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EDUN N25-02-004

00400

27 January 2000

GREATER AUTONOMY FOR NUS AND NTU, ALONG WITH GREATER ACCOUNTABILITY

1. As part of plans to develop the National University of Singapore (NUS) and the Nanyang Technological University (NTU) into world-class institutions, the Ministry of Education (MOE) is working towards giving the universities greater autonomy in financial and personnel matters. This is over and above the autonomy which the universities already enjoy in academic and administrative matters as statutory boards. In return, the universities will have to be more accountable for the achievement of outcomes and the efficient use of resources.

2. Mr Chiang Chie Foo, Permanent Secretary (Education) and Chairman of the University Governance and Funding Steering Committee (see Annex Afor composition), revealed this broad direction on 27 January 2000 at a press briefing at the Ministry of Education. The press briefing was conducted to give an update of the progress of the work of the review committee tasked by Deputy Prime Minister and Minister for Defence Dr Tony Tan in April 1999 to review the governance and funding structures of NUS and NTU. DPM Tan had emphasised that the review was necessary so that the universities could be empowered to take the lead in bringing about changes which would position them for excellence in education, research and technopreneurship.

Meeting Future Challenges
3. The development of public universities in Singapore has been rooted in the need to play a key role in the nation’s economic and social development. In the future, the role of universities will become even more critical for Singapore’s continued survival, security and success. The transition to a knowledge economy will put a premium on knowledge creation, transmission and application, roles which universities are well placed to play.

4. The purpose of the review of university governance and funding is to ensure that systems and structures affecting talent management, organisational processes and resource allocation within the universities are properly aligned to help the institutions in the achievement of their mission and objectives.

Study Trip
5. To glean best practices from other universities, a team comprising officials from MOE, NUS and NTU visited 10 universities and 4 organisations in Canada, Hong Kong, the UK and the US from 14 to 28 September 1999.

6. The team observed that practices in universities around the world varied widely but could be broadly divided into two categories. The top private and public American universities have market-driven, fiercely competitive and flexible systems. In contrast, most British and Asian universities operate under more structured systems. The team distilled a few key points which can be adapted for Singapore:

a. Top public universities have a significant level of autonomy, coupled with systems of accountability. This enables them to respond quickly to changes in the external environment while ensuring that they are accountable for the use of resources and achievement of outcomes.

b. Having quality people is key. A world-class university has good leaders, academic staff, administrators and students. There is also a rigorous system of appraisal at all stages, including recruitment, promotion, tenure and exit.

c. The remuneration system must be responsive. It must attract and reward those who perform, and take into account market differentials in the different disciplines.

d. Effective internal systems and processes are necessary. These have to be in place to support the leaders as they manage under a setting of autonomy.

Next Steps
7. The Steering Committee will study these findings and discuss how they can be applied to the local context, taking into account the universities´ role in education, research and contribution to the economy and society.

8. In the area of governance, the Steering Committee will consider how MOE can work towards a system under which it will agree on outcomes and objectives with the universities. The outcomes attained should then be pitted against the pre-determined objectives.

9. In the area of finance, the Steering Committee will explore avenues to give universities more flexibility in budget planning. The universities will also work out an internal financial management framework that channels resources to units or individuals according to effort and outcomes.

10. In the area of human resource management, the Steering Committee is looking into the introduction of a more responsive reward and recognition system which is backed by a rigorous performance management system. Emphasis will also be placed on the leadership development and succession planning process. PricewaterhouseCoopers has been appointed to be the consultant in the area of staff remuneration and management.

11. The review committee is expected to complete its report by the middle of 2000.

Annex A

Composition of University Governance and Funding Steering Committee