Internationalising Schools supplement

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Internationalising Schools

W ith the global education market estimated at US$4.5 trillion in 2012 and a year-on-year growth pro� le for the next � ve years estimated to be some seven percent, an increasing number of independent British schools are staking a claim to their share, supported by the UK government,

which sees education as “an important enabler of UK economic growth and one of its most successful exports”.

This supplement, brought to you by Bird & Bird, aims to highlight the issues that schools with international aspirations need to focus on and introduces them to the regulatory environment in those markets which may o� er the greatest opportunity.

Special supplement: internationalising schools

Contents

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3. An introduction to international growth

6. Case studies • North London Collegiate School • Wellington College • Sherborne School

8. Country-speci� c advice • China • Thailand • Singapore

• South Korea • India • Indonesia

• Malaysia • Vietnam • Middle East

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Why are British schools focusing on international growth?

Schools such as Wellington College, Sherborne, North London Collegiate,

Dulwich College and Harrow have all grasped the international growth opportunity with both hands and many others are in the process of doing so. They o�er

a variety of reasons, but they generally revolve around securing a substantial long-term income stream, so securing the future of the school, and improving the education that they o�er children, both at their home school in the UK and in the new markets they are entering.

T here are three basic steps that a school contemplating taking the

internationalisation route should take.

STEP ONEThe �rst step is to ensure that a small number of governors and members of the senior management team are given express authority to investigate international opportunities and take appropriate advice from real experts on how to protect the school's interests and put in place an e�ective procedure for identifying high-quality potential partners without wasting time on unsuitable candidates or binding the school to inappropriate commitments.

STEP TWOThe next step is to conduct a brand audit and pull together an appropriate international brand protection strategy. Registering the school’s name and coat of arms as a trademark must be done as soon as the school has decided that it has international ambitions, as without such protection it will be impossible to implement an international strategy.

When �ling a trademark application, it is necessary to identify the speci�c goods and services to be covered by the registration and the classes within which such goods and services fall. This requires careful thought and it is not simply a matter of �lling in a few forms or asking a local trademark agent to �le an application.

INTRODUCTION

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However, a school’s ‘brand’ is more than just its name and coat of arms. It is more than its school uniform and sports strips. It is more than its performance in the academic league tables. These are all manifestations of something far more intangible: its history and traditions, its values, ambitions and world view. Protecting such a complex and intangible asset presents many challenges which must be dealt with by an appropriately experienced lawyer who understands both the education sector and the target markets and so is able to dra� legal documentation that delivers optimal protection.

STEP THREEThe third step is to put into place a clear protocol for taking potential deals forward in an e�cient and businesslike manner. This involves conceptual issues

such as pro�ling ideal partners, deciding on a geographical focus and identifying the basic �nancial elements of an appropriate deal.

It also involves mechanical issues, such as identifying appropriate advisors and putting together a short listing process, basic due diligence requirements and supporting documentation.

“It is essential to adopt the structure that is best suited to the school, the target market and the commercial terms of the deal”

WHAT ARE THE KEY CONCERNS FOR SCHOOLS?The risks that schools face when venturing abroad revolve mainly around protecting their reputation and ensuring the quality of both the education and pastoral care provided by their ‘sister’ schools in foreign markets.

Ensuring that their ethos – the DNA of the school – becomes a part and parcel of the overseas schools bearing its name is also a key challenge. Appropriate structuring of the venture should mean that there is no substantial �nancial risk to the school.

What should the �rst steps be?Sherborne School, Qatar

HOW SHOULD SCHOOLS STRUCTURE THEIR INTERNATIONAL EXPANSION?The charitable status of schools in the UK, the role of the school governors, the nuances of the education sector and the regulatory maze in the target markets all complicate matters and mean that it is essential to adopt the structure that is best suited to the school, the target market and the commercial terms of the deal. As a result, each deal is to some extent unique and tailored to the needs of a particular school in a particular market.

A sound international structure and high-quality technical legal documentation are key success factors and substantially de-risk the school’s access to international income streams by affording optimum protection to the school and ensuring that the regulatory environment in each target market is complied with.

The best way of reducing the risks involved in internationalising a school is to choose a good partner. However, there is no readily available list of potential partners and the size of the investment means that there are few ‘multiple operators’ who are looking to build a portfolio of di� erent school ‘brands’. If a school’s professional advisers have a good deal of experience in internationalising schools, they can sometimes point them in the right direction. Likewise the UKTI. However, most of the deals that are done begin with the local partner taking the initiative and approaching the school. It follows therefore that the more a school publicises the fact that it is considering international growth, the more likely it is that it will be approached by potential partners.

