Needy students to get more help for tertiary education
Increase in bursaries next year will slash tuition fees for students from lower-income households
By Sandra Davie, Senior Education Correspondent, The Straits Times, 23 Aug 2019
A series of measures announced yesterday will make tertiary education more accessible and affordable for needy students and give an added push to social mobility.
Most students from lower-income households in universities and polytechnics will see a big portion of their tuition fees slashed, with bursary amounts set to go up next year.
This is to ensure that as more Singaporeans from less well-off households make it to the polytechnics and universities, tuition costs do not hinder them from furthering their education or constrain their choice of courses.
Once the higher bursaries kick in, polytechnic students who come from the lowest 20 per cent of household income groups will pay no more than $150 of the $2,900 annual fees - $400 less than what they now pay each year. All in, 33,000 polytechnic students are expected to benefit from the bursary hikes.
At the university level, the most needy students will pay only $2,000 a year, compared with the $4,200 they pay now. The full fee for a general degree is $8,200.
Government bursaries for new and existing medical and dentistry undergraduates will also be increased, with students from families in the bottom 20 per cent income group having to pay only $5,000 a year - compared with the full fees of $28,900 at the National University of Singapore and $34,700 at the Nanyang Technological University (NTU).
Announcing the measures, Education Minister Ong Ye Kung said: "We want to make sure that... we do not deter students from lower-income backgrounds from studying medicine and dentistry."
A total of 21,000 undergraduates, including those doing medicine, are expected to benefit. The government spending on bursaries for undergraduates and diploma students will increase by $44 million in total - from $123 million to $167 million.
Mr Ong also announced increased opportunities for the 30 per cent of Institute of Technical Education graduates who currently do not progress beyond their Nitec qualification. To support them, the Ministry of Education will provide more places in a range of programmes such as ITE's SkillsFuture Work-Study diplomas and full-time Higher Nitec courses. There will also be more places provided in the polytechnics for applicants with work experience.
The plan: All Nitec graduates from ITE will have the chance to attain a higher qualification by 2030.
Sharing the thinking behind the moves, Mr Ong revealed that 15 years ago, only 38 per cent of students from the bottom 30 per cent of households by way of socio-economic status progressed to the polytechnics. Now, 52 per cent from the group make it to the polytechnics.
For the universities, the proportion has gone up from 13 per cent to 21 per cent.
He said universities have an important role to play in social integration and in enabling social mobility.
Education is an upgrading force, he said, with each generation doing better than the previous one.
"It is fundamental to our social mobility," Mr Ong stressed, adding that bursaries had to be increased to help lower-income groups gain from education. "Cost cannot be an impediment for families with hard work and talent and aptitude to upgrade their lives and get a better future for themselves," said Mr Ong.
Grab driver V. Perumal, 54, whose youngest son will study engineering at Nanyang Technological University next year, said he is heartened by the bursary increase.
"Both my wife and I were so happy when our son told us he got into NTU to study engineering, but at the same time we have been having sleepless nights worrying about the fees.
"I have been looking at how we can borrow some money. But now, we are very relieved."
Increase in bursaries next year will slash tuition fees for students from lower-income households
By Sandra Davie, Senior Education Correspondent, The Straits Times, 23 Aug 2019
Most students from lower-income households in universities and polytechnics will see a big portion of their tuition fees slashed, with bursary amounts set to go up next year.
This is to ensure that as more Singaporeans from less well-off households make it to the polytechnics and universities, tuition costs do not hinder them from furthering their education or constrain their choice of courses.
Once the higher bursaries kick in, polytechnic students who come from the lowest 20 per cent of household income groups will pay no more than $150 of the $2,900 annual fees - $400 less than what they now pay each year. All in, 33,000 polytechnic students are expected to benefit from the bursary hikes.
At the university level, the most needy students will pay only $2,000 a year, compared with the $4,200 they pay now. The full fee for a general degree is $8,200.
Government bursaries for new and existing medical and dentistry undergraduates will also be increased, with students from families in the bottom 20 per cent income group having to pay only $5,000 a year - compared with the full fees of $28,900 at the National University of Singapore and $34,700 at the Nanyang Technological University (NTU).
Announcing the measures, Education Minister Ong Ye Kung said: "We want to make sure that... we do not deter students from lower-income backgrounds from studying medicine and dentistry."
A total of 21,000 undergraduates, including those doing medicine, are expected to benefit. The government spending on bursaries for undergraduates and diploma students will increase by $44 million in total - from $123 million to $167 million.
Mr Ong also announced increased opportunities for the 30 per cent of Institute of Technical Education graduates who currently do not progress beyond their Nitec qualification. To support them, the Ministry of Education will provide more places in a range of programmes such as ITE's SkillsFuture Work-Study diplomas and full-time Higher Nitec courses. There will also be more places provided in the polytechnics for applicants with work experience.
