Debated in Parliament on 14 Nov 2012.
The following question stood in the name of Mr David Ong –
To ask the Minister for Education (a) over the last two years, what is the number of requests for the use of the Post-Secondary Education Account; (b) how many of these were for education at non-approved institutions; and (c) whether the Government will ease the restriction and allow students to upgrade themselves in their post-Secondary education at local and overseas private institutions.
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Question No 15, Sir.
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Sir, on average, about 84,000 Post-Secondary Education Account (PSEA) holders withdrew monies from their accounts in 2010 and 2011 each year to pay for expenses at approved institutions. MOE received about 20 appeals per year for the use of PSEA monies at non-approved institutions.
The PSEA scheme provides financial support for Singaporeans' post-Secondary education at our publicly-funded institutions. These are institutions with good track records and which are accountable to MOE through established frameworks, so that the Government can be more assured of quality and outcomes.
There exists in the private education sector today a large number of course offerings of uneven quality. The value that these courses bring to students and the outcomes that they support are not uniformly clear as these tend to vary by institution and course. Hence, the use of the PSEA is currently limited to local publicly-funded institutions. As with other policies, this is reviewed from time to time.
I thank the Senior Parliamentary Secretary for the answer. I have two supplementary questions. May I know what is the outcome from the deliberation of the Committee on University Education Pathways, particularly on the issues of affordability and financing of University education at the autonomous or private institutions? My second question is: would the Ministry consider allowing individuals to use their CPF monies for undergraduate degree programmes at our local Universities, whether publicly-funded or private ones?
Sir, the Committee on University Education Pathways Beyond 2015 has already submitted its report and recommendations, and its report does address the issues of affordability. Essentially, the Ministry continues to be committed to look at ways and means of improving affordability of education, particularly for post-secondary education of all pathways.
As for CPF monies, on this particular issue, the Member would be familiar with the current policy stance on the use of CPF monies. The primary use of CPF monies is for retirement. Therefore, in considering the further expansion for other uses, a careful balance has to be struck with particular regard to the adequacy of retirement savings. This remains our policy position for the time being.
I thank the Senior Parliamentary Secretary for the clarification. I have a supplementary question. For the CPF, the citizens can actually apply to use the CPF monies if it is a local university, that is, take it like a loan. But it is not applicable for those who pursue their tertiary education in a private institution. Would it be possible to extend that to them as well, but with the requirement that they put it back into their CPF accounts after their graduation and after they have started working? That will really give flexibility and more options for Singaporeans who wish to pursue high aspirations, but do not have the means to do so at that point in time.
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Sir, as with all policies, this is subject to review from time to time. As I have mentioned earlier, the important consideration here is the adequacy of CPF monies for the purpose of retirement. Therefore, any consideration of further policy reviews will have to take into account retirement adequacy.
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PAPERCUTS