Why is Kuala Lumpur a great city for an Education Franchise?

Hello and welcome to the New Horizons English language franchise website. We believe you have found this page as you are considering the various education franchise opportunities that exist in your market. We are confident that Kuala Lumpur is a great city with ample potential for an education business and would like to provide a few thoughts about this as well as give you a simple overview of our franchise opportunity.

As a potential business owner please review this page as well as our entire site to further understand what a franchise offer like New Horizons English can bring to your desire to build an English language franchise.

Kuala Lumpur is a thriving city that has an expanding market for English learning with a large population that has high purchasing power. Here are some reasons that make Kuala Lumpur a worthwhile destination for an English language franchise.

The capital of Malaysia, Kuala Lumpur (KL) offers modern infrastructure, strong economic growth, and above average literary. It is fast becoming the education hub of Southeast Asia with reputed private, public and international schools and universities, with three of them ranking in the QS World University Ranking (2015/16).[i] The reasons that make Kuala Lumpur a rewarding location for an English language franchise include:

  1. It has a large population of 1.67 million (2014), which is expected to reach 2.2 million by 2020[vii]. The larger Klang Valley is home to over 7.5 million people. This lucrative figure is a good target market and base figure for anyone looking to open a business.
  2. The stress on education in KL is apparent. The city houses a large number of private, public and international schools and universities.
  3. Kuala Lumpur has a high GDP per capita of RM91,097, as of 2014 and a growth rate of 8.4%.[x]
  4. The locals of KL have good incomes and they also have high purchasing power.

Below are further details on why Kuala Lumpur is a good choice for an education franchise.

Education and English Learning

There are over 500 public higher education institutions in Malaysia,[ii] and a large number of private, public and international schools are located in Kuala Lumpur[iii]. Since Malay is the prime language of instruction, English that is taught is not prioritized and sometimes can be lost in translation. Private schools, however, follow British, American, Australian or international curricula, and are much more costly than public schools.

Kuala Lumpur enjoys a healthy above average literary rate. The literary rate in Malaysia is 93.12% with a rank of 133 out of 194.[iv] Primary and secondary education is compulsory and free. This is controlled by the Ministry of Education as they have a strong focus on equipping their students with relevant skills and knowledge. There are 20 public and 32 private universities in Malaysia offering undergraduate and postgraduate courses.[v] English is thus a very valuable language and business owners can tap into this worthwhile market with their own English Language franchise, coupled with the New Horizons proven systems and strategies.

Population & GDP

Kuala Lumpur/Klang Valley has a population of approximately 1.67 million/7.50 million (2014) [vii] and is projected to grow to 2.2 million/10 million by 2020.[vii] It is the fastest growing metropolitan area in the country, adding the most to the country’s GDP. Greater Kuala Lumpur has an estimated population of 7 million (2014).[vii]

Malaysia exhibits economic strength with Kuala Lumpur revealing high economic growth rate. According to the Global Science and Innovation Advisory Council (GSIAC), Malaysia’s GDP per capita in 2014 exceeded the average of all countries worldwide.[viii] Kuala Lumpur accounted for 38% of the GDP of Malaysia in 2014.[ix] Malaysia’s GDP per capita was US$10,830 (RM47,600) in 2014[viii] while Kuala Lumpur’s GDP per capita was RM91,097 in 2014[x]. The GDP growth rate recorded by KL in 2014 was 8.4%.[x] This means that the city is ever booming and will continue to grow in numbers, making it a lucrative option for people looking to open their own education franchise.

Residents of Kuala Lumpur have high spending power. Their disposable income per household is 79% higher than that of the average Malaysian (2014).[ix] This is due to the fact that 71% of the working-age people in KL were either employed or were looking for a job.[ix] With more working people in the city, the spending capacity of the people is also higher than in the rest of Malaysia. Statistics reveal[ix] that in KL, people spend more on hotels, restaurants, and education. Consumer spending on education in KL is 76% higher than in the rest of the country.[ix] This proves that KL is a rational and logical choice to open up an English Language franchise.

Infrastructure and Facilities

The city boasts of skyscrapers, British colonial architecture, and international airports. Petronas Towers, the 88-story twin silver turrets, symbolize the progress of the capital city. There are lake gardens, art galleries, museums, eco parks, mosques and markets adding to the beauty of KL.

An enormous new USD1.3 billion airport called KLIA2 is being built. It is planned to accommodate 45 million passengers a year.[xi] Another eagerly awaited project is the proposed Kuala Lumpur-Singapore High Speed Rail (HSR). The rail link is expected to be ready for use by 2020.[xii] It will reduce the travelling time between Kuala Lumpur and Singapore (205 miles) to only 90 minutes instead of the usual 6 hour drive. This ambitious project hailed by the leaders of both countries is expected to drastically increase tourism and business opportunities in KL.

