FURTHER EDUCATION IN SINGAPORE

In 2000 the Compulsory Education Act codified compulsory education for children of primary school age, and made it a criminal offence for parents to fail to enroll their children in school and ensure their regular attendance. Compulsory Education (CE) was implemented in Singapore in 2003 for children born between 2 January 1996 and 1 January 1997 who are residing in Singapore.

The Ministry of Education (Singapore) (http://www.moe.gov.sg/) formulates and implements the policies related to education in Singapore and has developed a world- leading education system comprising the following levels: Pre-School; Primary; Secondary; Pre-University; and Post-Secondary. In the recent Global Competitiveness Report Singapore was ranked first in the world for the quality of its educational system (http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2010-11.pdf).

1. Pre-University Education

Upon completion of secondary school education, students will participate in the annual Singaporean GCE 'O' Level, the results of which determine which pre- universities or post-secondary institutions they may apply for.

Pre-university centres include junior colleges for a two-year course leading up to GCE 'A' Level, or the Millennia Institute for a three-year course leading up to GCE 'A' Level. Both junior colleges and the Millennia Institute accept students on merit, with a greater emphasis on academics than professional technical education.

Students who wish to pursue a professional-centred diploma education go on instead to post-secondary institutions such as the polytechnics and the Institute of Technical Education (ITE).

1.1 Pre-University centres

The pre-university centres of Singapore are designed for upper-stream students (roughly about 20%-25% of those going into further education) who wish to pursue a university degree after two to three years of pre-university education, rather than stopping after polytechnic post-secondary education.

There are 18 Junior Colleges (JCs) and a Centralised Institute (CI), the Millennia Institute (MI, established 2004), with the National Junior College (NJC, established 1969) being the oldest and Innova Junior College (IJC, established 2005) the newest.

1.1.1 Junior College

Junior colleges in Singapore were designed to offer an accelerated alternative to the traditional three-year programme, but the two-year programme they offer has become the norm for students pursuing university education. JCs have also become synonymous with prestigious education.

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1.1.2 Centralised Institute

A Centralised Institute provides a three-year course leading up to a GCE "A" level examination. There were originally four Centralized Institutes: Outram Institute, Townsville Institute, Jurong Institute and Seletar Institute.

There currently remains only one Centralised Institute in Singapore, the Millennia Institute, which was formed following the merger of Jurong and Outram Institutes. Additionally, only Centralised Institutes offer the Commerce Stream, offering subjects such as Principles of Accounting and Management of Business. The standard of teaching and curriculum is identical to that of the Junior Colleges

1.2 Polytechnics

Polytechnics in Singapore provide 3-year diploma courses and, they accept students based on their GCE "O" level, GCE "A" level or Institute of Technical Education (ITE) (see below) results.

Polytechnics offer a wide range of courses in various fields, including engineering, business studies, accountancy, tourism and hospitality management, mass communications, digital media and biotechnology. There are also specialised courses such as marine engineering, nautical studies, nursing, and optometry. They provide a more industry-oriented education as an alternative to junior colleges for post-secondary studies. About 40% of each Secondary 4 cohort would enrol in Polytechnics

1.3 Institute of Technical Education

The Institute of Technical Education (ITE) accepts students based on their GCE "O" level or GCE "N" level results and they provide 2-year courses leading to a locally recognised "National ITE Certificate."

There are 10 ITE Colleges in Singapore. A few ITE graduates continue their education at polytechnics and universities. ITE students are sometimes seen as being less capable and possibly less successful than polytechnic or JC students.

1.4 Singapore Institute of Technology

The Singapore Institute of Technology (SIT) was set up in 2009 to form partnerships with reputable foreign universities to offer their degree programmes as an additional pathway for polytechnic students to obtain a government- subsidised university education in Singapore. SIT’s current partners include the Culinary Institute of America, Digipen Institute of Technology, Newcastle University, Technical University of Munich and University of Nevada, Las Vegas. More partners and programmes to expand its offerings to students are in the pipeline.

bir_corp\1674618\1 2 16 May 2011 saunden 2. Establishing a Further Education Establishment in Singapore

Prospective private education operators must register their interest on the Online Business Licensing Service via the Ministry of Education (Singapore) website (http://www.moe.gov.sg/education/private-education/school-registration/).

To be registered the prospective private education operator must fulfil the requirements as laid out in the School Registration Notes for the setting up and registration of private establishments. These registration notes can be found be accessing the above website.

bir_corp\1674618\1 3 16 May 2011 saunden HIGHER EDUCATION IN SINGAPORE

Types of Higher education providers

Universities

Singapore’s publicly-funded autonomous universities offer full time Bachelor’s, Master’s, and Doctorate degree programmes. SIM University, a private comprehensive institution, offers publicly-subsidized part-time degree programmes for adult learners and working professionals. UK Universities with international campuses in Singapore include the University of Wales Institute, Cardiff (UWIC) and Queen Margaret University. Both institutions are joint ventures with private education providers in Singapore. There are numerous other private universities with international campuses in Singapore including the University of Newcastle, INSEAD, the University of Chicago Booth School of Business, the German Institute of Science and Technology - TUM Asia, and others.