The plan: All Nitec graduates from ITE will have the chance to attain a higher qualification by 2030.
Sharing the thinking behind the moves, Mr Ong revealed that 15 years ago, only 38 per cent of students from the bottom 30 per cent of households by way of socio-economic status progressed to the polytechnics. Now, 52 per cent from the group make it to the polytechnics.
For the universities, the proportion has gone up from 13 per cent to 21 per cent.
He said universities have an important role to play in social integration and in enabling social mobility.
Education is an upgrading force, he said, with each generation doing better than the previous one.
"It is fundamental to our social mobility," Mr Ong stressed, adding that bursaries had to be increased to help lower-income groups gain from education. "Cost cannot be an impediment for families with hard work and talent and aptitude to upgrade their lives and get a better future for themselves," said Mr Ong.
Grab driver V. Perumal, 54, whose youngest son will study engineering at Nanyang Technological University next year, said he is heartened by the bursary increase.
"Both my wife and I were so happy when our son told us he got into NTU to study engineering, but at the same time we have been having sleepless nights worrying about the fees.
"I have been looking at how we can borrow some money. But now, we are very relieved."
All ITE grads will get chance to progress beyond Nitec by 2030
30% of Nitec grads don't upgrade skills; MOE to provide more places in a range of programmes
By Amelia Teng, Education Correspondent, The Straits Times, 23 Aug 2019
Graduates from the Institute of Technical Education (ITE) will have more opportunities to upgrade themselves in future, with wider pathways being opened up for them.
All Nitec graduates from ITE will have the chance to attain a higher qualification by 2030, the Ministry of Education (MOE) announced yesterday.
Education Minister Ong Ye Kung said the increased opportunities will benefit ITE graduates who currently do not progress beyond their Nitec qualification. Today, 30 per cent of Nitec graduates fall in this category - either because they opt to remain in the workforce or fall short of the entry criteria for other courses.
To support them, MOE will provide more places in a range of programmes such as ITE's SkillsFuture Work-Study diplomas and full-time Higher Nitec courses. More places for applicants with work experience who wish to upgrade themselves will also be provided in full-time polytechnic diploma courses.
Annually, Higher Nitec courses will be able to admit 860 more students, while the work-study diploma - which allows apprentices to earn a salary while studying - will have the capacity for 580 more students. The polytechnics will also add 290 more places for working adults in their diploma courses. By 2030, about 1,700 more students will benefit from the expansion of places.
Mr Ong said there is room for ITE Nitec graduates to upgrade their skills at some point in their lives. Currently, seven in 10 graduates go on to upgrade themselves beyond the Nitec qualification over the course of their careers, he added.
According to MOE, close to half of Nitec graduates upgrade through Higher Nitec courses at ITE, while the rest upgrade through diploma programmes at the polytechnics and ITE. Eight in 10 economically active Nitec graduates find employment after completing school within six months.
MOE said that ITE's Nitec qualification prepares students to work in the relevant sectors, but as Singapore's economy transforms, industries will demand deeper skills.
"As part of the SkillsFuture movement, we would like to support all students and working adults to deepen their skills and pick up new skills over the course of their careers," it said.
Mr Ong said that beyond providing the capacity in these courses, more will be done to encourage Nitec graduates to upgrade themselves.
"Our mindset is still very much about frontloading education and backloading work. Therefore, if I, somehow, after ITE do not qualify in terms of meeting additional standards for Higher Nitec or diploma, my upgrading may stop there and I just work," he said.
These attitudes should change, he added, as the institutions become more flexible in admitting students.
"You may not qualify in terms of your GPA (grade point average) to go to polytechnic or Higher Nitec, but you can work first. And as you accumulate experience, you actually (meet) admission standards. At some point in your life, you will be able to come back and will be admitted."
30% of Nitec grads don't upgrade skills; MOE to provide more places in a range of programmes
By Amelia Teng, Education Correspondent, The Straits Times, 23 Aug 2019
Graduates from the Institute of Technical Education (ITE) will have more opportunities to upgrade themselves in future, with wider pathways being opened up for them.
All Nitec graduates from ITE will have the chance to attain a higher qualification by 2030, the Ministry of Education (MOE) announced yesterday.
Education Minister Ong Ye Kung said the increased opportunities will benefit ITE graduates who currently do not progress beyond their Nitec qualification. Today, 30 per cent of Nitec graduates fall in this category - either because they opt to remain in the workforce or fall short of the entry criteria for other courses.