Local partners may or may not have relevant experience of

WHAT RESOURCES DOES A SCHOOL NEED?It is important to ensure that the school has su� cient resources to support its overseas schools. Exactly what resources are needed will depend upon the structure adopted, but in any event the international venture will have to be considered an important part of the school's commitments. The head and the bursar will need to be involved in the launch of the overseas school, helping with sta� recruitment and training to some degree. The school governors will also have a role in ensuring that the overseas school is monitored and given appropriate levels of ongoing support. If the international strategy involves more than one overseas school, it is likely that the appointment of an international director would be appropriate. Failing to invest in the appropriate support infrastructure will prejudice the overseas school’s long-term success and so the UK school's income stream.


How does a school identify a suitable partner?

operating schools. That is not important. What is important is that the partner is committed to the school's educational ethos and is willing to place that above the short-term � nancial returns that the ‘overseas’ school generates for them. For example, they must be willing to support the relevant sta� /student ratios, even though higher ratios will generate a higher short-term � scal return on their investment.

It is essential that the school undertakes full due diligence to ensure that the potential partner not only has su� cient funding, but is also someone that the school is happy to be involved

with. For example, if he has made his money through operating child ‘sweatshops’ or has criminal links, it is unlikely that the school would wish to take things forward, despite his � nancial status.

“The best way of reducing the risks involved in internationalising a school is to choose a good partner”

income stream.


and successful school operator in the target market in whom the school has signi�cant con�dence. The structure can have a relatively high risk pro�le due to the relative lack of control exercisable by the UK school; however, it makes fewer demands on the UK school's resources.

A CO-OPERATION AGREEMENTThis involves the local partner fully funding the overseas school and the UK school investing far more time and e�ort into articulating and

transferring the school’s ethos, modus operandi, curriculum and business model (the school guidelines) to the overseas school and ensuring that its sta� are fully trained in – and apply – them.

The UK school will invest time in designing the curriculum for the overseas school and recruiting the overseas school’s head, deputy head, bursar and academic sta�, training them and supporting and policing them on an on-going basis. It will also advise upon the design and construction of the school facilities to ensure that they are of su�ciently high quality. There are also o�en ongoing sta� and student exchanges. In return the school will receive an upfront fee and an ongoing percentage of the overseas school’s income. The upside of this approach is that it gives the UK school far greater control over how the overseas school is operated, thereby better protecting its reputation and the quality of its teaching. The down side is that the UK school is still not totally in control of

the way in which the overseas school is operated and has to build considerable resources in order to monitor and support the overseas school on an on-going basis. This is the most commonly adopted structure.

A “MANCHISE”This involves the local partner fully funding the overseas school and the UK school entering into a co-operation agreement. However, in addition, the UK school enters into a management agreement with the overseas school under which the UK school’s operating company undertakes to run the overseas school on a day-by-day basis in return for an additional management fee. This may be for an initial period (to get the overseas school up and running, so presenting a ‘turnkey’ package to the local partner) or for the duration of the relationship. The advantages of this approach are that it gives the UK school full control of the overseas school and another substantial income stream. The down side is that it requires the UK school to invest a great deal of time and resources into the overseas school.

In some jurisdictions the regulators require that the UK school has an equity shareholding in the overseas school, the idea being that it gives a greater degree of permanence to the relationship. This does not necessarily mean that the school has to invest its own capital into the overseas school and there are a number of di�erent structural options that can be adopted.

WHICH COUNTRIES OFFER THE BEST OPPORTUNITIES?The markets currently

attracting the most interest from UK schools are the Middle East, China, Malaysia, Thailand, Vietnam, Singapore, India, Indonesia and Korea.

Each country o�ers di�erent opportunities for UK schools. For example, schools in the UAE are focused mainly on expatriate students. However, in China, although there is a market for expatriate schools, the current trend is for UK schools to focus on dual-curriculum schools that are aimed at PRC nationals and o�er both the Chinese and UK curriculum, as there is a much larger and ultimately more lucrative market for this type of school.

Whilst some UK schools may feel that they have a cultural a�nity (or indeed antipathy) to certain markets, for most it is a question of seeing where the most attractive opportunities arise and then considering how those opportunities can be best accommodated.

CONCLUSIONThere is currently a window of opportunity for independent UK schools (that is likely to exist for only a limited period of time) to not only establish a secure long-term income stream for themselves but, more importantly, to establish themselves as an international educational brand that will have a secure position in an increasingly competitive and global market – a market that is likely to experience increasing rationalisation over the coming years, making the future rather uncertain and insecure for those schools that choose not to take advantage of this current opportunity.

DIRECT INVESTMENTA very small minority, notably Marlborough, have established their own operation abroad (in the case of Marlborough in Malaysia). Although at least one other school is currently considering a similar approach, this is proving to be the least popular approach, due to its demand for substantial capital investment by the school, the need for local market knowledge and the managerial infrastructure required, all of which greatly increase the risk pro�le of the venture. However, if the venture is successful, the UK school has full control and enjoys a potentially higher income stream.