National Institute of Education

An autonomous part of Nanyang Technological University that offers undergraduate and graduate degrees in Education

Polytechnics

Polytechnic institutions were set up with the mission to train middle-level professionals to support the technological and economic development of Singapore. Polytechnics offer three year diploma courses in vocational fields. Polytechnic graduates may go on pursue their undergraduate degrees at universities

Institute of Technical Education

The Institute of Technical Education offers certificate programmes consisting of up to two years in a variety of areas. The primary role of ITE is to ensure that its graduates have the technical knowledge and skills that are relevant to industry.

LASALLE College of the Arts and Nanyang Academy of Fine Arts

Private institutions providing post-secondary education in the arts.

Current Situation

There are currently three public Universities, five Polytechnics, one Institute of Technical Education (ITE), one national Institute of Education (autonomous part of Nanyang Technological University), the LASALLE College of the Arts and Nanyang Academy of Fine Arts in Singapore. There is also one comprehensive private university and a number of private foreign universities have branch campuses in Singapore. Newly publicly-funded institutions in Singapore include the Singapore University of Technology and Design (SUTD) and the Singapore Institute of Technology.

Students

Singapore’s higher education institutions currently enroll approximately 157,000 students. Approximately 34% of students are enrolled in universities, 47% are enrolled in Polytechnics, 16% are enrolled in the ITE, and 3% of students are enrolled in the two art institutions.

bir_corp\1674618\1 4 16 May 2011 saunden Tuition fees for Singaporean citizens can range from S$2100 for Polytechnics to possibly as high as S$18,960 for dentistry and medicine at a university. Permanent residents pay about 10% higher tuition fees than citizens and international students can have to pay tuition fees that are 50% higher.

Responsibility for higher education in Singapore

The higher education division of the Ministry of Education (MOE) of Singapore oversees the provision of tertiary and technical education in Singapore as well as the registration of private schools (including foreign providers) in Singapore.

The law regulating the private education sector in Singapore experienced a radical overhaul with the introduction of the Private Education Act 2009. It was passed by the Singapore Parliament in September 2009 and the new rules substitute those of the previously governing Education Act.

The Private Education Act regulates the providers of “private education”. Under the Act, a “private education institution” is defined as

(a) any person that offers to provide or provides private education, whether or not the person offers to provide or provides the private education

(i) for profit;

(ii) together with other education; or

(iii) by itself or in association or collaboration with or by affiliation with any other person; and

(b) such school registered under the Education Act (Cap. 87) which receives a grant-in-aid or subvention extended by the Government to aided schools as is specified by the Minister in a notification published in the Gazette, but does not include any private education institution that the Minister declares, by notification in the Gazette, to be excluded from this definition, after having regard to the association, collaboration with or affiliation of the private education institution with any school registered under the Education Act.

The Act provides for powers to regulate the private education sector more effectively and to improve its quality. It establishes academic governance by academic and examination boards, disclosure of key information by private education institutions (PEIs) and annual updating of information.

The Act covers PEIs offering degrees, diplomas or full-time certification programmes at the post secondary level.

The new regulatory regime under the Private Education Act comprises a mandatory registration framework. This is the basic tier that ensures minimum standards for PEIs and a voluntary EduTrust scheme which involves a stringent assessment process which looks at academic qualities, student welfare and soundness finances and school administration of the PEIs. The Edutrust is like a benchmark quality award. It replaces the CaseTrust scheme (a similar scheme to Edutrust).

The enhanced mandatory registration framework under the Private Education Act seeks to address existing industry problems relating to poor administration, misrepresentation and the selling of qualifications.

bir_corp\1674618\1 5 16 May 2011 saunden The concept of a manager being responsible for the registered establishment is introduced. This person needs to be approved by the Council for Private Education and can be removed by it.

The Private Education Act also gives the Council for Private Education powers over the name of the establishment, requires registration provisions for courses and teachers of the establishment and controls advertising by the establishment.

An institution would be required to obtain the consent from the MOE unless it collaborates with locally approved education providers in Singapore but, in any event, will need to register with the new Council for Private Education.

Establishing a UK Campus in Singapore

Foreign education providers can operate a campus in Singapore by incorporating a subsidiary company or by registering a branch in Singapore.

Option 1- setting up a company in Singapore

A UK institution could set up a subsidiary company in Singapore through which it could route its programmes.

Such a company would be set under the Singapore Companies Act (CAP 50). Singapore’s legal system is based on the UK legal system and as such the form of the company would be akin to a UK company.

The process of setting up a company in Singapore

A company in Singapore must be incorporated with at least one resident director based in Singapore.

