Governance in Malaysian higher educational

institutionsNik Ahmad Kamal bin Nik Mahmod

Ahmad Ibrahim Kulliyyah of Laws & Office of the Legal Adviser

NATIONAL SEMINAR FOR UNIVERSITY ADMINISTRATORS8 & 9 May 2013

Sunway Putra Hotel, Kuala Lumpur

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Introduction

Governance basic elements:

Accountability◦ Integrity, fairness, justice

Transparency ◦ Objectivity

◦ Clarity

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Introduction

Governance is a process

Process in managing an institution

It has governing body, the office holders

It has the constitutional framework

It has sphere and demarcation of powers

Governance involves policy and law

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University governance

Depending on type of structure:

The bottom-up system where state policy follows rather than leads changes initiated by academics (high autonomy)

Top-down system where institutions respond to government policy initiatives enforced by the state (low autonomy)

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Malaysia public HEI is largely a top-down system dictated by law and policy determined by the state

Private HEIs enjoy tremendous freedom but substantial amount of state regulatory initiatives

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Governance framework

Public HEIs are required to adopt the governance framework dictated by UUCA

Private HEIs are required to adopt the governance framework provided by template constitution dictated by Act 555

Governance structure is fairly similar between public and private HEIs

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Governance structure

Board of governors

Senate

Faculties

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Chairman, BOD

Vice Chancellor/Rector

Deans

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Legal framework

UUCA was amended in 2009 to empower universities & reduced ministerial control on universities◦ Consultative procedure in appointment of BOD members & VC

◦ Give VC & BOD exclusive power on student disciplinary matters

◦ Clear demarcation of powers between BOD, Senate & VC

◦ Increase memberships of BOD from 8 to 11

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Enhance participation in senate by including 20 professors as members elected by their peers

Increase senate membership to 40 Include a professor as BOD member elected

among senate member Introduce non-judicial dispute resolution

mechanism to resolve dispute in university between staff & university; between departments & faculties, and members appointed by minister

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Establishment of welfare committees for students

Establishment of welfare committee for staff

Amendment in 2012 ◦ Allows students to participate in politics outside

campus

◦ Registrar & bursar appointment became a renewable three year appointment

◦ Reinstate the university-staff consultative committee on service matters

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Private universities

Government has full control to establish, register and regulate private HEIs under Act 555, Private Higher Educational Institutions Act 1996

Premises, course of studies, teaching staff, tuition fees, premises, change of premises, advertisement must be approved by the Ministry

Chief executive must be registered by ministry

Audited account must be submitted every year to ministry

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Governance – demarcation of powers between BOD, Chief Executive/VC & Senate

The company that established HEI has its own board that decide funding for HEI

Issue on conflict of interest when the CE is at the same time chairman of BOD & senate

When PHEI is to close down, the duty to inform ministry to ensure action to protect interest of students is taken

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Other statutes

National Higher Education Council Act 1996 – to formulate & determine national policies & strategies for higher education

Malaysian Qualification Agency Act 2007 –empowers MQA to implement accreditation of course of studies at PHEI & implement the MQF◦ Also monitor all quality assurance on conduct of academic programs

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Autonomy

Recent move to provide autonomy to public universities

Currently 7 public HEIs given autonomy status

Institutional, academic, human resource & financial autonomy

Operational freedom & decision making power without referring to the ministry

an important exercise that will chart future direction of public universities

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Governance & autonomy

Providing autonomy & empowering PHEIs, a move to emulate ethos of universities in developed countries

Strategies toward making Malaysian PHEIs world class institutions

At this stage there is still uncertainties as clear implementation guidelines are needed

Autonomy entails greater accountability that requires enhancement of internal procedures

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Financial accountability means a strengthened internal audit mechanism & accountability to the main stakeholder, the government remains (ministry & Auditor General)

Academic accountability to all stakeholders & quality control under MQA remains

HR matters accountability to main stakeholders remains when posts are still subject to PSD approval

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National aspirations

The PSPTN remains the guiding principles for all PHEIs

Autonomy does not release PHEIs from obligations under PSPTN requirements & KPI set under the plan

A difficult balance to strike between autonomy & nation needs and aspirations

So long as PHEIs rely on 90% funding from the government, autonomy may not be fully realized when ministry is firmly in control

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Striking the balance

To strike a balance between stakeholders’ needs, societal demands and its institutional autonomy (Pandey, 2006)

PHEI should serve as resource and champion for public policy and

issues;

PHEI should admit qualified students from all sections of society;

PHEI should ensure quality education and research;

PHEI should professionalizes management practice of socially

desirable, but under-managed sectors;

PHEI should assist business and industry through training, research

and consultancy.

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Challenges in governance

Accountability or lack of it

Lack of knowledge & expertise, incompetent

Lack of strong & established internal mechanism

Lack of culture of integrity

Lack of academic freedom & existing law that restrict academic freedom

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conclusion

Good governance is bedrock of effective and efficient organization

Existing organizational and legal framework require continuous improvement to ensure GG is maintained

However, these may not be enough if the culture & ethos of integrity & transparency are lacking

Autonomy poses new challenges GG at PHEIs

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THANK YOU

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