Want to be in the loop?
subscribe to
our notification
Business News
EXPATS IN ASIA HUNTING FOR MORE AFFORDABLE EDUCATION
Being an expat in Asia isn't what it used to be. Before the financial crisis, people who took a job for large multinational companies in cities like Singapore or Kuala Lumpur could count on allowances for housing and school fees for their children.
Those packages have all but disappeared in the decade following the 2008 financial crisis and a pull-back among big oil firms in the region. In response to the resulting tighter budgets, more affordable international schools have been springing up around Southeast Asia.
For investors, this means there are "more routes into Asia's international education market than ever," says Noeleen Goh, Director of Alternative Investments at JLL. "It's really being driven by this proliferation of mid-priced options."
Premium education options – generally tied to well-known British or American brands – long dominated international school markets in Southeast Asia. Take Singapore, where high-end international schools can cost S$40,000 a year for elementary-age children.
Unlike other markets in the region, Singaporean citizens can't attend international schools in Singapore past pre-kindergarten level, meaning international schools there cater exclusively to expats. But without lucrative financial packages, demand among expats has shifted to schools that can be half the price.
Singapore's Economic Development Board releases land tender for school development or school campuses for lease, and issues school operating licenses when it wishes to expand the network, which usually occurs when it anticipates the need for more capacity.
Recently, Singaporean government policy has also aimed to make sure these mid-priced options are increasingly available. For example, the last two tenders for education campus leases in Pioneer Road and Tampines required participating schools to have an all-in school fee cap of S$22,000 a year. One World International School and Middleton International School eventually won the two sites.
Changing local demand
It's not just demand from expats changing the education market across Southeast Asia. Burgeoning local middle classes, shrinking family sizes and more disposable household income have contributed to the surge in demand for international schools at the mid-price level.
Around 80 percent of students attending international schools in Asia are the children of local parents, according to ISC Research.
Mid-fee schools differ from the premium segment in that they typically have larger class sizes, fewer facilities, a narrower curriculum and occasionally less stringent teacher qualifications.
In Malaysia, changing government regulation has again played a major role. Rules around Malaysian parents sending their children to international schools have changed significantly in the last decade. Prior to 2007, Malaysians weren't allowed to attend international schools. Between 2007 and 2012, there was an enrolment cap for locals at 40 percent.
Now, without any cap, more local Malaysian students attend international schools than non-Malaysians.
Vietnam is also relaxing regulations. The cap for local students at international schools is set to rise to 50 percent from 20 percent.
"The increasingly competitive education market is shifting away from premium to mid-range across the region," Goh says.
Click to read why alternative real estate sectors are luring investors in Asia Pacific.
Related News
VIETNAM’S GDP TO GROW 5.5% THIS YEAR – WB
This forecast is based on the assumption of a moderate recovery in manufacturing exports in 2024, fueled by rebound growth of 8.5% year-on-year in the fourth quarter of 2023 and 17.2% year-on-year in the first quarter of 2024, reflecting strengthening global demand, said Dorsati Madani, senior country economist at the WB in Vietnam.
FARE REFUND FOR VISA REJECTION
Cathay Pacific will offer full refunds for cases of visa rejection to provide you with the confidence to explore the world with ease. If you are planning to fly to a destination that requires an entry visa, you can now book with greater peace of mind.
FOUR COMMODITIES POST Q1 EXPORT VALUE OF OVER 5 BILLION USD
The total export turnover of agricultural, forestry, and fisheries products in the first three months of 2024 is estimated to reach 13.53 billion USD, an increase of 21.8% compared to the same period of 2023.
MOIT PROPOSES SCHEME TO BOOST RENEWABLE ENERGY PROCUREMENT
The proposed Direct Power Purchase Agreement (DDPA) mechanism, outlined in the draft decree, targets organisations and individuals consuming electricity from the 22kV power grid or higher, with a monthly consumption averaging 500,000kWh. However, residential households are excluded from direct procurement.
REAL ESTATE BONDS PLACE PRESSURE ON ISSUING FIRMS
The ministry’s recent report underscores concerns within Vietnam’s corporate bond market for 2023 and 2024. It emphasizes the critical need to address hindrances to the real estate sector in line with the objectives provided in Government Resolution No. 33/NQ-CP, which aims to stabilize the industry.
DA NANG CUSTOMS FOCUSES ON DEVELOPING CUSTOMS-BUSINESS PARTNERSHIPS
Da Nang Customs Department issued an action plan for developing customs-business partnership in 2024. One of the new events this year is the workshop on “Settlement reports for enterprises engaged in outsourcing, export production and export processing” held in Da Nang Customs Department on April 16, 2024.