To support them, MOE will provide more places in a range of programmes such as ITE's SkillsFuture Work-Study diplomas and full-time Higher Nitec courses. More places for applicants with work experience who wish to upgrade themselves will also be provided in full-time polytechnic diploma courses.
Annually, Higher Nitec courses will be able to admit 860 more students, while the work-study diploma - which allows apprentices to earn a salary while studying - will have the capacity for 580 more students. The polytechnics will also add 290 more places for working adults in their diploma courses. By 2030, about 1,700 more students will benefit from the expansion of places.
Mr Ong said there is room for ITE Nitec graduates to upgrade their skills at some point in their lives. Currently, seven in 10 graduates go on to upgrade themselves beyond the Nitec qualification over the course of their careers, he added.
According to MOE, close to half of Nitec graduates upgrade through Higher Nitec courses at ITE, while the rest upgrade through diploma programmes at the polytechnics and ITE. Eight in 10 economically active Nitec graduates find employment after completing school within six months.
MOE said that ITE's Nitec qualification prepares students to work in the relevant sectors, but as Singapore's economy transforms, industries will demand deeper skills.
"As part of the SkillsFuture movement, we would like to support all students and working adults to deepen their skills and pick up new skills over the course of their careers," it said.
Mr Ong said that beyond providing the capacity in these courses, more will be done to encourage Nitec graduates to upgrade themselves.
"Our mindset is still very much about frontloading education and backloading work. Therefore, if I, somehow, after ITE do not qualify in terms of meeting additional standards for Higher Nitec or diploma, my upgrading may stop there and I just work," he said.
These attitudes should change, he added, as the institutions become more flexible in admitting students.
"You may not qualify in terms of your GPA (grade point average) to go to polytechnic or Higher Nitec, but you can work first. And as you accumulate experience, you actually (meet) admission standards. At some point in your life, you will be able to come back and will be admitted."
Needy students in medicine, dentistry to pay far lower fees
By Amelia Teng, Education Correspondent, The Straits Times, 23 Aug 2019
Needy students in medicine and dentistry university courses will pay just a fraction of the current fees from next year.
Currently, 11 per cent of medicine and dentistry students come from families in the lowest 30 per cent income bracket.
The Ministry of Education (MOE) said yesterday that with the Government increasing bursary amounts and together with university bursaries, students from the lowest-income households - those in the bottom 20 per cent income group - will pay no more than $5,000 per year.
This is down from the current annual fees that this group of students currently pay - $24,900 for the medicine and dentistry courses at the National University of Singapore (NUS), and $30,700 for medicine at the Nanyang Technological University (NTU).
Similarly, tuition fees for students in the 30th percentile income bracket will be reduced to about $5,000 to $10,000, down from $25,150 for NUS and $30,950 for NTU currently.
In all, the increase in yearly bursary amounts for medicine and dentistry undergraduates across NUS and NTU ranges from $3,600 to $20,700, depending on their household incomes.
Education Minister Ong Ye Kung said that these are the two most expensive undergraduate courses due to the higher cost of running their programmes, including facilities such as labs and materials required.
"Plus, there is also a segment of their training that is expensive, which is their clinical attachment and clinical training in the hospitals. So, all these add up," he said.
Mr Ong added: "We want to make sure that all of them can have sufficient support and we do not deter students from lower-income backgrounds from studying medicine and dentistry."
First-year NUS Yong Loo Lin School of Medicine student Sakthivel Kuppusamy said it is a relief that his course fees will be reduced significantly. His family's gross household income is about $2,300 monthly, which means that his tuition fees from next year will cost him only $5,000 at most.
"My parents are pretty amazed, and it is a huge burden off everyone's chest," said the Raffles Institution alumnus, who has also applied for a few university bursaries.
His father is a chauffeur and his mother used to work as a cleaner before she stopped at the end of 2012 due to medical reasons.
"I was planning to give tuition during the weekends, but with the reduction, I don't have to do it so frequently and have more time to focus on my studies," said the 19-year-old, who is an only child.
"My parents have never made me feel like we have a financial burden," he said. "Everything I ask for, they will support and give... Whenever I asked for a textbook, my dad would give me the money to buy it."
By Amelia Teng, Education Correspondent, The Straits Times, 23 Aug 2019
Needy students in medicine and dentistry university courses will pay just a fraction of the current fees from next year.
Currently, 11 per cent of medicine and dentistry students come from families in the lowest 30 per cent income bracket.
The Ministry of Education (MOE) said yesterday that with the Government increasing bursary amounts and together with university bursaries, students from the lowest-income households - those in the bottom 20 per cent income group - will pay no more than $5,000 per year.
