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The objective of this study is to examine the function of higher education sectors in the virtual integration of labor markets in Asia. Firstly, it focuses on higher education exchange programs in order to understand the prevailing situation. Next, to analyze these exchange programs' performances in the labor market, it takes the example of Malaysia to follow-up on people who have completed international higher education exchanges and equivalent programs. Finally, it makes proposals for desirable forms of assistance to Asia's higher education sector by drawing comparisons between the new direction among Asian countries of horizontal division of economic roles and the expansion and/or performance of international exchange programs in higher education. This project also explores effective approaches to knowledge creation and human resource development.