Beruflich Dokumente
Kultur Dokumente
Update 2.1
Table of Contents
1 Introduction 1
2 Southeast Asia 2
2.1 e East Asian Miracle 2
2.2 Tiger Cub Economies 3
2.3 ASEAN 4
2.4 Focus Countries 5
3 Regional Analysis of Focus Countries 7
3.1 Political Stability 7
3.2 Ease of Doing Business 7
3.3 FDI Con dence 8
4 Private Equity Market 11
4.1 General Trends 11
4.2 Private Equity in Education Sector 12
5 Education Market 14
5.1 Kaizen Education (KE) Map 14
5.2 e Education Market in SEA is
Ripe for Investment 14
5.3 Singapore 16
5.3.1 Country Overview 16
5.3.2 Education Sector 16
5.3.3 Market Size 17
5.3.4 Private Sector Activity 18
5.3.5 Regulatory Context 18
5.3.6 Unique Opportunities 19
5.4 Malaysia 20
5.4.1 Country Overview 20
5.4.2 Education Sector 20
5.4.3 Market Size 21
5.4.4 Private Sector Activity 22
5.4.5 Regulatory Context 23
5.4.6 Unique Opportunities 24
5.5 Indonesia 25
5.5.1 Country Overview 25
5.5.2 Education Sector 25
5.5.3 Market Size 26
5.5.4 Private Sector Activity 27
5.5.5 Regulatory Context 27
5.5.6 Unique Opportunities 27
5.6 ailand 29
5.6.1 Country Overview 29
5.6.2 Education Sector 29
5.6.3 Market Size 31
5.6.4 Private Sector Activity 31
5.6.5 Regulatory Context 31
Table of Contents
5.7 Philippines 33
5.7.1 Country Overview 33
5.7.2 Education Sector 33
5.7.3 Market Size 34
5.7.4 Private Sector Activity 35
5.7.5 Regulatory Context 35
5.7.6 Unique Opportunities 36
5.8 Vietnam 37
5.8.1 Country Overview 37
5.8.2 Education Sector 37
5.8.3 Market Size 38
5.8.4 Private Sector Activity 38
5.8.5 Regulatory Context 38
5.8.6 Unique Opportunities 39
6 Southeast Asia e Next Education
Investment Destination 44
6.1 A Burgeoning Middle Class Population 40
6.2 Economies Face a Huge Shortage of Skills 40
6.3 Growing Spend on Education 41
6.4 Rising Student Mobility 41
6.5 An Open Regulatory Environment for Deals
and Foreign Investments 42
List of Figures 44
1 Introduction
is report aims to analyze the Education Sector in Southeast Asia ( SEA
or the region ). It develops on the previous Education Sector reports
written by Kaizen, focused on India. India and SEA are similar in many
ways, particularly in how the two societies view and consume education.
However, there are several clear distinctions, which makes this report
relevant for those with an interest in the Education Sector in SEA.
As the region's economies transform from middle-income to high-
income nations, there is a growing focus on education as a critical driver of
overall human capital development. is report examines the Education
Sector in SEA with a backdrop of the prevalent socioeconomic realities,
regulations, role of the private sector and investment paradigms. It
concludes with an analysis of investment opportunities in the sector.
e US$110 billion SEA annual Education market is substantial
when compared with US$1.43 trillion education and training market in
the USA and the US$133 billion India Education market. As per Kaizen
estimates, the SEA Education Sector grew at a 10% CAGR between 2009
and 2012.
e underlying growth driver is the high consumer spending power,
which manifests itself in a higher incidence of private players in the
education market. As the SEA economies and the consumer spending
power continue to grow, there will be an increase in consumer education
spend and participation in higher education, which is usually correlated
to professional or skilled jobs and associated with higher income. e
need to prepare a skilled labor force is also fueling the growth, along with
increased public and private investment in the Education Sector.
e analysis of the Education Sector in select countries in SEA
including Singapore, Malaysia, Indonesia, ailand, Philippines and
Vietnam suggests that these countries are at di erent stages of human
capital development, and thus have di erent investment opportunities.
Although each country has di erent underlying growth drivers, the
Education Sector o ers attractive investment opportunities primarily in
the higher education and technology subsegments. Technology advances
have resulted in the emergence of innovative models that can be scaled
across the region in areas such as corporate training, outsourced education
services, personalized learning and higher education.
