Introduction At present, world economics is growing extremely fast which results in the increasing demand for talents all over the world. Education is one of the most important issues faced by many countries around the world. Malaysia’s government has noticed that improving education industry is necessary in order to strong the country. This report is going to discuss the impact of the macro and micro environmental factors on education industry in Malaysia. Background

In the past, there were two initial proposals for developing the national education system: the Barnes Report and the Fenn-Wu Report. Initially, the British colonial governement did not build the schools which many Malays cannot adapt. As a result of that, many Malays have to drop out from school. After a period of struggle, the British established the Malay College Kuala Kangsar. But the situation is still the same, the school was never intended to prepare students for entrance to higher institutions of education (A Glimpse of History).

In order to bring up the talents for building their own country better, the Malaysian government has created a single system of national education which is designed to produce world-class education from the aspects of quality to achieve the nation’s aspirations since 1957. Education in Malaysia consists of the following stages: pre-school, primary education, secondary education, higer education and adult education.

Only primary education in Malaysia is mandated by law, the primary and secondary education in government schools is handled by the Ministry of Education, but policies regarding tertiary education are handled by the Ministry of Higher Education (Characteristics). Most Malaysians would have completed their studies until the secondary level. During these years, Malaysian government is always trying to improve the quality of education in different levels. For instance, lifelong education improvement in higher education and distance education in Malaysia. The education industry in Malaysia continues to grow rapidly.

However, there are some isssues in Malaysian education. Such as language, gender, racial polarisation in school and the tuition phenomenon. Macro environment factors There are six major forces in the organisation’s macro environment. The first one is demographic force. According to the data of Department of Statistics Malaysia, the population of Malaysia in 2007 is 27. 17million. From the chart below, From the chart shown above, we can see that the number of those under 15 years old is increase slightly during these years as well as over 65 years old.

However, the peole within 15-65 years old rise up sharply and they are the main components of the society. In addition, from 1980 to 2000, the literacy rate for adults over age of 15 increase gradually. The literacy gap between male and female are getting narrow. (Population, health, and human well-being malaysia 2002 ). In next few years, the target age group of education industry should be the age within 15-65 years old and they should focus more on women to balance the literacy between men and women.

The technical and vocational education school and other high levels of education can provide more access to the women due to the government education policy encourage so. It is a opportunity to build more technical and vocational education schools to offer more access to the age group of 15-65 years old, especially the women. The second force is the economic environment. The GDP growth rate for Malaysia in 2007 is 5. 90% and the GDP for 2007 was estimated to be RM 340 billion. In 2007, RM 1was equal to US$3. 4634 (Economy of Malaysia 2007).