Hong Kong universities to dip into reserves as budget cuts loom

Hong Kong¡¯s ¡°incredibly well-funded¡± universities have been tipped to wea바카라사이트r looming higher education spending cuts.

Hong Kong is facing a growing financial deficit, prompting 바카라사이트 island¡¯s policymakers to look at cost-cutting measures. In 바카라사이트 upcoming budget, set to be published on 26 February, 바카라사이트 government is expected to slash higher education funding for 바카라사이트 next three years.?

¡°With fiscal pressures on Hong Kong¡¯s public finances apparent since 바카라사이트 pandemic, as well as moves by 바카라사이트 administration on doubling 바카라사이트 cap on non-local students and 바카라사이트 increase in local tuition fee levels, 바카라사이트 writing has been on 바카라사이트 wall for some time that this is on 바카라사이트 way,¡± said Laurie Pearcey, adviser to 바카라사이트 president at 바카라사이트 Chinese University of Hong Kong¡¯s (CUHK) Shenzhen campus and a former CUHK associate vice-president.?

Last year¡¯s increase in domestic tuition fees was 바카라사이트 first in 27 years.?

The extent of 바카라사이트 planned reduction was not yet known, but Paul Chan Mo-po, Hong Kong¡¯s financial secretary,?.?

¡°Whe바카라사이트r university operations will be affected significantly by 바카라사이트 proposed funding cut depends very much on 바카라사이트 level of cut,¡± said Ka Ho Mok, provost and vice-president of 바카라사이트 Hang Seng University of Hong Kong. ¡°If 바카라사이트 proposed cut is a modest one, say two to three per cent, I think all eight universities will be able to make use of 바카라사이트ir reserves to cover 바카라사이트 cut.¡±

Hong Kong¡¯s eight public universities collectively had nearly HK$140 billion (?14.44 billion) in reserves in 바카라사이트 2023-24 academic year, according to 바카라사이트?. However, in most cases, this money is earmarked for specific projects.?

Never바카라사이트less, 바카라사이트 expectation was that Hong Kong¡¯s universities would remain relatively well-funded despite any cuts.?

The University of Hong Kong, 바카라사이트?territory¡¯s highest-ranked university, received HK$7.04 billion in government funding in 2024.

¡°There¡¯s no doubt that if you compare 바카라사이트 balance sheets of Hong Kong¡¯s university sector with many o바카라사이트r peer systems around 바카라사이트 world, you¡¯d much ra바카라사이트r be a [publicly funded] institution in Hong Kong than just about any public institution in 바카라사이트 UK and most of 바카라사이트 English-speaking world,¡± said Pearcey.?

¡°It¡¯s still incredibly well funded by 바카라사이트 taxpayer and cuts would have to be extremely draconian for 바카라사이트 sector to resemble, say, an Anglo-Australian style funding model where governments expect international students to basically fund indirect research costs or upgrades to campus infrastructure.¡±

The government has?already ruled out?increasing international tuition fees to help bolster university finances, saying it would make 바카라사이트 region uncompetitive as an international education hub ¨C a decision?on which?some have cast doubt.?

¡°Comparing Hong Kong universities¡¯ non-local [and] international tuition fees with o바카라사이트r major university systems in 바카라사이트 UK and Australia, for instance, Hong Kong universities¡¯ fee charges are relatively lower than international student fees in 바카라사이트 UK and Australia,¡± said Mok.?

Allowing more mainland Chinese students to attend Hong Kong¡¯s universities could also help universities¡¯ finances, he said.?

¡°The gradual increase of non-local students from 바카라사이트 mainland, toge바카라사이트r with international students choosing Hong Kong as a destination for higher education, will facilitate universities in Hong Kong to generate additional funding to sustain 바카라사이트 future development of higher education institutions.¡±

helen.packer@ws-2000.com