Question for Written Answer
Name and Constituency of Member of Parliament
Mr Siew Kum Hong, Nominated Member of Parliament
Question
To ask the Minister for Trade and Industry (a) whether the obligations of UNSW Asia are subject to a guarantee by the parent university in Australia; and (b) whether the Economic Development Board, when negotiating an agreement with a university intending to invest in Singapore, takes any measures to ensure that the university fulfills its financial obligations to its academic staff if the venture fails.
Answer:
EDB generally does not require parent companies to give any over-arching guarantee on their Singapore operations. For companies who invest in Singapore, it is in their own interest to see that their Singapore operation is successful. Companies value this operational flexibility. It makes Singapore an attractive place for business. This is also the case for education institutions. The parent institutions have a strong interest to make sound business decisions about facilities, employees and students. If their Singapore operation fails, the parent institution suffers significant reputation and financial loss.
Mr Siew Kum Hong, Nominated Member of Parliament
Question
To ask the Minister for Trade and Industry (a) whether the obligations of UNSW Asia are subject to a guarantee by the parent university in Australia; and (b) whether the Economic Development Board, when negotiating an agreement with a university intending to invest in Singapore, takes any measures to ensure that the university fulfills its financial obligations to its academic staff if the venture fails.
Answer:
EDB generally does not require parent companies to give any over-arching guarantee on their Singapore operations. For companies who invest in Singapore, it is in their own interest to see that their Singapore operation is successful. Companies value this operational flexibility. It makes Singapore an attractive place for business. This is also the case for education institutions. The parent institutions have a strong interest to make sound business decisions about facilities, employees and students. If their Singapore operation fails, the parent institution suffers significant reputation and financial loss.
The Minister for Trade and Industry had earlier informed this House that as UNSW will not be able to meet its commitments to EDB, UNSW is required to return the disbursed loan and grant to EDB. The disbursed loan is backed by a bank guarantee. For the grants disbursed to UNSW Asia, EDB is currently in discussions with UNSW on its recovery.
Organizations based in Singapore are bounded by our laws and regulations. EDB does not interfere with the university's decision on employment policies beyond the legal requirements. The employment contract is negotiated and agreed upon by the university and its employees. Employees are encouraged to seek legal advice on their rights and consult with the university directly.