UNIVERSITY FEES HIKE

Column: 743

UNIVERSITY FEES HIKE: 5.

Mr Zainudin Nordin asked the Minister for Education with the recent announcement concerning university fees hike will (a) the local universities lose their competitive edge against equivalent foreign universities; and (b) the increases in the fees run counter to the efforts to make Singapore an education hub.

The Minister of State for Education (Mr Chan Soo Sen) (for the Minister for Education): Mr Speaker, Sir,NUS and NTU have increased their tuition fees for local students by 5% to S$5,930 for AY2005. SMU, which operates as a private university, has increased its fees by 15% to S$6,500. Foreign students pay 10% higher fees than local students.Even with these fee increases, we believe that our local universities' tuition fees remain competitive in relation to other comparable countries. In the US and Australia, for example, fees for public universities are in the region of S$8,000 for domestic students and S$22,000 for international students. Private universities charge substantially higher fees, with fees of around S$33,000 on average amongst private US universities and as high as S$40,000 to S$50,000 for the top private universities. In the UK, from 2006, universities will be allowed to charge up to 3,000 sterling pounds or about S$9,000 for British and other EU students. Fees for international students are significantly higher.

So looking at those figures and bearing in mind the quality of education that we offer, we believe that our universities remain competitive, for both Singaporean as well as foreign students. We intend to ensure that they remain so, and that they must provide good value-for-money.

Our universities wouldcontinue to offer scholarships to deserving students

Column: 744

and financial aid to any student in need. The Government would ensure that no student admitted to the universities would be denied an education because of financial reasons.

Mr Zainudin Nordin: Sir, with the permission to set up foreign universities in Singapore like the University of New South Wales, wouldparents be allowed to use their CPF for such universities as it isin the local campus?

Mr Chan Soo Sen: We would review this particular policy when it comes.

Assoc. Prof. Ong Soh Khim (Nominated Member): With the increase in the university fees,the foreign students only pay 10% more fees compared to our local students in the universities. From what I understand, foreign students at many overseas universities pay full fees. Would the Ministry consider letting the foreign students pay a higher fee so as to subsidise the local students more?

Mr Chan Soo Sen: We believe that our local students are adequately subsidised and for those, as I have said, who are in need, there are study loans, bursaries and schemes like that where they could apply. So we believe that no students who have the merit are denied university education for financial reasons alone. In the light of this, we do not consider it necessary to increase the amount of subsidy to even the local students because there are already other packages to help them if they have financial problems.

As to substantially increasing the fees for overseas students, I thought the hon. Member, Mr Zainudin, is worried about losing the competitive edge. Because the university would benefit from the presence of students from other places,to have a certain proportion of foreign students to be with us is beneficial to our university's quality of education.

Column: 745

Mr Zainudin Nordin: Just a follow up to thequestion, Sir. If we were to consider allowingparents to use their CPF for foreign university that is located locally, would that not also result in our local university losing their competitive edge?

Mr Chan Soo Sen: As I have said, allowing forparents to use CPF for their children's local education is not the subject of this particular question. When the need arises, we would review it and I am sure the Member would be duly consulted.

Assoc. Prof. Ong Soh Khim: With the fee hike andthe effort oftrying to make Singapore into an educational hub and our local universities intoworld class universities, would that not commercialise our universities and make them exclusive, in the sense that they are excluding local students from the universities in their effort of trying to become world class? I feel that our universities have a national duty to educate. So would the Ministry consider reducingthe subsidy to the foreign students, not in one shot, but in steps, and subsequently, reducing the subsidy to the foreign students altogether and use this saving to subsidise our local students?

Mr Chan Soo Sen: As I have mentioned just now, no local students are denied an opportunity to enter into our universities for financial reasons alone. If they are able to gain enrolment into our universities, and they have financial problems, there are a lot of financial schemesto help them. If the Member knows of anybody, who is denied the opportunity to go to the university because of financial reasons, do bring it to my attention. I will take a personal interest in those cases and we intend to remain so, because we know that university education is veryimportant in

Column: 746

ensuring that our investment in manpower continues to be high, and manpower being our only resources, we would have to ensure that the quality remains good.