The Malaysian economy has lost economic dynamism since 2000. As education is inextricably linked with the generation of employment and the growth of income, we examine some of the major developments and outcomes in the country's higher education system and raise questions about its effectiveness in helping to generate economic growth. We find the general performance of the Malaysian higher education sector to be dismal, and we attribute this negative outcome to the use of the higher education sector by the Malaysian government as a major policy instrument to force socioeconomic restructuring along racial lines in the last 40 years.

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