Having a child is an investment in the future of the family, and education is one of the biggest investments in a child's future. There was a time when parents who wanted — and could afford — the best for their children had to send them abroad, but today in Asia, families can have the best of both worlds: an international education close to home.
Over the past two decades or so, the world of international schools has been transformed from a niche market serving mainly expatriate families to a highly lucrative business attracting aspirational local families. At some schools, local children can make up 80% of the enrolment, though others cap the proportions of nationalities in order to encourage greater diversity.
The growth of international schools throughout Asia has outpaced that in other regions of the world, with an average annual increase of 10.5% in student enrolment and 15% in tuition fee income since 2009, according to research by the UK-based International School Consultancy Group (ISC).
The 4,181 international schools across Asia make up 55% of the global international school market, and their 2.4 million students account for 60% of the world total. The top two countries globally for international schools are the United Arab Emirates with 505 and China with 480.
The strongest growth is in Western and Southeast Asia where there are fewer restrictions on local children entering international schools compared with East Asia — notably Japan, South Korea, China, Taiwan and Hong Kong.
"Generally, it's a rule that Southeast Asia has grown so much faster than anywhere else because local people in Indonesia, Thailand and Malaysia have a choice," said Richard Gaskell, director for international schools at ISC.
"There were a few restrictions in Malaysia, but now those are being done away with. So you can have a school in Thailand, Indonesia and Malaysia with 100% local children."
ISC data show Southeast Asia currently has 819 international schools, teaching 307,000 students and employing 32,000 full-time staff, including fully qualified, expatriate teachers who have English as a first language. Indonesia has 190 schools, Thailand 172 and Malaysia 142.
The International Schools Association of Thailand (ISAT) says the local total is only 147. However, ISC says its figure is higher because its count includes pre-schools that offer an English-medium curriculum other than the national curriculum, and it counts two separate campuses as two schools.
"I would call it a successful policy in [Thailand, Malaysia and Indonesia] to have a better attitude toward international schools because when children go to universities overseas to get the right qualifications, they then bring those skills back to their home country," Mr Gaskell said.
"If decades ago people weren't sending their kids overseas, there wouldn't be that skilled labour here. Countries must have skilled labour, otherwise companies are not going to invest."
INDONESIA: WHAT'S IN A NAME?
In Indonesia, the international school market has doubled in the last eight years, reflecting rapid expansion of the economy, a surging middle class and a population of 250 million.
However, the near-term outlook is cloudy in light of a new regulation that requires Indonesian-owned international schools to drop "international" from their names. As well, concerns about child safety linger following a sexual assault at the school formerly known as Jakarta International School last year.
Schools also have been told to modify their curricula to include Indonesian culture and language instruction for foreign students, and to provide more intensive Indonesian language, civics and religion instruction for Indonesian students.
In response to criticism that the government lacked a global vision, Education Ministry spokesman Ibnu Hamad said the reality was quite different: some schools just don't measure up.
"Many schools here claim to be international schools, when in fact their quality and what they teach are no different from what regular schools offer," he told the Jakarta Globe. "They can explain elsewhere that they use an international curriculum or whatever, but they can't use 'international' in their name."
Even top institutions with an international curriculum and international accreditation must comply with the new rule. Jakarta International School is now Jakarta Intercultural School, British International School is British School Jakarta, and the Australian International School is now the Australian Independent School.
THAILAND: SLOWER GROWTH
While Thailand's national education system is considered one of the worst in Asia, its top-tier international schools are considered among the best. The main reason is the attractiveness of the country for international families and expat living.
"Thailand, particularly Bangkok, has the ability to attract and retain the very best teachers. That is the one benchmark of success to look at: teacher retention rates, year-in and year-out," said Stephen Holroyd, principal of Shrewsbury International School Bangkok.
As well, it is cheaper to operate a school in Thailand than in the likes of Singapore, yet the country has adequate infrastructure for foreign expats. However, political instability in the past decade has made some expat teachers reluctant to pursue their careers in Thailand.
