Rising Fees for Local Students in Hong Kong, But International Fees Remain Stable

Non-Local Student Fees Unchanged as Hong Kong Tackles Education Budget Reductions

In a bid to uphold its status as a premier destination for international students, the Hong Kong administration has announced that university fees for non-local students will remain unchanged. This steadfast decision comes in the face of a looming reduction in the city's education budget, driven by a growing deficit. Despite the inevitable increase in fees for local students, this move is strategically aimed at ensuring Hong Kong continues to attract students from across the globe, who might otherwise explore options in Singapore, Japan, or other Asian countries.

Christine Choi Yuk Lin, Hong Kong's Secretary for Education, stated on 1 February that the government opposed significant tuition fee hikes for non-local students despite the deficit, emphasizing the need to attract top students to maintain Hong Kong’s high-quality education and research. She clarified that public funds would not subsidize non-local students, and universities would need to use their reserves or seek alternative funding. Moreover, raising fees to HK$300,000 could deter the best students, especially given that Singapore charges international students between HK$100,000 and HK$200,000.

Non-local students in Hong Kong currently pay tuition fees between HK$150,000 and HK$180,000 (US$19,000-23,000). Choi noted that while funding cuts may impact universities, their strong financial management and reserves, totalling HK$125.9 billion (US$16.2 billion) in the 2022-23 financial year, would likely offset any adverse effects. She expressed confidence that these adjustments would not harm the quality, research, or competitiveness of Hong Kong's universities.

After years of stable finances, Hong Kong is addressing a forecasted deficit of HK$100 billion (US$12.8 billion) for the current financial year. Finance Secretary Paul Chan Mo-po is expected to announce education funding cuts in his budget speech on 26 February, as the city's economic outlook is affected by a post-pandemic slump and geopolitical challenges, including a new 10% tariff on Chinese imports introduced by US President Donald Trump on 1 February. In a 3 February interview, lawmaker Lau Chi-pang, associate vice-president of Lingnan University, acknowledged that education funding cuts were understandable due to the deficit but believed universities could adapt. He emphasized that universities can use their income and reserves for needs like hiring, research, and infrastructure, and suggested academics be encouraged to secure funding by commercializing their research.

Recent government statements have prepared universities for substantial budget cuts while reaffirming Hong Kong's position as a global hub for higher education and technology. In response to some legislators' calls to increase non-local student fees 70% of whom are from mainland China—the quota for non-local undergraduates at public universities was raised from 20% to 40% starting in the 2024 academic year. In December, lawmaker Wendy Hong suggested the government consider recovering costs from non-local students, who currently pay HK$150,000 to HK$180,000 (US$19,000-23,000) in tuition, while their education costs around HK$300,000. She acknowledged that higher fees might reduce student interest and proposed offering scholarships to attract top-tier students.

In response, Hong Kong's Secretary for Education Christine Choi stated that universities should aim for "cost recovery," not profit, especially given the competition from neighbouring countries. An anonymous faculty member from the Chinese University of Hong Kong expressed concerns that freezing non-local fees long-term would be difficult, particularly as local fees rise, noting the public’s likely demand for more equitable burden-sharing. The academic noted that Hong Kong's universities face a tough challenge in maintaining their international hub status, as attracting top-tier academics will be costly amid budget cuts expected for the next three years. The University Grants Committee allocates funding to the city’s eight publicly funded universities in block grants, but the amounts for 2025-28 have not yet been revealed.

Starting in the 2025-26 academic year, the government plans to raise tuition fees for local students, which are currently around HK$42,100, by just under 18% in phased increases over three years, after having remained frozen for nearly three decades. Christine Choi, Hong Kong’s Secretary for Education, explained that the decision to raise fees was made with consideration for the financial burden on students, noting that 87% of university places are government-subsidized. Hong Kong remains committed to balancing financial sustainability with its reputation as a leading global education hub, ensuring continued access to high-quality education for both local and international students.

Editor's Note:

The Hong Kong administration's recent decisions highlight its commitment to maintaining its global status as an educational hub, despite financial challenges. By keeping university fees for non-local students steady, Hong Kong continues attracting international talent and fostering a diverse academic environment. The balancing act of managing budget deficits while ensuring equitable access to high-quality education underscores the city's strategic approach.

Skoobuzz appreciates the dedication of the administration to providing quality education and international collaboration, as it will play a crucial role in shaping the future of Hong Kong's universities and their ability to compete on the global stage.