This is down from the current annual fees that this group of students currently pay - $24,900 for the medicine and dentistry courses at the National University of Singapore (NUS), and $30,700 for medicine at the Nanyang Technological University (NTU).
Similarly, tuition fees for students in the 30th percentile income bracket will be reduced to about $5,000 to $10,000, down from $25,150 for NUS and $30,950 for NTU currently.
In all, the increase in yearly bursary amounts for medicine and dentistry undergraduates across NUS and NTU ranges from $3,600 to $20,700, depending on their household incomes.
Education Minister Ong Ye Kung said that these are the two most expensive undergraduate courses due to the higher cost of running their programmes, including facilities such as labs and materials required.
"Plus, there is also a segment of their training that is expensive, which is their clinical attachment and clinical training in the hospitals. So, all these add up," he said.
Mr Ong added: "We want to make sure that all of them can have sufficient support and we do not deter students from lower-income backgrounds from studying medicine and dentistry."
First-year NUS Yong Loo Lin School of Medicine student Sakthivel Kuppusamy said it is a relief that his course fees will be reduced significantly. His family's gross household income is about $2,300 monthly, which means that his tuition fees from next year will cost him only $5,000 at most.
"My parents are pretty amazed, and it is a huge burden off everyone's chest," said the Raffles Institution alumnus, who has also applied for a few university bursaries.
His father is a chauffeur and his mother used to work as a cleaner before she stopped at the end of 2012 due to medical reasons.
"I was planning to give tuition during the weekends, but with the reduction, I don't have to do it so frequently and have more time to focus on my studies," said the 19-year-old, who is an only child.
"My parents have never made me feel like we have a financial burden," he said. "Everything I ask for, they will support and give... Whenever I asked for a textbook, my dad would give me the money to buy it."
No increase to 'adequate' bursaries for undergraduates in top income tier: Indranee
By Cindy Co, Channel NewsAsia, 27 Aug 2019
Bursaries for undergraduates in the highest income tier will not be topped up as the current bursaries are adequate, said Second Minister for Education Indranee Rajah on Monday (Aug 26).
Students from families in the highest income tier - whose gross household income is between S$6,901 and S$9,000 - currently receive S$1,350 in undergraduate bursaries.
Prime Minister Lee Hsien Loong had announced during this year's National Day Rally that lower-income undergraduates and polytechnic students will pay reduced school fees with enhanced bursaries.
The Ministry of Education (MOE) released the details of these enhanced bursaries last Thursday, with about 55,000 students expected to benefit.
Speaking on News 5, Ms Indranee explained the disparity between enhancing bursaries for polytechnic students with gross household incomes up to S$9,000 and for undergraduates with gross household incomes of S$6,900 and under, but not for those above.
"For universities, you can see that for the first few tiers, actually the increase that we gave was quite a bit. That is because the current bursaries, we felt, were not adequate," said Ms Indranee.
“When you look at the top tier, we felt that the current bursary was actually adequate for that income group. So that’s why there was no increase for that one.
“But for the other tiers, because we felt that the current bursary didn’t provide as much assistance as would be necessary for those groups, that’s why we topped it up.”
Undergraduates from families earning S$6,900 or less can expect to benefit from the Ministry of Education’s (MOE) enhanced bursary scheme.
According to MOE, these enhanced bursaries will be expected to cover up to 75 per cent of general degree fees for undergraduates and 95 per cent of school fees for polytechnic students.
With these enhanced bursaries, the Government is hopeful that more students from lower-income households will apply for university courses and polytechnic courses, the minister added.
ADJUSTING FEES AT OTHER UNIVERSITIES
Students at the Singapore Institute of Technology (SIT) and the Singapore University of Social Sciences (SUSS) will see their fees lowered. Currently, the cost for a general course is S$7,860 at SUSS and S$8,190 at SIT, and both fees will be revised to S$7,500.
In response to whether the Government would consider adjusting fees at the other universities, Ms Indranee said: “The two newer autonomous universities, that’s SIT and SUSS – when they first started out they had smaller cohort sizes, which means that the cost per head is higher.
“But now, as they’ve been more established, they’re having more students, which means that you can bring the cost down.
“And what we’re trying to do is to make sure that their costs are in line with the other universities.”
SPENDING CUTS ELSEWHERE?
Ms Indranee also noted that the Government “should be able to accommodate the enhanced bursaries without any issue”.
Estimates by MOE indicate that it the enhanced bursaries will cost an additional S$44 million.
“If you’re concerned that oh, because we’re going to have to spend S$44 million in bursaries, does that mean we have to take away S$44 million from elsewhere – I think the answer is, you can’t quite approach it like that,” she said.
Ms Indranee added that after merging some junior colleges previously, there would be “less cost there than in the past”.
"So you've basically got to add up everything."
