SUBSIDIES FOR AUTONOMOUS UNIVERSITIES

SUBSIDIES FOR AUTONOMOUS UNIVERSITIES

19.

Mr Lim Biow Chuan asked the Minister for Education (a) if he will explain the amount of subsidies given by the Government to each autonomous university and clarify how these universities decide on any increase in university fees; and (b) in view of the expected increase in university fees each year, whether the Government can assure Singaporeans that the fees will remain affordable in the future.

Dr Ng Eng Hen: The Government will continue to subsidise substantially the cost of university education to ensure that it remains affordable to Singaporeans. Currently, the Government generally subsidises 75% or more of the cost of education for general courses such as Engineering, Humanities and Social Sciences provided by the autonomous universities, or about $76,000 to $105,600 for a four-year course per student. Students are expected to bear their fair share of the cost of education as they are the prime beneficiaries who would benefit from higher starting pay and successful careers after graduation.

Specialised courses such as Medicine and Dentistry or within Singapore University of Technology and Design (SUTD) in collaboration with Massachusetts Institute of Technology (MIT), cost much more than general courses. For these types of courses, we would want to move towards a funding model that reflects the higher costs borne by public funds. Students within these courses and SUTD should therefore be prepared to pay higher fees.

However, MOE and the universities will ensure that no deserving students who are admitted to our universities will be denied a place due to financial difficulties. There is a wide range of financial assistance schemes – loans, bursaries and work-study schemes – offered by the Government, universities, foundations, private and professional organisations, community groups and self-help groups. As such, a Singaporean student can obtain up to 100% of funding for tuition fees and living expenses through a combination of loans and bursaries.

Tuition fee increases have been modest over the years. For example, this year's fee increase (AY2010) for most undergraduate programmes is under 2% on an annualised basis. This is below the average annual inflation rate of about 3% for the past three years. When economic conditions require it, the universities have also chosen to defer fee increases, such as in AY2009, due to the global economic crisis.

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