World Bank senior economist for Malaysia Frederico Gil Sander at a Global Malaysia Series forum on March 25, 2014. ― Picture by Boo Su-Lyn

PETALING JAYA, March 25 ― The performance of Malaysian schoolchildren that is lagging behind even those from a poorer country like Vietnam rings more alarm bells than Malaysia's rising household debt level, a World Bank economist said today.

Frederico Gil Sander, senior economist for Malaysia, stressed that it was crucial for Malaysia to start education reforms immediately if the Southeast Asian nation aims to achieve developed status by 2020, less than six years away.

“Vietnam is a much poorer country, but Vietnamese students in rural areas actually perform better than Malaysian students,” Sander told the Economic Transformation Programme's Global Malaysia Series forum here today.

“That should be very alarming to Malaysia, much more alarming than the debt situation,” he added.

In the Organisation for Economic Co-operation and Development’s (OECD) 2012 Programme for International Student Assessment (PISA), which is an exam testing 15-year-olds on mathematics, science and reading, Vietnam was ranked 17th out of 65 countries, above Malaysia's 52nd spot.

The findings released last December also showed that Malaysian students scored below average in all three subjects.

Sander recommended a decentralised education system, where schools are given more decision-making powers and hence, would enable parents to receive more information.

“Also, moving the best teachers to the classrooms and making sure that we're taking the best students in the teaching profession,” he told reporters after the forum.

GE Global Growth & Operations ASEAN CEO Stuart Dean, who was also at the forum, stressed that meritocracy is the key requirement in any education system.

When asked how the American multinational conglomerate would respond should Malaysia suffer a talent gap, Dean said: “That would certainly depress our investment spending, whether in Malaysia or any other country.”

Minister in Prime Minister's Department Datuk Seri Idris Jala told the forum that the National Education Blueprint would ensure continuity in the country's education policies, irrespective of a change in prime ministers, as it is a 20-year plan.

“What doesn't change is improving the quality of teachers,” he said.

Malaysia’s household debt rose to 86.6 per cent of the total value of the entire economy in 2013, despite measures by Bank Negara Malaysia to curb borrowing.