Private Education Business & Opportunities from Singapore

Quick Reflection

For my cohort, only about 5% could get into the universities in Singapore.  Over the years, Singapore has gradually increased to around 35%, and may stretch to 40% eventually.

Despite the significant increase, in one generation, we witness ever-growing demand for higher learning and qualifications.  Fast-forward to today, the need for learning has extended beyond just paper chase into continual and life-long learning.

Overall, this has fuelled the demand and emergence of Private Education (PE) over the past decades.  It has been nothing but phenomenon growth and explosion all around the world.  Today, Private Education has become a strong alternative and viable pathways for many aspiring young people and adults alike to upgrade themselves academically, professionally, personally and beyond.

Private Education in Singapore

For private education, we refer to the full-time and part-time courses offered by privately-run schools and colleges, which allow the candidates to learn from the trainers and pass the assessment so as to obtain a formal graduation certificate, which is usable for further progression, job application and career progression.  Private schools and colleges are also privately-own without state-government funding. 

Like many businesses, private education is largely an education business venture though there are non-profit establishments.  As education business, the owner(s) has to strike to achieve both education and business excellence, which is not an easy undertaking.  However, there are no shortage of aspiring entrepreneurs and investors, who continue to venture into a wide range of big and small private education enterprises.

Given the profit-oriented nature, the rigour and quality of private education institutes (PEIs) often come into question. From Singapore experience, we saw more than 2,000 PEIs at its peak in the turn of this century.  Singapore Government then introduced the Private Education Act in 2009, and formalised the “Council of Private Education” (CPE) as the PE governing body for private education in Singapore.  CPE adopted a twin strategy:

Formation of SkillsFuture Singapore (SSG)

Since Oct 2016, Singapore has further re-grouped the governing bodies for private education and continual education into the SkillsFuture Singapore (SSG).  The Council for Private Education (CPE) was then merged into the SSG, which is to take SkillsFuture forward and strengthen the ecosystem of quality education and training. At the same time, a Committee for Private Education (CPE) was formed to continue the functions and powers relating to private education under the Private Education Act. With this change, the new CPE continues to spearhead and oversee the private education sector with ERF registration and Edutrust scheme.  

After more than 10 years, today the PE sector comprises slightly above 300 PEIs from both ERF and EduTrust PEIs.  While the number of PEIs may have reduced, the competition for market shares and presence has continued to intensify, especially given the small physical and population sizes of Singapore.   However, one positive outcome of government regulation is that the remaining ones are stronger in many ways, and more committed to quality and values for the candidates.  Overall, today is definitely a “cleaner and healthier” PE sector. 

While the PE sector as business remains challenging, Singapore offers a good brand for Private Education.  The Singapore and regional private education have continued to change and evolve, including the Covid-19 pandemic onslaught. Overall, I am still optimistic about Singapore as potential Private Education Hub for the region.  Often, I have been asked how to get into the PE sector and to grow the education business from Singapore as a hub for the region. 

Private Education Institute Business from Singapore

In this segment, I shall share and discuss the Private Education Institute (PEI) Business & Opportunities “from” Singapore.  Being relatively small in market-size, our PEIs in Singapore are relatively small in size as well. Instead, one view of PEI business is to see and position Singapore as locality for local and international candidates on one hand, and as a potential hub to reach out to the region on the other hand as we experienced during the pandemic.

