understanding Shifts for 2024: Education Key Trends in Southeast Asia

Southeast Asian students aiming to study abroad are increasingly looking at countries within Asia and their own region. As the push for diversification beyond India and China intensifies, Southeast Asian countries continue to send a number of students abroad each year. According to a new report from Acumen, a leading international education consultancy, mobility trends and internationalisation in Southeast Asia are on the rise, with a particular focus on the region’s largest economies, such as Indonesia, Malaysia and Thailand, as well as Vietnam.
In recent years, there has been a notable change in the preferences of Southeast Asian students when it comes to higher education abroad. In the past, Southeast Asian students preferred to study in Western countries like the US, UK, Canada, Australia, etc. However, due to the growing trend of change like domestic education is improving, giving preference to cultural proximity and many more. This article delves into the reasons for this change and what it means for students and higher education institutions in Southeast Asia.

‍Factors Driving the Trend

This trend is particularly evident in countries like Malaysia, where financial considerations and the quality of domestic education institutions play crucial roles in influencing student decisions. This is due to several reasons, such as the quality and reputation of regional higher education institutions, the increasing cost of studying abroad and the need to stay close to family and culture. 

‍Financial Consideration

As the number of young students increases in many parts of Southeast Asia, so does the need for higher education. A growing middle class has the financial means to pursue higher education abroad, including TNE programs offered by overseas institutions. The rising costs of studying abroad, such as tuition and living expenses, are making Southeast Asian students look for alternatives that are closer to home.

‍Improving Domestic Education

Higher education institutions in Southeast Asia are becoming more reputable and better equipped than ever before. This change makes domestic education an attractive options for students who want to study abroad with the same quality of education.

‍Cultural  Proximity  

Nowadays, students prefer to stay in their home country and are closer to family, which is why they choose to attend universities in nearby countries. Families in Southeast Asia demand a personalized, humanized service, which is hard to provide from a foreign country and a different time zone, which is not possible by understanding local cultural knowledge.

‍Emerging Regional Education Hub

Regional education hubs such as Malaysia, Singapore and Thailand are attracting students from all over Southeast Asia with a wide range of academic programs and cultural experiences. “The rise of international and bilingual schools in Southeast Asia is emblematic of the shifting educational landscape, driven by parents’ aspirations for more advanced and globally oriented education,” noted Sheikh Fahmy Bin Sheikh Mohamed, Vice President of Group Strategy Office, UCSI Group (Malaysia).

Outbound Mobility Inflow

Southeast Asian outbound mobility flows have been on the rise in recent years. Malaysia and Indonesia each sent over 50,000 students each, while Thailand sent more than 32,000 students each. English-speaking destinations continue to be one of the top destinations for Southeast Asian students looking for international education opportunities. These outbound mobility trends are a testament to the growing demand for academic diversity and quality education outside of the nation’s borders.

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Source: Acumen

Based on UNESCO (United Nations Educational, Scientific and Cultural Organization) data (as of October 2023), Australia has the highest number of Indonesian outbound students, followed by Malaysia, followed by the United States, Japan, and the United Kingdom. Malaysian students are most likely to choose in the United Kingdom, Australia, and the United States, though some are also visiting Japan and Jordan. Vietnam students prefer to study in Asian destinations than in Western ones, as shown in the charts below.

Source: UNESCO

According to the Acumen report, Western institutions in Southeast Asia are facing more competition than ever before. Japan is aiming to attract 400,000 foreign enrolments by 2027, Korea is aiming to attract 300,00 by 2027, and Taiwan is aiming to attract 320,00 by 2030. These competitors are increasingly including post-secondary work opportunities as part of their offerings, which is a major attraction for international students. In addition, Asian destinations not only offer cost savings (as a result of being closer to home) option but also offer a strong set of top universities. For instance, 33 universities from the region ranked in the 2024 as per Times Higher Education top 200, compared to 28 universities from 2023. The US has more institutions in the top (56) than any other country, but the currency is very strong in 2024, making studying more expensive there.