She added: “Whatever it is, this Government’s commitment is to make sure that for education, we will continue to make sure that nobody gets left behind and that we will provide what is needed for our population."
Universities use the donations they receive to supplement bursaries for needy students: Ong Ye Kung
By Sandra Davie, Senior Education Correspondent, The Straits Times, 23 Aug 2019
The multibillion-dollar endowment funds of local universities came under the spotlight yesterday when Education Minister Ong Ye Kung was asked why these should not be used to fund more bursaries for needy students. Mr Ong said the universities were already doing this.
Pointing out that endowments play an important role in supplementing the Government's financial aid to needy students, he said that many of these bursaries come from the donations received by universities. This is evident in the bursaries that carry the names of the donors.
Media report have recently touched on the sizeable amounts in university endowment funds, and some have asked whether universities should still be competing with charities for the "donations pie".
The Straits Times recently reported that Singapore's most successful fund-raiser, the National University of Singapore (NUS), collected $227 million in donations in its financial year that ended in March last year. It had reserves of $9.5 billion and an investment income of $620 million for the year.
Nanyang Technological University (NTU) had $3.7 billion in reserves and an investment income of $149 million for the same year. It raised $50 million in donations.
Mr Ong said universities such as NUS and NTU also use the income generated from their endowment funds in many other ways, including setting up joint labs with industry partners, incubators to support student entrepreneurs, partnerships with other universities, funding research and student exchanges.
He also noted that some universities have much larger endowment funds than the $9.5 billion that NUS holds. Harvard University's endowment, the world's largest, grew 10 per cent to US$39.2 billion (S$54.3 billion) in the financial year which ended in June last year. It was followed by Yale University, whose endowment grew 12.3 per cent to US$29.4 billion.
An NUS spokesman had said it uses the investment income from its endowment and reserves to finance a variety of operational costs, including scholarships, support for research and to promote entrepreneurship.
Meanwhile, a spokesman for NTU said it was essential to raise funds to reduce its reliance on public funding. He added that "multiple sources of funding are necessary to deliver quality education and research, and build a culture of innovation and community engagement that translates into jobs and real benefits for society".
The universities said their funds are invested prudently to preserve capital and obtain reasonable returns to further their various missions, including providing more opportunities for their students.
Over 60% of NUS' $9.5 billion reserves in endowment funds
$230 million in investment returns from endowments and other donations used for operating expenses
By Theresa Tan, Senior Social Affairs Correspondent, The Straits Times, 28 Aug 2019
The National University of Singapore (NUS) has shed some light on its $9.5 billion reserves, saying that about $230 million in investment returns from its endowment funds and from non-endowed donations is spent on operating expenditure for education, bursaries and research in the financial year that ended in March last year.
To be specific, $5.9 billion or 62 per cent of its $9.5 billion reserves is in endowment funds. This means that the principal sum in the endowment cannot be touched, only the income generated from investing the sum can be used.
Besides the $5.9 billion, another $800 million is in non-endowed donations for specific purposes. For both the endowed and non-endowed donated funds, most donors specify how the funds are to be used, typically for research, bursaries and scholarships.
Therefore, NUS is not allowed to change how these funds are used, said its senior vice-provost (undergraduate education) Bernard Tan yesterday.
Meanwhile, the remainder of $2.8 billion of the $9.5 billion reserves is accumulated operating surpluses over the years. This sum comprises designated general funds, most of which are set aside for specific purposes such as funding student hostels, for example.
Professor Tan gave details of the NUS reserves in a reply to Mr Tan Boon Huat, 62, who wrote to The Straits Times Forum page last week to say that NUS owes the public an explanation for its $9.5 billion reserves, and that it should use the money to address the increasing cost of a tertiary education.
Mr Tan, a freelance consultant, told The Straits Times that a host of charities are in urgent need of donations, adding: "Is there a limit to the NUS' fund-raising or is it a bottomless pit?"
Prof Tan, who said the Ministry of Education (MOE) is its largest contributor of funds by giving annual operating grants to subsidise education for students, added: "A significant part of the income from the endowed funds goes towards funding operating expenditure for education, and forms part of the education subsidy.
"However, activities in a university go way beyond education, and includes research and entrepreneurship, and overseas exchanges of students and professors. Like many universities, NUS raises funds to support these activities. We also receive many donations to set up private scholarships and bursaries to support deserving students."
In its financial year that ended in March last year, it spent close to $230 million in endowment investment returns and non-endowed donations.
Of the sum, 60 per cent was spent on operating expenditure for educational programmes and related activities, such as overseas exchange programmes, 22 per cent on bursaries and scholarships, and the rest on activities by academics, on research and promotion of entrepreneurship.
