The private education services sector in Malaysia experienced consistent growth from 2013 to 2019, peaking at 12.51 billion Malaysian Ringgits in 2019. However, the sector faced a decline starting in 2020, with the revenue dropping to 11.78 billion Ringgits, and continued to fall through to 2023. In 2023, the revenue stood at 10.59 billion Ringgits, representing a significant decline from previous years.
Key variations observed:
- 2019-2020: -5.85%
- 2020-2021: -3.3%
- 2021-2022: -3.54%
- 2022-2023: -3.63%
The negative compound annual growth rate (CAGR) over the last five years is -1.99%. Further, the forecasted CAGR for the next 5 years is -3.2%, indicating continued decline with an overall forecasted reduction in revenues by -15.01% by 2028.
Future trends to watch for include the adaptation of digital learning platforms, changes in government policies affecting private education, and economic factors impacting consumer spending power on education. The sector needs to innovate and possibly diversify to counteract the downward trend.