Allure of Transnational Education

The allure of transnational lies in its ability to provide a diverse and multicultural learning experience without the need to travel widely across borders. Students love the idea of having an international learning experience while staying in the comfort of their home country. In addition to intra-region mobility, transnational education is becoming increasingly popular in Southeast Asia because it offers an even greater cost advantage. As per the Acumen report, "it has been observed that there is strong and constant interest from international universities to participate in TNE (transnational education) in Vietnam, including more interest from top-tier universities and local universities to provide full in-country international degree programs."
Moreover, Acumen's experts view Vietnam as a market with significant potential for growth, noting that it offers "potential for institutions that are able to provide full-scale in-country delivery through branch campus, campus within a campus, franchise and other 4+0 models."

According to the report, Australian providers are expanding their TNE footprint in the region. Furthermore, they are also becoming more focused on a niche market as professionals looking to accelerate their career paths through micro-accreditations and shorter degrees. As per the report, it is estimated that there are currently about 20,000 Vietnamese students studying in Australia's TNE programmes. The market leaders in the Australian TNE market are RMIT University, the University of Sydney, and the University of Western Sydney. Students from Southeast Asia are increasingly attracted to stand-alone and cross-border programmes. TNEs are a key recruitment channel for Southeast Asian students, "especially in Malaysia, where financial restrictions and post-pandemic travel hesitancy  are making cross-border options more appealing."
According to Acumen's report, households' increasing capability and willingness to pay for a global education at an earlier age and higher enrolment will also help Southeast Asian students better prepare for study abroad. 

• In Vietnam, for instance, premium bilingual schools are the fastest-growing market segment.
• Malaysia has well-developed international schools, and  A-levels schools are declining for a number of reasons. This is due to the rise of new, cheaper university options. Moreover, the fact that A-levels are not as challenging as they used to be makes them less appealing to some students who want to go to tertiary institutions.

The increasing preference of Southeast Asian families for international and bilingual education poses a threat to some providers. According to the report, foundation pathways are facing strong competition from this segment of the market. The Indonesian families perceive these international school qualifications as offering "flexibility and portability" for students, as opposed to foundation pathways, which are seen as "locking students into a specific institution."

‍Asian Country as International Education Hub

Malaysia

The demand for foreign education among Malaysian students has undergone significant transformations, particularly with Southeast Asian students increasingly considering "studying abroad" closer to home. 

• The demand for foreign education in Malaysia is changing in significant ways. While the UK continues to be the top destination for Malaysian students, the research shows that Australia is re-emerging as a more competitive market. 
• Furthermore undergraduate Malaysian enrolment in the US is dropping due to the weakening of the Ringgit against the US dollar.
• Within Malaysia itself, however, there is a growing appreciation of the impact of postgraduate studies on employment outcomes. Malaysia continues to be the 3rd most important market for outward higher education students from the region.
• The TNE landscape in Malaysia is mature and highly competitive, attracting both Malaysian students and international students from all over the region, including the Middle East and Africa. The private sector in Malaysia hosts most TNE programmes.
• There are ten international branch campuses in Malaysia, eight of which are in the UK or Australia, and many franchised and transfer degree programs are available. Apart from a few branch campuses (in Sarawak and EduCity, Johor) in Malaysia, the majority of TNE programs are offered in Kuala Lumpur.
• For international students from South Asian countries, Malaysia is one of the most affordable study destinations compared to traditional destinations. Malaysia is also seen as a modern and safe Islamic community for students from the Middle East and Asia. China has by far the highest number of incoming higher education students in Malaysia.
• Malaysia is unlikely to achieve its goal of having 250,000+ international students by 2025.

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Source: UNESCO, as ofper October 2023

Indonesia

One of the reasons why TNE has taken so long to take off in Indonesia is because of the heavy and complicated regulations that were in place before. However, with the recent relaxation of TNE regulations in Indonesia, the market has changed, and now universities are 100% foreign-owned.

