empowered governance enhancing innovation and creativity ... dato seri ir [email protected]...

[email protected] Empowered Governance for HE Malaysia

Mesyuarat Pemeriksaan Bajet IPTA 2014

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Empowered Governance Enhancing Innovation and Creativity for Global Prominance

ZAINI UJANG Ministry of Education, Malaysia [email protected]

Empowered Governance of Higher Education

Kuala Lumpur, 26 August 2014


References


Updates Strategy Structure Culture

SKILLS, CULTURES

● Collegial

● Managerial

● Developmental

● Negotiating


Cadangan Dasar Pengkorporatan IPTA 1997

● Konsep: Fleksibiliti kepada IPTA mengurus dan mentadbir universiti tanpa

kawalan terus agensi pusat

Tugas dan peranan agensi berkaitan diambil alih oleh MPTN sebagai badan utama penentu dasar pengajian tinggi

IPTA boleh memperolehi pendapatan dari sumber lebih luas

● Kompone pengkorporatan: Sistem governan: Majlis universiti digantikan dengan LPU

Sistem pembiayaan dan pengurusan kewangan: Pergantungan IPTA kepada peruntukan Kerajaan dikurangkan

Pengurusan sumber manusia: IPTA mempunyai sistem saraan sendiri mengikut garis panduan yang ditentukan oleh MPTN


of total

amongst the highest in the world

21% government expenditure is on education,

5

Malaysian annual budget

(16% basic education, 5% higher education)


RMK11: Prioritize key strategic areas by potential impact on capital & people economies

Impact on

Capital Economy

Impact on People Economy

HIGH

HIGH

Third Priority

Second Priority

LOW

KEY CRITERIA 1. High direct effects in both capital and people economies (e.g. entrepreneurship) 2. Strong indirect, multiplier effects across capital and people economies (e.g. upskilling) 3. Benefits flow between capital and people economies in the short and medium terms

First Priority

[email protected] Empowered Governance for HE Malaysia MOE - CONFIDENTIAL 8

Impact on People

Economy

Impact on Capital

Economy

Priority 1

Hig

h

High

Low

Low

Priority 2

Priority 3

Planning, Projects / Initiatives must meet these two (2) criteria: 1. Priority 1 Quadrant 2. High Creativity Index

Creativity Index =

Impact

Cost

RMK11: Creativity Index


Academic pathway

MOE TVET providers pathways

Other skills training providers

5

CURRENT EDUCATION PATHWAYS IN MOE


Low Value

High Value

Strategy Canvas for Malaysia Higher Education

Singapore

Malaysia-As Is

Malaysia To Be

Eliminate or Reduce

Create Raise


Eliminate

Reduce

Raise/Increase

Create

• Government as the main paymaster (Financial Sustainability)

• Private versus public HEIs (HEI Malaysia)

• Duplication and inefficiency

• Tropical themes (HE Excellence and Global Prominence)

• Academia industry intensification (Holistic Entrepreneurial and Balanced Graduates)

• South-South Cooperation Focus (Global Prominence)

• Talent with First Class Mentality and Values

• Quality and reputation (HE Excellence & Global Prominence)

• International students (Global Prominence)

• Autonomy (Empowered Governance)

• R&D Input (Innovation Ecosystem)

• R&D Output (HE Excellence)

• Cost for student: value for money (Global Prominence; Financial Sustainability)

THE ERRC GRID FOR MALAYSIA HIGHER EDUCATION


DEVELOPMENT OF MEB (HE) FRAMEWORK

Increased Quality of Life

Wealth Creation

Solution Providers

Empowered

Governanc

e 5 Financial

Sustainability 6

HE

Excellence 2 Holistic Entrepreneurial

and Balanced Graduates 1

Innovation

Ecosystem 7 Transformed

HE Delivery 8

Nation of Lifelong

Learners 3 Quality TVET

Graduates 4

Global

Prominence 9 Globalised Online

Learning 10

Talent With First Class Mentality and Values

PSPTN 7 THRUSTS

Process-Focus

10 BIG IDEAS

Outcome-Base

SCENARIOS

Input (Why)

