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Report of the Phase Two Review of the Post Secondary Education Sector

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Report

of the Phase Two Review of the

Post Secondary Education Sector

Steering Committee

Review of the Post Secondary Education Sector

April 2008

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Content

Chapter Page

Chapter 1 : Introduction and Outcome of Phase 1 Review [1]

Chapter 2 : Development of the Self-financing Post-Secondary [4] Education Sector in Hong Kong

Chapter 3 : Positioning and Value of the Sub-Degree [9] Qualifications

Chapter 4 : Quality Assurance and Enhancement [15]

Chapter 5 : Government’s Support Measures [21]

Chapter 6 : Student Finance [28]

Chapter 7 : Employment and Articulation Opportunities [34]

Chapter 8 : Legislative and Regulatory Framework [44]

Chapter 9 : Way Forward [50]

Annexes [52]

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CHAPTER 1 : INTRODUCTION AND OUTCOME OF PHASE 1 REVIEW

Introduction

1.1 Since the announcement in the 2000 Policy Address of the policy objective of enabling 60% of our senior school leavers to receive post-secondary education by 2010, we have witnessed substantial changes in the landscape of Hong Kong’s post-secondary education sector, resulting not only in a substantial increase in self-financing post-secondary opportunities but also a wider choice of progression pathways for our school leavers. We now have a vibrant and dynamic post-secondary education sector in Hong Kong.

1.2 To take stock of the development of the post-secondary education sector and map out future directions for development, the then Education and Manpower Bureau (EMB) initiated a Review of the Post-secondary Education Sector in 2005. The Review has been conducted in two phases and overseen by a Steering Committee (SC) chaired by EMB and comprising representatives of service providers, quality assurance agencies and the business community.

Public Consultation on the Phase 1 Review

1.3 Phase 1 of the Review was completed in January 2006, and a Review Report was published for public consultation in March 2006.

Recommendations of the Phase 1 Review are at Annex A. By the end of the two-month public consultation exercise, five written submissions had been received1. Four consultation sessions had been held with representatives of the self-financing institutions, sub-degree students, serving teachers and a student concern group separately. The following summarizes the views received:

(a) Policy and Government’s Role

1.4 The policy objective of increasing post-secondary education opportunities for secondary school leavers continued to command support.

1 Written submissions were received from the Hong Kong College of Technology, the Hong Kong Federation of Students, HKU School of Professional and Continuing Education, The Open University of

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While accepting that the sub-degree sector was predominantly a self-financing sector, some commented that the Government should not leave the long-term development of the sector to market forces entirely, and should step in where there were market inefficiencies or failures.

(b) Supply of post-secondary places

1.5 Most agreed that the policy had encouraged the development of a robust post-secondary education sector within a relatively short period of time. Some however considered that there was already an over-supply of post-secondary places in Hong Kong, which had led to excessive competition and decline in the quality of post-secondary education.

Moreover, there were concerns that the over-concentration of sub-degree programmes in certain popular disciplines such as business and marketing might not necessarily reflect and meet the long-term manpower requirements of Hong Kong.

(c) Articulation and Employment

1.6 While the Associate Degree (AD) qualification seeks to prepare graduates for both employment and further studies, the fact is that most sub-degree students aspire to further their studies at the degree level immediately after graduation and hence demanded the provision of more publicly-funded articulation opportunities. Others considered that there was insufficient recognition of the AD qualification by employers even if the graduates intend to seek employment.

(d) Support measures

1.7 Some institutions asked for an extension of the 10-year repayment period of the interest-free start-up loans to relieve their financial burden.

Student groups also claimed that about 30% of their tuition fees were being used or reserved by their institutions for repaying loans and other expenses (e.g. paying for the use of university libraries and facilities). As a result, teachers of sub-degree programmes were under-paid which in turn affected teaching and programme quality.

(e) Quality

1.8 Many considered that more emphasis should be placed on enhancing the quality of the sub-degree sector. Some suggested that the Government should set some common benchmarks for compliance by all

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(f) Student Finance

1.9 Most students welcomed the improvements to the Financial Assistance Scheme for Post-secondary Students (FASP) starting from 2006/07, which have brought grants under FASP on par with those under the Tertiary Student Finance Scheme – Publicly-funded Programmes (TSFS)2. Nonetheless, students suggested further improvements to FASP.

In particular, they requested the provision of means-tested loans under FASP to cover living expenses and that financial assistance should be extended to cover self-financing top-up degree studies.3

Phase 2 Review

1.10 Taking into account the views received during the public consultation exercise, the SC was reconvened in September 2006 to conduct the Phase 2 Review. Its Membership and Terms of Reference are at Annex B. The SC had deliberated on the following issues during the Phase 2 Review-

y Development of the Self-financing Sub-degree Sector y Positioning and Value of the Sub-degree Qualifications y Quality Assurance and Enhancement

y Government’s Support Measures y Student Finance

y Employment and Articulation opportunities y Legislative and Regulatory Framework

1.11 The ensuing Chapters summarize the deliberations and recommendations of the SC. We would like to thank members of the SC for their contributions and advice.

2 TSFS provides means-tested assistance to needy full-time students who take up publicly-funded student places at the University Grants Committee (UGC)-funded institutions, the Hong Kong Institute of Vocational Education, the Prince Philip Dental Hospital and the Hong Kong Academy for Performing Arts. FASP was introduced in 2001 for full-time students pursuing locally-accredited, self-financing post-secondary programmes leading to a sub-degree or higher qualification.

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CHAPTER 2: DEVELOPMENT OF THE SELF-FINANCING POST-SECONDARY EDUCATION SECTOR IN HONG KONG

2.1 Hitherto, post-secondary and higher education was primarily funded by the Government. Since 2000, the Government has been actively encouraging the private sector to contribute to the development of a self-financing post-secondary sector. Such development not only injects diversity into our higher education system, but also provides a channel for all sectors of the society to contribute wisdom, resources and efforts for the benefit of students.

2.2 This development is not unique to Hong Kong. Economies around the world and particularly those in Asia have been actively developing their private higher education sector. For instance, private higher education institutions accounted for 86.3%, 87% and 65.8% of the total number of higher education institutions in Japan, South Korea and Taiwan respectively. In terms of student population, student enrolment in private higher education institutions amounted to 77.1%, 78.3% and 71.9% of the total student enrolment in these three economies respectively4.

Stock-taking of Developments since 2000 Institutions and Programmes

2.3 In Hong Kong, our private sector has responded enthusiastically to the 2000 policy objective. Since then, we have seen a substantial increase in the number of self-financing post-secondary institutions and programmes in Hong Kong, providing a wide variety of full-time accredited post-secondary programmes for our senior secondary school leavers and broadening their access to post-secondary education (see Tables 2.1 and 2.2).