Expansive shopping malls, local markets, and shopping centers offer buyers all that they need. Massive shopping malls such as Pavilion KL and Suria KLCC attract thousands of tourists and residents. Be it upmarket malls, flea market, or mouth-watering Asian cuisine, KL has it all. This makes opening an English Language franchise fuss free for a new business owner.

Lifestyle

The cost of living in Malaysia is lower as compared to that of neighboring countries. The cost of living index of KL is 43.83, and the local purchasing power is 92.33.[xiii] The average monthly income is very high (RM8586, 2012) in KL [xiv], which converts into high spending power. The cost of food is low, especially that of local food items. This Asian city is a blend of modern and ancient, offering the most extravagant and the cheapest of alternatives. This means that whether you are a local or a foreigner looking to open your education franchise, you can be sure to settle down with ease.

Conclusion

The opportunities provided by Kuala Lumpur in the important areas of infrastructure, economic growth, and demand make it a top destination for an education franchise.  High purchasing power coupled with stress on education contributes to making it a highly desirable location for an English language franchise. When considering a location for an education franchisee in Asia, consider Kuala Lumpur.

New Horizons English Overview

We would now like to give you a simple overview of the New Horizons English franchise. Alternatively, you can visit our website and download our prospectus for more detailed information.

The New Horizons English franchise has been built with the intent to leverage the way modern, busy students learn – with flexibility. It is difficult to always be at the learning center when the student is a young adult (friends and activity are always more important) or a working adult (work, family, and life are always more important).

New Horizons English is the answer to providing instruction and test preparation for busy adults using an industry leading education platform to deliver a unique blend of multimedia, live instruction in-center, and on-line on any internet enabled device.

The New Horizons English teaching method enables students by giving them three key learning advantages:

  1. Learn at your own pace
  2. Learn anywhere, anytime with Online Live®
  3. Learn with your own teacher with Mentored Learning®

All of this is supported by a didactic team in state of the art learning centers designed around the student to give 360 degree support, every day of the week.

How does it work?

The New Horizons English Method uses the natural method of second language acquisition which focusses on the development of intuitive learning based on communication rather than learning the structure of the language. The result of this is the ability to speak the language far quicker than with traditional learning methods, in fact, the student will be speaking English from day one of their course.

The course is made up of 36 Cycles, each containing 9 multimedia lessons and 3 live lessons. The live lessons are divided onto Online Live® Progress classes and in-center Milestone classes where the student is assessed for progress to the next cycle. A cycle will generally require 1 month for completion. In addition, the student will be able to access digital workbooks which act as study aids and are available to download and use at the students’ convenience throughout the course.

Finally, the training center. We know that while our multimedia and online lessons are at the cutting edge, nothing can replace the human touch. For this reason we have carefully designed our centers to give the student access to teachers and a learning environment that has been designed to reflect the needs of today’s student. All our centers are fully equipped with the latest technology in specially designed zones that enable every student to tailor their learning experience with the New Horizons English education franchise.

We genuinely believe now is the right time for a new and modern approach to an English language franchise in Kuala Lumpur, Malaysia. We are very interested to discuss in great detail with interested and qualified partners. For more details, please visit our site and download our franchise prospectus.

Sources

[i] https://www.topuniversities.com/university-rankings-articles/qs-best-student-cities/kuala-lumpur

[ii] https://www.malaysiaeducationguide.com/index.htm

[iii] https://www.expatarrivals.com/malaysia/kuala-lumpur/international-schools-in-kuala-lumpur

[iv] https://country-facts.findthedata.com/q/81/2395/What-is-the-literacy-rate-in-Malaysia-a-country-in-the-continent-of-Asia

[v] https://www.easyexpat.com/en/guides/malaysia/kuala-lumpur/school/school-system.htm

[vi] https://www.topuniversities.com/university-rankings-articles/qs-best-student-cities/kuala-lumpur

[vii] https://worldpopulationreview.com/world-cities/kuala-lumpur-population/& https://www.freemalaysiatoday.com/category/opinion/2014/02/13/klang-valleys-future/

[viii] https://www.thesundaily.my/news/1566174

[ix] https://www.euromonitor.com/kuala-lumpur-city-review/report

[x] https://www.statistics.gov.my/index.php?r=column/cone&menu_id=bjRlZXVGdnBueDJKY1BPWEFPRlhIdz09

[xi] https://www.klia2.info/about-klia2

[xii] https://www.knightfrank.com/globalcities/2016/global-cities/future-cities/kuala-lumpur

[xiii] https://www.numbeo.com/cost-of-living/city_result.jsp?country=Malaysia&city=Kuala+Lumpur

[xiv] https://www.expatarrivals.com/malaysia/cost-of-living-in-malaysia