International School Tuition Fees
in Singapore and Beyond
A Cebr report for The Fry Group / November 2015
Contents
Foreword
3
Executive summary
4
1 Introduction
5
2 International School Tuition Fees in Singapore
6
2.1 Changes in International School Tuition Fees
6
2.2 Boarding Costs
9
10
2.3 Share of Fees Paid by Individuals v. Corporations
3 International School Affordability
11
4 An International Perspective
14
5 Conclusions
15
6 Appendix I
16
Disclaimer
Whilst every effort has been made to ensure the accuracy of the material in this document, neither Centre for Economics and
Business Research Ltd nor the report’s authors will be liable for any loss or damages incurred through the use of the report.
Authorship and acknowledgements
This research has been produced by Cebr, an independent economics and business research consultancy established in 1992. The report was
authored by Nina Skero, a Cebr Economist with guidance from Scott Corfe, Cebr Associate Director. The views expressed herein are those of the
authors only and are based upon independent research by them.
London, November 2015
The report does not necessarily reflect the views of The Fry Group. The Fry Group (Singapore) authorised to act as a financial adviser by the
Monetary Authority of Singapore (MAS) license number FA-1000057-1.
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2
Foreword
The rising cost of International School Fees in the Lion City
Few parents would disagree that their child’s education is an important investment and one increasingly expats are
paying for out of their own pocket.
This study, commissioned by The Fry Group (Singapore), shows that international school fees in Singapore tops
S$590,000 from reception to graduation, making school fees in the Lion City the most expensive of the Southeast
Asian countries polled.
To put that into perspective though, the cost of tuition at private schools in the UK is still much higher, around 30 per
cent more than in Singapore.
Over the past five years school fees in both Singapore and the UK increased by 23.3 per cent. In the five years to
2020, fees will continue to rise steadily. This means that in 2020 a year of international school education in Singapore
will cost on average 52.3 per cent more than it did in 2010.
This survey reinforces the need for parents to lay out a carefully considered financial plan for their children’s
education.
The report surveyed other popular expat work destinations like Hong Kong - which came third in the rankings Indonesia, Thailand and Malaysia. Malaysia, with large expat populations in destinations like the capital Kuala
Lumpur and the fast-developing Johor Bahru, had the least expensive fees of the countries we examined. Annual
tuition fees were 33 per cent lower than Singapore.
But the findings also revealed that Singapore scored better on an ‘affordability’ index - primarily because wages are
higher. Hong Kong similarly scored highly on this measure.
There is little doubt that Singapore boasts some of the best schools in the world and we can assume that the reason
behind the significant increases in fees can be attributed partly to the continuous levels of investment on both
facilities and the pursuit of academic excellence. The investment in school facilities and faculty is also reflected in the
international schools’ outstanding academic results.
For further information on how The Fry Group (Singapore) can help you to put together a cohesive and effective
strategy for private education funding please do contact us [email protected].
David Pugh
Director, CFPCM Chartered MSCI
The Fry Group (Singapore)
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3
Executive Summary
In 2015 the average annual tuition fee at a Singapore-based international school was SGD 27,300,
SGD 30,300 and SGD 35,100 for pre-preparatory, preparatory and senior school respectively. This compares
to SGD 22,000, SGD 24,500 and SGD 28,800 in 2010 meaning that the average rise in the cost of international
school tuition fees in the five years from 2010 to 2015 was 23.2%.
In the five years to 2020 fees across all three school levels will increase at an even faster rate; the average
annual tuition fee in 2020 will stand at SGD 34,000, SGD 37,600 and SGD 42,900 for pre-prep, prep and senior
school respectively. This means that in 2020 a year of international school education in Singapore will cost on
average 52.3% more than it did in 2010.
A student that starts reception1 at an international school in Singapore in 2015 and remains in the
international school system all the way to Year 13 will pay an average of SGD 589,900 in total tuition fees. This
compares to SGD 479,100 for a student that started reception in 2010.
The increases in international school fees are partially explained by high levels of spending on educational
facilities and pursuit of academic excellence. International schools in Singapore have some of the world’s most
modern facilities and consistently achieve outstanding academic results. Examples of international schools in
Singapore investing in facilities include Tanglin Trust School’s plans to build four new buildings and Dover Court
International School’s extensive 2014 refurbishment. Additionally, Dulwich College opened only recently in August
2014, following a SGD 200 million investment into its facilities.