4 Figures extracted from a paper entitled “Private-Public Interfaces in Higher Education Development:

Two Sectors in Sync?” by Professor Daniel C. Levy of State University of New York, obtained from

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Table 2.1 - Number of self-financing post-secondary education providers in Hong Kong in the 2000/01 to 2006/07 academic years

2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 4 11 16 20 20 20 20 Table 2.2 - Number of full-time self-financing post-secondary programmes offered in Hong Kong in the 2000/01 to 2006/07 academic years

2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07

Degree - 3 7 11 26 40 41

Sub-degree 20 38 77 112 173 233 261 Total 20 41 84 123 199 273 302

Student Places and Intakes

2.4 The increase in self-financing post-secondary programmes corresponds to an increase in post-secondary education opportunities.

Table 2.3 below shows the planned provision of full-time post-secondary student places for fresh intake (the supply) since the 2000/01 academic year, based on information submitted by the institutions.

Table 2.3 - Supply of full-time post-secondary places at intake level in the 2000/01 to 2006/07 academic years

2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 Bachelor’s Degree

Publicly-funded 14601 14582 14590 14586 14584 14600 14600

Self-financing 0 245 490 958 1922 2550 2465

Sub-total 14601 14827 15080 15544 16506 17150 17065 Sub-degree

Publicly-funded 6929 7208 8511 9527 9391 8850 7683

Self-financing 2468 5951 7752 10032 16362 23334 24085 Sub-total 9397 13159 16263 19559 25753 32184 31768 Total 23998 27986 31343 35103 42259 49334 48833

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2.5 Table 2.4 below shows the actual enrolment figures at intake level (the demand) for full-time accredited post-secondary programmes since 2000/01, and the percentage of actual intakes against planned provision of places.

Table 2.4 – Actual intakes to full-time post-secondary programmes in the 2000/01 to 2006/07 academic years

2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 Bachelor’s Degree

Publicly-funded 14537 14665 14936 14754 14828 15173 15584

Self-financing N/A 285 605 1030 1353 1527 2033

Sub-total 14537 14950 15541 15784 16181 16700 17617 Sub-degree

Publicly-funded 6846 7634 9623 10788 9813 9301 8448

Self-financing 2621 5546 6832 8317 17077 19806 19673 Sub-total 9467 13180 16455 19105 26890 29107 28121 Total 24004 28130 31996 34889 43071 45807 45738 as % of provision 100% 101% 102% 99% 102% 93% 94%

2.6 The total supply of self-financing sub-degree places has increased by nine-fold during the period from the 2000/01 to 2005/06 academic years, but then stabilized at around 23,000 - 24,000 since the 2005/06 academic year. At the same time, there is an enthusiastic demand for sub-degree places, as evidenced by the over-enrolment (99-102% take-up rate) from the 2000/01 to 2004/05 academic years. While the intakes to sub-degree programmes continue to grow in the 2005/06 academic year (by 10%), it is noted that the supply of places has overtaken the demand for the first time in the 2005/06 academic year. The course providers have responded by slowing down the growth in the planned provision of sub-degree places. As a result, the supply of sub-degree places has experienced a minor decrease only in the 2006/07 academic year (from 32,184 places in 2005/06 to 31,768 places in the 2006/07 academic year).

2.7 It is also worth-noting that in parallel with the robust development of the self-financing sub-degree sector, a self-financing degree sector is also emerging in Hong Kong (from zero place in the 2000/01 academic

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year to about 2,500 in the 2006/07 academic year). We will discuss the development of the self-financing degree sector in subsequent chapters.

Post-secondary Education Participation Rate

2.8 As a result of the robust development of the sub-degree sector, the

“participation rate” 5 , which reflects the availability of education opportunities to our senior secondary leavers (the 17-20 age cohort), has doubled in five years’ time, from 33% in the 2000/01 academic year to 66% in the 2005/06 academic year. Following the stabilization of the market as described in paragraph 2.6 above, the participation rate has leveled off in the 2006/07 academic year, and now maintains at slightly above 60% (Table 2.5).

Table 2.5 – Participation Rate of the 17-20 Age Cohort in the 2000/01 to 2006/07 academic years

2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 33% 38% 43% 47% 57% 66% 64%

Observations and Discussions

2.9 After a period of robust development in the first five years after the promulgation of the 2000 policy objective, it is observed that the self-financing sub-degree sector has entered into a period of consolidation starting from the 2005/06 academic year, with the number of post-secondary education providers stabilizing at 20 and the participation rate maintaining at slightly above 60%. Moreover, in view of some surplus places recorded in the 2005/06 academic year, the

5 For the purpose of monitoring the availability of education opportunities to our senior secondary school leavers, we have used a formula for calculating the "participation rate", defined as:

Student places of relevant courses* at intake level Average population of the 17-20 age cohort

* "Relevant courses" cover all locally accredited full-time courses at sub-degree and undergraduate levels which admit senior secondary school leavers and those who have not yet reached sub-degree level,

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self-financing sub-degree sector has responded by slowing down the growth in the planned provision of sub-degree places and offering a greater variety of sub-degree programmes to meet the diverse education needs of students.

2.10 As the healthy and sustainable development of the self-financing post-secondary sector is pivotal to maintaining the quality of our human capital and competitiveness, we consider that the Government has an important role to play in facilitating the long-term development of the sector, while respecting the autonomy of the individual institutions. In this respect, the Government should aim at supporting the consolidation of the sector, promoting quality enhancement and transparency as well as enhancing the learning experience, recognition, employability and articulation opportunities of sub-degree students. We have identified a number of key issues that need to be addressed in the Phase 2 Review.

They will be discussed in Chapters 3-8 of this Report.

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CHAPTER 3: POSITIONING AND VALUE OF SUB-DEGREE QUALIFICATIONS

3.1 The sub-degree qualifications, including Higher Diploma (HD) and Associate Degree (AD), are valuable qualifications in a knowledge-based economy. But the co-existence of two sub-degree qualifications has created some confusion to the public and employers.

At the same time, some have doubted the value of AD as an exit qualification to prepare students for employment. This chapter takes stock of the development of the two sub-degree qualifications in Hong Kong and examines the positioning of AD in the education system and in Hong Kong.

Background

3.2 Prior to 2000, sub-degree programmes in Hong Kong were primarily HD courses, mostly offered by post-secondary institutions such as the Hong Kong Polytechnic University, City University of Hong Kong and the Vocational Training Council. Most of these programmes were publicly-funded, and were geared towards meeting the manpower requirements of specific industries. Hence, the course contents were largely vocational-oriented and profession-specific6.

