16 April 2004

REMARKS BY DR TONY TAN, DEPUTY PRIME MINISTER & CO-ORDINATING MINISTER FOR DEFENCE & SECURITY AT PRESS CONFERENCE AT END OF VISIT TO U.S. UNIVERSITIES HELD ON 16 APRIL 2004, UNIVERSITY OF MICHIGAN AT ANN ARBOR

1. Over the last five days, my delegation and I have had a most fruitful and interesting visit to three universities – MIT, University of Virginia and University of Michigan at Ann Arbor.  The main purpose of our visit is to learn about the different governance models in the three US universities as part of the Ministry of Education (MOE)’s review of Autonomy, Governance and Funding for our local universities. 

2. The practice and scope of autonomy varies in the three US universities.  As a private university, MIT has complete independence.  MIT’s university management is accountable to its trustees (also called the MIT Corporation).  The trustees play a major role in providing guidance to MIT on the university’s strategic directions as well as exercising fiduciary responsibility.  They also help to raise funds for MIT’s endowment which is a significant funding stream for the private university.   

3. The University of Virginia (UVA) (together with two other public universities ) has submitted a proposal to the General Assembly of the State of Virginia to establish a new relationship with the State by enacting legislation to transform UVA into a “Chartered University”.  While retaining the status of a public university, such a move will provide UVA with the institutional autonomy to set tuition fees, and decide on personnel matters, procurement and capital-projection regulations.  With greater autonomy, UVA is well placed to explore other funding sources besides State appropriation to ensure that the institution continues to achieve quality and excellence.   

4. The University of Michigan has a unique governance model in which the trustees (also known as the Board of Regents) are responsible to the citizens of the State of Michigan, and not the State government or legislature.  What makes the university succeed is its independence from the State.   The Regents ensure that the university’s goals and operations serve the interests of the public.   

5. In all three universities, the trustees are mostly alumni of the universities and are fully committed to serving on the governing boards and working closely with the university management.  They also guide the strategic development of the institutions and help to raise funds to supplement other sources of funding.
Towards Autonomous Universities in Singapore

6. In Singapore, the university landscape is evolving.  First, more Singaporeans will have an opportunity to enrol in our three local universities.  We are committed to making available enough university places so that by 2010, 25% of each cohort can go on to university education as against 21% today.  Second, the expansion of NTU into a comprehensive university, and the possible entry of a reputable foreign university, will lead to a more competitive university landscape.  

7. Based on our observations from the US visit, my view is that there are considerable benefits in NUS, NTU and SMU becoming autonomous but publicly funded universities so that they can be nimble-footed to respond to market changes, and to achieve quality and excellence.    

8. To take advantage of the greater autonomy, both the Councils and management of the universities should be given greater responsibility and leadership to steer their institutions forward to achieve greater excellence.  In this regard, there is much that we can learn from the way the universities’ trustees, top management and faculty operate and interact in the three US universities which we have visited.  

9. I have discussed this issue with the Education Minister and also with the Council chairmen and members, and Presidents who are with me on this trip.  We all share the view that the university Councils and top managements will have to play a greater and more active role in providing strategic and financial oversight over our universities.

Conclusion

10. The devolution of autonomy to our universities is a complex issue.  It will involve an examination of the relationship between MOE and the universities, and the universities’ internal governance structures, systems and processes.  While we want to press on with turning our local universities into autonomous universities, we should not rush this process.  While our US visit has provided useful insights into the different governance models and shows how greater autonomy can help our universities to achieve excellence, it is clear that a lot of work will have to be done to modify and adapt the US models to suit our local circumstances and for our local universities.   How to grant autonomy to our universities with proper accountability, and with due regard to the national interest will be studied in greater detail by MOE.

11. Finally, there is one point which I want to stress.  As we proceed to change the governance models for our universities, we must continue to make sure that access to university education to qualified Singapore students is not impaired.  As a small country, our people are our nation’s most important resource.  We must ensure that every Singapore student, who can benefit from university education, is given the opportunity to study in one of our universities.  Lack of funds should not be an obstacle.  Towards this end, our universities will have to devise and implement aggressive financial aid schemes, so that they can continue to adopt a “needs-blind” admission system to admit the most qualified students regardless of their family backgrounds or their ability to pay the tuition.

12. I shall now invite the Education Minister to elaborate on the key areas to be addressed by MOE.

END