Continuous investment in school facilities and faculty has been reflected in the international schools’
outstanding academic results. To list a few examples, at UWCSEA 98.8% of the students sitting for the IB Diploma
passed their examinations, compared to a worldwide average of 79% while over a third of the IB Diploma students at
Tanglin Trust School in 2015 scored 39/45 points or more. Looking at the level of academic achievement more
generally, in 2015 Singapore topped the OECD’s global school ranking which considers math and science exam
results achieved by students in both private and national schools.
For international schools in Singapore that offer boarding an average annual boarding fee in 2015 is
SGD 27,300 – SGD 4,200 more than the 2010 average. We expect this to increase by a further 22.0% over the next
five years and stand at SGD 33,300 in 2020.
According to data from the Independent Schools Council’s census, for schools in the UK that offer boarding
an average annual total boarding fee in 2015 is £30,400 or SGD 65,400. This is a 26.5% increase compared to
the £24,000 average in 2010.2
Out of the analysed occupations, international school fees in 2014 were most affordable for medical
practitioners – an average senior school tuition fee accounted for 13.3% of average net wages.
For university lecturers, company directors and lawyers international school fees were somewhat
accessible i.e. accounted for around a quarter or third of annual earnings. However, this is still a very high share
of income and means that access to financial advice is necessary to ensure that tuition payments do not pose a
financial burden.
Based on the level of school fees in the focus countries (Malaysia, Thailand, the UK, Indonesia, Hong Kong and
Singapore) international schools in Singapore are the second most expensive after the UK. Because of the
comparatively high level of wages in Singapore, it scores relatively well on the affordability scale despite having a
higher level of school fees than most other focus countries. Only Hong Kong earned a better index rating.
1
Reception is a term used to describe the first year of primary school. It come after nursery and before Year 1.
2
The figure takes into account all independent schools, not just the top private schools referred to in Section 4 of this report.
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1 Introduction
The following report examines international school fees across Singapore and compares this to other popular
destinations for British expatriates. Specifically, we consider how international school fees in Singapore have
changed since 2010 and forecast average fees up to 2020. The report then compares the current level of
international school fees in Singapore with that in the UK, Malaysia, Thailand and Indonesia.
In the five years since 2010, international school fees in Singapore have been on a sharp upward trend and in 2013,
2014 and 2015 have risen at rates well above the general level of inflation. This means that the cost of private
education has been rising faster than the costs of many other products and services in Singapore.
Figure 1: Year-on-year change in the consumer price index and average international school tuition fees, indexed so that 2010=1003
Source: Individual schools’ websites, The Singapore Department of Statistics, Cebr analysis
In the coming five years up to 2020, we expect international school fees to continue rising, supported by demand from
current residents, but also new expats arriving into the country drawn in by Singapore’s respectable economic
performance and competitive tax regime.
Although the general salary level in Singapore is relatively high compared to many other countries, the affordability
analysis in this report shows that international school fees are unaffordable not just for most workers in blue-collar
occupations, but also for a substantial share of white collar workers. Therefore, if not adequately planned for,
covering the rising costs of international education in Singapore could become a burden for students’ families.
3
CPI inflation figures for 2011-2014 refer to the whole year, while 2015 data refer to Jan-Sep.
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2 International School Tuition Fees in Singapore
In 2015 the average annual tuition fee at a Singapore-based international school4 was SGD 27,300, SGD 30,300 and
SGD 35,100 for pre-preparatory, preparatory and senior school respectively5. This compares to SGD 22,000,
SGD 24,500 and SGD 28,800 in 2010 meaning that the average rise in the cost of international school tuition fees in
the five years from 2010 to 2015 was 23.2%. Out of the three analysed school levels (pre-preparatory, preparatory
and senior) the greatest percentage increase in costs over this period was 24.1% for pre-preparatory schools,
followed by 23.7% for preparatory and lastly 21.9% for senior school.
