Hong Kong pushes for university funding cuts

Secretary for Education Choi Yuk-lin said authorities will push through a higher education funding cut amid a government deficit - which is expected to double to HK$100 billion this financial year.

Choi told a radio program Saturday morning that there will be adjustments to the funding for higher education institutions over the next 3 years. The institutions will be given adequate time to conduct financial planning, and she believed that the adjustments will not have a significant impact on them.

The education chief said besides government funding, the city’s eight publicly funded universities have other sources of income.

With the anticipated increase in non-local student numbers, there is expected revenue growth, she said.

She also said the current financial reserves of the institutions are sound, and the schools will be given adequate time to conduct financial planning over the adjustment, thus, not affecting the teaching, research, and competitiveness of the institutions.

Meanwhile, tuition fees for the eight universities will be increased for three consecutive years starting from the 25/26 academic year. Choi explained that compared to other places, the resources allocated to higher education institutions in Hong Kong have never been abundant, whereas the universities receive donations and have many research institutes with self-financed students, making their finances more stable.

She said the decision to raise tuition fees was made after taking into account the financial burden on students, adding that 87 percent of university places are government-subsidized.

As for non-local students’ tuition fees, Choi mentioned that the goal for institutions is cost recovery and not specifically to profit from them, due to competition from neighboring countries.

She emphasized that public funds will not be used to subsidize non-local students.