Last month, The Sunday Times, in a series of stories on Singapore's richest charities by donations, named NUS as Singapore's most successful fund-raiser.
The university collected $227 million in donations in its financial year that ended in March last year.
Two other universities also made the top 10 richest charities by donations list.
The Nanyang Technological University (NTU) received $50 million in donations in its financial year that ended in March last year, while the Singapore University of Technology and Design (SUTD) pulled in $27 million in the same time period.
NTU has $3.7 billion in reserves, while SUTD has $1.2 billion.
The size of NUS' reserves has been the topic of a few letters from Straits Times readers, including Mr Ivan Goh, 48, a senior manager who asked why NUS tuition fees have increased over the years despite its hefty reserves.
NUS did not increase the tuition fees for most of its undergraduate courses for Singaporeans in its new academic year, which started on Aug 5.
According to its website, the annual fees rose only for freshmen entering the dentistry, medicine and music faculties. It costs $28,900 a year for dentistry and medicine and $13,950 for music now, $500 more than the last academic year.
An NUS spokesman said the fee increase affects only new cohorts of students, not existing ones. "Tuition fees are reviewed annually to factor in cost inflation and to maintain the relevance and quality of education."
Mr Goh's older daughter has just started her environmental engineering course at NUS. Although her fees have not gone up, Mr Goh said any fee increase adds to the financial strain of most parents.
He also pointed out that while most fees at NUS have not been raised in the new academic year, they have risen when compared with those for 2015.
For example, a freshman entering the NUS business faculty pays $9,600 in the academic year that just started, compared with $9,350 in the 2015/2016 academic year.
NTU has also not raised fees for most of its courses for Singaporeans in the new academic year. The only exception has been for its medical course, which costs $34,700 in the new academic year that started on Aug 12, up $500 from its last academic year.
However, Singaporeans in each of the four courses at SUTD pay $13,200 in the 2019 academic year, up from $13,050 a year ago.
Most of the freshmen interviewed by The Straits Times said they did not face any tuition fee increase.
MOE has said that Singaporean undergraduates pay only about 25 per cent of the cost of an undergraduate education.
Last Thursday, Education Minister Ong Ye Kung said the universities use the income generated from their endowment funds to fund bursaries, set up joint labs with industry partners, and fund research, among other things.
He also announced that most students from lower-income households in universities and polytechnics will see bursary amounts go up next year.
Ms Denise Phua, chairman of the Government Parliamentary Committee for Education, said decisions on tuition fee adjustments are usually based on various factors that may not be directly co-related to the size of reserves or donations.
"I do not think we should stop the NUS or the other universities from raising funds if there are specific purposes to do so, such as to conduct useful research or to build new facilities. It will be useful (for the universities) to be even more explicit on which parts of the reserves are ring-fenced for uses specified by donors and are not available for general purposes, to avoid misunderstanding by the public," she added.
Additional reporting by Kristelynn Lim
By Sandra Davie, Senior Education Correspondent, The Straits Times, 23 Aug 2019
The multibillion-dollar endowment funds of local universities came under the spotlight yesterday when Education Minister Ong Ye Kung was asked why these should not be used to fund more bursaries for needy students. Mr Ong said the universities were already doing this.
Pointing out that endowments play an important role in supplementing the Government's financial aid to needy students, he said that many of these bursaries come from the donations received by universities. This is evident in the bursaries that carry the names of the donors.
Media report have recently touched on the sizeable amounts in university endowment funds, and some have asked whether universities should still be competing with charities for the "donations pie".
The Straits Times recently reported that Singapore's most successful fund-raiser, the National University of Singapore (NUS), collected $227 million in donations in its financial year that ended in March last year. It had reserves of $9.5 billion and an investment income of $620 million for the year.
Nanyang Technological University (NTU) had $3.7 billion in reserves and an investment income of $149 million for the same year. It raised $50 million in donations.
Mr Ong said universities such as NUS and NTU also use the income generated from their endowment funds in many other ways, including setting up joint labs with industry partners, incubators to support student entrepreneurs, partnerships with other universities, funding research and student exchanges.
He also noted that some universities have much larger endowment funds than the $9.5 billion that NUS holds. Harvard University's endowment, the world's largest, grew 10 per cent to US$39.2 billion (S$54.3 billion) in the financial year which ended in June last year. It was followed by Yale University, whose endowment grew 12.3 per cent to US$29.4 billion.
An NUS spokesman had said it uses the investment income from its endowment and reserves to finance a variety of operational costs, including scholarships, support for research and to promote entrepreneurship.