35,000
30,000
Per Capita income (USD)
25,000
20,000
15,000
Beginning
10,000
5,000 2005
an
a
ng
e
re
or
w
Ko
Ko
ap
i
Ta
ng
ng
Ho
Si
Figure 2: The Asian Tigers Spectacular Economic Growth
Source: World Bank, World Development Indicators
10000
Upper middle income
8000
6000
4000
Lower middle income
2000
0
Philippines Indonesia Thailand Malaysia
2000
GDP, current prices(US$ billions)
1800
1600
1400
1200
1000 2000
800
2010
600
2017E
400
200
0
sia
nd
o
am
sia
a
e
ar
ei
ne
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or
La
m
un
ne
ila
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p
pi
ay
n
ga
do
Br
ilip
ya
m
Th
al
Vi
In
Ca
M
Ph
Si
In
Customs Single customs window development
Awaiting
Labor Free flow of labor across Asean legislation
Agriculture/ In
Uniform product standards
Forestry development
Intellectual Awaiting
property More regional IP coordination legislation
1.00
0.50
0.00
Singapore United Malaysia Vietnam
-0.50 States
Transition economies
1000
500
0
1995
2001
2011
2005
2003
2002
1997
2007
1998
1999
2000
2008
2009
2010
1996
2006
2004
Figure 7: FDI in ows, Global and by Group Economies, 1995-2011 (US$ billions)
Source: United Nations Conference on Trade and Development
240
200
160
120
80
40
0
2005 2006 2007 2008 2009 2010 2011
Figure 8: FDI In ows (US$ billion) and Share of World total (%), 2005-11
Source: United Nations Conference on Trade and Development
Understanding the sector 8
Singapore, Indonesia and Malaysia are the top destinations within
Southeast Asia, while Vietnam, ailand and Philippines are emerging
destinations. Although FDI growth has slowed since late 2011 as a result
of the uncertainties in the global economy, the Annual World Investment
Prospect Survey 2012 suggests, that FDI prospects in SEA remains
promising, with approximately 70% of respondents bullish on the growth
prospects of this region.
Figure 9: Distribution of FDI Flows Measured by the Magnitude of their FDI ows, 2011
Source: World investment report, 2012
Similarly, the A.T. Kearney 2012 Foreign Direct Investment Con dence
Index, which assesses the impact of political, economic, and regulatory
environment on FDI, is bullish on the region's prospects and ranks ve
SEA economies in the top 20 globally. Singapore, Indonesia, Malaysia,
Vietnam and ailand hold high rankings in the FDI con dence index
while continuing to make progress in regional economic integration. All
of this suggests a more favorable investment climate for intraregional FDI
ows within ASEAN.
600
10
400
5
200
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
SE Asia Global
India 0.4
United States 1
Thailand
5
Vietnam
11 Acquisition
12.5%
Malaysia
Philippines
30
8 Exited
Active Deals
60% Deals LBO
40% 15.0%
Indonesia
3
IPO
Singapore 12.5%
43
Figure 13: PE Deal Classi cation by Country, 2010 Figure 14: ASEAN's 40 PE Investments in Education
Figure : ASEAN's 40 PE Investments in Education Source: Thomson One Banker
Growing market
Presence of Most active
pushed by Bank-oriented Underdeveloped
Increasing market conventional & market in
Depth of increased economy financial market
activity Islamic markets Southeast Asia
market globalization Medium middle Medium middle
Large middle class Small middle Small middle
Medium middle class class
class class
class
- IPO volume + + + ++ + +
- M&A volume + ++ + ++ + -
- VC activity -- + - ++ - -
- PE activity -- + - ++ - +
*Corruption
*Good educated *Corruption &
issues
human capital *Good educated security
Human & *Poorly
*High corruption human capital problems High level
Social educated Corruption issues
Enviroment level *Low level *Young of education
human capital
*Inadequate of corruption educated &
& rigid labor
labor market cheap workforce
market
*Difficulty in Strong
Government Improvement to
Enterpreneurship starting a Government entrepreneurship
culture & Deal
incentives to Limited encourage
business promotes culture curbed by
Opportunities promote innovation entrepreneurship
*Low corporate innovation high cost of doing
entrepreneurship & innovation
R&D business
Ancillary
LMS, ICT, ERP, Media, Books
Parallel
Preschool, Tutoring
Core
K-12, College
BAHRAIN
QATAR BANGLADESH
SAUDI UAE
ARABIA
AN
MYANMAR
LAOS
TAIWAN Legend
OM
VI
ET
EN Above 95
NA
THAILAND
M
CAMBODIA
PHILIPPINES 90-85
SRI BRUNEI 85-90
LANKA PALAU
MALAYSIA
AFRICA
SINGAPORE 80-85
MALDIVES
Below 80
INDONESIA
No Data
EAST TIMOR
Singapore at a glance
0.50
-
Below 15 15-24 25-34 35-44 45-54 55-64 65 and over
Rank Country
1 Finland
2 South Korea
3 Hong Kong
4 Japan
5 Singapore
6 United Kingdom
7 Netherlands
8 New Zealand
9 Switzerland
10 Canada
Opportunities in the Parallel segment stem from the fact that Singapore is
home to 7,000 MNCs (Multinational Corporations) and numerous
SMEs, and has become a coveted destination for companies. With human
capital as a key di erentiator, training has gained signi cance within
MNCs. is has led to an increased demand for corporate training
institutes, which o er executive education and industry focused training
in nance, retail, healthcare, hospitality and tourism. e government
encourages MNCs to anchor their regional training centers in Singapore
and promote reputable institutions to provide high quality, short,
executive training courses.
