Various studies indicate the returns on investment in education (Psacharopoulos, 1981, 1985, 1994; McMahon, 1998; Petrakis and Stamakis, 2002). Seemingly, such data are significant to educational policy especially in developing countries. Investment in education and human capital is said to be beneficial both for the private and social aspects (Lee, et al, 1994; Psacharopoulos, 1994). Education is seen as an indispensable instrument to support economic growth, and higher education in particular is perceived as a significant connector between the world of learning and the world of work (World Bank, 2000). Industrialization has increased the demand for more differential skills, and higher education provides the skills and knowledge for certain specialized tasks beyond the scope of other sectors. In addition, education is assumed to condense the occurrence and possibly the duration of unemployment (Devine and Kiefer, 1991; Kiefer, 1985).The extent of formal education of an individual in particular, and society in general, is said to shape their social and economic mobility. Similarly influenced is the access to prospects for social and economic enhancement of families. In the world of work, academic credentials have constantly performed crucial functions in imparting jobs or work assignments (International Conference on Higher Education, Manila 2004). It is argued that a society with better productivity results to a country's development (Liu & Armer, 1993).With such significance placed on higher education, it is consequential to investigate such sector's role in advancement and other factors connected to such, to reveal how its contribution to development could be maximized. This paper and the research to follow intend to investigate such ideas with respect to the Philippines and Malaysia. A critical analysis of the role currently being played by the higher education sector in the Philippines and Malaysia shall be investigated. What is the impact of growth in this sector on the country's overall development, and how could the impact be made more relevant to particular economic and social strands of human resource development and capacity?The study will involve both documentary (primary and secondary) and empirical (qualitative and quantitative) research as well as contextual studies necessary to place the Philippines and Malaysia accurately in their regional and global setting.References:Devine, T. J., H.M. Kiefer. (1991). Empirical labor economics: The search approach. Oxford: Oxford University Press.Kiefer, N. M. (1985). Evidence on the role of education in labor turnover. Journal of Human Resources, 20(3), 445-452.Lee, M. L., B. C Liu. and P. Wang. (1994). Education, human capital enhancement and economic development: Comparison between Korea and Taiwan. Economics of Education Review, 13(4), 275-288.Liu, C., & Armer, J. M. (1993). Education's effects on economic growth in Taiwan. Comparative Education Review, 37(3), 304- 321.McMahon, W. W. (1998). Education and growth in East Asia. Economics of Education Review, 17(2), 159- 172.Petrakis, P. E., & Stamatakis, D. (2002). Growth and educational levels: a comparative analysis. Economics of Education Review, 21(5), 513-521.Psacharopoulos, G. (1981). Returns to education: an updated international comparison. Comparative Education, 17(3), 321-341.Psacharopoulos, G. (1985). Returns to education: a further international update and implications. Journal of Human Resources, 20(4), 584-604.Psacharopoulos, G. (1994). Returns to investment in education: A global update. World Development, 22(9), 1325- 1343.World Bank (2000). Higher education in developing countries: Perils and promise. Washington D.C.: World Bank.CHED. (2004) Paper presented at the International Conference on Higher Education, Manila, Philippines.