INTRODUCTION

Private higher education in Malaysia has seen robust growth since the introduction of the Private Higher Education Institutions Act (1996) (Act 555), which legalized these institutions. To transform Malaysia into a global higher education hub, as first outlined by the National Higher Education Strategic Plan (2007–20), the government has sought to offer a wide range of courses and programmes through private universities and colleges as well as international branch campuses with competitive tuition fees.

This chapter examines the development of EduCity, an integrated learning hub situated in Iskandar Malaysia in the state of Johor. The idea for an integrated learning hub built around multiple universities was first hatched in 2007, and in 2011 the first institution moved in. In exploring the challenges and underlying issues involved, this chapter aims to shed light on the private higher education sector in the country in general.

Several site visits were made to the EduCity campus and to the temporary city campus. On 17–23 August 2017, we conducted interviews with academics and administrators in the various universities and with policymakers. In addition, policy documents from the Malaysian government, Johor State government, Iskandar Regional Development Authority, and the respective universities were consulted.

The chapter first outlines how EduCity was conceptualized and discusses the role of EduCity Iskandar Sdn Bhd (EISB) as the “driver” and “owner” of EduCity. It then studies the huge challenges that the creation of an integrated learning hub involves.

JOHOR AND ISKANDAR MALAYSIA

Over the past five decades, the economic structure of Johor has evolved substantially. The state started off as an agriculture-based economy, as its flat and fertile land was well suited for the production of primary products for export such as palm oil, rubber, pineapple and coffee. But faced with volatile commodity prices in the 1980s, Johor sought to develop its manufacturing sector (Hutchinson 2012).

The Economic Plan for Johor (1990–2005) advocated greater commercialization of agriculture and encouraged more knowledge- and capital-intensive industries (UPEN Johor 1989). In the subsequent Johor Operational Master Plan (1996–2010), the service sector was added as a target growth area. This highlighted strategic investment in infrastructure and skill provision to foster high-value services (RMA Perunding Bersatu 1996).