(A) Get-a-Foot-Hold

How to get a foot-hold in Singapore PEI market?  Generally, there are at least three ways:

(1) Start a new Enhanced Registration Framework (ERF) from scratch

• Step 1: Register a new company with proposed PEI’s name with the Singapore The Accounting and Corporate Regulatory Authority (ACRA)
  • PEI’s name is subjected to approval as there are guidelines and restrictions on choice of name
  • Foreigner(s) may register and own up to 100% of the PEI  

• Step 2: Register with CPE as new ERF-PEI with necessary supporting documents including
  • Set-up of Academic Board and Examination Board,
  • Two-year business plan, course write-up, assigned teachers, mock-up website, written quality manual needed to support operation, etc.
  • PEI manager and Pay-up capital of minimum S$100k

• Step 3: Get suitable premises (upon in-principle-approval)
  • With lease agreement, fire safety certificate, permission for use as commercial school (where appliable), etc.
  • PEI shall also formalise the management team, and organisation-chart, and start to run-in and make necessary preparation to commence the PEI operations, including
    • meeting minutes, preparation for fee-protection insurance scheme, filing system for record-keeping, compliance of quality procedures, etc.

• Step 4: Site inspection by CPE Inspectors before final approval
  • All necessary files and supporting documents
  • Presence of PEI manager(s) and key management staff

• Step 5:  Commence to offer professional courses
  • Upon successful registration, the PEI can commence to offer professional courses to the local, including citizen, permanent residence (PR), as well as foreigners holding work passes in Singapore.  The latter is also a sizable market segment in Singapore.
  • Starting a new ERF-PEI from scratch is the most traditional approach.   While there is no requirement to show track record for new PEI, it certainly helps if PEI can show it is an existing private education especially if it is outside Singapore. Based on available data, a new PEI may be granted the following licence:
    
    • 1-year ERF
    • 2-year ERF
    • 4-year ERF (this is relatively rare though; it is possible for PEI with an existing and strong track record)

• Step 6: Prepare for subsequent ERF Renewal
  • In the subsequent renewal, the PEI shall endeavour to achieve 4-year ERF award, which is the highest award offered  
  • Another motivation to achieve 4-year ERF award is that it is the condition needed if the PEI desires to apply for EduTrust Award, which is the next level licensing scheme. 
    

(2) Acquire-then-Upgrade an Existing ERF-PEI to EduTrust Qualification.

This is a cost-effective way to buy into ERF-PEI first, then upgrade it to an EduTrust-PEI.  Firstly, it avoids the time and risks of starting up as a new ERF-PEI, which is likely to take at least 2 to 3 years (assuming 1-Year or 2-Year ERF-PEI).

• Step 1: Acquire an existing ERF-PEI
  • With either 1-Year or 2-Year ERF-PEI
  • For 4-Year ERF-PEI, it can then proceed to step 4

• Step 2: Continue and Expand its existing operation
  • To strengthen existing operation
  • To expand with more suitable courses and prepare for upgrade to EduTrust Award

• Step 3: Prepare for next ERF Renewal (to achieve 4-Year ERF)
  • This is necessary step to prepare for next ERF renewal to achieve 4-year ERF award

• Step 4: Commence preparation for EduTrust Award application
  • With 4-Year ERF award, the PEI can start immediate preparation to apply and upgrade to 1-Year EduTrust Award
    

(3) Acquire directly an Existing EduTrust.

While it is faster approach to get directly into EduTrust-PEI business, it requires a heavier investment.  It comes with risks and steeper learning curve as well. In this scenario, the choice of PEI and due diligence are critical steps before final decision.

• Step 1: Identify and Acquire an existing EduTrust PEI
  • Which can be a 1-Year EduTrust, and continue to recruit international students to Singapore.
  • For 4-Year EduTrust-EPI, it can then proceed to step 4

• Step 2: Grow the EduTrust-PEI
  • Expand with more suitable courses to grow the EduTrust-PEI

• Step 3: Prepare for next EduTrust Renewal
  • Upgrade to 4-Year EduTrust Award

• Step 4:  Continue to improve and seek 4-year EduTrust Renewal
  • or higher, which is Star-EduTrust Award

(B) Grow-the-School-Business

Growing the EduTrust-PEI is a long-term and desirable proposition for PEI owner(s) or investor(s).  The pertinent question then is whether Singapore is still a potential regional education hub.  I would like to highlight some key factors for considerations:

