SINGAPORE — From next year, foreign students will no longer receive subsidies for most of the vocation-based master’s degrees and post-graduate diplomas offered by the autonomous universities, while the subsidies for permanent residents (PRs) will be reduced, announced Education Minister (Higher Education and Skills) Ong Ye Kung on Monday (March 5).

Changes in subsidies — which will not affect Singaporeans — will generate S$25 million in savings annually, noted Mr Ong, adding that this will be channelled to support shorter, industry-relevant modular courses for Singaporeans and PRs at both undergraduate and post-graduate levels.

Currently, the autonomous universities offer about 300 postgraduate courses, of which around one-third are subsidised by the Education Ministry (MOE). International students who receive subsidies will need to take up a three-year service obligation, which requires them to work in Singapore-based companies upon graduation. 

Under the changes, the 50 per cent subsidies currently given to international students for some courses will be removed. 

Meanwhile, subsidies for PRs will be cut from the current 65 per cent to 50 per cent. Locals currently receive 75 per cent subsidies, and this will remain unchanged. 

“This differentiated subsidy levels reflects the privileges of citizenship,” said the MOE.

In announcing the review of funding for postgraduate courses last October, Mr Ong noted that it was necessary given that the MOE faces the “reality of a finite budget” since it will be investing more of its resources towards short training courses for adult workers.

On Monday, during the debate over the MOE’s budget, while he reiterated the need to re-allocate resources, Mr Ong also said: “Notwithstanding the reduction in subsidy for non-Singaporeans, we must continue to attract selected, deserving postgraduate international students who can make meaningful contributions to Singapore.”

As universities have two types of master’s programmes, the changes will affect only those that are vocation-based or what is called master’s by coursework programmes, such as architecture and music. 

Subsidies will remain unchanged for master’s by research programmes or those that act as a precursor to doctoral training. 

A few selected postgraduate programmes, such as the master’s programmes at the Lee Kuan Yew School of Public Policy as well as the S. Rajaratnam School of International Studies, will also not be affected by changes “given the importance of fostering the exchange of ideas amongst both local and international participants in such programmes”, said the ministry.

Even with the subsidies, the exact fees that students – regardless of nationalities – pay depends on the postgraduate courses that they pursue.

For some courses, after taking into account subsidies, international students currently pay more than twice the amount locals pay. With the changes, the difference will go up to as high as four times since they will have to bear the full costs. 

For example, according to the tuition fee schedule for students admitted in the Nanyang Technological University last year, international students pay S$20,100 after subsidies for master’s programmes in biomedical engineering, electronics or precision engineering. Locals pay only S$9,400 after subsidies.

But with the removal of subsidies from next year, international students will have to pay the full course fee of S$38,100, which is four times the amount locals have to pay.

Noting that the universities will roll out more courses that lead to smaller qualifications also known as micro-credentials, Mr Ong said that this will help upgrade the skills of adult workers.

The MOE noted that having such courses will give them exposure to an area of interest without having to pursue a full degree.

Although micro-credentials can be used to provide “a milestone for adult learners to aim towards and which employers can recognise”, Mr Ong cautioned that it should not become a new “arms race” to collect credentials.

“IHLs (institutes of higher learning) should instead focus on imparting skills and knowledge needed by industry, and package them into a nice bundle that represents a meaningful upgrading of skills and knowhow,” he said.

“Learners too, should focus on picking up what is necessary for their upgrading.”

Since last year, the MOE noted that the institutes of higher learning, including universities and polytechnics, will assume a larger responsibility in delivering short courses to deepen workers’ skills since they have the expertise and resources to do so.

For one, they are already tasked to provide more than 800 SkillsFuture Series courses, which could train some 50,000 Singaporeans annually by 2020. The courses — announced last October — will focus on skills needed in growth areas such as data analytics and finance.

REMOVAL OF SUBSIDIES COULD AFFECT COMPETITIVENESS

Asked to comment on the changes, some faculty members at the universities noted that the removal of subsidies for international students could affect the institutions' competitiveness, as it might deter these foreigners from pursuing their further studies here.

And since international students outnumber locals at the postgraduate level, there might be an impact on the demand and quality of courses delivered, they added.

From 2011 to 2016, locals formed 32 per cent of the postgraduate intake on average, while international students and PRs comprised 63 per cent and 5 per cent respectively. This was revealed by Mr Ong in Parliament last July.

A history professor at the National University of Singapore, who declined to be named, noted that foreign students make up more than 50 per cent of the students in his class as "locals are not interested to pursue postgraduate studies".

"If there is a fall in the number of international students, then some faculty members might not see the need to improve the quality of lessons. This could eventually affect our standing in the global rankings," he added.

Another professor teaching engineering at NTU, who also wanted anonymity, also said that if international students decided not to pursue further studies here, it could also reduce the exchange of cultures and ideas.

"Diversity of cultures and thought is central to a university's DNA. But I understand that the Government has to prioritise since their budget is limited," he added.

Noting that unsubsidised postgraduate courses attract many students, the MOE noted that it expects such students "will continue to take up courses at our autonomous universities if they see value in the education and training offered".