The article aims to measure the level of technical efficiency in the Private Higher Education Services Sector (PHES sector) in Malaysia for the year of 2010. The sector is expected to contribute up to RM 1.3 billion per year to the Gross National Income (GNI) from year of 2010 until 2020 through its private education liberalisation policy. Private Higher Education Institutions (PHEI s) in Malaysia is the most important sub-sector in PHES sector which is also one of the sectors in the National Key Economic Areas (NKEA). However, there is neither the current economic nor performance indicator of the PHES sector so far. Thus, this article identifies the level of technical efficiency of PHEI s using cross-sectional data of 126 PHEI s extrapolated in the 2011 census obtained from the Department of Statistics Malaysia. The level of technical efficiency is measured using non-parametric Data Envelopment Analysis (DEA) using output orientation with value added as output, while the number of employees with tertiary, secondary and primary education, the number of management, professional and executive, number of technical and supervisory employees, number of clerical and related employees, number of general employees, number of students and total asset as inputs. Apart from this, the level of technical efficiency is further analysed using cross tabulation and chi-square test with the size of operational of PHEI s and their capital intensity. This study finds that more medium-and-large-sized as well as capital intensive PHEI s are operating at higher level of technical efficiency than the small-sized and less capital intensive PHEI s. In conclusion, PHEI s in Malaysia are operating less efficiently in the year of 2010. Policy implications are PHEI s need to upgrade production capabilities, reduce cost and enhance the quality of services, thus increase the income generation of the PHES sector.<\/p>\n","protected":false},"template":"","tags":[1036,1035,1034,619],"jel-code":[],"article-type":[1329],"class_list":["entry","author-jem","post-3488","article","type-article","status-publish","tag-capital-intensity","tag-operational-size","tag-private-higher-education-institutions","tag-technical-efficiency","article-type-normal-article"],"yoast_head":"\n