1 2 5 3 4 6

Widening Access and

Equity

Improving Teaching &

Learning

Enhancing Research & Innovation

Strengthening Higher

Education Institutions

Intensifying Internationa-

lisation

Enculturation of Lifelong Learning

7

Reinforcing Delivery System

GOAL

• Access & Equity • Resources & Financial Constraint • Global Stature • Independence and Accountability • Demand for Global HE • Leverage on Previous Achievements

• Global Education Hub & Talents • Non-Traditional Education

Providers • Government Policies Introduced

after 2007 • Balanced Graduates & Job

Creators

• Emerging Technology in Learning and Teaching

• Private And Non-Governmental Involvement

• TVET, Research & Lifelong Learning Cultures

• Mobility of Talent • Merger of Ministries

People Economy

Cap

ital

Eco

no

my

Priority 1 (P1)

P2

P3

RMKe-11

[email protected] Empowered Governance for HE Malaysia MOE - CONFIDENTIAL 13

Talent with First Class Mentality

and Values

Global

Prominence

10

Financial

Sustainability

2 HE

Excellence

3 Globalised Online

Learning

Innovation

Ecosystem 5 Empowered

Governance

1 Holistic Entrepreneurial

and Balanced

Graduates

4

7

Transformed HE

Delivery

6

Nation of Lifelong

Learners

8

Quality TVET

Graduates

9

MEB (HE) STRATEGIC FRAMEWORK


Table of Contents Part I – Basics

1. Pressures for Fundamental Reform: Creating a Viable Academic Future

2. Requisites for Sustainable Institutional Change

Part II - Leadership

3. Leadership and Change

4. Mission and Vision Statements: An Essential First Step

5. Moving Mountains: Institutional Culture and Transformational Change

6. Building on Style for More Effective Relationships and Results


Challenges, Issues and Future Scenario From Stakeholder Engagements and PSPTN Review Report

● Getting Malaysian HE to achieve excellence and global recognition

● Greater autonomy and transperancy in university governance

● There are some central rules and regulations that slow down decision-making processes

● Conflicting views between Boards and Executives

● Accountability – Executive to the Boards, and the Board to?

● Academic governance vs Administrative Governance?

● University to chart out its own directions for excellence

MOE - CONFIDENTIAL 15


OBJECTIVES

To have an empowered and

accountable Board of Directors

and Executive Body to sustain

excellence

KEY STRATEGIES

Capabilities

• Criteria set in place to select the best

candidates for both Board members

and Executive Body

Roles and Functions

• Clear understanding of roles, functions,

responsibilities, practices and

processes

Trust

• Each entity knows the demarcation of

power and duty between the two

16 MOE - CONFIDENTIAL

Empowered governance


1. Review the CUGG and develop the

Malaysia University Code of

Governance

2. Establish University Oversight

Committee

3. Review adoption of circular from

central agencies

4. Redefine roles and responsibilities

of the Board and the Top

Management

5. Develop visionary, inclusive and

transformative leadership

6. Develop Skim Saraan Universiti

(SSU) – University Remuneration

Scheme

Trust

Capabilities Roles & Functions

Empowered Governance

17 MOE - CONFIDENTIAL

Key Strategies

Strategic Intiatives


Objectives

● RESOLUTION Economic Council Meeting on PTPTN (14 Oct)

● RESOLUTION YAB Minister of Education meeting with Vice-Chancellor

● SUGGESTION Pelan Strategik Pendidikan Tinggi Negara

● To reduce the possibility of PTPTN’s debt accumulation up to RM90 billion by 2030

● SUGGESTION Tuition fees for Undergraduates to be maintained up to 2020

● SUGGESTION Tuition fees for Undergraduates to be partly covered by University Endowment

● SUGGESTION Tuition fees for Postgraduate should be increased gradually

Preparation For Eleventh Malaysia Plan


Objectives

● RESOLUTION Economic Council Meeting on PTPTN

● RESOLUTION YAB Minister of Education meeting with Vice-Chancellor

● SUGGESTION Pelan Strategik Pendidikan Tinggi Negara

● Understanding the nature of the present financial management and planning of IPTA

