Abstract

In Malaysia, government scholarships have been utilized on a large scale in order to achieve the employment restructuring objectives of the New Economic Policy (NEP). This article provides an empirical evaluation of the effectiveness of this policy instrument, based on a comprehensive survey of the 1982/83 graduates. The results show that scholarship policy is now: (1) generating a mismatch in the High-Level Manpower (HLM) market and (2) that these scholarships are distributed in a heavily regressive manner, benefiting students from the wealthier and higher-income families.

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