In recent years, Taiwan's higher education is facing a crisis due to the declining birth rate. As a result, to increase the quantity of the enrollment of foreign students has become an important issue. Since the early 1970s, there have been a lot of "overseas Chinese students" from Malaysia coming to Taiwan for higher education on the basis of "cultural identity" and "language background", and the number of these students has increase steadily over years. According to the statistics of the Ministry of Education, there are 11534 foreign students from Malaysia in 2015, This number is about 3 times larger than the Vietnamese foreign students, that are 2895 in population. The number of Malaysian students staying in Taiwan is 1576 in a single year in 2015. According to the statics from UNESCO, the total number of Malaysian students studying abroad is 56260, In other words, Taiwan higher education only absorb about 2.8% of the Malaysian students that go oversea and thus there is still room for improvement for Taiwan's higher education to attract foreign students. This paper aims to explore in three perspectives, namely, "cultural identity", "language background" and "market demand", in order to analyze the motivations of the Chinese Malaysian who decided to study abroad and to suggest what policy can be implement in order to attract more Chinese Malaysian students to make Taiwan as their choice for higher education.