● Develop a new financial sustainability framework for IPTA Malaysia

● To work on a 7-year-financial planning (2014-2020)

● To prepare for 2014-2020 financial sustainability framework

Preparation For Eleventh Malaysia Plan


University financial models

Government grants

Government grants

Internal revenue

Government grants Government grants

Internal revenue

Endowment

Endowment

Government grants

Internal revenue

Endowment


University financial models

Endowment

Operating

Internal revenue

PRIVATE HEI PUBLIC HEI

Land Land

Infrastructure Infrastructure

Cash donation Cash donation

Rentals Rentals

Advisory Advisory

Government grants Tuition fees

Tuition fees Research grants

Research grants


http://www.hbs.edu/annualreport/2012/financials/index.html


http://www.finance.umich.edu/reports/2012/


http://www.ntu.edu.sg/AboutNTU/Documents/NTU_Financial_Statements_Yr_ended_31_Mar_09.pdf


UTM endowment 2010-2025

2010 2011 2012 2013 2014 2015 2018 2020 2025

REVENUES

Contributions 3.5 9.9 20 30 50 65 120 200 400

Projects - 10 19.5 19 27 30 250 350 600

Investment - 0.1 0.5 1 3 5 30 50 100

ACCUMULATION 3.5 20 40 50 80 100 400 600 1,100

EXPENSES

Scholarship - 1 1.5 5 8 10 25 30 80

Endowment Chair - 1 3 3 5 6 15 20 70

Special projects - 1 1.5 2 2 4 25 50 200

TOTAL EXPENSES - 3 6 10 15 20 65 100 350

ENDOWMENT FUND 3.5 17 34 40 65 80 335 500 750

2010 2011 2012 2013 2014 2015 2018 2020 2025

REVENUES

Contributions 3.5 9.9 20 30 50 65 120 200 400

Projects - 10 19.5 19 27 30 250 350 600

Investment - 0.1 0.5 1 3 5 30 50 100

ACCUMULATION 3.5 20 40 50 80 100 400 600 1,100

EXPENSES

Scholarship - 1 1.5 5 8 10 25 30 80

Endowment Chair - 1 3 3 5 6 15 20 70

Special projects - 1 1.5 2 2 4 25 50 200

TOTAL EXPENSES - 3 6 10 15 20 65 100 350

TOTAL FUND 3.5 17 34 40 65 80 335 500 750

33.6

31.9 50


UTM 2030

Global Brand Global Top 50 Financial Independence

UTM revenues for operating budget

2012 2030

Government grants 80% 30%

Endowment <1% 10%

Internal funding 19% 60%


UTM Financial Sustainability, operating budget (RM million)

2012 2013 2020 2025 2030

Operating grants 518 486 ++ 1000 1500 2000

Research University grants 80 100 100 200 300

UTM internal revenues - Tuition fees - Rentals - UTM Holdings - SPACE

69 70 400 1000 2000

Tabung UTM - Hostels

30 43 400 1000 2000

Endowment 3.6 30 100 500 1000

TOTAL 701 729 2000 4200 7300


financial sustainability

Strategic inititives ● Leverage on accommodation facilities (eg. 30 to 40%)

o Improve hostel

o Upgrade Rumah Universiti / Scholar’s Inn

o Campus Eco-Tourism

● Three-tier-tuition fees (e.g. 20 to 30%) o Tier 1 (as it is now)

o Tier 2 (fee + Global Outreach Program)

o Tier 3 (fee + Global Outreach Program + plus-plus)

● Cross-subsidy with Endowment Fund (10 to 20%) o Tuition fee (real cost) - Endowment Scholarship

o Eg: RM10k – RM7k = RM3k

● Publications and rentals etc. (10 to 20%) o Online materials

o Rentals of land for commercial purposes, agricultural etc.


Prof. Ahmed Zewail


Dari Abu Hurairah r.a., bahawasanya Rasulullah SAW telah bersabda: “Barang siapa menempuh suatu jalan untuk mencari ilmu, maka Allah akan mempermudahkan baginya jalan menuju ke syurga”.

Hadis Riwayat: Muslim

Hadis Kelebihan Menuntut Ilmu


Thank you Terima kasih

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