Supplementary Estimates of Expenditure for FY2018/2019

Order read for consideration in Committee of Supply [Allotted Day].

[Mr Speaker in the Chair]

The Chairman: Supplementary Estimates of Expenditure for the financial year 1 April 2018 to 31 March 2019, contained in Paper Cmd 20 of 2019.

I shall deal first with the Head of Expenditure in respect of which an amendment stands on the Order Paper Supplement. Head K, Ministry of Education. Assoc Prof Walter Theseira.

Title of the Cut

Head K –

Assoc Prof Walter Theseira (Nominated Member): Chairman, I beg to move, "That the total sum to be allocated for Head K be reduced by $100 in respect of Code 3000.”

Mr Chairman, I declare my interest as a faculty member in an Autonomous University. The Supplementary Estimates provide $300 million to the Ministry mainly to meet higher than expected endowment matching grants to the Autonomous Universities.

I commend the generosity of Singaporeans in donating to our Autonomous Universities. And I thank the Ministry for providing a 1.5 times matching grant for the three older Universities, and a three times matching grant for the three newer Universities.

However, I am concerned about how the Ministry budgets for these matching grants. While our Universities receive many donations from alumni and the public, donations are typically small. The gift of a major donor is several orders of magnitude larger than the average donation.

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For example, in 2011 the Lee Foundation gave $150 million to fund the Lee Kong Chian School of Medicine at Nanyang Technological University. The Government match was $250 million. In contrast, from 2015 to 2018, NTU’s average donations were only about $35 million a year. So, one big donation can be many times the value of total annual donations in a typical year.

Sir, donations can also fluctuate significantly year to year, even if there are no landmark donations. For the four years from 2015 to 2018, NTU’s donations ranged from $16 million to $53 million each year. For NUS, the range was $156 million to $276 million. So, the required matching grants from Government will also range widely.

I am glad that the Minister for Finance discussed when closing the Budget debate how the Government works hard to ensure forecasts of revenue and expenditures are accurate.

First, could MOE outline how it budgets for the typical year-to-year variation in donation receipts by our AUs? Second, what is the planning process to manage the impact of a big grant on the Ministry’s budget? We have not had a billion-dollar donation to Universities yet in Singapore, but I hope we will soon. That would make a big impact to the Government Budget.

The Senior Parliamentary Secretary to the Minister for Education (Assoc Prof Dr Muhammad Faishal Ibrahim): Chairman, the Member is right that in providing matching grants for donations raised by our Autonomous Universities (AUs), there can be large one-time payments from MOE to the AUs. That is why MOE's matching grants are supplemented by payouts by the Singapore Universities Trust (SUT). The SUT is a $2 billion trust fund that has been set up by the Government for the purpose of supporting the Enhanced Endowment Funding Model. At the same time, MOE works closely with the AUs to estimate the annual amount of matching grants required. We also plan and budget for long-term horizons, similar to what we do for other lumpy expenditure such as infrastructure spending. Where appropriate or necessary, we also spread out the Ministry's matching over a number of years.

The Chairman: Assoc Prof Walter Theseira, would you like to withdraw your amendment?

Assoc Prof Walter Theseira: Chairman, may I beg leave to withdraw my amendment. I thank the Senior Parliamentary Secretary for that detailed reply. And I thank again the Ministry for continuing to support Autonomous Universities in Singapore.

Amendment, by leave, withdrawn.

The sum of $370,000,000 for Head K ordered to stand part of the Supplementary Main Estimates.

The Chairman: I shall now deal with the remaining heads of expenditure in respect of which no amendment stands on the Order paper Supplement. In respect of the Main Estimates, they are Heads E, G, O, P, Q, S, T, V, W and X. I propose to take those Heads of Expenditure en bloc.

Question, "That the sums stated for the Heads E, G, O, P, Q, S, T, V, W and X as shown on page 7 of Paper Cmd 20 of 2019 stand part of the Supplementary Main Estimates", put and agreed to.

The Chairman: I will now take the Supplementary Development Estimates. In respect of the Supplementary Development Estimates, they are Heads E, O, S and X.

Question, "That the sums stated for Heads E, O, S and X as shown on page 10 of Paper Cmd. 20 of 2019 stand part of the Supplementary Development Estimates", put and agreed to.

Question, "That the sum of $1,322,085,100 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Main Estimates of Expenditure for the financial year 1 April 2018 to 31 March 2019 contained in Paper Cmd 20 of 2019", put and agreed to.

Question, "That the sum of $294,912,500 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Development Estimates of Expenditure for the financial year 1 April 2018 to 31 March 2019 contained in Paper Cmd 20 of 2019", put and agreed to.

Resolutions to be reported.

Thereupon Mr Speaker left the Chair of the Committee and took the Chair of the House.

The Chairman: Second Minister for Finance.

The Second Minister for Finance (Ms Indranee Rajah): Mr Speaker, I beg to report that the Committee of Supply has come to certain resolutions.

First resolution to be reported,

"That the sum of $1,322,085,100 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Main Estimates of Expenditure for the financial year 1 April 2018 to 31 March 2019 contained in Paper Cmd 20 of 2019"

Second resolution to be reported,

"That the sum of $294,912,500 shall be supplied to the Government under the Heads of Expenditure for the public services shown in the Supplementary Development Estimates of Expenditure for the financial year 1 April 2018 to 31 March 2019 contained in Paper Cmd 20 of 2019."

Ms Indranee Rajah: Mr Speaker, I beg to move, "That Parliament doth agree with the Committee on the said resolutions."

Question put, and agreed to.

Resolutions accordingly agreed to.