Eam, Lim Hock and Md. Taib, Fauziah and Hiau , Nur Adiana Abdullah and Yen , Siew Hwa
(2016)
How Efficient Are Malaysian Public
Universities? A Comparative Analysis Using
Data Envelopment Analysis.
Asian Academy of Management Journal (AAMJ), 21 (2).
pp. 1-24.
ISSN 1394-2603
Abstract
This paper aims to examine the efciency of Malaysian public universities in comparison
with the private and foreign universities using Data Envelopment Analysis (DEA). The
study involves 22 universities (17 public, 1 private and 4 foreign) and based on data
between year 2008 and 2011. Results reveal that the most efcient Malaysian public
universities are: University Malaya (among research universities); Universiti Teknologi
Mara (among comprehensive universities) and Universiti Utara Malaysia (among focused
universities). When these three most efcient Malaysian public universities are compared
with the private university in Malaysia and another 4 foreign universities, they are found to
be inefcient in income generation and in managing inputs which include the government
operating grant. The plausible explanation could be associated with a long history of
over-dependence on government grants that may have resulted in the public universities
becoming too complacent. The study calls for mechanisms to re-strategise and to get these
public universities to be more fnancially independent.
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