KUALA LUMPUR― As the weak yen and rising costs make studying in the West less accessible, more Japanese students are choosing Malaysia as their study-abroad destination. At universities and student residences across the country, hearing Japanese spoken has become far from unusual.

According to the Japan Association of Overseas Study (JAOS), the number of Japanese students studying in Malaysia nearly doubled between 2019 and 2024, rising from about 480 to around 890. 

For many students, studying abroad marks a major turning point in life. The decision to leave home and pursue education in a different environment comes with both hope and uncertainty about the future. 

In recent years, new shifts, driven in part by economic pressures, have begun to shape how students make that choice.

Traditionally, Japanese students have tended to study abroad in Western destinations such as the United States, the United Kingdom, and Australia. 

But as exchange rates and living costs continue to rise, students are reconsidering these ‘standard’ options and searching for alternatives. 

Increasingly, attention is turning to Malaysia’s multicultural environment—where students can study in English while experiencing Asia’s growth firsthand.

For students who see overseas study not merely as language training but as an experience connected to their future, Malaysia is becoming a practical and strategic choice.

Reconsidering Japan’s ‘Standard’ Study-Abroad Destinations

Rising costs and the weak yen are reshaping where Japanese students choose to study abroad.

A JAOS survey found that Japanese students seeking full-degree enrollment in Malaysia accounted for 15% of the total, making Malaysia the third most popular destination after the United States (35.4%) and Australia (29.8%).

One factor behind this shift is the financial pressure caused by the weak yen. Since 2022, the yen has hovered around 150 per US dollar, driven in part by the interest-rate differential between Japan and the United States.

As a result, long-term studies in Western countries have become increasingly out of reach, with annual costs in some cases approaching or exceeding 10 million yen.

As the burden of study-abroad expenses grows, more Japanese students are rethinking destinations that once dominated their choices. 

The same survey reported that the number of students selecting the United States decreased by more than 2,000 compared with the previous year.

Why Affordability Alone Does Not Explain Malaysia’s Appeal

Malaysia offers English-taught degree programs at comparatively lower costs than Western countries.

Within this trend, a growing number of students are looking beyond Western countries and turning their attention to Asia. Among Asian destinations, Malaysia has been attracting attention in recent years as its academic reputation has grown.

Several Asian countries offer English-medium education, but each comes with limitations. Singapore is costly, the Philippines is largely centered on language schools, and Thailand offers a limited number of English-taught degree programs. 

Malaysia, by contrast, provides a more comprehensive education environment at a relatively affordable cost, appealing to Japanese students who want both high-quality study and regional experience.

As a former British colony, Malaysia adopted a UK-style higher education system, and university courses are taught primarily in English. 

Tuition fees are also comparatively low. According to the Nikkei, annual tuition in the United States can range from around 5 to 8 million yen, while in Malaysia it is typically about 500,000 to 1.8 million yen. 

Living costs are also lower than in Western countries. According to a 2024 survey by US-based consulting firm Mercer, Kuala Lumpur ranked 200th among 226 cities worldwide in terms of cost of living.

Beyond institutional factors, Malaysia’s multicultural society offers sustained exposure to ethnic and religious diversity, an experience that differs from short-term exchanges or language focused study abroad.

Parents, Companies, and Asia’s Economic Pull

More than 1,600 Japanese companies operate in Malaysia, reflecting the country’s growing role as a regional business hub.

Cost and language environment, however, are not the only reasons Malaysia is attracting students. 

More Japanese students are drawn to Asia’s rapid growth, sensing opportunities for their future careers and for the overseas expansion of Japanese companies.

Japan’s corporate presence in Malaysia is reinforcing this perception. According to JETRO, more than 1,600 Japanese companies have established operations in Malaysia, nearly twice as many as in Australia, strengthening the view of the country as a practical entry point into Asia.

One factor is the expanding halal market. With Muslims accounting for around 60 % of Malaysia’s population, rising incomes and growing health consciousness are broadening interest in Japanese food beyond traditional consumer groups. 

The internationally trusted JAKIM halal certification, along with an English-speaking business environment, further positions Malaysia as a strategic base for Japanese companies seeking access to Asian markets.

A 2025 JETRO survey also suggests that Japanese companies in Malaysia are entering a more mature phase of engagement. 

While just over half of respondents said they plan to maintain current operations over the next one to two years, 44 % still indicated plans to expand.

Among those planning expansion, nearly 67 % cited growing local market demand, followed by strong acceptance of high value added products and services.

For Japanese students, the ability to observe and experience these economic dynamics firsthand is itself becoming part of Malaysia’s appeal. 

A staff member at a study-abroad agency said she has seen cases in which parents, having sensed Asia’s economic momentum through their own work, encouraged their children to study in the region.

In recent years, she added, there has also been a rise in parent-child study abroad, with families choosing Malaysia for its relatively safe and livable environment, proximity to Japan, and the ease with which parents can continue working remotely.

What Skills Companies Are Actually Seeking

Employers increasingly value overseas experience and the ability to work across cultures.

When considering their future careers, studying in Malaysia is increasingly functioning as early exposure to Asia’s economic and business environment.

As a result, what companies value today is shifting away from language proficiency itself and toward experience, whether students have acted and made decisions in multicultural settings. 

Japanese students, shaped by the country’s practice of hiring new graduates in a single annual cycle, often feel pressure to plan their careers early.

In many cases, job hunting begins in the third year of university, and students are constantly expected to explain how each experience connects to their future careers.

Officials involved with Tobitate! Study Abroad JAPAN, a scholarship program led by Japan’s education ministry, has similarly noted that employers increasingly prioritize initiative, problem-solving ability, and the capacity to communicate across cultures.

Surveys by Tobitate! Study Abroad JAPAN in 2024 also suggests that the study abroad experience is increasingly valued in recruitment.

Nearly 94 % of students with overseas study experience said it had a positive impact on their job hunting, while around 70 % of hiring managers said the share of recruits with such experience has increased.

Close to 80% also indicated they plan to actively hire candidates with overseas experience, citing qualities such as initiative, communication skills, a broader perspective, and the ability to navigate unfamiliar environments.

Whether a study-abroad experience can be leveraged for career development depends heavily on where students studied and what kinds of societies and economies they engaged with. 

In this sense, studying in Malaysia, where students can build practical experience while living within Asia’s realities, is increasingly gaining weight.

An Entry Point Into Asia, Not A Substitute For The West

For Japanese students, Malaysia is increasingly seen not as an alternative to the West, but as a starting point in Asia.

Students in Malaysia can use English in their daily lives within a multicultural society, while experiencing Southeast Asian societies and business environments firsthand. 

These experiences align closely with the skills and perspectives increasingly valued by companies. 

As a result, studying in Malaysia is no longer viewed merely as a low-cost alternative but is increasingly regarded as a strategic choice for future careers.

Overseas study is no longer defined primarily by language acquisition or academic credentials. 

Greater emphasis is now placed on which societies and economic regions students have engaged with. In this context, studying abroad is becoming less about prestige or language alone and more about where students begin to locate their futures within Asia.

Malaysia’s rise as a study-abroad destination reflects a structural shift rather than a temporary response to currency fluctuations. 

For Japanese students, studying in Malaysia is increasingly not an alternative to the West, but an entry point into Asia.