Changing Trends on Overseas    Tertiary Education Choices      Prepared for: 2nd International Entrepreneur & Family      ...
Trends on Overseas Higher Education for Indonesian                                                       Fact & Figures   ...
Trends on Overseas Higher Education for Indonesian                                                 The Changing Trends    ...
Trends on Overseas Higher Education for Indonesian                                 Location Choice: United States of Ameri...
Trends on Overseas Higher Education for Indonesian                                         Location Choice: United Kingdom...
Trends on Overseas Higher Education for Indonesian                                                 Location Choice: Austra...
Trends on Overseas Higher Education for Indonesian                                                 Location Choice: Singap...
Trends on Overseas Higher Education for Indonesian (cont’d)                                                 Location Choic...
Executive Post-Graduate Market                           MBA Program Gaining Popularity Among Top Executives        SHORT-...
Key Industry Trends in Overseas Education                     Aggressive Marketing, Twinning Program, Reach Out New Target...
Relating Overseas Education, Family Business & Entrepreneurs                                  The Emergence of New Young E...
Relating Overseas Education, Family Business & Entrepreneurs                                  The Emergence of New Young E...
Relating Overseas Education, Family Business & Entrepreneurs                                  The Emergence of New Young E...
Tel: (65) 6838 5355                                                                         Fax: (65) 6838 5855           ...
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091030_2nd International Entrepreneur & Family Business Association World Conference 2009 UIBL 2009_Changing Trends on Overseas Tertiary Education Choices

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091030_2nd International Entrepreneur & Family Business Association World Conference 2009 UIBL 2009_Changing Trends on Overseas Tertiary Education Choices

