Fulfilment of Grant Obligations by International Students who Receive Study Grants

MOE takes a strong view of the tuition grant bond service commitment for international students. Over the past few years, we have put in place a number of measures to ensure bond fulfilment by tuition grant holders.

At the start of their freshman year, all international students on tuition grants are briefed on the terms and conditions of the Tuition Grant Scheme, as well as the consequences of defaulting on their service obligations. They are also reminded of their obligations in their final year, just prior to graduation.

MOE is also working with other Government agencies to track the bond service records of the graduates closely.

Our tracking efforts show that for a typical batch of Tuition Grant recipients, the large majority – more than eight in 10 graduates – have served or are serving their bonds or have secured approval from MOE for deferment while they pursue further studies.

However, there will inevitably be a minority for which our data cannot ascertain if they are fulfilling their service obligations. This minority group accounts for about $30 million of grants per year. This is around 2% of total grants to local students, or 1% of the budget spent on polytechnics and universities every year. It would not be accurate to say this entire minority is in default. Let me explain.

Let us take 2012, since the Member asked for the number of defaulters three years after graduation. As of January 2016, 84% are working or have applied for deferment. Of the remaining 16%, we tracked them and found that some are working in Singapore but we do not have their employment records. Some others are furthering their studies but did not go through the deferment procedures. These should not be viewed in the same light as individuals who knowingly and willingly decide not to fulfil their service obligations.

MOE has sharpened the deterrent measures against defaulters to send a strong signal to deter would-be defaulters. For example, where liquidated damages cannot be recovered, defaulters face serious adverse consequences if they subsequently apply to work or reside in Singapore.

This may be why the number of defaulters is falling and MOE will continue to monitor the effectiveness of these measures and improve them.

Mdm Speaker, I have three short supplementary questions for the Acting Minister with regard to those international students who have not served their grant obligations for more than three years after graduation.

First, are there any of such students who are classified as not contactable anymore? How many such students are there? The second question is, what is MOE going to do about these non-contactable students? I find it strange that they are not deemed in default of their grant obligation. The last question is, how many international students have been taken to task to date for not fulfilling their tuition grant obligations?

I thank the Member for the supplementary questions. There are students who are non-contactable. We try to reach out to them, there is no response, you cannot locate them. It is a dynamic situation. Over the years, the numbers that we can contact to ascertain their situation to see whether they are working, have been improving. Slowly, we are able to contact more and more. There will be some that are non-contactable. Just like some of our friends. We also cannot contact them; no response.

If some of them are really non-contactable, they will be considered in default. As for what then is the active action taken against them, as I have mentioned earlier, serious, adverse consequences, if they ever try to apply to enter or reside in Singapore. As you know, if you apply for work pass or Long-Term Visit Pass (LTVP), the answer is a binary one – yes or no. The Member can infer what "adverse, serious consequences" means.

The Acting Minister still has not answered the last question. So, has there been any action taken against such international students for not fulfilling their grants?

Yes, of course, the answer is yes. We recover liquidated damages, failing which we will take serious, adverse actions against them.