TUITION FEE GRANTS FOR UNDERGRADUATES

TUITION FEE GRANTS FOR UNDERGRADUATES: 1.

Assoc. Prof. Ong Soh Khim asked the Minister for Education (a) why the difference in tuition fee grants between a local and a foreign undergraduate is only $590 per year; (b) how does the Ministry

Column:127

justify the tuition fee grant of $12,830 per foreign student regardless of their affordability; (c) whether the Ministry can explain why there is no means-testing when awarding the $12,830 grant per foreign student when means-testing is applied when awarding CCC-university bursary and study loans to Singapore students.

The Minister for Education (Mr Tharman Shanmugaratnam): Mr Speaker, Sir, foreign undergraduates in our universities who are under the tuition grant scheme pay fees that are 10% higher than local students. Foreign students who receive the subsidy have to serve a three-year bond upon graduation by working in Singapore, thereby supplementing our workforce. Foreign students add to the vibrancy of our universities, just as they do in other top universities. They provide diversity and alternative perspectives, given their different educational, cultural and social backgrounds. This diversity enriches the university experience of our local undergraduates and add to the international standing of our universities.

In providing a subsidised university education to foreign students, our universities have ensured that the students are admitted on stringent admission criteria. Those who matriculate are of good calibre and serve to spur our local students on. As I have mentioned in this year's Committee of Supply debate in response to Prof. Ong's queries, MOE and the universities will be reviewing foreign students' fees, in particular to consider that there should be differentiated fees for different types of foreign students. But this review would have to consider the larger strategic objectives of our universities.

On the question of means-testing for the tuition grant for foreign students,

Column:128

Prof. Ong might want to distinguish between the tuition grant and the bursaries and study loans that are provided to students. The bursaries and study loans are means-tested as they are provided for needy students. On the other hand, the tuition grant, which is not means-tested for either local or foreign students, is aimed at ensuring that the universities attract the best local and foreign talents that they need, by keeping fees competitive and affordable.

Assoc. Prof. Ong Soh Khim (Nominated Member): Sir, I understand the rationale behind having foreign students in Singapore. I also understand the reason behind our universities' bursaries and study loans and to apply means-testing to help the students. However, if you look at the foreign students who make up 20% of the undergraduate admission, and if we were to award approximately $12,000 to every foreign student, and when we apply means-testing to the bursary, the income is capped at, for example, $900 for a study loan ---

Mr Speaker: Prof. Ong, could you just ask your supplementary question, please? No more speeches.

Assoc. Prof. Ong Soh Khim: Would that justify the difference in the amount, when one is $12,000 and the other is like $3,000 or $4,000?

Mr Tharman Shanmugaratnam: I think these are two quite separate matters. MOE provides each year to the universities a capitation grant for each student they take in. MOE provides a grant that will allow the universities to maintain a high quality of education and also allow the universities to keep tuition fees competitive and affordable for both local and foreign students. That is irrespective of the income background of the student. It is for a fundamental, strategic objective, ie, maintain a high quality education and attract good

Column:129

students. Bursaries, study loans and the other financial assistance schemes have the objective of making sure that no student is unable to get a university education on financial grounds. The bulk of the recipients are of course local students. But it is a different objective.