As Figures 2-4 show, we expect that in the five years to 2020 fees across all three school levels will increase at an
even faster rate. The average rate of increase in 2015 was slower than in the previous year as the general price level
in Singapore broadly stagnated. We expect tuition fee levels to grow at a more subdued level in 2016 due to the
continued absence of inflationary pressures, but to pick up in 2017 along with prices across the rest of the economy.
In outer forecast years we expect tuition fees to increase by 4% or more annually – well above the general level of
inflation.
As such, the average annual tuition fee in 2020 will stand at SGD 34,000, SGD 37,600 and SGD 42,900 for pre-prep,
prep and senior school respectively. This means that in 2020 a year of international school education in Singapore
will cost on average 52.3% more than it did in 2010.
2.1 Changes in International School Tuition Fee
Figure 2: Average cost of a year in a private pre-preparatory school in Singapore, by year, SGD
Source: Individual schools’ websites, Cebr analysis
4
When referring to Singapore international schools, we specifically include Tanglin Trust School, Dulwich College, UWCSEA, Dover Court, St.
5
Pre-preparatory (pre-prep) school refers to reception – Year 2, preparatory (prep) school refers to Year 3 – Year 8 and senior school refers to
Joseph’s Institution International, Canadian International School, Singapore American School, and Marlborough College Malaysia.
Year 9 – Year 13.
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Figure 3: Average cost of a year in a private preparatory school in Singapore, by year, SGD
Source: Individual schools’ websites, Cebr analysis
Figure 4: Average cost of a year in a private senior school in Singapore, by year, SGD
Source: Individual schools’ websites, Cebr analysis
The projected rises in school fees in the decade between 2010 and 2020 can be considered on an annual basis, as
has been done in the preceding section, but perhaps a more illustrative way of considering these cost differences is
to look at the total fees paid based on the year of school admission.
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Table 1: Total school fees for a school level, by year of admission, SGD
Source: Individual schools’ websites, Cebr analysis
As Table 1 shows, a student that enters an international pre-prep school in 2018 can expect to pay a total of
SGD 97,800 in tuition fees – SGD 29,500 more than a student that started pre-prep school in 2010. A student that
started prep school in 2015 will pay an average of SGD 204,900 in total tuition fees. This is a drastic one quarter or
SGD 41,600 increase compared to students admitted in 2010. Finally, students admitted into an international senior
school in 2016 can expect to pay an average of SGD 198,900 in total tuition fees – 28.7% or SGD 44,400 more than
those admitted six years prior in 2010.
We now consider a student that attends an international school in Singapore all the way from reception to Year 13.
Total international school tuition fees for a student admitted into reception in 2010 would equal an average of
SGD 479,100. This compares to SGD 589,900 for a student entering reception in 2015.
Table 2: Total school fees for reception to Year 13, by year of admission, SGD
Source: Individual schools’ websites, Cebr analysis
Therefore a family whose child starts an international school in Singapore in 2015 can expect to pay SGD 110,800
more in total tuition fees than a family whose child started school just five years prior. This is an important factor for
families with multiple children to keep in mind given that tuition fees paid for older children to attend an international
school may be substantially lower than the fees for younger siblings entering school.
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Although the justification for consistently increasing tuition fees is not usually provided by the schools, it is reasonable
to assume that at least a part of the explanation is an increase in the level of spending on educational facilities and
the pursuit of academic excellence. Examples of international schools in Singapore investing in expansions or
remodelling are numerous. To name just a few Tanglin Trust School is planning on building four new buildings over
the next eight years, the Singapore American School recently upgraded its school auditorium thereby strengthening
its theatre and dance programmes, UWCSEA opened its East Campus in 2008 following a SGD 200 million
investment, while Dover Court International School underwent an extensive refurbishment in 2014. Additionally,
Dulwich College opened only recently in August 2014, following a SGD 200 million investment into its facilities and a
further SGD 200 million of spending on operations and other expenditures.
Continuous investment in school facilities and faculty has been reflected in the international schools’ outstanding
academic results. Each individual school’s performance results are available on their respective websites so in this
report we only include a few example. At UWCSEA 98.8% of the students sitting for the IB Diploma passed their
examinations, compared to a worldwide average of 79%. Their average Diploma score of 36.5/45 points was also
above the 29.9 world average. Over a third of the IB Diploma students at Tanglin Trust School in 2015 scored 39
points or more. At the Canadian International School the average IB Diploma score was 2.6 points higher than the
world average.