3.3 Unlike HD programmes which have over 35 years of history in Hong Kong and are generally well-recognized in the society, AD was first launched in Hong Kong in late 2000 and hence not yet widely known by the employers and the community. AD originated from the development of community colleges in the United States in the 19th century, and was later adopted in Canada. HD and diplomas are the most common sub-degree qualifications in the United Kingdom and Commonwealth countries.

3.4 In response to the policy objective of achieving a 60%

participation rate by 2010, some UGC-funded institutions and their self-financing arms started to offer AD courses7, and at the same time set

6 Examples of vocational HD programmes include HD in Civil Engineering, HD Scheme in Fashion &

Textile Studies, HD in Geomatics, etc.

7 City University of Hong Kong (CityU), Hong Kong Baptist University (HKBU), and the Hong Kong

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up a number of “Community Colleges”. Some institutions had converted their existing HD programmes into AD programmes8. To provide a benchmark for AD programmes and to ensure consistency of standards among institutions offering such programmes, the Government promulgated in 2001 a set of “Common Descriptors for AD programmes”

which provides a guiding framework for this new qualification. The Common Descriptors covers the following:

• Programme Objectives

• Learning Outcome

• Programme Structure

• Entry Requirements

• Quality Assurance

• Exit Qualifications

The AD Common Descriptors as currently promulgated are at Annex C.

Discussion and Recommendations

(a) Nomenclature and Differentiation of Sub-degree Qualifications

3.5 Hitherto, HD courses are considered to be more vocational-oriented and gearing towards meeting the manpower requirements of specific industries/professions; whereas AD courses seek to provide students with a solid foundation of generic skills and a broad theoretical understanding of the chosen discipline and its application.

3.6 With the rapid expansion of full-time sub-degree programmes in Hong Kong in the past seven years9 and the resulting keen competition for students, the distinction between AD and HD programmes has become somewhat blurred and indiscernible. Nowadays, certain HD programmes are rather generic in nature and packaged with articulation arrangements to undergraduate studies. On the other hand, some AD programmes are rather profession-specific with few generic elements. For illustration, a

8 CityU converted 25 UGC-funded HD programmes to AD programmes in the 2000/01 academic year.

9 Total number of sub-degree programmes increased from 38 in the 2001/02 academic year to 261 in the 2006/07 academic year. The 38 programmes offered in the 2001/02 academic year consisted of 16 AD programmes and 22 HD programmes; and the 261 programmes offered in the 2006/07 academic year

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comparison of a selected AD programme and an HD programme on the same subject of “Accountancy” shows that the course structure and content of the two programmes is strikingly similar (see Annex D).

3.7 In the light of the foregoing, the Steering Committee (SC) has deliberated the case for maintaining two sub-degree qualifications in Hong Kong. Specifically, it has considered a number of options in respect of the nomenclature of the qualifications. These include (i) adopting a new, single nomenclature for all sub-degree programmes in Hong Kong; (ii) replacing the AD title with HD across the board or vice versa; and (iii) differentiating more clearly between the AD and HD qualifications/programmes. Options (i) and (ii) seek to standardize the sub-degree qualifications in Hong Kong; while option (iii) aims to provide the stakeholders concerned (e.g. students, parents and employers) with a clearer understanding of the programme objectives, learning outcomes, etc of the two types of qualifications.

3.8 While adopting a single title (options (i) or (ii)) may help reduce the confusion caused to the general public, such a title will have to encompass a very broad range of curriculum and learning outcomes (ranging from one with a 70-80% of vocational elements to one comprising 60-70% generic contents). Moreover, given the long history and general recognition of HD in Hong Kong, the rapid developments of AD programmes in the past few years and the divergent views among the stakeholders, it would be difficult, if not impossible, for the self-financing sub-degree sector to agree to the adoption of either a single nomenclature or having one replacing the other. Indeed, such changes will adversely affect not only the institutions but also the students who have obtained the AD or HD qualification. The SC sees the practical need for and the value of maintaining two sub-degree qualifications, provided a clearer distinction can be drawn between them so as to provide better guidance to the institutions in curriculum planning and to students in choosing programmes that best suit their interests and needs (i.e. option (iii)). A clearer differentiation will also help the employers to select sub-degree graduates who possess the knowledge, skills and abilities that are most suitable and relevant to their job openings.

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3.9 To take this forward, the Government has invited the Federation for Continuing Education in Tertiary Institutions10 (FCE) to draw up a set of “Common Descriptors for HD Programmes” and to update the current Common Descriptors for AD. Essentially, the SC is of the view that while HD and AD should share certain common characteristics so as to maintain consistency (e.g. quality assurance mechanisms and exit standards), one must be able to differentiate between them based on some distinct characteristics (e.g. programme objectives, curriculum, learning outcomes). For instance, while HD emphasizes on equipping students with profession-specific knowledge and skills to enable them to pursue a career in a specific field, AD should focus on equipping students with generic knowledge and skills to enable them to undertake further studies or employment in administrative or managerial positions at the entry level.

We therefore recommend that the Government should officially promulgate a set of Common Descriptors for HD and a revised/updated set of Common Descriptors for AD to better define and differentiate the two qualifications, taking into account views of the sector and developments on various fronts. Review and updating of the two set of Common Descriptors should be conducted on a regular basis.

Recommendation 1: We recommend that the Associate Degree and Higher Diploma qualifications should co-exist but should be better defined and differentiated through the promulgation and updating of the Common Descriptors for Higher Diploma and Associate Degree respectively.

(b) Positioning and Value of the AD Qualification

3.10 In the U.S. and Canada, AD education is designed “to provide an education experience that prepares students for work, citizenship and an enriched life as an education person, and to lay a solid foundation for further studies”11. According to our own Common Descriptors for AD, AD programmes should provide an enriched education that equips students with generic as well as specialized skills and prepares them for

10 The FCE was established in 1994 to promote lifelong learning in Hong Kong. It comprises 14 organizations/institutions, including the continuing and professional education (CPE) units of the eight local universities and other major providers of CPE programmes in Hong Kong.

11 Extracted from p.7 of the Final Report of a Consultancy Study commissioned by the then EMB and

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employment (in administrative/managerial positions at the entry level) or further studies (on a part-time or full-time basis).

