Growing numbers of Malaysian students are going to Australia for overseas study. This paper begins with a discussion of Malaysia's New Economic Policy, whose provisions include a phasing out of English as the language of instruction in favor of Bahasa Malaya, the language of the indigenous Malay majority. This policy provides a background for the massive demand for overseas higher education by Malaysian Chinese and Indian students. The second section provides a background to Australia's Overseas Student Policy, which eliminated quotas and included a full-fee-paying private student category that created a rapidly expanding market for overseas fee-paying students. The third section describes Australia's recruitment of Malaysian students, including sponsored and subsidized students on one hand, and full-paying students on the other. The subsequent section, "Matching up the Malaysian and Australian Pictures," discusses the problems created by Malaysia's growing demand for overseas education and the resulting competition over placement with Australia's local students. A discussion follows of "Twinning," a promising model for overseas study that involves joint degrees between cooperating Malaysian and Australian universities. The paper concludes with observations about long-term problems and opportunities, including Malaysia's serious graduate unemployment problem, the declining standard of English in Malaysia, and the problems in Australia caused by the growing influx of Malaysian students. (TE)