Meanwhile, a spokesman for NTU said it was essential to raise funds to reduce its reliance on public funding. He added that "multiple sources of funding are necessary to deliver quality education and research, and build a culture of innovation and community engagement that translates into jobs and real benefits for society".
The universities said their funds are invested prudently to preserve capital and obtain reasonable returns to further their various missions, including providing more opportunities for their students.
Over 60% of NUS' $9.5 billion reserves in endowment funds
$230 million in investment returns from endowments and other donations used for operating expenses
By Theresa Tan, Senior Social Affairs Correspondent, The Straits Times, 28 Aug 2019
The National University of Singapore (NUS) has shed some light on its $9.5 billion reserves, saying that about $230 million in investment returns from its endowment funds and from non-endowed donations is spent on operating expenditure for education, bursaries and research in the financial year that ended in March last year.
To be specific, $5.9 billion or 62 per cent of its $9.5 billion reserves is in endowment funds. This means that the principal sum in the endowment cannot be touched, only the income generated from investing the sum can be used.
Besides the $5.9 billion, another $800 million is in non-endowed donations for specific purposes. For both the endowed and non-endowed donated funds, most donors specify how the funds are to be used, typically for research, bursaries and scholarships.
Therefore, NUS is not allowed to change how these funds are used, said its senior vice-provost (undergraduate education) Bernard Tan yesterday.
Meanwhile, the remainder of $2.8 billion of the $9.5 billion reserves is accumulated operating surpluses over the years. This sum comprises designated general funds, most of which are set aside for specific purposes such as funding student hostels, for example.
Professor Tan gave details of the NUS reserves in a reply to Mr Tan Boon Huat, 62, who wrote to The Straits Times Forum page last week to say that NUS owes the public an explanation for its $9.5 billion reserves, and that it should use the money to address the increasing cost of a tertiary education.
Mr Tan, a freelance consultant, told The Straits Times that a host of charities are in urgent need of donations, adding: "Is there a limit to the NUS' fund-raising or is it a bottomless pit?"
Prof Tan, who said the Ministry of Education (MOE) is its largest contributor of funds by giving annual operating grants to subsidise education for students, added: "A significant part of the income from the endowed funds goes towards funding operating expenditure for education, and forms part of the education subsidy.
"However, activities in a university go way beyond education, and includes research and entrepreneurship, and overseas exchanges of students and professors. Like many universities, NUS raises funds to support these activities. We also receive many donations to set up private scholarships and bursaries to support deserving students."
In its financial year that ended in March last year, it spent close to $230 million in endowment investment returns and non-endowed donations.
Of the sum, 60 per cent was spent on operating expenditure for educational programmes and related activities, such as overseas exchange programmes, 22 per cent on bursaries and scholarships, and the rest on activities by academics, on research and promotion of entrepreneurship.
Last month, The Sunday Times, in a series of stories on Singapore's richest charities by donations, named NUS as Singapore's most successful fund-raiser.
The university collected $227 million in donations in its financial year that ended in March last year.
Two other universities also made the top 10 richest charities by donations list.
The Nanyang Technological University (NTU) received $50 million in donations in its financial year that ended in March last year, while the Singapore University of Technology and Design (SUTD) pulled in $27 million in the same time period.
NTU has $3.7 billion in reserves, while SUTD has $1.2 billion.
The size of NUS' reserves has been the topic of a few letters from Straits Times readers, including Mr Ivan Goh, 48, a senior manager who asked why NUS tuition fees have increased over the years despite its hefty reserves.
NUS did not increase the tuition fees for most of its undergraduate courses for Singaporeans in its new academic year, which started on Aug 5.
According to its website, the annual fees rose only for freshmen entering the dentistry, medicine and music faculties. It costs $28,900 a year for dentistry and medicine and $13,950 for music now, $500 more than the last academic year.
An NUS spokesman said the fee increase affects only new cohorts of students, not existing ones. "Tuition fees are reviewed annually to factor in cost inflation and to maintain the relevance and quality of education."
Mr Goh's older daughter has just started her environmental engineering course at NUS. Although her fees have not gone up, Mr Goh said any fee increase adds to the financial strain of most parents.
He also pointed out that while most fees at NUS have not been raised in the new academic year, they have risen when compared with those for 2015.
For example, a freshman entering the NUS business faculty pays $9,600 in the academic year that just started, compared with $9,350 in the 2015/2016 academic year.
NTU has also not raised fees for most of its courses for Singaporeans in the new academic year. The only exception has been for its medical course, which costs $34,700 in the new academic year that started on Aug 12, up $500 from its last academic year.
However, Singaporeans in each of the four courses at SUTD pay $13,200 in the 2019 academic year, up from $13,050 a year ago.
Most of the freshmen interviewed by The Straits Times said they did not face any tuition fee increase.
