Download Rising Demand For Quality Education in North East China

Rising Demand For
Quality Education in
North East China
CRESTAR EDUCATION GROUP
Outline
• Who constitutes the potential market?
• What kind of quality education is in
demand?
• Why choose North East China?
• When will be the right timing to enter the
region?
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Who constitutes the potential
market?
• Rising middle class in China
• No. of new birth in China in 2012 was 16.4 mil and
North East region has about 709,600 new birth
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Who constitutes the potential
market? (cont’d)
• Presence of multi-national corporations
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What kind of quality
education is in demand?
• Local perceptions of quality education:– Comprehensive infrastructure and hardware
– A typical kindergarten is 3 to 5 times the size of our Singapore
kindergarten with capacity of 300 to 500 students
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What kind of quality education is
in demand? (cont’d)
• Credible, trusted and well-tested education system
• Internationally benchmarked curriculum
• Compliant with local Education Bureau requirement yet
enabling the children to phase into the main stream education
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What kind of quality education is
in demand? (cont’d)
• Quality teachers e.g. native English-speaking
teachers
• Quality custodian care components e.g. quality of
children meals
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Why North East China? Is North
East China the right place to
invest?
• Going beyond the 1st tier cities like Shanghai, Beijing &
Guangzhou whereby markets are saturated and prices are
high
• Relative lower cost of operation
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Why North East China? Is North
East China the right place to
invest?
• Liaoning has a population of approx 43 mil, which is ranked
13th in China
• Combined with Heilongjiang and Jilin, the population size
is over 108 mil
• The population size of Liaoning alone is larger than
provinces like Chongqing and Tianjin
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Why North East China? Is North
East China the right place to
invest? (con’t)
• Quoted from current Minister of Health, Mr Gan Kim Yong
(Co-Chairman for 6th Singapore Liaoning Economic & Trade
Council, 2011):
“Liaoning is an attractive investment location due to several
factors. First, it plays a key role in the Central government’s
plans to revitalise the Northeast region; second, it is
geographically close to key economies like Korea and
Japan, serving as China’s gateway to Northeast Asia; third,
it has relatively lower operational costs. Coupled with these
advantages, cities like Shenyang and Dalian are growing
their urban areas to boost growth. This creates new
opportunities for our companies in services, including
urban solutions, transport and logistics, and even consumerrelated areas like pre-school education.”
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Why North East China? Is North
East China the right place to
(con’t)
Relatively affluentinvest?
region
•
• Among the three provinces of Northeast China, Liaoning is the
largest in terms of GDP and ranks 7th largest in China (out of
31 provinces), which is ahead of provinces like Sichuan,
Shanghai and Beijing
• The other 2 provinces, Heilongjiang & Jilin which were ranked
17th and 22nd respectively (ahead of Chongqing)
• Liaoning’s nominal GDP for 2012 was 2.48 trillion yuan. Its
GDP growth reached 9% in 2013
• Its per capital GDP was 41,782 yuan, way ahead of Chongqing
and Sichuan
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Why North East China? Is North
East China the right place to
invest? (con’t)
• Strong Central Government conviction
Liaoning is expected to do more for urban and infrastructure
developments in line with the latest plan shared by the Central
Government in August 2014 for its “Revitalisation of Northeast
China” strategy (振兴东北). These will lead to more opportunities
for Singapore companies in education, healthcare, hospitality,
logistics and urban solutions.
• Presence of strong IE Singapore rep office support in this region
• Inaugurated Singapore-Liaoning Economic and Trade Council
established in 2003
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Why North East China? Is North
East China the right place to
invest? (con’t)
• Less accessible to quality kindergarten and lack of availability
of quality foreign early childhood education players
• As the Co-Chair for the 8th Singapore-Liaoning Economic and
Trade Council meeting, 2014, Minister for Manpower and
Minister for Social Development & Family, Mr Tan Chuan Jin
mentioned, “As Liaoning strives to meet its growth demands,
our companies can contribute with their experience and strong
track record in the urban development and modern services
sectors.
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When will be the right time to
enter the region?
• Relaxation of one-child child policy
China relaxed its longstanding one-child policy in 2013 in
response to lower population growth, allowing couples to have two
children if either parent is an only child
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When will be the right time to
enter the region? (cont’d)
• Growing affluence among the middle class
• The after 80s and after 90s are more informed through
media or overseas travels
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Challenges
• Unclear application of central policies to resolve the issue
of insufficient kindergartens and expensive kindergartens
• Promotion of low-fee kindergartens for mass market (普惠
幼儿园）
• Local government undertaking the operation of
kindergarten under government-run (公办式) model
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Thank you
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