The Government is going to set up a fund for each Singaporean student here and if they leave the money untouched, their account will have as much as $33,000 by the time they complete their secondary education.

This amount in the student's Post-Secondary Education (PSE) account can go a long way in helping them complete their tertiary studies, Minister of State for Education Gan Kim Yong said yesterday.

'Coupled with study loans, bursaries and work-study programmes, we can expect that all Singaporean students from the lower 50 per cent income group, who are admitted to the local universities, will be able to complete their university education without any cash outlay for tuition fees and living expenses,' he said.

Mr Gan was responding to Dr Lily Neo (Jalan Besar GRC) yesterday during the debate on the Education Endowment Bill, which would lay the legal framework for the PSE account.

Dr Neo had raised concerns over the rising costs of tertiary education, and asked how far money from the new scheme would go.

The Bill, passed by Parliament yesterday, marks the fulfilment of plans announced by Prime Minister Lee Hsien Loong during the 2005 National Day Rally.

Mr Gan also gave more details about the scheme that is part of the Prime Minister's vision of providing a first-class education for all.

The account will be started for every child with a Child Development Account (CDA), which was started in 2001 as part of the Baby Bonus package. The Government matches parents' contribution to the CDA, but up to a specified sum.

That matching will be extended to the PSE account.

Parents can contribute to the PSE account until their child turns 18. The money earns interest pegged to the rate for the CPF Special Account, which is currently 4 per cent.

The Government will match the parents' contributions subject to a combined CDA and PSE cap of $6,000 for the second child and $12,000 each for the third and fourth child.

When the time comes for the child to enrol for tertiary education, the funds can be used for studies in the Institute of Technical Education, polytechnics, publicly funded universities and other institutions approved by the Government.

Summing up, Mr Gan said the scheme 'will help Singaporeans save for their children's education beyond the secondary level.

'This is an important part of our strategy to invest in our future.'

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