  1. 1. Changing Trends on Overseas Tertiary Education Choices Prepared for: 2nd International Entrepreneur & Family Business Association World Conference 2009 / UIBL 2009 Prepared by: Spire Research & Consulting Date: 30 October 2009Prepared for: UIBL / IEFBA 2nd Conference 2009 Date: 30 October 2009 Page 1
  2. 2. Trends on Overseas Higher Education for Indonesian Fact & Figures SIZING UP THE POTENTIALS Each year, more than 4 million new Indonesian students pursue tertiary education program About 0.75% of total or 30,000 students elect for overseas education program A large market of estimated USD 450 million each year for the tuition fee spending More than 90% of the students obtain their education fund from their parents OUTSIDE ASIA LOCATION: THE TARGET NARROWING To prepare for the succession, the children of successful family-owned businesses owners are often sent to overseas for their secondary and tertiary education The potential self-funded international student segment for oversea education outside Asia narrows to children of family with their own business or the upper-class familyPrepared for: UIBL / IEFBA 2nd Conference 2009 Date: 30 October 2009 Page 2
  3. 3. Trends on Overseas Higher Education for Indonesian The Changing Trends HIGHER OVERSEAS EDUCATION COST IN LOCAL CURRENCY The overseas education cost has increased with higher exchange rate of foreign currencies against the Asian local currencies since 1997 The affordability for overseas tertiary education to children of the rich families was reduced and limited especially for Indonesia and Malaysia. …THE CHOICE OF LOCATION EVOLVES The trend in the choices of university and country selection within ASEAN is changed Singapore, Malaysia, Australia and New Zealand universities gaining higher popularity: Closer distance proximity More affordable living and education budget The previously popular countries like the United States, Canada and UK are becoming less popularPrepared for: UIBL / IEFBA 2nd Conference 2009 Date: 30 October 2009 Page 3
  4. 4. Trends on Overseas Higher Education for Indonesian Location Choice: United States of America (USA) HIGH-LIVING COST & POPULAR STATES STILL POPULAR …… Indonesia is ranked 16th in top countries sending students to US, with 7,629 student intakes from Indonesia, in 2007-2008. The total intakes declined from over 10,000 students each year before 1997 Major high-living cost states in California, New York, Massachusetts and Washington States are the popular destination One the top six universities for Indonesian students studying in USA is University of Southern California (USC) in Los Angeles, is a popular choice for the children of the rich, family- owned business owners since the 1990’s.Prepared for: UIBL / IEFBA 2nd Conference 2009 Date: 30 October 2009 Page 4
  5. 5. Trends on Overseas Higher Education for Indonesian Location Choice: United Kingdom (UK) SMALLER INTAKES, BUT IMPORTANT TO UK HIGHER LEARNING INSTITUTIONS…………. Among overseas students studying in UK: Malaysian: ranked 5th Indonesian: ranked 6th Total number of Indonesian students studying in UK is less than 1,000 students The average tuition fee of £9,000 as of 2007-2008 (in 1999-2000: only £6,550) becomes affordable to the rich-family children for self-funding students.Prepared for: UIBL / IEFBA 2nd Conference 2009 Date: 30 October 2009 Page 5
  6. 6. Trends on Overseas Higher Education for Indonesian Location Choice: Australia A POPULAR LOCATION CHOICE TO BOTH INDONESIAN AND MALAYSIAN STUDENTS….. There were 21,000 Malaysian and16,000 Indonesian students enrolled in Australian universities in 2008 Malaysia is on the 5th most of all international students studying in Australia Both Indonesian and Malaysian students combined contribute AU$500 millions of tuition fee, with average tuition fee of AU$13,500 per year.Prepared for: UIBL / IEFBA 2nd Conference 2009 Date: 30 October 2009 Page 6
  7. 7. Trends on Overseas Higher Education for Indonesian Location Choice: Singapore MOST POPULAR OVERSEAS EDUCATION LOCATIONS FOR INDONESIAN AND MALAYSIAN STUDENTS…… The total number of international students increased from 50,000 students in 2001 to almost 100,000 students in 2008 Indonesian and Malaysian students are the top in the ranking: Similar Asian culture Close proximity to Indonesia & Malaysia Indonesian family-owned businesses owners having their own residential property investment in Singapore New Singapore universities, like Singapore Management University (SMU), taking more international students The success of long-established universities and institutions in taking Indonesian and Malaysian students: Nanyang Technology University National University of Singapore Singapore Institute of Management LaSalle International Design SchoolPrepared for: UIBL / IEFBA 2nd Conference 2009 Date: 30 October 2009 Page 7
  8. 8. Trends on Overseas Higher Education for Indonesian (cont’d) Location Choice: Singapore Upon completion of the bachelor program, they will: Return to Indonesia to run the family business Continue their further post-graduate education in Australia Continue to live in Singapore and take senior position in their Singapore regional headquarters. Some successful large Indonesian companies that was previously a family-owned business growing to become international companies and set up their regional head quarter in SingaporePrepared for: UIBL / IEFBA 2nd Conference 2009 Date: 30 October 2009 Page 8
  9. 9. Executive Post-Graduate Market MBA Program Gaining Popularity Among Top Executives SHORT-PROGRAM OR DISTANCE-LEARNING MBA PROGAM FOR TOP EXECUTIVES…… Some top executives running the family-owned businesses require further post- graduate study Programs are typically from world’s top universities with high tuition fees Likely to elect for short-program or distance-learning Executive MBA program Only required to take class-room based teaching or lectures for a short-period of time only, 6 to 18 month programs Affordability and frequent travel expenses, even once or twice in a month Singapore benefits from its close distance to Indonesia.Prepared for: UIBL / IEFBA 2nd Conference 2009 Date: 30 October 2009 Page 9
  10. 10. Key Industry Trends in Overseas Education Aggressive Marketing, Twinning Program, Reach Out New Target Aggressive & increase marketing effort to attract international students in Asia Organize seminars in hotels or directly at elite high schools Appoint and work with education service agents Local campuses, twinning programs Open a new local campus in the high-promising countries Establish linkage with local universities as campus in the targeted countries for twinning program “3+0”, 2+2”, “2+1” Reach out new different potential student segment Children of upper-class families that looking for lower-cost option yet still obtaining degrees from international universities in US, UK or Australia Most of the study years are in local country without attracting high expenses of living abroad Tuition fee typically range from US$10,000 to 20,000 for the whole program of 3 or 4 years of study to completion.Prepared for: UIBL / IEFBA 2nd Conference 2009 Date: 30 October 2009 Page 10
  11. 11. Relating Overseas Education, Family Business & Entrepreneurs The Emergence of New Young Entrepreneurs (1) Emergence of New Young Entrepreneurs During their time in universities, start to build their make friendship with same country of origin and similar family background, the rich families that own businesses. From school friendship network later turns out to be a powerful business network system, when returning home New businesses are often started with their network Shortly in a few years after their return to their home country Among students studying together in overseas, the most common sectors for new business ventures are: Retail Fashion Food franchises EntertainmentPrepared for: UIBL / IEFBA 2nd Conference 2009 Date: 30 October 2009 Page 11
  12. 12. Relating Overseas Education, Family Business & Entrepreneurs The Emergence of New Young Entrepreneurs (2) Key reasons for selection of new business: Easier to set up No difficulty in raising the initial investment capital Have a high-profile for social acknowledgement and recognition Lesser constraint of business expansion capital Some of the businesses become successful and grow into a sizable business relatively faster in 2 to 3 years Successful young entrepreneurs and top executives reunite back with old school friends and strengthen social and business network by joining young entrepreneurs groups and clubs.Prepared for: UIBL / IEFBA 2nd Conference 2009 Date: 30 October 2009 Page 12
  13. 13. Relating Overseas Education, Family Business & Entrepreneurs The Emergence of New Young Entrepreneurs (2) Dynamic, Gradual Characteritic Changes to Family Business & Conglomerates In Indonesia, successful conglomerates & family business only started in the 1980s & 1990s: Now run by the 2nd or even 3rd family generation of the founders and owners The sons and daughters are immediately posted in top position and senior managements of the company Top executives obtained academic qualification from overseas education system Bringing new management concepts learnt from the school Gradually change the management system from a single-authority management to team-based or committee-based senior management decision The senior management team are formed with academically-qualified and professional managers, some are their ex-school friends. Ex-school friends are trusted due to the long-established relation built since the student daysPrepared for: UIBL / IEFBA 2nd Conference 2009 Date: 30 October 2009 Page 13
  14. 14. Tel: (65) 6838 5355 Fax: (65) 6838 5855 78 Shenton Way #20-01 Singapore 079120 sg.info@spireresearch.com www.spireresearch.comPrepared for: UIBL / IEFBA 2nd Conference 2009 Date: 30 October 2009 Page 14

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