2.2 Boarding Costs
A number of international schools in Singapore offer a boarding option which allows students to live on campus during
the school year. It is important to consider the cost of boarding as well as tuition fees, especially for families that are
unsure of how long they will remain living in Singapore. For these families, enrolling their children in an international
school that offers boarding is one way to prevent an interruption in the kids’ course programme should the rest of the
family need to relocate.
For the international schools in Singapore that do offer boarding an average annual boarding fee in 2015 is
SGD 27,300 – SGD 4,200 more than the 2010 average. We expect this to increase by a further 22.0% over the next
five years and stand at SGD 33,300 in 2020.
Figure 5: Average annual boarding fee at an international school in Singapore, by year, SGD
Source: Individual schools’ websites, Cebr analysis
NB: The average tuition fees in this graph refer specifically to Year 6 – Year 13 students as boarding is often not
offered to younger grades.
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This means that a boarding student in an international school in Singapore paid an average of SGD 61,400 in 2015
for boarding and tuition – SGD 10,500 more than the SGD 50,900 average in 2010. We expect this figure to increase
to SGD 75,200 by 2020.
2.3 Share of Fees Paid by Individuals v. Corporations
Given that a high share of Singapore’s labour force is made up of expatriates a fair share of international school
students used to have their schools fees paid for by one of their parents’ employers. Although there are no publically
available data on the share of international school fees paid for by the student’s family versus corporations, from
anecdotal evidence it is evident that it is becoming less common to include such offers as a part of an employee’s
relocation package.
This shift has been part of a larger effort by companies to cut spending on expatriate packages. In previous years the
most common way to determine an expatriate’s salary was to start with the salary in their home country and adjust it
based on living expenses and agreed extras such as education for their children. However, as companies in
Singapore and more broadly face added pressures it is becoming less common to offer extensive extras and many
firms now pay expatriates at a local employee level.
According to ECA International, a consulting firm that specializes in providing HR solutions to firms with international
assignees, the total value of a typical expatriate package for Middle Managers in Singapore is currently US$259,000.
This is the region’s 7th highest expatriate pay package. According to the report, “The cost of providing certain benefits
such as housing and education is the most expensive element of the pay package when relocating staff to Singapore.
Remove these and Singapore falls from 7th to 14th in the regional ranking.”6
Keeping this in mind, more and more expatriate families can expect to be financially responsible for their children’s
education. Given the rising level of international school fees, adequate and timely planning can help alleviate the
financial burden some families will encounter.
6
http://www.eca-international.com/news/press_releaes/8165/Cost_of_expatriate_pay_and_benefits_packages_in_Singapore_continues_to_rise
#.VkTG0r-mRuE
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3 International School Affordability
While the previous section of this report focuses on the level of schools fees, we now turn to school fee affordability
in Singapore. Affordability is defined as the share of net annual wages accounted for by one year of international
school tuition. This is shown in Figure 6.
Figure 6: Average annual tuition as a share of average net annual wage, by occupation, 2014
Source: Singapore Department of Statistics, Cebr analysis
Out of the 7 occupations analysed, international school fees in 2014 were most affordable for medical practitioners –
an average senior school tuition fee accounted for 13.3% of average net wages. The other occupations for which
international school fees were relatively more accessible i.e. accounted for around a quarter or third of annual
earnings are university lecturers, company directors and lawyers.
For occupations such as engineers and accountants average tuition fees account for more than half of annual net
earnings. This means that although international school fees could technically be covered by a single earner in this
occupation, it is unrealistic to think that the rest of one’s living expense could be sufficiently met by less than half of
annual earnings. It is also important to keep in mind that school fees are often pre-paid in large bulks e.g. once a term
instead of in smaller, more frequent increments. Therefore for occupations for which tuition fees account for a higher
share of earnings it is especially important to financially plan ahead.
However, even for occupations for which average school fees account for around a quarter or third of net wages it
would, in many cases, be necessary to financially pre-plan paying educational expenses. This is especially true given
that the affordability data in Figure 6 refers only to tuition fees and excludes additional school-related expenses such
as application fees, mandatory school trips, examination fees etc.