In terms of registration the first step is to obtain a profile for the proposed name of the new company from the Accounting and Corporate Regulatory Authority (ACRA). This is done by applying for approval of the name electronically. The proposed name of the subsidiary must be approved by ACRA before the subsidiary may be incorporated. The constitutional documents and constitution of the board would also have to be agreed before the company may be incorporated.

When submitting the proposed name for approval, the following information of the subsidiary must be provided:

Proposed name(s).

The intended objects of the subsidiary (the business and principal activities).

Its initial capital (issued and paid-up share capital).

The names of related/ associated companies of the subsidiary.

The particulars of the proposed director(s) of the subsidiary for the purpose of incorporation.

The particulars of the shareholder(s) of the subsidiary.

The application fee is S$15 per name. The proposed name(s) if approved is reserved for a period of sixty days and may be extended for a further sixty days by payment of a fee of S$10 per name.

bir_corp\1674618\1 6 16 May 2011 saunden The following documents and information must be submitted to ACRA to incorporate the subsidiary:

Memorandum and Articles of Association, which sets out, inter alia, the company name, its objects and share capital structure. The Articles of Association are the regulations or the rules for the management of the internal affairs of the subsidiary.

The Memorandum and Articles of Association are signed by the subscriber(s) (the initial shareholder(s)) and kept at its registered office. A subscriber may be a corporation, in which case its duly appointed attorney can sign for and on behalf of the corporation.

Details of the initial share capital and the Particulars of the Shareholder(s) of the subsidiary.

Every Singapore company must have at least one shareholder. The subsidiary may be incorporated with one subscriber share at any issue price.

Particulars of the first Director(s) of the subsidiary.

Every Singapore company must have at least one director who must be ordinarily resident in Singapore. An expatriate holding a valid Employment Pass issued by the Immigration authorities would qualify as being ordinarily resident.

Consent to Act as Director and Statement of Non Disqualification to Act as Director (Form 45). The consent and statement are filed with ACRA electronically by himself or through a prescribed person authorised by him. The original signed Form 45 is kept in the register of Director at the registered office.

Notice of Situation of Registered Office and of Office Hours at Time of Registration.

Every company must have a registered office at which the company's statutory registers are kept. The company secretary should also be present at this office during office hours. The registered office is also the place where service on the company is effected.

Once all the above mentioned documents have been prepared, signed (duly witnessed as necessary), and the requisite information for the incorporation of a subsidiary is submitted electronically and the registration fees is paid to ACRA, ACRA will issue a notice of incorporation.

Option 2 - Registering a branch

The second option open to UK institutions is to register a branch in Singapore. A branch would not be a separate legal entity but rather an extension of the UK institution. The benefit of registering a branch is that it is quicker in terms of procedure. A branch would similarly have to comply with ongoing annual filing requirements in Singapore.

By registering a branch, the institution (subject to the obtaining of the MOE’s consent) may be permitted to use the term “university” in its title.

The branch is generally not required to maintain statutory registers. The branch is however required to file annually:

bir_corp\1674618\1 7 16 May 2011 saunden (i) the balance sheet of the institution prepared in accordance with the requirements of its place of incorporation. This would have to be lodged with ACRA; and

(ii) a branch is required to keep accounting records (these may be kept by the Institution, but copies of the same should be made available in Singapore). The institution would also need to appoint a local auditor to handle the audit for the branch operations.

The branch may apply for waivers with respect to (i) and (ii) above in certain circumstances.

Process of registering a branch

To register a branch it is required that at least two agents, resident in Singapore and authorised to accept service and other notices on behalf of the UK institution, be appointed

The application for registration of a branch must be submitted online to ACRA. The proposed name of the branch or subsidiary must first be approved by ACRA before the branch or subsidiary can be registered.

When submitting its name for approval, the following information must be provided:

Proposed name which is the same name as the UK institution

The country in which it was set up

The date in which it was set up

Its structure

Its principal activities

Other countries in which it has branch offices

Name of two natural persons to be appointed the agents of the foreign company in Singapore

The application fee is S$15 per name. The proposed name(s) if approved is reserved for a period of sixty days and may be extended for a further sixty days by payment of a fee of S$10 per name.

This document has been prepared by Eversheds LLP. Unless expressly stated to the contrary, the material contained in this document is for general information purposes only. It does not constitute legal or professional advice. Professional or legal advice should be obtained before taking or refraining from any action as a result of the contents of this document. No liability is accepted by Eversheds for any action taken in reliance on the information contained in this document. Any and all information is subject to change.

© Eversheds LLP 2011. Unauthorised copying of this document is not permitted. If you wish to copy this document, please contact Eversheds LLP for approval. Eversheds LLP is a limited liability partnership.

For further information on Eversheds LLP or the Education team, please contact Glynne Stanfield at Eversheds LLP on 0845 497 3806 or email: [email protected]

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