Navigating the Changing Landscape of Private Education: Strategies for Growth and Transformation

Market Overview

In 2020, Singapore's private education sector was valued at S$3 billion. However, the number of private education institutions and enrolments has been declining. As the sector evolves, it faces significant challenges in adapting to the demands of a changing workforce and shifting population demographics, including: 

1. Changing Workforce Needs: As industries evolve, so do the skills and knowledge required by the workforce. Educational institutions must continually update their curriculum to stay relevant. 
2. Demographic Shifts: With declining birth rates and an aging population, there is an increased focus on lifelong learning and professional development. Programmes must cater to a broader age range and diverse learning preferences. 
3. Rising Costs and Talent Shortages: The cost of maintaining and upgrading facilities is rising, while the demand for qualified educators and administrative staff exceeds supply, impacting education quality. 
4. Technological Advancements: Rapid developments in digital tools, e-learning platforms, AI, and virtual reality necessitate the integration of these technologies to remain effective and relevant. 

All these factors highlight the need for strategic interventions in the form of business expansion and/or transformation. 

Business Expansion

1. Product Offering Expansion: Institutions can expand their course offerings and build partnerships with overseas universities to attract more students. 
2. Geographical Expansion: Establishing campuses overseas can tap into new markets and diversify revenue streams. 

Key Considerations for Expansion: 

• Establish clear goals and develop detailed plans for the next five years.  
• Conduct thorough market research to identify opportunities and demands, using SWOT analysis. 
• Build strong marketing strategies through various channels, including utilising grants such as the Market Readiness Assistance Grant for overseas market promotion and business development. 
• Evaluate your resource availability, including staffing options such as outsourcing, contractual arrangements, and nearshoring.  

Business Transformation

Transforming internal processes and business models through digitalisation is essential for modernising educational institutions. 

1. Digital Teaching Methods: Implementing tools like learning management systems, online learning platforms, and AI-driven tutoring can enhance teaching effectiveness. 
2. Operational Process Improvement: Adopting cloud-based applications for accounting, procurement, HR, and administration can streamline operations and improve efficiency. 

Key Considerations for Transformation: 

• Take a close look at your current strategies and capabilities, especially in areas like  digital cohorts and shorter courses, to transform your business model. 
• Approach transformation with a solid change management plan, focusing on critical functions to make the best use of resources. 
• Utilise grants like the Enterprise Development Grant to support core capabilities, innovation, productivity, and market access. 
• Evaluate technological investments, considering the cost and benefit of in-house system development versus outsourcing market-ready systems. 
• Tap into programmes like the SME Go Digital initiative to ensure the business is digital-ready. 

Support for SMEs

Business Expansion 

As businesses expand, whether by offering new products/services offering or entering new markets, RSM can help. 

• Developing new products or services requires investment, in the form of new machinery, facility leases, additional staff, etc. Without a well-thought-out plan, execution of such projects can easily fail. Our team of professionals advises businesses on risk management, ensuring that measures are in place to mitigate risks and achieve business goals. 
• Pitfalls and challenges are inevitable when businesses navigate into a new geographical location. To address these, we work closely with our clients, gaining a deep understanding of their business and plans. This allows us to provide informed advice on governance, compliance, and other statutory requirements. 

Business Transformation

The CTO-as-a-Service (CTOaaS) initiative by the Infocomm Media Development Authority (IMDA) offers comprehensive support for SMEs at all stages of their digital journey. This includes conducting digital needs analysis to prioritise and align digitalisation goals, identifying and recommending suitable digital solutions, managing digital change, and encouraging employee buy-in. 

In a recent case, we assisted an SME client under the CTOaaS scheme, successfully digitizing the client’s HR and accounting processes. This transformation reduced payroll processing time from one day to half an hour, improving staff retention and morale by eliminating manual and tedious tasks. 

Looking Ahead 

In summary, educational institutions must strategically expand and transform to meet the evolving demands of the workforce and demographics. By leveraging digital solutions and comprehensive support programs, they can enhance their offerings, streamline operations, and remain competitive in the dynamic education sector.