3.11 Subsequent developments in the post-secondary sector have however focused excessively on articulation to degree programmes immediately upon completion of the AD programmes. Moreover, there is, unfortunately, a general perception among students and parents that AD is only a bridging qualification for undergraduate studies. Some even consider that the AD graduates are not yet ready for immediate employment. Such misconception is unfair to the AD graduates, in particular those who have decided to join the job market after completion of the AD studies (about 30% of the total number of graduates).

3.12 Having regard to the differentiation of HD and AD as discussed above, the SC is of the view that the sub-degree qualification will play an even more important role in preparing our senior younger generation for employment following the implementation of the new academic structure for senior secondary and higher education (3+3+4). By 2012, it is expected that all the senior secondary three (SS3) students will sit for the Hong Kong Diploma for Secondary Education (HKDSE) examination.

Apart from those who will be admitted to the publicly-funded undergraduate studies at the UGC-funded institutions, the rest will either have to join the workforce or to further their studies by undertaking sub-degree (publicly-funded and self-financing) or self-financing degree programmes locally or abroad. Given the transformation of Hong Kong into a knowledge-based economy, it is expected that a substantial portion of our SS3 school leavers will want to further their studies rather than joining the workforce immediately upon completion of secondary education (usually at the age of 18-19). While the HD qualification will prepare our SS3 graduates for employment in specific fields, AD education would better prepare our SS3 graduates for employment by equipping them with the necessary knowledge and skills as well as broadening their horizon.

3.13 That said, the SC agrees that more need to be done to enhance the employability of AD graduates, align the AD curriculum with the manpower requirements of the market and change the misconception

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encourage institutions to proactively collaborate with professional bodies, employers’ federations and the business sector in general on curriculum development so as to equip students with relevant knowledge and skills (generic and specialized) as required by their chosen professions. Second, to widen their exposure and enhance their employability, we should facilitate the provision of more internships and work attachments for AD students/graduates and encourage their participation in community services. Third, to facilitate students’ efforts in job-searching, we should enhance the information flow on employment opportunities available to AD graduates and strengthen the career counseling services provided to them. Our specific proposals will be discussed in Chapter 7.

Recommendation 2: We reaffirm the value of the sub-degree (Associate Degree and Higher Diploma) qualifications in a knowledge-based economy and envisage their increasing importance in preparing our younger generation for employment especially following the implementation of the new academic structure (3+3+4). We therefore recommend that the Government should step up efforts in changing the misconception about Associate Degree in the society and that the institutions should seek to enhance the employability of their Associate Degree graduates.

(c) Benchmarking Qualifications Against the Qualifications Framework (QF)

3.14 The Government is in the course of establishing QF. The QF is a seven-level hierarchy of qualifications against which individual academic, vocational and continuing education programmes will be benchmarked.

The development of the QF will thus enable the benchmarking of sub-degree qualification against other qualifications (in terms of the QF level and learning size (credit))12. This additional information, to be available on the Qualifications Register (QR), will give learners and consumers a clearer idea as to the credibility, depth and breadth of the individual sub-degree courses.

12 Sub-degree programmes will be benchmarked at QF Level 4, whereas HKDSE and bachelor degree

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CHAPTER 4: QUALITY ASSURANCE AND ENHANCEMENT

4.1 Quality is the cornerstone of the development of the self-financing post-secondary education sector, and indeed any higher education system. This is also an area of public concern following the rapid development of the sector in the past few years. This Chapter examines the existing quality assurance (QA) systems for post-secondary programmes, and proposes initiatives to enhance the quality of service provision in the sector.

Existing QA Systems

4.2 All local post-secondary programmes are required to undergo QA before they can be offered in Hong Kong. In view of the different background and level of maturity of the institutions, two QA mechanisms co-exist in Hong Kong. First, for programmes (both publicly-funded and self-financing) offered by institutions with self-accrediting status, which include the eight University Grants Committee (UGC)-funded institutions and their self-financing arms, the Open University of Hong Kong (OUHK), and Hong Kong Shue Yan University (HKSYU)13, they are subject to the internal QA procedures stipulated by the institutions concerned. In August 2005, the Heads of Universities Committee (HUCOM) established the Joint Quality Review Committee (JQRC) to oversee the QA matters of the self-financing sub-degree programmes offered by the UGC-funded institutions and their self-financing arms.

4.3 For non-self-accrediting institutions, their programmes are accredited by the Hong Kong Council for Accreditation of Academic and Vocational Qualifications (HKCAAVQ). Under the current accreditation mechanism, institutions are required to go through Institutional Reviews and submit their individual programmes for Programme Validations and Revalidations periodically.14

13 HKSYU enjoys self-accrediting status in three disciplines (i.e. Arts, Commerce and Social Sciences), which it has attained Programme Area Accreditation (PAA) status.

14 A new four-stage accreditation mechanism will be adopted by HKCAAVQ upon the implementation of relevant provisions in the Accreditation of Academic and Vocational Qualifications Ordinance

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Discussion and Recommendations

4.4 The rapid expansion of the post-secondary education sector and the keen competition among course providers have given rise to concerns about the quality of the sub-degree sector, in terms of programme quality, quality of teaching staff and facilities, as well as quality of students and graduates. Apart from quality in general, there are also concerns about the comparability and consistency under the two QA mechanisms in terms of the standards and procedures adopted. Notwithstanding the self-financing nature of the sector, the Government has been asked to play a more proactive role (e.g. setting ground rules), rather than leaving the development of the sector entirely to market forces. The Phase 2 Review has therefore focused its deliberations on how the quality of the sector can be further enhanced and come up with the following recommendations:

(a) Enhancing the Quality Assurance Mechanism

4.5 In view of the public concerns that keen competition and financial pressure may cause some course providers to admit indiscriminately students who do not meet minimum entry standards (such as a pass in English in HKCEE) and even relax exit standards, the Steering Committee (SC) recommends that HKCAAVQ and JQRC should strengthen the QA process for both the course providers and their learning programmes, paying particular attention to admission and exit standards.

Recommendation 3: We recommend that the Hong Kong Council for Accreditation of Academic and Vocational Qualifications and Joint Quality Review Committee should seek to strengthen the Quality Assurance process for course providers, paying particular attention to ensuring compliance of admission and exit standards.

(b) Fostering More Structured Dialogue among QA Agencies

4.6 While the SC acknowledges the co-existence of two different QA regimes for self-financing sub-degree programmes in Hong Kong, it agrees that it would be necessary to foster a closer dialogue between the

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two agencies involved in quality assurance of sub-degree programmes (i.e.

