It's about time they look at this.
The whole debenture and capital levy system sucks majorly.
HK's approach is particularly insidious as there are few school options for foreign kids without local language skills so you either cough up the debenture money or sling your hook.
The school my daughter went to for primary school in Kowloon Tong here introduced debentures the year after she started.
Now that she's off to secondary school, we declined to pay the equivalent of £50,000 pounds as a debenture fee simply for her to go from primary to secondary school in the same place.
Singapore awaits instead.
As do a number of other countries with more competitive schools and less dramatic requirements for school admissions.
Here's hoping that something positive comes out of this government review into these 'extracurricular' school fees.
The days of school corporate debentures being provided by large corporations to a dwindling pool of 'expats/economic migrants' with no/limited local language skills and above average pay are becoming a faint memory in Hong Kong.
HK schools should take note.
We can complain, but hk is a capitalistic society, and these schools are there to survive economically without government subsidy...
its simple, if they can't get that free/cheap loan via debenture, then they have to price in their interest cost (i assuming for the school property they using) into the school fees, and raise the fees.
What will happen when the fee control and regulation starts kicking in ? The famous ones will just get regulatory approval to do it, those that cant do it will eventually have to close their door (assuming they are unable to hike fees) and you will get more competition for the lessor spaces in the private schools..
And don't forget, rental in hk is the highest in the world.. and i don't think so far anyone is using private school to cream money excessively (easier to punt property than to run a school if profit is all that is needed).
Fairly simple economics..
The problem therefore remains, affordable quality education is still a pipe dream for many HKers.
This is just one of the many many `deep rooted problems`.
rent control is next...
Private schools in other countries raise money through parent and alumni contributions. Debentures and capital levies for enrolled families are deeply unfair, particularly as you'll have different groups paying different amounts depending on when admitted. If you can't finance your new rock climbing wall without debentures then you don't get a bloody rock climbing wall. Fundraise for it and call it the Lee Family Memorial Climbing Wall or whatever.
Many schools have land and facilities granted to them at concessionary rates so rent and land costs are irrelevant.
Should they go public and sell share in the stock market to raise capital?