KUALA LUMPUR, December 24 — In today’s business world, it’s no longer hard to find an MBA (Master of Business Administration) graduate.

There are arguably tens of renowned institutions in Malaysia offering such programmes and promising to shape the best and brightest students to become future corporate leaders.

But recent reports of declining enrolments for the programme somehow suggest that even an MBA qualification seems to be losing its relevance among the new generation.

Apart from the rising tuition costs and economic downturn, the declining demand for the programme could also be fuelled by sentiments of whether an MBA is really a ticket to executive or entrepreneurial success.

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While many corporate leaders have come from these programmes, some argue that there are also numerous individuals who climb the ranks without the need for an MBA.

To better understand how industry experts view job applicants with an MBA, Malay Mail asked three industry experts to comment on how a UK master’s degree, which seems to be among the most sought-after among Malaysians, would help students climb the corporate ladder.

Teledirect Telecommerce (TDCX) chief human resources officer Lim Chee Gay agreed that an MBA, especially an international one such as a UK master’s degree, would build a solid foundation both in terms of knowledge and exposure to different challenges and solutions.

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He noted that such programmes are suitable options for students who are not in a rush to join the workforce, as it exposes them to different cultures and helps them develop an independent lifestyle.

Oppstar Malaysia director of engineering Lee Chun Keat echoed a similar sentiment and said the MBA programme prepared students with essential skills that are highly needed and appreciated by the industry nowadays.

MBA programmes help students build essential leadership and management skills. – Picture from Pexels.com
MBA programmes help students build essential leadership and management skills. – Picture from Pexels.com

Among the skills Lee pointed out were leadership and people management, networking, crisis management, financial management and reporting.

He also agreed with Lim and said an MBA would be beneficial to graduates who wish to further their studies and develop their skills.

“Some postgraduate programmes are geared towards the development of an in-depth knowledge of the subject matter and will ultimately benefit their careers in the future.

“Obtaining a highly valued UK master’s degree will also help open doors to a variety of sought-after careers,” he added.

Can an MBA earn you an extra buck?

Both Lim and Lee agreed that MBA holders can gain a slightly higher pay scale than their degree holder peers, while also benefiting from broader job opportunities involving roles such as strategic planning and management instead of functional roles.

“Typically, those applicants with a master’s degree or MBA will be hired with one to two grades higher than degree holders.

“As a result, they will also get about an eight per cent higher salary depending on the field or industry they plan to join,” said Lee.

MBA holders generally will receive about an eight per cent higher salary than degree holders. — AFP pic
MBA holders generally will receive about an eight per cent higher salary than degree holders. — AFP pic

FedEx Malaysia managing director SC Chong, however, argued that an MBA may not be a ticket to a higher salary but agreed that it would “add more weight” to one’s resume when other things are equal.

“It helps to open doors and helps create more opportunities.

“It also equips those from technical backgrounds to better understand the commercial and financial aspects of business,” he added.

Giving students the edge

Although the stamp of having an MBA may not necessarily guarantee a higher pay, all three industry experts agreed that it will give graduates a competitive advantage in today’s crowded job market.

According to Lee, the population of university degree holders is on the rise and more professionals are going after post-graduate programmes like the MBA or other master’s degrees to stand out.

“Such programmes combine discipline-specific, advanced coursework with skills like networking, critical thinking, analytical ability, and time management that build leadership skills.

“These skills are easily transferred even if their career path changes,” he added.

Earning an MBA can help professionals enhance their career opportunities and receive job promotions. — Picture from Pxhere.com
Earning an MBA can help professionals enhance their career opportunities and receive job promotions. — Picture from Pxhere.com

Chong, however, said that an MBA would add more value to working adults as it is not just about gaining another qualification.

“It is about networking, and building social capital by meeting business leaders from different industries and backgrounds.

“People who are already in the industry will appreciate such connections and knowledge sharing during lectures, projects or seminars when compared to fresh graduates,” Chong said.

Why is the UK MBA in high demand?

According to Chong, the majority of MBA students in the UK are from overseas as it offers excellent exposure to cultural diversity and work practices around the world, while enabling students to develop a global perspective.

“UK universities are also known to actively engage with industries in diverse business sectors and often faculty members have a certain degree of professional experience in their fields,” he added.

UK MBAs offer students great exposure to cultural diversity and work practices around the world. — Picture from Pxhere.com
UK MBAs offer students great exposure to cultural diversity and work practices around the world. — Picture from Pxhere.com

Apart from that, Lim said a UK Master’s degree is widely recognised globally as they adopt the laissez-faire approach, which is also known as the delegative leadership style.

“This not only improves the students’ knowledge but also reflects on their discipline.”

However, considering the hefty tuition fees and cost of living one has to bear in order to pursue an international MBA programme abroad, Lee said it would be quite advantageous and affordable if the candidates obtain a UK MBA locally in Malaysia.

“The biggest benefit of having the international MBA done locally is that it allows people to obtain a high-quality education with significantly lower cost,” he said.

Although the entire programme is completed locally, the qualification received is equivalent to that offered by the partner university in the UK.

On top of that, students will be taught according to the UK syllabus and assessment methods in order to provide them with the same learning experience as in the UK.

Apart from the affordability, Lee said if the programme is done locally, it provides students easy access to job opportunities here without the burden of obtaining a work permit.

The flexibility also allows aspiring working adults to pursue an MBA without having to shelve their career ambitions.

Most universities and institutions today offer a variety of MBA programmes specifically tailored for aspiring working professionals who wish to pursue their tertiary education while keeping to their personal and professional commitments.

If you are on the lookout for a well-recognised MBA programme, INTI International University & Colleges is offering an MBA in Global Business in collaboration with Coventry University, UK, designed to give students the competitive edge.

*This article is brought to you by INTI International University & Colleges.