HKCAAVQ and JQRC) so that they can better understand the QA practices and standards adopted by each other. Indeed, in response to Recommendation 11 in the Phase 1 Review Report (at Annex A), JQRC and HKCAAVQ have been working more closely with each other through cross membership in the respective Councils and informal meetings. To foster a more structured dialogue, the SC recommends that a Tripartite Liaison Committee involving the Education Bureau (EDB), HKCAAVQ and JQRC should be established to provide a regular forum for discussing quality-related issues concerning the sub-degree sector. Such dialogue and cooperation would in turn enhance the consistency of the two QA mechanisms and the comparability of programmes offered by institutions with and without self-accrediting status.

Recommendation 4: We recommend that a Tripartite Liaison Committee comprising Education Bureau, the Joint Quality Review Committee and the Hong Kong Council for Accreditation of Academic and Vocational Qualifications should be established to facilitate an on-going dialogue among the quality assurance (QA) agencies of the sub-degree sector, to provide a forum for discussing quality-related issues concerning the sub-degree sector and to enhance comparability of the QA mechanisms and the programmes offered by institutions with and without self-accrediting status.

(c) Developing Good Practices for the Sub-degree Sector

4.7 In view of the public concerns about the quality and comparability of the self-financing post-secondary programmes, the SC agrees that the Government should help the sector to develop a set of principles and good practices to promote the development of a quality sub-degree sector and encourage institutions to achieve excellence.

4.8 Having regard to similar codes of practices and guidelines promulgated by other countries, the SC proposes that a set of “Good Practices for the Sub-Degree Sector” (“Good Practices”) should be developed for reference by the sector. The “Good Practices” will set out general principles and desirable practices in relation to the quality

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a practical guide for reference by the institutions to assist them in the planning and delivery of sub-degree programmes, with the aim of inspiring them to attain further improvements over time. The “Good Practices” will also serve as a source of reference for the QA agencies in conducting accreditation and quality audit work.

4.9 To take the proposal forward, it is recommended that an Expert Group comprising distinguished academics and QA experts should be formed to help produce a set of draft “Good Practices” for consultation with all providers of sub-degree programmes and other stakeholders.

Taking into account the initial views of the HKCAAVQ and the JQRC, a draft framework for the proposed “Good Practices” is produced at Annex E as the basis for further deliberations by the Expert Group and the stakeholders.

Recommendation 5: To promote the sharing of good practices and provide references for the sub-degree sector, we recommend that a set of

“Good Practices for the Sub-degree Sector” should be drawn up in consultation with the post-secondary education institutions and be promulgated by the Government.

(d) Launching a New and Comprehensive Information Portal on Sub-degree Programmes

4.10 Hitherto, the Government has been providing information on post-secondary programmes to secondary school leavers through the publication of a career guidance booklet annually. The booklet contains mainly basic information such as programme names, course structures, and tuition fees of individual self-financing post-secondary institutions.

4.11 Given the number and diversity of the sub-degree programmes offered by the sector, the SC considers it imperative to provide more detailed and easily accessible information on individual course providers and programmes to enable students to make better informed choices regarding their studies. To this end, we recommend that a new information portal for the self-financing sub-degree sector, providing institution-specific and programme-specific information, should be launched by the Government with input from the service providers. The

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information may include, among other things, teaching and non-teaching facilities provided by the institutions, qualifications of teaching staff, teacher-student ratio, progression or articulation pathways of graduates, involvement of professional bodies in curriculum design and recognition of programmes, etc. It is expected that the portal will greatly enhance the overall transparency of the self-financing post-secondary institutions and their individual programmes. The types of data to be included in the portal are set out in Annex F.

Recommendation 6: To enhance transparency of the self-financing sub-degree programmes and accessibility of information, we recommend that the Government should launch a new and comprehensive information portal on self-financing locally-accredited sub-degree programmes based on input from the post-secondary institutions.

(e) Publicising QA efforts

4.12 For the purpose of uploading qualifications onto the Qualifications Register (QR) to be established under the Qualifications Framework (QF), the JQRC has completed a Preview of the QA mechanisms adopted by the UGC-funded institutions and their continuing education arms for their self-financing sub-degree programmes. The first round of Institutional Review (IR) conducted by JQRC subsequently for its member institutions is progressing on track. The auditing function of the JQRC will enable institutions to reflect on their own QA mechanisms and processes.

4.13 On the other hand, to ensure consistency and procedural symmetry, HKCAAVQ will review the self-financing sub-degree programmes previously accredited by the Council before uploading the qualifications of these programmes onto the QR.

4.14 The SC commends the work conducted by JQRC and the HKCAAVQ, and recommends that both agencies should publicize more widely their QA work and work plan so as to enhance public understanding of their work and the QA mechanisms adopted by the post-secondary institutions.

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Recommendation 7: We recommend that the Joint Quality Review Committee and the Hong Kong Council for Accreditation of Academic and Vocational Qualifications should step up publicity and increase the public awareness of their quality assurance work including their work plans, processes, standards adopted and achievements.

(f) Supporting Institutions’ Quality Enhancement Efforts

4.15 While the Government and the QA agencies will strengthen their QA efforts, quality enhancement must start with the institutions as the service providers. To encourage self-financing post-secondary institutions to undertake measures to improve the quality of teaching and learning, the SC recommends the establishment of a new funding scheme to support worthwhile initiatives in this regard. This will be further discussed in Chapter 5.

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CHAPTER 5: GOVERNMENT’S SUPPORT MEASURES

5.1 The Government introduced in 2001/02 a package of measures to facilitate and support the development of the self-financing post-secondary education sector. This Chapter takes stock of these measures and discusses proposed changes so as to better support the long-term development of the sector.

Existing Support Measures

5.2 Apart from putting in place the necessary QA and regulatory mechanisms, the Government has set up a number of schemes to support the development of the sector. These include the Start-up Loan Scheme, the Land Grant Scheme, the Accreditation Grant Scheme, and the Financial Assistance Scheme for Post-secondary Students.

(a) Start-up Loan Scheme (SLS)

5.3 The Government has earmarked $5 billion to provide interest-free loans to non-profit-making post-secondary institutions for purchasing, renting or building campuses. A Vetting Committee has been established to advise the Government on the merits of the loan applications. To date, the Government has approved 25 loans amounting to some $4.1 billion and benefiting 16 institutions. The loan has to be repaid by the institution within 10 years after its final drawdown.

Details are at Annex G. So far, repayments have been on schedule.

(b) Land Grant Scheme (LGS)

5.4 The Government established a LGS in 2002 to grant sites to non-profit-making post-secondary institutions for the construction of purpose-built campuses. A Selection Committee has been established to assess applications and advise on the allocation of sites. To date, we have made available a total of 8 sites, of which 5 have been successfully allocated to 4 institutions having regard to the merits of the proposals.