"Thailand has been a bit flat in the last seven years. Last year has been good as we have seen a little increase of enrolment in the top 10 schools which is a good sign," Mr Gaskell told Asia Focus. "The Thai market isn't growing possibly the way that it would have, if we had political stability. Now that it has got stability, Thailand will have a good run and it will do well in the next few years."
The international school sector, he pointed out, also serves as an economic indicator. Higher enrolments tend to indicate that businesses have been sending more foreign personnel. ISAT data indicate continuous growth in the number of Thai and non-Thai students, as well as teachers.
"Approximately three to five new international schools are opened each year and there will tend to be more in the future to cope with Thai and foreign students who want to study in these schools," said Usa Somboon, the ISAT president.
Given Thailand's strategic location, she said, the formation of the Asean Economic Community will foster the expansion of international schools to provinces where many foreigners are working, as well as to countries such as Cambodia, Laos, Myanmar and Vietnam.
"I'm confident to say that the international school family in Thailand is the best in Asean and one of the most prominent in Asia," Ms Usa said.
MALAYSIA: RISING STAR
Of all the countries in Southeast Asia, Malaysia has seen the biggest growth in enrolment in the past five years, now that the government has abolished restrictions on the number of local students who can attend international schools. Previously, Malaysians could make up no more than 40% of the student body.
As a result, demand from local families has increased because many parents disagree with a recent government requirement that public schools teach all subjects in the local language. Before 2009, science and mathematics had been taught in English.
Local students now account for at least 50% of international school enrolment and the number is rising. Many of the top schools are full and have waiting lists.
The government wants to establish Malaysia as a top-quality education destination to draw more expat students, as well as retain local families. To achieve this goal, amended regulations will make it easier to establish new international schools.
"Malaysia is currently a very exciting market. Fifty more international schools are opening this year, so there will be an explosion of schools opening everywhere including Penang, Johor, Kuala Lumpur, Kuantan, Putrajaya and other minor cities," Mr Gaskell said.
SINGAPORE: LOCAL IS BETTER
Singapore is the only country in Asean with stringent rules to keep local children out of international schools. According to ISC, local citizens cannot attend international schools at the primary level, with very few exceptions that involve onerous approvals. Demand for places at 83 international schools is therefore closely linked to the size of the expat community.
The government strictly controls the international school sector, and releases land for school development only when it foresees sufficient demand for places. ISC said some of the top international schools in Singapore now have long waiting lists.
In any case, Singapore has one of the best national education systems in the world. "There is a great pride in their own public school system which is why there are two completely separate sectors between international and public schools. But there are great international schools there and the sector is growing as well," said Mr Holroyd.
Mr Gaskell said Singapore was following the right strategy to ensure it had only the best international schools to attract companies to the city-state.
Several international schools will be opening or expanding during the next few years, increasing capacity at the premium end of the market by about 5,000 places.
International School Ho Chi Minh City (ISHCMS) (Photo by Wanant kerdchuen)
OTHER MARKETS
In Vietnam, there are restrictions on the number of Vietnamese children an international school can have if it does not offer a Vietnamese curriculum side by side the international curriculum: 5% of enrolment in primary school, 10% in middle school and 20% in high school.
"Vietnam is complicated but a little bit freer, and there are alternatives which are bilingual, dual-curriculum schools that are still considered international schools and accredited as well," said Mr Gaskell of ISC.
In the Philippines, he said, there are many more second-tier international schools in the country and English is already spoken widely. Salaries for expat teachers are also lower than in other countries, so he doesn't see a big market for big international schools there.
Myanmar is emerging and two wealthy, established schools — British International School Yangon and Dulwich College International — have just opened there. "The country has one of the most literate population groups in the world. If [parents] have money, no doubt they will send their kids to top schools," he said.
Cambodia is another ideal location in Mr Gaskell's view because of its young population of 15 million, and the rapid rise of the business community as the economy starts to develop.