Industry Guide on How To Start a Private Education Business in Malaysia

The number of international schools in Malaysia has increased due to the nation’s expatriate population. Compared to public schools, there are now more international schools within the capital. Not to mention, Malaysia also has private schools to fill the gap of quality education. For the sake of development, Malaysia’s public school curriculum has undergone several significant amendments. This might have an impact on the capable society he or she is creating. Thus, a feasible option for those who are capable of affording it, is to send their children to private education institutions. With enough research, you can notice that the market is not yet saturated with gaps awaiting to fulfill, such as affordability. Now, let’s hop on board to embark on a journey to start a private education business in Malaysia. 

Overclaims 

As education is highly valued throughout a youth’s development, it is undeniable that parents have high expectations from private education institutions when these institutions also promise themselves to provide high-quality, thorough education. However, many parents have complained that the outcome does not match with what they promised. This issue can be caused by different factors, like educator’s competency or impractical expectations. Therefore, if you are determined to set up a private education business, you have to ensure your school can deliver its vision and mission. Clear and concise communication with parents about the capability of your educators can prevent unwanted problems and misunderstandings for the whole institution. 

Registration with the Education Ministry of Malaysia 

Once you have incorporated your company, you have to obtain a license from the Education Ministry of Malaysia. In spite of its nature as a business entity, private education institutes are required to register with the ministry in accordance of the Malaysia law. Besides that, the law also requires every educator working under your institution to have registration with the Ministry. If found to be in violation, the fine for this oversight could be RM30,000 and/or up to two years in prison. With that being said, you should conduct a detailed background check of your potential employees when you are starting your private education business in Malaysia. 

Business Checklist 

Before you start up any business, it is best to say that conducting sufficient research will be beneficial throughout your business journey. In terms of private education business, here is a set of general guidelines to get you started. 

1. Research on Needs 

Start diving deep into the requirements for running a private school in areas with the lack of access to formal education. The affordability of the neighborhood should also be considered in the needs of this analysis. As a result of the Ministry requiring all 6-year-olds to attend primary school, this necessity creates a market opportunity. 

2. Incorporate a Company 

Undoubtedly, without incorporation of your company, it will be impossible for you to operate your business legally. Thus, look into the type of business entities and wisely choose the type that is suitable for your business, so you can proceed to obtain a business license. 

3. Recruit Management Team 

It is never an easy job to invest yourself into the education industry despite the fact that you might have a similar background. It is strongly suggested to recruit a team of experts from different fields, ranging from education, legal, accounting, business, building management, human resources, and student advisor. 

4. Business Plan 

Have a discussion with your team on this to come up with a short term (3-5 years) business plan and a long term (10-15 years) business plan for your institution. The short-term plan plays an essential role in the initial years as the insufficient number of resources will bring different challenges ahead. 

5. Brand New Campus or Utilize Existing Infrastructure 

By now, you should be clear on whether you are able to afford a new campus or an existing infrastructure to be your education institute. If your capability allows you to create a new campus, seek the appropriate guidance from architects, educators, and local authorities as well as obtaining a license. 

6. School Policy 

In terms of this, your legal advisor and the principal educator should be involved to come up with a competent school policy. The absence of school policy will cause your school to operate in an unreliable manner based solely on parental expectations instead of a trustworthy reference. 


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