The impact of currency fluctuations is leaving an indelible mark on the dreams of many Malaysian students pursuing studies abroad. With the ringgit’s recent downward spiral, students are grappling with the reality of increased education costs and the added pressure on their parents. Kaushna, a 23-year-old law student at BAC University in her final year at the University of Hertfordshire, United Kingdom, said that the increase in fees for her twinning programme have increased notably since her initial inquiry in 2019. Echoing the sentiment, Zarith said the financial strain goes beyond tuition fees. “Everything seems more expensive from accommodation, and books to daily expenses. It’s making me reconsider some aspects of pursuing this twinning programme,” expressed the 22-year-old from Taylor’s University, currently in her second year of business management at Queen’s University Belfast, United Kingdom.

Private higher education institutions are also grappling with increased operating costs, prompting a cascade of effects on students, institutions, and the education sector as a whole. National Association of Private Educational Institutions (Napei) secretary general Teh Choon Jin said the depreciation of the ringgit has led to a notable decline in students pursuing education abroad, affecting their plans due to increased costs. “Many who have planned to go overseas are now opting to stay in Malaysia for their higher education,” he said. “The depreciation of the ringgit is causing inflationary pressures for families in the low to mid M40 income brackets, diminishing their disposable income. “As a result, families are exploring alternative pathways for higher education, including considering public universities, institutions with lower fees, or entering the job market directly,” he added.

To address the challenges posed by currency depreciation, he said private higher education institutions are collaborating with foreign universities in the Asia region to provide affordable exchange programmes and study abroad opportunities. “In addition to physical exchange programmes, private higher education institutions are adapting to the current circumstances by incorporating virtual international experiences. This virtual mobility programme became particularly prominent during the pandemic when travel restrictions were in place. This alternative allows students to engage in cross-cultural experiences without the need for physical travel,” he said. He added that some private higher education institutions are offering shorter-duration study abroad options.

Source:
https://www.malaymail.com/news/malaysia/2023/11/29/ringgits-decline-spar...

What this means for the UK

Malaysia is a well-established market for the UK, both in mobility and TNE, but the higher cost of living due to inflation, higher interest rates and much weaker ringgit against major currencies is taking a toll on the number of Malaysian students who are able to study abroad in the UK. The ringgit has declined 13 percent against the US dollar since the beginning of 2021, which has pushed up the cost of imported goods and put a strain on household income. The ringgit has also declined by 11 percent against the pound sterling this year alone.

For those who had just started on their studies in the UK or on TNE programmes with the intention of studying abroad within the next 1-2 years, the costs have increased significantly since their initial inquiry. The depreciation in currency has likely deterred many Malaysian students from studying abroad, including to the UK. The most recent data release shows that UK visas issued to students from Malaysia (main applicants) fell 10 percent in the first nine months of 2023. Student visas issued to Malaysian students studying in Australia, Canada and the US in the first nine months of 2023 have also all fallen across the board.

The decline in UK visas issued to students is not unique to Malaysia but is also observed in several countries in the East Asian region, such as Hong Kong and Thailand where their currencies have depreciated 5-6% against the pound sterling this year to-date. UK universities should therefore expect slower growth in enrolment from Malaysia for the 2023/24 session and at the same time actively seek to promote the UK to a smaller pool of students still able to study abroad.

Malaysian students still have a keen interest in studying overseas and in gaining some study abroad experience, hence we would encourage UK institutions to consider short study abroad programmes as an option to students that is an affordable alternative and at the same time is a good taster option which can encourage future mobility to the UK.