TEOCHEW philanthropic group Ngee Ann Kongsi has donated $3 million towards the Singapore Management University (SMU) endowment fund.

This is its first donation after a rule change this year which allows the clan association to channel more of its income to educational institutions other than Ngee Ann Polytechnic.

In appreciation, the university has renamed a 300-seat conference hall, previously called the SMU Conference Hall 2, the Ngee Ann Kongsi Auditorium.

Previously, Ngee Ann Kongsi was required by law to give 75 per cent of its income to Ngee Ann Polytechnic. But with the amended Ngee Ann Kongsi (Incorporation) Ordinance in July, this was lowered to 25 per cent.

It was also allowed to give 40 per cent of its income to other educational institutions and anther 10 per cent to charities.

Next year, SMU will also start the Ngee Ann Kongsi Annual Lecture Series, which will feature talks by industry leaders and distinguished scholars on global issues.

At an event on Wednesday to mark the philanthropic group's first gift to SMU, Ngee Ann Kongsi president Teo Chiang Long and Minister of State for Education Gan Kim Yong unveiled a plaque bearing the hall's new name.

Said Mr Teo: 'Education remains the founding spirit and cornerstone of Ngee Ann Kongsi and we have dedicated ourselves to supporting the education of all strata of the Singapore community.'

He noted that SMU has become 'a top choice' here despite its short history.

Ngee Ann Kongsi, which was set up by Teochew merchants in 1845 to look after the welfare and religious needs of Teochew immigrants, has seen its income grow from $500,000 in 1972 to $23 million last year.

SMU president Howard Hunter said the university was proud that a major campus venue 'will bear the Kongsi's name in perpetuity, as an enduring tribute to its heritage as an advocate and champion of education'.