I am an operator. Please don't flame me..
The higher & higher cost of fees
The bulk cost of a preschool can be largely divided into RENT & OPERATIONAL COST (eg. Teachers pay).
If you look at the property prices, you will know why the fees are more and more expensive. A 3 mil bungalow years ago is now 4.5mil and even though the landlord still maintains the standard 2% yield, the operator needs to pay more 50% to sustain the rent. This is a result of the rise in property prices which everyone faces. Ever since the regulation of the teachers, the pay of teachers have been going up & up... which is good, because it is really too difficult to get any well trained or passionate people to be in this industry. Even so, the pay still lags behind most jobs. (sometimes, it is quite sad that teachers left us because of another place or industry who offer 10% or much more.. But, we have to respect that they have other aspiration, and the higher cost going in SG, the educational fees that they have to pay for their children, etc)
I have to point out that despite the rise in so many other things, like higher GST due to everything going up, your higher property taxes, your personal tax (if you experience a good increase in salary) etc, the subsidies have remained at 300.
Because there is a huge gap in this industry, there have been a lot of incentives, free or heavily subsidised training to jobless or housewives, people who are going through retraining to make them qualified teachers to fill the gap in the industry.. I can't really say whether this is a good or bad thing as i would have prefer someone who is passionate about this line rather than coming in to get a monthly paycheck because they have no other qualifications.
I would suggest that the govt not increase the subsidy, but provide a career path towards the betterment of passionate teachers, eg subsidise part of pay as they progress towards higher qualification, subsidised deg program, yearly loyalty bonus, etc
For rent, i have not much idea.. perhaps do not charge them comercial tax rate? or a subsidised rate (as they are charge higher tax for leasing to businesses) hope my facts are right..
Most parents are like our friends and it is always a challenge to mention a hike in fees.
If the 2 costs are in check, there is not much reason to increase fees..
Improving the standards of preschool from an operator's view
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