TEMASEK POLYTECHNIC BILL

Order for Second Reading read 1.57 pm.

The Senior Minister of State for Education (Dr Tay Eng Soon): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The Bill makes provisions for the establishment of a third Polytechnic in Singapore. It will be known as the Temasek Polytechnic.

Sir, over the years we have witnessed a significant increase in the demand for polytechnic places. In 1988, there were 10,500 first-choice applicants from the 'O' level cohort for 6,600 polytechnic places. In 1989, there were 12,300 first-choice applicants for 8,000 polytechnic places.

This year, more than 16,000 'O' level students have applied to the polytechnics as their first choice in the current Joint Admissions Exercise. It is significant that this is more than half of all the applicants in this year's Joint Admissions Exercise. Not all of these applicants will be successful as only 8,700 polytechnic places are available. But they will be able to find alternative courses from the range of post-secondary educational opportunities which we have in place to further their education.

How do our 'O' level school leavers distribute themselves among the various channels for post-secondary education? For example, from the 1988 cohort of about 37,200 students, 28% went to the Junior Colleges, 21.5% went to the Polytechnics, 6.5% went to the 3-year Pre-University Courses, 13% went to the VITB and 2.5% went to the EDB institutes. About 1.5% or 600 students entered specific training schools such as the Nursing School and SHATEC. 12% of that cohort repeated their 'O' level examinations and the remaining 15% sought employment.

Sir, these statistics attest to the growing acceptance and increasing popularity of polytechnic education among young Singaporeans and their parents. The Polytechnic sector must expand if it is to keep abreast of these aspirations.

The other dimension to the expansion of the Polytechnic sector is its relevance to the needs of the Singapore economy. Our education policy has always striven to reconcile the educational aspirations of young Singaporeans on the one hand with the manpower needs and job opportunities in the economy on the other.

To function effectively, our economy needs a competent workforce at several levels. We require a pool of degree holders who will provide the professional knowledge, managerial and planning expertise as well as research capabilities which are essential for economic growth.

This pool, however, must be supported by an even larger group of well-trained middle-level managers, supervisors, technicians and other support staff. This support group is crucial for the operations of any industry for it is responsible for the effective and efficient implementation of plans and concepts.

Many countries, especially the developing nations, do not have this important skilled support group. Instead of filling this void in the country's manpower pool, they have bowed to political pressure by opening more universities so that a larger proportion of their population can obtain degrees, usually in the soft areas. Interestingly, this same problem has arisen also in developed countries such as the UK and Australia. Political pressure has caused them to convert their polytechnics and technical colleges into degree awarding institutions.

The consequences of such policies are predictable and, indeed, evident in many countries. They lead to a surfeit of degree holders, particularly in the soft areas. The economy is unable to absorb them. They, inevitably, have to take up many lower level jobs.

Ultimately, such graduates end up under-employed or unemployed. This has serious political and economic repercussions. Unemployed or under-employed lowly-paid graduates naturally become a frustrated and disgruntled lot. They would be prime vehicles for political agitation.

From the economic perspective, such a mismatch between a country's human resources and its manpower needs would result in economic stagnation. An excess of graduates is a waste of resources. Every individual trained in the wrong field is a triple loss: firstly, to himself, as he will have an unmarketable skill; secondly, to the employer, who cannot find a worker with the relevant training; and finally, to the state (and therefore the taxpayers) which had to expend costly resources for his training.

Sir, in Singapore, we have adopted a more prudent approach. We have emphasised the need for high quality at all levels of education. We have maintained a steady supply of well-trained Polytechnic graduates whose skills are in demand. We have expanded university and polytechnic places in response to economic growth and needs. We have thus avoided a situation in which there are under-employed or redundant graduates. Underlying this approach is our basic philosophy and commitment, which is to train and prepare people for working life, not just to obtain certificates.

This approach has been vindicated by the economy's response to Polytechnic graduates who are highly regarded by employers in Singapore. Several indicators bear out this conclusion.

Every year, seven to eight thousand Polytechnic graduates enter the labour market. Practically all of them receive at least one job offer within three months of graduation or after completion of National Service. Polytechnic graduates who have completed National Service command a median starting salary of about $1,000. This figure is higher for those from the engineering courses; between $1,100 and $1,200 which is about equal to that for a pass degree graduate in the non-professional courses. 93% of polytechnic graduates are able to find jobs related to their training which attests to the relevance of polytechnic courses to market needs. In the experience of many of the better polytechnic graduates, they are able to reach positions of managerial responsibility. In some cases, they have become entrepreneurs and proprietors of their own businesses.