Details are at Annex H.

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(c) Accreditation Grant Scheme (AGS)

5.5 The Government has earmarked $30 million to set up an AGS to subsidize the accreditation expenses incurred by institutions, thereby relieving their financial burden in the initial years of operation. The Grant subsidizes in full the fees of successful Institutional Reviews, and 50% of the fees for individual programme validation. To date, we have approved grants to 13 institutions amounting to about $21 million.

Details are at Annex I.

(d) Financial Assistance Schemes for Post-Secondary Students (FASP)

5.6 The Government introduced FASP in the 2001/02 academic year.

All eligible students enrolled in self-financing degree or sub-degree programmes can apply for assistance under FASP (in the form of grant) and the Non-means-tested Loan Scheme for Post-secondary Students (NLSPS) (in the form of loan). With effect from the 2006/07 academic year, the Government has brought the means-tested grants under FASP on par with the Tertiary Students Finance Scheme – Publicly-funded Programmes (TSFS) applicable to students enrolled in publicly-funded post-secondary programmes.

5.7 Over the past six years, the Government has provided financial assistance amounting to over $2.7 billion to needy students under FASP and NLSPS. The improvements introduced in 2006/07 will incur an expected additional Government financial commitment of around $560 million by the 2010/11 academic year.

Discussion and Recommendations

5.8 The SLS and LGS were introduced primarily to support the policy objective of enabling 60% of our senior secondary leavers to have access to post-secondary education by 2010. Hence, they are closely linked to the number of student places undertaken by the applicants (e.g.

the loan amount under the SLS was calculated with reference to the loan ceiling per student place; and the Selection Committee for LGS would consider the number of additional places to be provided by the applicant in the new campus when approving the land grant).

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5.9 The SLS and LGS have achieved their stated objectives of encouraging and supporting the development of the self-financing post-secondary education sector in its initial stage of development. As the post-secondary participation rate has reached 64% in the 2006/07 academic year and in view of the concerns about the overall quality of the self-financing sub-degree programmes, we consider that the Government should adjust its support measures so that they can be geared towards supporting and encouraging quality enhancement. This is in line with Recommendation 5 of the Phase 1 Review Report, which suggested that

“the remaining resources under the Land Grant and Start-up Loan Schemes should be used with a clear emphasis on enhancing the quality of service provision and encouraging diversity, rather than solely for increasing student places”.

5.10 To improve programme quality and students’ learning experience, especially those studying in less optimal environment and do not have access to basic ancillary facilities (e.g. libraries), we recommend that the SLS and LGS should be modified so that institutions may, without the need to provide additional student places, apply for land and/or loans for-

(i) providing or enhancing teaching and other ancillary facilities (e.g. library, laboratories, student guidance/career counseling centres, etc) which serve to enhance the learning experience of and support for students; and/or

(ii) reprovisioning existing college campuses operating in sub-optimal environment.

The Vetting Committee for SLS and the Selection Committee for LGS will be invited to devise new criteria for the two modified schemes under which land and loans will be granted to truly meritorious applications.

The revised parameters will be submitted to the Finance Committee of the Legislative Council (LegCo) for approval in due course.

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Recommendation 8: We recommend that the Government’s support measures should gear towards quality enhancement rather than increasing the supply of sub-degree places further. In this regard, the Start-up Loan Scheme and the Land Grant Scheme should be modified so as to allow institutions to obtain loans and/or land to enhance teaching, learning and other ancillary facilities, and/or for reprovisioning existing college premises.

5.11 In addition, some institutions have expressed keen interest in using or converting vacant primary and secondary school premises for post-secondary education use, especially those premises that are conveniently located and readily accessible by students. Subject to the availability of suitable premises, we agree that this arrangement presents a practical option for institutions which do not require purpose-built campuses. The Government should also have an interest in ensuring that vacant school premises are put to good use.

Recommendation 9: To complement Recommendation 8 above, we recommend that the Government should identify suitable vacant school premises for post-secondary education use (as an alternative to building new campuses) and invite the institutions concerned to submit proposals.

5.12 As a related issue, some post-secondary institutions have requested an extension of the 10-year repayment period for the interest-free start-up loans so as to relieve their financial burden, whereas student groups have requested that the Government should completely write-off all start-up loans to alleviate students’ burden in sharing out the institutions’ repayment of such loans. It should be noted that when the institutions applied for the start-up loans, they were fully aware of the loan terms and had come up with sound business plans to justify them based on a 10-year repayment period. Bearing in mind the read-across implications on other similar loans in the school sector, we consider that strong and overwhelming justifications would be required for any departure from the existing SLS. That said, to relieve the financial burden on the institutions and enable them to devote more resources to improve the quality of teaching and learning, we recommend that the Government may consider extending the maximum loan repayment

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period of medium-term loans under the SLS from 10 to 20 years, with interests charged on a no-gain-no-loss basis during the extended period.

Whereas those institutions with proven financial difficulties may apply for an extension of the loan repayment period, such relaxation would not automatically apply to new loans to be granted under the SLS as the borrowers should have planned carefully their repayment ability before borrowing.

Recommendation 10: We recommend that the Government should consider extending the maximum loan repayment period of medium-term loans taken out by the institutions under the Start-up Loan Scheme from 10 to 20 years, subject to interest payment after the first 10 years and institutions’ proven financial difficulties, so as to relieve the financial burden on the institutions and enable them to devote more resources to improve the quality of teaching and learning.

5.13 The AGS has been highly successful in encouraging non-self-accrediting institutions to go through accreditation. Not only would students have more confidence in quality-assured programmes, institutions also benefit from the accreditation exercises by reviewing their own programme planning and QA mechanisms holistically and objectively. In connection with the development of the Qualifications Framework (QF), EDB has earmarked $65 million to provide accreditation grants to non-profit making training providers (including non-self-accrediting post-secondary institutions) and their self-financing programmes. We therefore propose that the AGS be subsumed into the accreditation grant schemes to be introduced by the Government in support of the QF, which will cover, among others, accreditation fees incurred in programme validation and programme area accreditation.

Recommendation 11: We recommend that accreditation grants should continue to be provided to encourage the provision of quality-assured post-secondary programmes, and such grants can be subsumed into the financial assistance schemes to be launched by the Government in support of the Qualifications Framework.

