Big Business' latest acquisitions: RP universities

Manila Standard Today
June 13, 2005

 

Big Business’ latest acquisitions: RP universities

Big business is moving to acquire large colleges and universities and this could be the solution to the rapidly declining quality of higher education in the country.

The poor ratings obtained by top Philippine schools compared to other institutions of higher learning in Asia graphically illustrate the decline in the quality of college education. The entry of big business in the field of education - such as the Alfonso Yuchengco’s acquisition of Mapua Institute of Technology, Lucio Tan’s entry into the University of the East and Emilio Yap’s investment in Centro Escolar University - could help arrest the decline.

An Asiaweek magazine survey recently ranked the University of the Philippines only 48th among Asia’s best universities, followed by De La Salle University and Ateneo de Manila University, which ranked 71st and 72nd, respectively.

At least one lawmaker is cautiously optimistic the presence of big business will help improve the quality of higher learning in the country.

“This could possibly be considered welcome since big business can provide schools access to capital needed to modernize and upgrade the quality of instruction that they provide,” Catanduanes Rep. Joseph Santiago (NPC) said. “On the other hand, we are worried that big business’ entry into institutions of higher learning might further ‘commercialize’ (college) education.”

Last month, publicly listed Bacnotan Consolidated Industries Inc. and Philippine Investment-Management Inc. also bought Cagayan de Oro College Inc. for P310 million. Last year, Bacnotan acquired nearly 80 percent of Cabanatuan City-based Araullo University.

“Some degree of business consolidation is now unfolding in the education sector,” said Santiago. “Whether or not consolidation is good for the sector remains to be seen. However, we do hope that big business’ muscle will somehow help put in check the deterioration of tertiary education in the country.”

Other lawmakers have also expressed concern over the proliferation of substandard schools that produce graduates with dismal passing rates in professional licensure examinations.

In the last five years, the average passing rate across 33 professional fields requiring licensure or eligibility tests was only 45 percent, according to the Professional Regulation Commission.

A previous Asian Development Bank study indicated that the Philippines already has too many colleges and universities, not all of which offer quality education.

The country now has 1,380 colleges and universities, of which 1,214 are privately owned and 166 are run by the government. Some 2.5 million students are enrolled in these schools.