NUS/NTU Students Pay for FAPee Investment LOSSES

[makapaaa]

Are students paying for investment losses?


Are university deficit and increased tuition fees linked?

Letter from Leong Sze Hian
05:55 AM Mar 25, 2010
<!--replace --><SCRIPT type=text/javascript> var fontIndex = 2; // var fontSize = new Array("0.63em", "0.69em", "0.75em", "0.88em", "1em", "1.13em"); var fontSize = new Array('0.63em', '0.69em', '0.75em', '0.88em', '1em', '1.13em'); </SCRIPT>
I REFER to media reports about all three Singapore public universities raising fees for the incoming cohort of students.

For example, the National University of Singapore (NUS) said it would raise fees by between 4 and 10 per cent.

Since the NUS website states that "the university will also lift the one-year fee increase deferment that was implemented in academic year 2009/2010, and implement the previously published tuition fees from AY2010/2011 for the AY2009 cohort", the actual increase is by between 8 and 21 per cent for normal courses as well as law and pharmacy courses.

Last year's tuition fees were $6,360 (for normal courses) and $7,340 (for law/pharmacy), which will increase to $6,890 and $8,890 respectively.

According to NUS' annual report for the financial year ended March 2009, it had a deficit for the year of $589 million, and an accumulated surplus of $1.6 billion. For FY2008, it had a surplus of $183 million.

As its net investment loss for 2009 was $677 million, does it mean that the deficit of $589 million may be due primarily to the net investment loss?

Since global equity markets have recovered by about 75 per cent from their lowest point last March, is there a pressing need to increase fees by up to 21 per cent, given that the accumulated surplus is $1.6 billion?

With endowment funds of $1.56 billion, does it mean that NUS lost about 43 per cent in investments in just one year, taking the $677-million net investment loss as a percentage of the $1.56 billion in endowment funds?

For comparative purposes, according to NTU's 2009 annual report for the same period, it had an annual deficit of $130 million, accumulated surplus of $1.5 billion, funds and resources of $1.5 billion, a net investment loss of 2008 of $6.4 million, and losses on investments of $276 million.

 

[makapaaa]

talkback
1 - 3 of 4 responses to "Are students paying for investment losses?"
student of nus
Updated 01:03 PM March 25, 2010
Without an increase in lecturer quality and pay, student benefits, school transport services, and prestige of the degree, how can a raise in fees be justified? It does look like we students are paying for investment losses. They should abolish the increase.

Stanford university increased its fees by just 3.5% this year despite being a private university. What more a govt funded university.
Report Abuse

Jobless
Updated 08:52 AM March 25, 2010
To the lay person, it does appear that the tuition fee increase is a result of the heavy investment losses.

We need a more detailed explanation from the universities.
Report Abuse

Dave
Updated 06:53 AM March 25, 2010
There will be more increase to come, poly, ite and other essential services now that economy is coming up. Why the increase? To give the bosses 'big bonuses', sounds familiar like the west

 

[makapaaa]

Fee adjustments are necessary to maintain quality


Letter from Professor Tan Eng Chye, Deputy President (Academic Affairs) and Provost, National University of Singapore (NUS)
05:55 AM Mar 25, 2010
<!--replace --><SCRIPT type=text/javascript> var fontIndex = 2; // var fontSize = new Array("0.63em", "0.69em", "0.75em", "0.88em", "1em", "1.13em"); var fontSize = new Array('0.63em', '0.69em', '0.75em', '0.88em', '1em', '1.13em'); </SCRIPT>


THE tuition fee adjustments that have been announced are not related to any investment losses arising from the global financial crisis.

The bulk of NUS' operating expenditure is incurred on education and related academic and administrative support services and this is funded by Ministry of Education subsidies, tuition fees and other revenue.

In view of these funding arrangements, NUS' education and student financial assistance activities have not been affected by lower returns from NUS' investments.

The tuition fee adjustments are necessary to meet part of the normal increase in the operating costs of the university's education programmes and to maintain the high quality of NUS' programmes.

We would be happy to help students who have difficulty paying the fees through our various financial assistance schemes.

 

[Watchman]

Do you know the number of Foreign Talents lecturers they have in NTU and NUS .

When they have infiltrated the system . They will favor their own .