5.14 To complement the proposed modifications to the various

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funding availability, non-recurrent grants should be made available for application by institutions to pursue worthwhile projects or initiatives that could improve the learning experience and effectiveness of students in language proficiency, encourage the development and adoption of effective teaching methods or approaches, strengthen the quality assurance mechanisms for post-secondary learning programmes, as well as enhancing student support and career guidance services, etc. Details of the proposed scheme, including its scope, assessment criteria, modus operandi and funding requirement, will be worked out by EDB in consultation with relevant Government bureaux/departments.

Recommendation 12: Subject to funding availability, we recommend that the Government should consider launching a new Quality Enhancement Grant Scheme whereby non-recurrent grants will be provided to institutions and educational bodies to support worthwhile projects/initiatives that could improve students’ learning experience and language proficiency, encourage development and adoption of effective teaching methods or approaches, as well as strengthen quality assurance and student support / career guidance services.

5.15 The recommendations regarding the provision of financial assistance to students will be discussed in detail in the next Chapter.

Other Requests from the Sector

Provision of shared facilities and resources by Government

5.16 Some students of self-financing post-secondary programmes, including those run by the UGC-funded institutions, have requested the Government to provide shared facilities and resources (e.g. library, recreational facilities) for their use, or to subsidize their use of ancillary facilities at the UGC-funded institutions. It should be noted that under the established policy, resources allocated to UGC-funded institutions for their publicly-funded activities must not be used to cross-subsidize their self-financing operations, and hence as a matter of principle, the self-financing arms of UGC-funded institutions have to pay for the use of the facilities on a cost-recovery basis. To allow cross-subsidization will

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tilt the level playing field of the self-financing post-secondary sector, as students studying self-financing programmes run by non-UGC-funded institutions will not have access to publicly-funded campus facilities.

On the other hand, we do not consider it feasible to provide common facilities for shared use by students of some 20 self-financing post-secondary institutions given the scattered localities of their campuses.

Instead, we consider that our recommendations to make available land/vacant school premises and loans under the modified LGS and SLS to provide/enhance teaching and ancillary facilities and to provide quality enhancement grants would better serve the purpose of enhancing students’ learning experience and providing the necessary ancillary facilities (Recommendations 8, 9 and 12 above).

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CHAPTER 6: STUDENT FINANCE

6.1 While improvements have been made to the Financial Assistance Scheme for Post-secondary Students (FASP) starting from the 2006/07 academic year, students have requested further relaxation of FASP to relieve their financial burden. This Chapter takes stock of the existing financial assistance schemes available to self-financing post-secondary students and discusses the case and options for further improving student finance under FASP.

Background

6.2 FASP was introduced in 2001 for full-time students pursuing locally-accredited, self-financing post-secondary programmes leading to a sub-degree or higher qualification. Eligible students will be provided with means-tested assistance (grant or loan) to meet tuition fees, the level of which is subject to price adjustment in accordance with the movement of the Consumer Price Index (A) and capped at $56,560 for the 2006/07 academic year. Local students aged 25 or below without a sub-degree or higher qualification are eligible to apply. They may also apply for non-means-tested loans under the Non-means-tested Loan Scheme for Post-secondary Students (NLSPS) to cover tuition fees (after deducting the actual amount of means-tested assistance, if any) and living expenses.

6.3 Prior to the improvements in 2006, only the most needy students who passed the means test and eligible for 100% assistance would be provided with full grant, and those who passed the means test but not eligible for 100% assistance would receive no grant at all. Instead, they would be provided with a partial means-tested loan to cover tuition fees.

6.4 Since the release of the Phase 1 Review Report, the Government has, with effect from the 2006/07 academic year, brought the means-tested grants under FASP on par with those under the Tertiary Student Finance Scheme – Publicly-funded Programmes (TSFS)15 by

15 TSFS provides means-tested financial assistance to needy full-time students undertaking an exclusively UGC or publicly-funded student place of a recognized course at the eight UGC-funded institutions or the Hong Kong Institute of Vocational Education, the Prince Philip Dental Hospital and

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applying the same sliding scale16 for determining the grant level. In other words, eligible students who do not pass the means test for full grant may receive partial grants according to the sliding scale. The Government has also expanded the scope of FASP to provide a grant of up to about $3,000 for academic expenses per student per annum. We estimate that means-tested grants disbursed under FASP would increase from $215 million in the 2005/06 academic year to about $537 million in the 2006/07 academic year, benefiting about 18,000 students.

Discussion and Recommendations

6.5 Notwithstanding the above improvements, self-financing post-secondary students demanded further improvements to FASP to -

(a) provide means-tested loans (under FASP) to cover their living expenses; and

(b) extend FASP to cover sub-degree graduates pursuing self-financing “top-up” studies.

(a) Means-tested Loans to Cover Living Expenses

6.6 Unlike their counterparts under TSFS, students of self-financing programmes are not eligible for means-tested loans to cover their living expenses. They may however borrow non-means-tested loans which are offered on a no-gain-no-loss and full cost recovery basis, with the current interest rate pitched at 5.132% per annum.

6.7 To strengthen our support to needy students of self-financing programmes, we consider that there may be a case, subject to funding availability, to provide means-tested loans (currently at an interest rate at 2.5%) to these students to cover their living expenses, on the same terms and conditions for means-tested loans provided under TSFS17. We believe that this proposal would bring further financial relief to students studying self-financing programmes. Details of the proposal, including funding availability and timing of implementation, will be

16 Under the TSFS, the level of assistance is determined by a 17-level (from 100% to 4% to the grant ceiling) sliding scale.

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considered by the Government separately.

Recommendation 13: Subject to the availability of resources, we recommend that the Government should consider providing means-tested loans for living expenses under the Financial Assistance Scheme for Post-secondary Students to bring further financial relief to students studying self-financing sub-degree programmes.

(b) Extending FASP to cover students pursuing self-financing top-up degree programmes

6.8 Although sub-degree graduates normally prefer to further their studies at the UGC-funded institutions, there is, realistically, a limit to which the Government (and for that matter the institutions themselves) can expand the number of senior year places in publicly-funded institutions within a short period of time. We consider that the self-financing sector can play a pivotal role in meeting the articulation aspirations of a good portion of the sub-degree graduates.

6.9 However, at present students who wish to “top-up” their studies in locally-accredited self-financing degrees programmes are not eligible for financial assistance under FASP if they have obtained any qualifications at sub-degree level or above (as opposed to those taking up publicly-funded senior year places in UGC-funded institutions who will be eligible for TSFS). They may, instead, apply for non-means-tested loans under NLSPS to cover tuition fees of top-up studies. To better support this group of students, we recommend that consideration be given to providing student finance to eligible sub-degree graduates studying self-financing full-time top-up degree programmes. The proposal would also be conducive to the development of a self-financing degree sector in Hong Kong. However, given the “non-cash-limiting” nature of student finance schemes (i.e. assistance at the prescribed level would be provided to all applicants meeting the eligibility criteria irrespective of the number of such applicants), the proposal of extending FASP to cover top-up studies would have significant financial implications. Moreover, having regard to the experience in developing the self-financing sub-degree sector and to ensure that public resources are dedicated to supporting meritorious sub-degree graduates pursuing quality top-up studies, we

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consider it imperative to put in place measures to uphold the quality and standards of the self-financing degree programmes if FASP is to be extended.

