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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? CRESTAR EDUCATION GROUP 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 CRESTAR EDUCATION GROUP Who constitutes the potential market? (cont’d) • Presence of multi-national corporations CRESTAR EDUCATION GROUP 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 CRESTAR EDUCATION GROUP 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 CRESTAR EDUCATION GROUP 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 CRESTAR EDUCATION GROUP 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 CRESTAR EDUCATION GROUP 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 CRESTAR EDUCATION GROUP 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.” CRESTAR EDUCATION GROUP 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 CRESTAR EDUCATION GROUP 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 CRESTAR EDUCATION GROUP 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. CRESTAR EDUCATION GROUP 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 CRESTAR EDUCATION GROUP 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 CRESTAR EDUCATION GROUP 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 CRESTAR EDUCATION GROUP Thank you CRESTAR EDUCATION GROUP