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     FrontPage Edition: Sun 11 June 2006

Key Survey Findings on Education Services 2004



Education Services

In 2004, the education services industry1 comprised 2,900 establishments. The industry employed some 49,600 workers, or an average employment size of 17 workers per establishment.
Total operating receipts generated by the education services industry was $2,104 million in 2004, an increase of 6.9 per cent over 2003. Correspondingly, on a per establishment basis, operating receipts rose by 0.9 per cent to $721,600 in 2004.
Total operating expenditure increased by 4.2 per cent from $4,896 million in 2003 to $5,101 million in 2004. Operating expenditure per establishment, however, decreased by 1.7 per cent during the same period.
Total operating surplus declined by 1.6 per cent to $731 million in 2004, due mainly to the lower operating surplus registered by technical & commercial education services. Correspondingly, operating surplus per establishment decreased by 7.1 per cent from $269,700 in 2003 to $250,600 in 2004.
Total value added of the education services industry increased marginally by 0.3 per cent from $3,595 million in 2003 to $3,606 million in 2004. On a per establishment basis, value added dropped by 5.3 per cent to $1.2 million in 2004.
General education and technical & commercial education services made up more than one-third of the total number of establishments in 2004 (Chart 1). Institutions of higher education, though the smallest in number, had the largest employment share, engaging a total of 18,200 workers or 36.7 per cent of total employment in 2004.

In terms of operating receipts and value added, the largest contributor was the ¡°higher education¡± group, accounting for 35.3 per cent and 56.7 per cent of the respective totals (Chart 2). This was followed by general education services with 24.5 per cent and 26.0 per cent share of the total industry¡¯s operating receipts and value added respectively.

In 2004, more than half of the total operating expenditure incurred by the education services industry was for remuneration. Within the industry, remuneration was the top business cost item for all groups, except supporting services to education, constituting 42-72 per cent of the groups¡¯ operating expenses.
For supporting services to education, the top business cost item was subcontract charges (for example, payment to individuals and businesses for conducting talks and seminars), contributing 26.2 per cent to the group¡¯s operating expenditure.

Average Annual Remuneration per Employee was the highest for employees in higher education services (Table 2). They received an average remuneration of $83,200 in 2004, higher than the overall education industry¡¯s average remuneration of $59,500. On the other hand, employees in the ¡°other schools & instruction¡± group were the lowest paid, receiving an average of $26,200.

Value Added per Worker was $72,700 for overall education services in 2004. Higher education institutions continued to register the highest value added of $112,200 per worker among all the industry groups (Chart 3). In contrast, the ¡°other schools & instruction¡± group recorded the lowest value added per worker of $32,100.

Small firms (ie less than 10 workers) formed the majority (80.3 per cent) in the education services industry in 2004 (Table 3). However, large firms (100 workers & above) which constituted only 2.4 per cent, contributed the most to total operating receipts (59.1 per cent). This group¡¯s value added per worker was also the highest at $98,100 in 2004.

1 Includes all establishments and statutory boards engaged in education services but exclude government ministries and departments. Government schools under the full funding and control of the Ministry of Education are also excluded.

Source: Media Release 9 Jun 2006

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