Business groups question free tuition

MANILA, Philippines -  Various Philippine business groups have raised concern over the proposed legislation that aims to provide free tuition to students in state universities and colleges (SUCs).

In a joint statement, the groups led by the Philippine Business for Education (PBEd) said they are one with the government in their push for greater access to quality tertiary education but, as the government’s economic managers have warned, it might lead to unintended consequences counter to the spirit of the policy, which is to make it beneficial to the poor who need it most.

“The policy should therefore also aim to increase the small share of the poor in the total enrollment in public higher education institutions (HEIs). Given that poor students have identified out-of-pocket expenses as the top deterrent to staying in HEIs, whether public or private, we should additionally close other funding gaps to ensure retention and graduation,” the groups said.

The groups added increased educational access should be coupled with mechanisms to improve quality in support of the country’s competitiveness.

They noted the need to reverse the trend in the labor market where 23 percent of unemployed youth are college educated, citing the issue of jobs mismatch in the country.

“We believe that only through increased access to quality education will we produce graduates ready for the workforce,” read the joint statement.

“To truly benefit the poor and ensure that a diploma leads to a meaningful job, we therefore call on government to rethink and redirect this policy,” it added.

Instead of providing free tuition, the business groups recommended the strengthening of student financial assistance programs by adding more funds to a voucher system that covers the total cost of tertiary education for use in both public and private institutions.

They also proposed leveraging of state funding to foster competition among HEIs by setting up quality and outcomes-based measures.

“We share with the senators the goal towards a quality tertiary education system that allows for multiple pathways to success, be that technical education or college, opens up genuine opportunities for everyone, rich or poor, and supports Philippine competitiveness by producing a highly educated and skilled workforce,” the groups said.

In addition to PBEd, other business groups that supported the statement include the Management Association of the Philippines, Philippine Chamber of Commerce and Industry, the Employers’ Confederation of the Philippines, Makati Business Club, American Chamber of Commerce, Korean Chamber of Commerce in the Philippines and the Canadian Chambers of Commerce in the Philippines.

The Senate on Monday passed on third and final reading the proposed Affordable Higher Education Act that aims to lower the cost of higher education in the country.