Measures to Manage Effects of "Credential Hyperinflation"
Ministry of EducationSpeakers
Summary
This question concerns measures to manage "credential hyperinflation" as Dr Shahira Abdullah inquired about job competition given the rising proportion of residents attaining tertiary education. Minister for Education Chan Chun Sing responded that while 48% of residents aged 25 and over now hold tertiary qualifications, graduate employment remains stable and starting salaries have risen. The Ministry of Education works closely with economic agencies to plan the supply of tertiary places based on national manpower demand, graduate employment prospects, and student interest. Institutes of Higher Learning maintain educational quality by upholding admission standards and refreshing curricula in alignment with industry needs while monitoring graduate outcomes. Finally, the government emphasizes the SkillsFuture movement to support lifelong learning and upskilling, as individual skills remain the primary determinant of wages and career prospects.
Transcript
75 Dr Shahira Abdullah asked the Minister for Education in light of rising proportions of those aged 25 and above attaining tertiary education qualifications and increased job competition, what measures will be taken to prevent and manage the effects of “credential hyperinflation”.
Mr Chan Chun Sing: The "Census of Population 2020" report recently published by the Department of Statistics indicated that the education profile of Singapore residents has improved between 2010 and 2020. Among residents aged 25 years and over in 2020, 48% attained diplomas, degrees and professional qualifications, up from 37% in 2010. This includes diploma and degree graduates from ITE, Polytechnics, Autonomous Universities (AUs), Private Education Institutions (PEIs) and overseas universities. Even with higher education attainment levels, graduate employment rates have, in fact, remained stable over the past few years and starting wages have risen over time. Nine in 10 graduates from our Institutes of Higher Learning (IHLs) who entered the labour force last year found jobs or traineeships within six months of graduation. The median gross monthly salary amongst full-time permanent employed AU graduates has risen from $3,300 in 2015 to $3,700 in 2020.
To ensure that our tertiary courses provide young Singaporeans with the skills needed to access good employment opportunities, MOE works closely with economic agencies to plan the supply of diploma and degree places in our IHLs for Singaporeans. This takes into account the national manpower demand across different economic sectors, the employment prospects of graduates from various disciplines, as well as student interest. The IHLs uphold admission standards, refresh their curriculum in tandem with industry needs and closely monitor graduate outcomes as part of wider efforts to maintain quality.
It is important for Singaporeans to adopt a lifelong learning mindset, even after graduation. Ultimately, it is skills that are a key determinant of wages and career prospects. As part of the SkillsFuture movement, we will continue to ensure that our educational pathways remain open and accessible to learners to help them reskill and upskill to seize new growth opportunities.