Funding cut has minimal impact on university operations: lawmakers

Lawmaker Chow Man-kong has downplayed worries about the financial stability of Hong Kong’s eight publicly financed universities, despite the government's plan to reduce funding by two percent over the next three years.

The authorities also asked the institutions to return HK$4 billion from their General and Development Reserve Fund in a one-off arrangement.

Speaking on a radio program on Wednesday, Chow, chairman of the Legislative Council’s panel on education, said the fund reduction will have little effect on the institutions, as their financial reserve has always been sufficient.

“How much is the total reserve of the eight universities? It is HK$139.3 billion. So, in any circumstances, utilizing this resource poses absolutely no problem for universities in enhancing the quality of scientific research and teaching.”

He added that government funding accounts for only 40 percent to 60 percent of university income, while other income sources include non-local students, self-financed programs, and research commercialization, which are continuously increasing.

Speaking on the same program, Lau Chi-pang, lawmaker and associate vice-president of Lingnan University, echoed Chow’s view, saying that the institutions will be able to handle receiving less funding if it continues to be a popular study abroad destination.

He suggested Hong Kong consider further easing the enrolment ceiling for non-local students from 40 percent to 50 percent, adding that this could also boost the local property market.

(Jamie Liu)