• Monash University was the first foreign-owned branch campus in Indonesia. The first Masters cohort started in October 2021. Monash University Indonesia provides Master's and PhD courses in Business Innovation, Digital Technology and Data Science, Public Health, Public Policy, and Urban Design, as well as custom executive education and micro-accreditations.
• After Monash, there were three more Australian campus projects in 2023, including Deakin University, which is partnering with Lancaster University in Bandung to offer pathway and undergraduate programs.
• Western Sydney University is planning to offer undergraduate programmes in Surabaya and Central Queensland University.
• It is expected that the number of TNE programs in Indonesia will grow in the coming years in order to meet the increasing demand for local and affordable international education options.
• The UK government is increasing its emphasis on TNE cooperation in Indonesia; several transfer programs have been launched, including the joint MBA program between ITB and the University of Dundee.

Vietnam

Vietnam's emergence as a major player in Southeast Asia's next wave of Top Education Networks (TENs) is a result of a strong appetite for international education combined with capacity and quality limitations in the country's education system.

• The Vietnamese Government and the market are increasingly open and receptive to TNE in all forms. Moreover, the Government has traditionally supported cooperation in the delivery of TNE, mainly through Joint Training Programs (JTPs).
• According to the Department of Education and Training, there are more than 400 'active JTPs,' with UK, US, Australian, and French institutions leading the way, but only 5 overseas-invested campuses. 70% of JTPs run as undergraduate programmes, and the majority of them focus on business or STEM subjects.
• Australian TNE programs have been particularly popular in recent years. In 2023, 20,000 Vietnamese students were enrolled in Australian TNE programmes, with RMIT, Swinburne, and Western Sydney University leading the way. 
• In Vietnam, the 'greenfield' state of the TNE market opens up many possibilities for institutions that are able to provide complete in-country delivery through branch campuses, 'campus within a campus', franchises, and other 4+0 models.

Singapore

Singapore's international school sector has seen significant growth over the last five years, from July 2018 to July 2023. – with 34 new international schools opened and student enrolment increasing by 19%, as per ISC Research.

• Singapore international schools are seeing an increase in secondary school students from mainland China, Hong Kong, and elsewhere. Secondary school students in Singapore usually live apart from their families in boarding or other residential accommodations. Many secondary school students in Singapore take advantage of Singapore's international schooling opportunities as a springboard for higher education in English-speaking countries like Australia, Canada, and New Zealand, as well as the United Kingdom and the United States.
• Singapore's proximity to China, the extensive use of Chinese in Singaporean society, and the city's worldwide reputation for academic excellence all play a significant role in the minds of such students and their families. One of the growing challenges that international schools face in Singapore is ensuring the cultural and linguistic vibrancy of their school community.

‍The Role of Education Agent

The role of agents in Southeast Asia is to act as an intermediary between a student and their families and an international education institution. Education agents help students and families navigate through the complex process of studying abroad, from filing an institutional and visa application to providing foreign currency for tuition and living expenses. However, in many key markets of Southeast Asia, agents continue to grow and develop to meet the evolving needs of families. The focus on customer experience has become most important. Institutes from the UK, Australia, and New Zealand rely on agents as their main recruitment tool for international students.

• In Australia, according to the national student experience surveys, between 86% to 87% of international undergraduate students used agents for recommendations. Among this group, between 92% to 93% rated their agent's service positively. 
• In the UK, it is predicted that between 45% to 55% of international students have the help of an agent to plan their studies, and that the number of agents is growing.

 Agents are an important part of Southeast Asia's education system, but they are not always openly discussed or supported by other stakeholders. There is a lot of pressure on parents in the region to make the "right decision" for their child's and their family's future, which is complicated by many parents' limited English language proficiency and the increased focus on student safety over the last few years.

To sum up, Southeast Asia’s international education sector is undergoing significant changes. Acumen’s report 2024 highlights ongoing key Trends for Southeast Asia that will shape the future of the region’s education landscape. Outbound international students are increasingly choosing Southeast Asia as their destination as now they are considering studying abroad closer to their home. Southeast Asia is no longer just a destination for international students but a source region for them. Understanding and responding to these trends will help the education sector better navigate the challenges and opportunities presented by Southeast Asia’s ever-changing educational landscape. Furthermore, as Southeast Asian institutions continue to enhance their academic offerings and reputation, international students are increasingly recognizing the value of studying abroad closer to home.