(4) Singapore as Regional Education Hub

• Flexible Course Duration (for full-time course with daily classes of min 3 hours): In Singapore, we adopt British Education-Level System from:
  • professional certificate (level 3 from 3 to 6 months)
  • professional diploma (level 4 from 6 to 12 months)
  • professional advanced diploma (level 5 from 6 to 12 months)

• Internship Program Supported by Ministry of Manpower
  • Singapore is an early adopter of internship program which allows students to be extended on-the-job (OJT) learning at the workplace.  In this case, the employers provide the candidates decent “allowance”, which are tax-exempted. This is unique win-win-win situation for the employers, candidates as well as the PEIs.
  • The Ministry of Manpower (MOM) supports post-study internship for another 6 months, provided it is mandatory part of the full-time course registered with CPE.
  • E.g. the 6+6 diploma study plus internship is a popular program structure offered by Singapore PEIs for short-study with workplace learning experience. This is offered to students from the region who have completed their 10 to 12 years of foundational study.
  • Beyond the internship, students may opt for higher diploma then top-up degree in Singapore.
  • The internship program is appliable to any field of study provided the PEIs can find industrial partners (companies) with work-permit quota to accept the students.
  • However, the MOM permits only one-time internship program.  Beyond that, most PEIs offer alternative project option so that students can complete their study for graduation.

• IELTS (International English Language Testing System) is not a compulsory Requirement
  • Unlike many other countries, Singapore government does not impose directly any English Language standard requirement even though most of the course are conducted in English medium. 
  • The practice in Singapore is that PEIs are to decide their “own” English Language requirements deemed acceptable and/or equivalent to IELTS.
  • This has provided the opening for students from many non-English-speaking countries to opt for Singapore as preferred choice of study.
  • However, it makes sense for PEIs to seize the opportunity and provide English Enrichment classes to help students beef up their English proficiency, especially English is an prevalent language in Singapore society.
    

(5) Joint Program and Collaboration with Overseas Institutions

• Given the unique environment in Singapore, joint academic collaboration between PEIs and overseas institutions are another popular program.  This provides best of both world approach to include Singapore study experience.  
• In many ways, Singapore offers and opens up many opportunities as regional education hub, including Program Collaboration with Established Universities, e.g. Degree and Master-Level.

(C) Scalable-Beyond-Singapore

The Covid-19 pandemic has opened up the online learning beyond the borders.  More have come to accept may be there is another way to get education without having to leave their countries. Beside growing the Singapore PEI within Singapore, PEIs can now offer online or blended learning from Singapore, riding on Singapore brand as trusted and reputable education hub.

(6) Online Education from Singapore

• This is highly possible provided PEIs can offer Unique and High-Quality Programs, which all PEIs must aspire and endeavour to develop and differentiate themselves from others.
• PEIs can now offer online or hybrid learning from online and on-campus learning from Singapore

(7) Pathway to First-World Universities

• Singapore being a relatively safe and secured environment, many parents choose to place their children in Singapore Government Schools or PEIs. Therefore, academic studies with pathways to first-world universities are popular option by some of the PEIs.
• PEIs will need to plan ahead to look at International Accreditation requirements, which open up education options and opportunities beyond Singapore shores and ERF/EduTrust.  There is truly a bigger world out there for Singapore PEIs to ponder and connect to.

Conclusion
In one short generation, the world has experienced complete upheaval in the world of private education.  The education pathways are serious and viable alternative to the traditional main-stream education programs.  As major East-West intersection and unique environment, Singapore can potentially and truly offer to the Asia region a connection for the young and aspiring generation to seize the education pathways of tomorrow today.

References:

• Information for PEIs and Students

https://www.ssg.gov.sg/cpe/pei.html

• Enhanced Registration Framework (ERF)

https://www.ssg.gov.sg/cpe/for-peis/enhanced-registration-framework-erf.html

• TPGateway FAQ – Private Education Institutions

https://www.tpgateway.gov.sg/faq/private-education-institutions