Tertiary education is heavily subsidised by the government. Before the introduction of the matriculation system, students aiming to enter public universities had to complete an additional 18 months of secondary schooling in Form 6 and sit the Malaysian Higher School Certificate (Sijil Tinggi Persekolahan Malaysia, STPM); equivalent to the British Advanced or A Level. Since the introduction of the matriculation programme as an alternative to STPM in 1999, students who completed the 12-month programme in matriculation colleges (kolej matrikulasi in Malay) can enrol in local universities. However, in the matriculation system, only 10% of the places are open to non-Bumiputra students. Excellence in these examinations does not guarantee a place in a public university. The selection criteria are largely opaque as no strictly enforced defined guidelines exist.
The classification of tertiary education in Malaysia is organised upon the Malaysian Qualifications Framework (MQF) which seeks to set up a unified system of post secondary qualifications offered on a national basis both in the vocational as well as higher educational sectors.
In period of 2004 till 2013, the government formed the Ministry of Higher Education to oversee tertiary education in Malaysia.
Although the government announced a reduction of reliance of racial quotas in 2002, instead leaning more towards meritocracy. Prior to 2004, all lecturers in public tertiary institutions were required to have some post-graduate award as a requisite qualification. In October 2004, this requirement was removed and the Higher Education Ministry announced that industry professionals who added value to a course could apply for lecturing positions directly to universities even if they did not have postgraduate qualifications. To head off possible allegations that the universities faced a shortage of lecturers, Deputy Higher Education Minister Datuk Fu Ah Kiow said "This is not because we are facing a shortage of lecturers, but because this move will add value to our courses and enhance the name of our universities... Let's say Bill Gates and Steven Spielberg, both undergraduates but well known and outstanding in their fields, want to be teaching professors. Of course, we would be more than happy to take them in." He went on to offer as an example the field of architecture whereby well-known architects recognised for their talents do not have master's degrees.
There are a number of public universities established in Malaysia. The academic independence of public universities' faculty has been questioned. Critics like Bakri Musa cite examples such as a scientist who was reprimanded by Deputy Prime Minister Najib Razak for "publishing studies on air pollution", and a professor of mathematics at the National University of Malaysia who was reproved for criticising the government policy of teaching mathematics and science in English at the primary and secondary levels.
Students also have the option of enrolling in private tertiary institutions after secondary studies. Private universities are also gaining a reputation for international quality education and students from all over the world attend these universities. Many of these institutions offer courses in co-operation with a foreign institute or university, especially in the United States, the United Kingdom and Australia, allowing students to spend a portion of their course duration abroad as well as getting overseas qualifications. One such example is Tunku Abdul Rahman University College which partnered with Sheffield Hallam University and Coventry University. Many private colleges offer programmes whereby the student does part of his degree course here and part of it in the other institution, this method is named "twinning". The nature of these programs is somewhat diverse and ranges from the full "twinning" program where all credits and transcripts are transferable and admission is automatic to programs where the local institution offers an "associate degree" which is accepted at the discretion of the partnering university. In the latter case, acceptance of transcripts and credits is at the discretion of the partner. Some of them are branch campuses of these foreign institutions. In addition, four reputable international universities have set up their branch campuses in Malaysia since 1998. A branch campus can be seen as an 'offshore campus' of the foreign university, which offers the same courses and awards as the main campus. Both local and international students can acquire these identical foreign qualifications in Malaysia at a lower fee. Some of the foreign university branch campuses in Malaysia are:
University of Nottingham Malaysia Campus
Monash University Malaysia Campus
Curtin University Sarawak
Swinburne University of Technology Sarawak Campus
Newcastle University Medicine Malaysia
University of Southampton Malaysia Campus
Heriot-Watt University Malaysia
University of Reading Malaysia
Xiamen University Malaysia
Others are
SAE Institute, Australia
Raffles Design Institute, Singapore
The net outflow of academics from Malaysia led to a "brain gain" scheme by then (1995) Prime Minister Tun Dr Mahathir Mohamad. The scheme set a target of attracting 5,000 talents annually. In 2004, Science, Technology and Innovation Minister, Datuk Dr Jamaluddin Jarjis in a parliamentary reply stated that the scheme attracted 94 scientists (24 Malaysians) in pharmacology, medicine, semi-conductor technology and engineering from abroad between 1995 and 2000. At the time of his reply, only one was remaining in Malaysia.
Postgraduate programmes
Postgraduate degrees such as the Master of Business Administration (MBA) and the Doctor of Business Administration (DBA) are becoming popular and are offered by both the public universities and the private colleges.
All public and most private universities in Malaysia offer Master of Science degrees either through coursework or research and Doctor of Philosophy degrees through research.
Polytechnics
Polytechnics in Malaysia provide courses for bachelor's degree, Advanced Diploma, Diploma and Special Skills Certificate.