MOE has said that Singaporean undergraduates pay only about 25 per cent of the cost of an undergraduate education.
Last Thursday, Education Minister Ong Ye Kung said the universities use the income generated from their endowment funds to fund bursaries, set up joint labs with industry partners, and fund research, among other things.
He also announced that most students from lower-income households in universities and polytechnics will see bursary amounts go up next year.
Ms Denise Phua, chairman of the Government Parliamentary Committee for Education, said decisions on tuition fee adjustments are usually based on various factors that may not be directly co-related to the size of reserves or donations.
"I do not think we should stop the NUS or the other universities from raising funds if there are specific purposes to do so, such as to conduct useful research or to build new facilities. It will be useful (for the universities) to be even more explicit on which parts of the reserves are ring-fenced for uses specified by donors and are not available for general purposes, to avoid misunderstanding by the public," she added.
Additional reporting by Kristelynn Lim
Endowment helps keep university education affordable: National University of Singapore
We refer to Mr Tan Boon Huat's letter (NUS should explain why it needs billion-dollar reserves, Aug 22).
The Ministry of Education (MOE) is the largest contributor of funds to the National University of Singapore (NUS), in the form of annual operating grants to subsidise education for students.
In addition, MOE contributes to the endowment funds by matching donations raised by the university. Hence, a significant part of the income from endowed funds goes towards funding operating expenditure for education, and forms part of the education subsidy.
However, activities in a university go way beyond education, including research and entrepreneurship, and overseas exchanges of students and professors. Like many universities, NUS raises funds to support these activities. We also receive many donations to set up private scholarships and bursaries to support deserving students.
For the financial year that ended on March 31 last year, NUS' total funds and reserves stood at $9.5 billion. Of this, $5.9 billion are endowed funds, which means that NUS cannot spend the principal, and can only use the income generated; $0.8 billion are non-endowed donations for specific purposes, and the remainder are accumulated operating surpluses over the years.
For both the endowed and non-endowed donated funds, the large majority of donors specify how the funds are to be used, typically for research, bursaries and scholarships. NUS therefore has no flexibility to change their usage.
To put this explanation in numbers: NUS' endowment target payout is at about 4 per cent per annum. In the financial year that ended on March 31 last year, NUS spent close to $230 million in endowment investment returns and non-endowed donations; 60 per cent was spent on operating expenditure for education and related programmes like overseas exchange, 22 per cent on bursaries and scholarships, and the rest on professorships, research and enterprise.
As we leverage the strong support from Government and our donors, we welcome more community participation in supporting the provision of education for all strata of society. This will allow the generous spirit of self-help demonstrated by our forefathers to be passed on to future generations.
Bernard Tan Cheng Yian (Professor)
Senior Vice-Provost (Undergraduate Education)
National University of Singapore
ST Forum, 28 Aug 2019
We refer to Mr Tan Boon Huat's letter (NUS should explain why it needs billion-dollar reserves, Aug 22).
The Ministry of Education (MOE) is the largest contributor of funds to the National University of Singapore (NUS), in the form of annual operating grants to subsidise education for students.
In addition, MOE contributes to the endowment funds by matching donations raised by the university. Hence, a significant part of the income from endowed funds goes towards funding operating expenditure for education, and forms part of the education subsidy.
However, activities in a university go way beyond education, including research and entrepreneurship, and overseas exchanges of students and professors. Like many universities, NUS raises funds to support these activities. We also receive many donations to set up private scholarships and bursaries to support deserving students.
For the financial year that ended on March 31 last year, NUS' total funds and reserves stood at $9.5 billion. Of this, $5.9 billion are endowed funds, which means that NUS cannot spend the principal, and can only use the income generated; $0.8 billion are non-endowed donations for specific purposes, and the remainder are accumulated operating surpluses over the years.
For both the endowed and non-endowed donated funds, the large majority of donors specify how the funds are to be used, typically for research, bursaries and scholarships. NUS therefore has no flexibility to change their usage.
To put this explanation in numbers: NUS' endowment target payout is at about 4 per cent per annum. In the financial year that ended on March 31 last year, NUS spent close to $230 million in endowment investment returns and non-endowed donations; 60 per cent was spent on operating expenditure for education and related programmes like overseas exchange, 22 per cent on bursaries and scholarships, and the rest on professorships, research and enterprise.
As we leverage the strong support from Government and our donors, we welcome more community participation in supporting the provision of education for all strata of society. This will allow the generous spirit of self-help demonstrated by our forefathers to be passed on to future generations.
Bernard Tan Cheng Yian (Professor)
Senior Vice-Provost (Undergraduate Education)
National University of Singapore
ST Forum, 28 Aug 2019
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