6.10 We consider that, as a matter of principle, any possible relaxation or extension of FASP should be made available to eligible students who pursue full-time locally-accredited self-financing top-up studies after they have successfully completed a full-time locally-accredited sub-degree programme. In line with this principle and subject to funding availability, we recommend that the Government should consider extending the FASP to cover sub-degree graduates pursuing:

(i) self-financing degree / top-up degree programmes that have been accredited in Hong Kong by a government-recognised accreditation agency (e.g. by the HKCAAVQ); or

(ii) self-financing degree / top-up degree programmes operated by the self-accrediting institutions with the resulting qualifications awarded solely or jointly by such institutions.

6.11 In other words, students of non-local degree programmes operated by a non-local institution alone (or through a local partner) or jointly with a local institution18 and leading to a non-local qualification would not be eligible for student finance under the extended FASP as these programmes have not been accredited locally. However, if a non-local programme is accredited by a government-recognised accreditation agency, or have gone through the QA mechanism and procedures of the local self-accrediting institution concerned with the resulting qualification awarded by such institution, the programme concerned would fall within the proposed ambit of the extended FASP.

6.12 Our proposal will likely encourage non-local institutions to seek accreditation locally for their non-local degree (and top-up degree) programmes (if they are operated independently or with a local non-self-accrediting institution) in order that their students could be

18 These programmes are currently registered, or exempted from registration, under the Non-local

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eligible for the extended FASP. For programmes operated jointly by a non-local institution and a self-accrediting institution in Hong Kong, the proposal may also encourage them to undergo the internal QA procedures adopted by the institution proper or by an external accreditation agency.

We believe that the proposal would help enhance the overall quality of non-local degree programmes offered in Hong Kong, without changing the fundamentals of the existing regulatory regime which is based on registration/exemption (see also paragraphs 8.14-8.16 below).

6.13 To ensure the healthy and sustainable development of the self-financing degree sector, we must, in parallel with the recommendation to extend FASP, put in place robust measures to ensure the quality of self-financing degree programmes provided in Hong Kong.

The requirement for local accreditation is geared towards this objective.

In addition, given the number and diversity of the course providers involved in providing self-financing degree programmes, we recommend that the parties concerned, in particular the QA agencies for degree programmes, should jointly discuss QA issues pertaining to the self-financing degree sector. Details are discussed in Chapter 7 (paragraph 7.23).

6.14 We acknowledge that the recommendation to extend FASP to cover self-financing top-up studies will have very significant resources implications for the Government, and that the Government will have to examine very carefully all relevant policy and financial implications arising from the recommendation before deciding on the way forward.

Recommendation 14: Subject to the availability of resources and the proposed parameters, we recommend that the Government should consider extending the Financial Assistance Scheme for Post-secondary Students to cover sub-degree graduates pursuing self-financing full-time locally-accredited degree and top-up degree studies in Hong Kong.

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Other Requests

(a) Providing financial assistance to sub-degree graduates pursuing full-time degree programmes outside Hong Kong

6.15 There have been suggestions that student finance should be extended to support sub-degree graduates to pursue full-time degree programmes outside Hong Kong so as to expand their articulation opportunities. We do not recommend this option for three reasons.

First, given the number and diversity of overseas degree programmes, we have difficulty in ensuring that Hong Kong students are pursuing programmes whose quality and standard are comparable to those of our local degree programmes. Secondly, given the resource constraints, we believe that priority should be given to providing financial assistance to students pursuing degrees locally, and that the gradual development of a local self-financing degree sector would provide more articulation places to meet the aspirations of our sub-degree graduates. Thirdly, it would be difficult to ring-fence why financial assistance is provided to sub-degree graduates pursuing overseas top-up degree programmes only, but not those undertaking full three-year or four-year undergraduate programmes outside Hong Kong. Indeed, we note that the suggestion of extending student finance to cover programmes outside Hong Kong has not commanded general support among the sub-degree students, who prefer pursuing top-up studies in Hong Kong as the tuition fees and living expenses here are generally lower.

6.16 A related issue is whether the Government should extend financial assistance to support Hong Kong students undertaking degree programmes offered by our UGC-funded institutions (and for that matter other locally-accredited institutions) outside Hong Kong (e.g. in the Mainland). While this development may be complementary to our efforts to increase articulation opportunities for local students, we consider that insofar as the current Review is concerned, the Government’s first priority should be to assist local sub-degree graduates to articulate locally.

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CHAPTER 7: EMPLOYMENT AND ARTICULATION OPPORTUNITIES

7.1 The sub-degree qualifications, AD and HD alike, are intended to prepare graduates both for work and for further studies. This Chapter examines the employment and articulation opportunities available to sub-degree graduates, and proposes measures to better meet the aspirations of these graduates in career development/ further studies and the manpower needs of our knowledge-based economy.

Present Position

7.2 Table 7.1 below is a summary of number of graduates of accredited sub-degree programmes since the 2001/02 academic year.

Equipped with both generic and specialized skills, these sub-degree graduates are well-prepared for work and for further studies. This is also in line with our manpower development policy of enhancing the quality and competitiveness of our human capital so as to bridge the manpower gap faced by Hong Kong19 and meet the needs and challenges in a knowledge-based economy.

Table 7.1 – Sub-degree graduates since 2001/0220

2001/02 2002/03 2003/04 2004/05 2005/06

Publicly-funded 7537 6391 7082 7824 7909

Self-financing 1068 2702 5443 6606 9335

Total 8605 9093 12525 14430 17244

7.3 Based on the summary statistics on the progression pathways of self-financing sub-degree graduates from the 2001/02 to 2005/06 academic years (at Annex J), it is noted that over 90% of the sub-degree graduates were able to articulate or find a job shortly after graduation (about half of them pursued further studies and the other half joined the workforce). To a certain extent, this reflects general receptiveness and recognition in our society of sub-degrees being valuable intermediate or exit qualifications.

19 According to the Manpower Projection to 2007 conducted by the Government in 2003, there would be a shortfall of some 100 000 workers with qualifications at or above post-secondary level by 2007.

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