Malaysia at a glance
2.54
1.16
1 1 2 2 2 2 3 6 8 9
6 7 10 13 15
10 13 19
24
31
33 39
35 39
38
41 51 56
43 59
41 61
38
33
39
60
56 50 26
44 22
37 18
32 28 15
21 15 13 12 10 9
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
The sector has seen robust growth over the past decade and has one of the highest multipliers
in the economy
Indonesia at a glance
51.64
21.55
8.91
Thailand at a glance
5.24
2.75
5.24
2.75
GRADE 7
Levels
GRADE 6
GRADE 5
GRADE 4
GRADE 3
GRADE 2
Implementation of
GRADE 1
Grade 1K to 12
KINDER Curriculum
PHASE 1: Laying the PHASE 2: Modeling and PHASE 3: Complete PHASE 4: Completion of
Foundation Migration Migration Reform
- Universal Kindergarten - Enactment of basic - Grades 11 & 12 (HS Years 5 - Complete implementation
- Development of the education low & 6) implementation of K to 12 basic education
K12 Program - Phased implementation of - Complete migration to K to curriculum
new curriculum (Grades 12 curriculum
1-4, 7-10)
- SHS Modeling
Higher Vocation
K-12 Education Training
Public providers 45,619 607 452
Private providers 13,925 1,573 4,045
Total 59,544 2,180 4,497
% of private providers 23% 72% 90%
Vietnam's growth story in the last decade has been remarkable; it has been
one of the fastest growing countries in the world since 2000 and in 2011,
was recognized by HSBC as on one of the top 10 growth economies until
2050. In addition, the ASEAN Business Council 2011-12 Survey rated
Vietnam as the second most attractive investment destination after
Indonesia in 2012.
e country's middle class has been rapidly evolving with a population
of approximately seven million households in 2012 and a burgeoning
class of consumers, where nearly 53% of the population is under the age of
30 and is concentrated in urban areas. Another sign of progress
highlighted in a recent World Bank report suggests that the poverty
headcount has fallen from nearly 60% in the early 1990s to 21% in 2010.
17.42
9.14
4.21
1,313
803
435
243
172
80 105 88
34 76 20 19
2000 2012
Global competition to attract the best and the brightest students is driven
by the desire of institutions to enroll full-fee paying international
students, which adds to the gross national income for the host nation. In
this regard, SEA is strategically positioned to become a regional
educational hub catering to internationally mobile students looking for
quality education and value for money. Success as an international
education destination depends on economic competitiveness and
international reputation for quality education.
Acknowledgments:
Kaizen would like to acknowledge the contribution of the following
people:
Ms. Shehzia Valiulla Graduate, Schulich School of Business, Class of
2012
Mr. Aman Rangrass Candidate, Wharton Business School, Class of
2014
Ms. Sakshi Saigal Candidate, IESE Business School, Class of 2015
List of Tables
Table 1: East Asias High Growth Performers..................................................................................6
Table 2: Focus Countries................................................................................................................9
Table 3: Majority of Southeast Asia ahead of India in World Bank s Survey ..................................10
Table 4: VCPE Index 2011 ..........................................................................................................15
Table 5: Comparison Across the Focus Countries .........................................................................16
Table 6: Singapore - Overview......................................................................................................19
Table 7: Global Education System Ranking, 2012........................................................................22
Table 8: Singapore s Private Education Market .............................................................................22