AS the pandemic rages on, industries across Malaysia are still struggling to find their footing in these uncertain times. Nowhere is this more true than in the education industry.
There are numerous factors that have thrown the education industry in a spin this past year. Whether it is figuring out how to effectively educate children while at home or figuring out how to keep students and our teachers safe once they return to schools – let alone when that could feasibly happen.
With millions of lives and future wellbeing at stake, there’s no denying that it is high time for discussions around the topic to given priority.
Beyond that, for those in the private and international education industry there is also the pressing question of business sustainability. An industry that drew in over RM400 tril globally in 2016 and tens of billions locally, has now undeniably been dampened.
Commenting on the situation of the industry, Beaconhouse Malaysia regional director Alister Bartholomew said, “Before Southeast Asia was viewed as one of the highest potential growth segments for the industry. The rise in personal net worth, awareness of alternative education options and entry of prominent global education brands have all served to drive market growth.”
This however, all took a turn this past year when the pandemic truly hit the region. Bartholomew explains further, “2020 was a stop-start school year– and one that has been particularly unhelpful for the varied school terms for private and international education institutions. This coupled with the increasing economic constraints has seen many within the industry shrink business plans – in best case scenarios or completely shut down schools – in the worst case scenarios.”
Amongst other factors that have impacted enrolment numbers have been the closed borders, hindering international travel. With a sizeable amount of private and international school enrolment coming from expats, the continued closure of borders has seen this revenue stream largely dry up.
“While the larger majority our students at Beaconhouse, and in fact those across the industry in Malaysia are locals and expats living long-term in Malaysia, international border closure has impacted new enrolment. In the long-term, I believe if this continues, industry players will have to relook at their outreach strategies to prioritise local enrolments,” added Bartholomew.
Looking further ahead, Alister believes the economic down turn will naturally continue to pose challenges in maintaining enrolment numbers let alone increasing them.
“However, there is a silver lining. Parents who have experienced the quality of private education through institutions such as Beaconhouse, know that there are no easy replacements. As the vaccine slowly makes its rounds, we are hopeful that late 2021 and moving into 2022, things will start to normalise once more,” Bartholomew opined.
While the pandemic continues, the private and international education industry appears to be more sure footed coming in to the new year.
The lessons learnt in 2020 particularly on adapting teaching methods and outreach initiatives have the industry feeling more confident of weathering the on-going storm.
Proactive innovation will be the key across the industry to safeguard against similarly damaging occurrences in the future.
Bartholomew believes that price point will continue to be a sticking point in the industry with those getting the balance just right coming out on top.
“There needs to be a fine-line between attractive price points and keeping the books in the green. The industry will need to tread that line carefully. But I do believe there is light at the end of the tunnel and I think we will be in a good place, sooner rather than later,” Bartholomew concluded. – Mar 6, 2021
