Work or get diploma? New financial perks help ITE students decide

Some say 15,000 in monetary top-ups will nudge them towards poly route

It was initially a difficult choice between starting work and pursuing a polytechnic diploma for finalyear Institute of Technical Education (ITE) student Erra Syazlinie, who is slated to graduate in July.

However, the decision became an easy one to make for the 20year-old, who is currently pursuing her Higher Nitec in financial services, after she learnt about the $15,000 awaiting her should she complete a diploma programme.

This is a "large amount of money that cannot be easily earned", said Ms Syazlinie, who now wants to take up a diploma in events management.

To encourage more ITE graduates to upskill and set them on a better wage trajectory, Deputy Prime Minister and Finance Minister Lawrence Wong announced in his Budget speech on Feb 16 financial incentives for ITE graduates aged 30 and below when they enrol in and complete a diploma programme.

They will get a $5,000 top-up to their Post-Secondary Education Account when they enrol in a diploma programme, and another $10,000 in their Central Provident Fund (CPF) Ordinary Account upon finishing the diploma.

This latest move will prod ITE graduates in the right direction of upgrading, said observers, but much depends on whether they can afford to lose the short-term earnings from holding a job during the time they choose to study.

The Straits Times spoke to about 20 ITE students and graduates, some of whom said the monetary incentives will nudge them towards the polytechnic route, while others said they had already wanted to pursue a diploma.

ITE student Amirul Aqmal, 19, now wants to take up a diploma after graduating in 2024, instead of following his initial plan of doing his national service first.

Mr Amirul, who is in his final year of studying for a Higher Nitec in sports management, said the financial perks help him to "worry less", and would be helpful when he wants to buy a house in the future.