Editorial | To remain competitive, international schools must be more transparent

This is not the first time the issue has arisen. In 2020, the government required schools to submit paperwork on such costs, pending an approval mechanism. In 2023, the Education Bureau introduced a guideline on debentures, capital levies and other fees, including more disclosures about investments and redemptions.

There may be room for more oversight and transparency. LCMS refuelled the debate by suing the school’s operator, the Hong Kong International School Association Limited, for breaching an operational agreement. The association has said it plans to negotiate for a settlement out of court. LCMS accused the association of serving only the “rich and privileged few” and amassing excessive reserves. The operator said the allegations were false or irrelevant, adding that it is committed to supporting the international community. There is a question about the adequacy of safeguards for parents making upfront payments for debentures.

The reaction has ranged from the need for more regulation of fees such as debentures, to enhance accessibility, to the view that current regulations are adequate given schools’ need to raise funds for the construction of premises on land granted by the government.

The solution lies in striking a balance by focusing on the attraction and retention of talent, including home-grown talent, to maintain a competitive edge. Hong Kong cannot be complacent. The high cost of property and private education remains a disincentive, counterbalanced by stability, tolerance and diversity. The integrity and transparency of the international, foreign and English-language education landscape are paramount to competitiveness as an international finance centre.