THE Economic Development Board's (EDB) attempt to recall $17.3 million from the University of New South Wales (UNSW) Asia is not subject to guarantee by its parent institution in Sydney, said a minister.

Nevertheless the EDB is currently negotiating with UNSW in Sydney to return the money.

Mr S Iswaran, Minister of State for Trade and Industry, said this in Parliament when Nominated MP Siew Kum Hong queried if the parent university can be held responsible if UNSW Asia is delcared insolvent.

In a statement last month, UNSW had said that UNSW Asia, the company behind the now-defunct Singapore campus, was faced with 'significant claims' from creditors.

It said if the claims were upheld, UNSW Asia will not have enough funds to pay up, and may have to consider declaring itself insolvent.