Clearly, there is a strong demand from industry for people with practical knowledge and skills from polytechnics and not just for those with deeper theoretical knowledge from the universities. This is not surprising when we look at the experi- ence of developed countries such as Switzerland and West Germany. In both these countries, the majority of children complete nine years of compulsory basic schooling before they go on to learn a skill or trade that equips them for working life.

In Switzerland, for example, about 15% of each year's cohort aim to go on to university or teacher training. This is the proportion completing the 'matura' or A-levels. More than 70% of Swiss students from each cohort enter a vocation through apprenticeship programmes. They become highly skilled and disciplined workers, technicians and engineers through this route. Their education system allows those who opt for the non-academic route to reach their highest possible level, including degrees. About 10% of this group go on to obtain engineering degrees after apprenticeship. The West German system is similar. Sir, it is worth noting what the Swiss say about their post-secondary training and education programmes. They call the process, and I quote, "Professional Formation". Their concept is that school leavers have only obtained general education. They need further training to form them in professional skills so that they can be prepared for the world of work.

This steady supply of highly skilled and disciplined workers is the key factor in both countries that accounts for the tremendous resilience of their economies even in times of recession, the excellent quality of their products and the productivity of their workforce. These are the fruits of an education system "committed to train people for work" and not, as an American expert said of the US system which is "committed to train people for further education".

Sir, Singaporeans would do well to reflect upon the Swiss-German philosophy, especially in its practical orientation of preparing school leavers with skills and knowledge for working life, and to eschew credentialism or the seeking after of certificates for their own sake.

The Polytechnic diploma is an adequate and complete qualification for entry into the job market. It endows the diploma holder with skills that are in demand and well rewarded by employers. Polytechnic graduates can also upgrade themselves through several further educational opportunities. They could take up the Advanced Diploma Courses offered by the Polytechnics. These courses take them up to higher levels of expertise and technology. Alternatively, they could apply for places in NUS or NTI for degree courses. This year, more than 200 places in NTI/NUS will be offered to Polytechnic graduates. This number will gradually increase in the years ahead.

Sir, Temasek Polytechnic will be the third to be established in Singapore. Eventually, the three polytechnics will have a combined annual intake of about 10,000. This constitutes about 25% of an average primary 1 cohort. Temasek Polytechnic itself will have an annual intake of 3,000, once fully established, and a total enrolment of about 9,000.

Initially, there will be three schools in the polytechnic. These are the School of Business, School of Design and School of Science and Technology. Temasek Polytechnic will offer courses in the applied arts such as Graphic Design, Interior Design and Product Design; courses in business with an emphasis on the finance, retail and tourism sectors; courses in electronics with emphasis on manufacturing technologies; and courses in information technology in line with the continued manpower requirements in this area.

This year, it is proposed that the Temasek Polytechnic commence operations from two premises: the Grange Road Campus, which will be vacated by Raffles Institution, and the Baharuddin Vocational Institute Campus. There will be an intake of 400 for the business courses and 120 for the design courses. Next year, in addition to these courses, there will be 240 places available for Computer Science and Electronics courses.

The long term plan is to develop a new campus for Temasek Polytechnic on a 30-hectare site facing Bedok Reservoir. This is an excellent site with a distinctive ambience worthy of a premier tertiary institution. Its proximity to the Tampines, Simei and Tanah Merah MRT stations means that its catchment will be island wide and not confined to the eastern part of Singapore. It is envisaged that the new campus, expected to be ready in four years' time, will bear all the hallmarks of a major tertiary institution of distinction.

Sir, I now turn to the Temasek Polytechnic Bill. It proposes to establish Temasek Polytechnic as a body corporate comprising the Board of Governors, the Senate, the members of the academic staff and other officers. The Bill also makes provisions for the establishment of Schools within the Polytechnic.

The Constitution of Temasek Polytechnic is set out in the schedule to the Bill. The Constitution defines the composition, powers and duties of the Board and Senate as well as other details which will be governed by statutes. The Bill is similar in substance and intent to the Singapore Polytechnic and the Ngee Ann Polytechnic Acts. Temasek Polytechnic will be a statutory board like the other two Polytechnics in Singapore.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Dr Tay Eng Soon].

Bill considered in Committee; reported without amendment; read a Third time and passed.