Malaysia aims to transform itself into a technologically sophisticated, export driven, high-income and developed nation by 2020. Foreign and domestic private investment and high-quality human capital have been targeted as the pivotal drivers of Malaysia's economic growth. They are expected to propel the country from its position as an upper-middle-income country to high-income and developed nation status. To accelerate the growth of a talented, entrepreneurial and balanced human capital, Prime Minister Najib Razak announced a new motto of “Soaring Upwards” for the Malaysian higher education system to quicken the pace of creating a firstrate educated workforce. The recently launched Malaysia Education Blueprint 2015–2025 (Higher Education) has targeted that by 2025 at least one Malaysian university should be ranked among the top twenty-five in Asia, two universities in the global top hundred, and four universities in the global two hundred. In The Times Higher Education's World University Ranking for 2015–16, one Malaysian university achieved a place in the 401–500 rank, while another four are in the lower 601–800 band. The government estimated that Malaysia would need about 500,000 highly skilled and talented science, technology, engineering and mathematics (STEM) oriented workers, a large pool of trained graduates, and a great number of skilled and semi-skilled workers. It is envisaged that skilled and semi-skilled personnel will be provided through technical and vocational educational training institutions.

This chapter examines the role of high-quality education and discusses issues related to the Malaysian vision. Equal opportunities to pursue an all-round excellent education to accomplish the objectives are of paramount importance. The focus of the chapter is on current educational provisions and what is needed to secure well-equipped, creative and innovative high-quality human capital to become a developed nation by 2020.

Inclusive and Quality Education Drives “Holistic” Talent

To produce the critical number of graduates and skilled employable workforce, a country requires an inclusive, high-quality and equitable education system. Such standards should be ensured both at school and tertiary levels. This is Malaysia's core challenge and dilemma. The country's present centrally controlled and managed public higher education system is based on a politically resolute, racebased affirmative action strategy and managed by a rather insular bureaucratic system. Parallel to this public provision, there is a sizeable profit-based private sector delivery system. Can the country under such constrained supply conditions generate the critical mass of high-quality and skilled employable workforce?