For the sake of a comparison, we now consider the affordability of private schools in the UK. It is important to note
that this is not an exact comparison – the occupational definitions may differ slightly between countries and the UK
data are not divided by school level.
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Figure 7: Private school tuition fees as a share of disposable salary, by occupation, UK, 20147
Source: Individual schools’ websites, Annual Survey of Hours and Earnings, Cebr analysis
In the UK and Singapore alike, paying school tuition poses a varying level of burden on individuals depending on their
occupation and level of earnings. Therefore, planning for private school expenses should be tailored to one’s own
circumstances.
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4 An International Perspective
In order to assess how international school fees in Singapore compare to those in other countries, we have taken the
average 2015 tuition fees at top international schools8 in each location and for comparability purposes converted
them from the local currency to Singapore Dollars (SGD). The analysed countries are Malaysia, Thailand, the UK,
Indonesia, Hong Kong and Singapore. Results are shown in Table 3.
Table 3: Average annual tuition at an international school, by country, SGD
Source: Individual schools’ websites, Cebr analysis
Based on the level of school fees in the focus countries, international schools in Singapore are the second most
expensive after the UK. The most drastic price difference is with Malaysia, where international school fees are 33.3%
cheaper. The closest in price to Singapore schools are those in Hong Kong, where international school fees are just
6.4% lower on average.
However, in affordability terms Singapore scores better in our affordability index than Malaysia, Thailand, Indonesia
and the UK. This is because although international school fees in Singapore are comparatively high, so are average
earnings. Our affordability index considers average annual tuition at an international school as a percentage of
average net wages. The index is set so that Singapore = 100. Any country with a lower score has relatively more
affordable international schools, while the countries with scores higher than Singapore are less affordable i.e.
average school fees account for a higher share of average net wages.
8
See Appendix I.
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Figure 8: International school affordability index, indexed so that Singapore = 100, 2015
Source: Individual schools’ websites, UBS prices and earnings report, Cebr analysis
Because of the comparatively high level of wages in Singapore, it scores relatively well on the affordability scale
despite having a higher level of school fees than most other focus countries. Only school fees in Hong Kong are more
affordable. However, according to a 2015 ECA International report the value of an average expatriate salary package
in Singapore has risen in the past year while falling slightly in Hong Kong. This means that in the years ahead the
countries’ positions in the affordability index could shift around. Indonesia scores the worst on the affordability scale
due to low wages in the country. International school tuition fees there are 3.4 times less affordable than in Singapore.
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5 Conclusions
This report examines international school fees in Singapore and across a few other countries: Malaysia, Thailand, the UK,
Indonesia and Hong Kong. We find that among these countries, school fees in Singapore are the second highest, after the UK.
However, wages in Singapore are also higher than in most of the other focus countries, which means that it scores relatively
well on our international school affordability index. In fact, only Hong Kong earned a better index rating.
Focusing specifically on international school fees within Singapore, we find that in 2015 the average cost of one year in an
international school was SGD 27,300, SGD 30,300 and SGD 35,100 for pre-preparatory, preparatory and senior school
respectively. This means that the average rise in the cost of international school tuition fees in the five years from 2010 to
2015 was 23.2%. In the five years to 2020, we expect fees to increase at an even faster rate. The average annual school fee in
2020 will stand at SGD 34,000, SGD 37,600 and SGD 42,900 for pre-prep, prep and senior school respectively.
Such drastic rises in the cost of international education can place a substantial burden on family finances, especially for
occupations where average fees account for a higher share of net earnings. Out of the analysed occupations, international
school fees in 2014 were most affordable for medical practitioners – an average senior school tuition fee accounted for 13.3%
of average net wages. For university lecturers, company directors and lawyers international school fees were less accessible
i.e. accounted for around a quarter or third of annual earnings.
Given persistent rises in international school fees and the likelihood of this trend continuing, sending children to
international schools in Singapore could become a financial burden for some families. Adequate financial pre-planning is
one way to lessen the chances of this happening.
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6 Appendix I
In order to determine the average international school fees in Section 4, the following schools were considered:
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