A LICENCEThis involves the school committing to a minimal level of involvement in the overseas school, which is fully funded and operated by the local partner. Typically it involves an existing local school adopting the UK school’s name, being given a basic curriculum and having access to the UK school’s head and certain other sta� for a �xed number of days a year. In return the UK school receives an initial fee and a fairly modest ongoing royalty based upon the ‘sister’ school’s tuition fees. The advantage of this structure is that it requires minimal investment of time and resource by the UK school and generates an ongoing income stream for it. On the downside, it potentially exposes the school to the risk that its reputation is damaged or diluted by the way in which the overseas school is operated. This structure is best used if the local partner is an experienced

INTRODUCTION

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What structure can be adopted?

“Each deal is to some extent unique and tailored to the needs of a particular school in a particular market”

North London Collegiate

N orth London Collegiate School was founded in 1850 and combines

academic excellence with pastoral care tailored to the individual, a vibrant extra-curricular life and a uniquely international outlook. It is one of only two schools in the UK to have been twice named as Independent School of the Year in the prestigious Times’ ‘Parent Power’ supplement.

The school’s � rst international ‘branch’ – NLCS Jeju – opened to students in 2011, a� er an intense phase of development working with an agency of the South Korean government. This included the recruitment and training of all sta� , the design and build of the entire campus and the establishment of all academic and pastoral structures for this selective coeducational day and boarding school. The initial 430 students have now grown to over 1,000 from kindergarten to year 13 and it is intended that the school will reach its capacity of 1,400 in

the next few years. The close relationship

between the two schools is mutually bene� cial and exchanges and visits between them are just one of the many close ties which bind them together. Sta� appointed to NLCS Jeju are interviewed and trained at NLCS (UK) in order to ensure a thorough understanding of and commitment to the NLCS ethos, which espouses an ambitious academic education, pastoral care which ensures no student ‘slips through the net’ and extra-curricular provision which truly allows the whole personality to grow.

NLCS Jeju brings this philosophy to life in a new cultural context. It was the � rst school to be constructed within the Jeju Global Education

City, a high-quality English-speaking educational project on the beautiful island of Jeju o� the coast of South Korea which was designed to give Korean families the opportunity to provide a ‘western’ education for their children without leaving Korea.

Having built up a sophisticated international

infrastructure, and in light of the success of NLCS Jeju (which achieved an average IB Diploma point score of 37 in just its fourth year of operation and hence places for its students at leading universities around the world), NLCS is now in the process of opening further schools in the United Arab Emirates and South East Asia.

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North London Collegiate Wellington College

Sherborne School

W ellington College is one of the UK’s leading

independent schools and was established by Royal Charter in 1853. Its international strategy was born out of a vision to take its renowned ‘8 aptitude’ model of education to the rest of the world. The

O riginally founded by the Benedictine order in 705 and re-founded

by King Edward VI in 1550, Sherborne School, nestling within the idyllic market town of Sherborne in Dorset, may not be the �rst place which springs to mind for global innovation. At this 13-18 all-boys full-boarding school, twice weekly services in the abbey, traditional academic rigour and plenty of sport, music and drama abound. Alumni include Alan Turing, John le Carré, Chris Martin and Hugh Bonneville.

But Sherborne School has long had ambitions to engage across the globe. In 1977 they set up in Dorset what was probably the �rst true international school in the

college currently has two schools in China, and is in the process of opening further schools, not only in China, but also in the Middle East and South East Asia.

The aim is to take the best of British education to each of the target markets de�ned in the Wellington College international growth strategy,

UK, now known as Sherborne International. There students learn a full GCSE curriculum together with others from around the world, taught by teachers who are all speci�cally quali�ed in teaching English as an additional language.

In 2008, Sherborne School entered into a partnership with Sheikh Abdulla bin Ahmed Al Thani to establish Sherborne Qatar in Doha, which now ranges from pre-school to sixth form, with over 1,000 pupils. Links back with Sherborne Dorset are deep-rooted and support the inculcation of the best of the British independent school ethos in Qatar. Teacher

while taking into account cultural norms and regional realities. A key ingredient is to ensure that Wellington College’s DNA is present in each of the international schools. This is achieved through careful structuring and quality assurance via active hands-on support and monitoring, including an annual review, for each school.

Wellington College International Tianjin (WCIT) opened on 22 August 2011 and Wellington College International Shanghai (WCIS) in August 2014. Both are for boys and girls and take boarders and day pupils. In Tianjin, pupils are organised into the foundation stage (3-5 years), primary (5-11 years) and secondary schools (11-18

and pupil exchanges, shared training and common purpose all serve to prepare students in both Dorset and Doha for life in a global society, where many of them will be leaders of their generation. The partnership also brings considerable �nancial bene�ts back to Sherborne School, supporting capital developments and a growing bursary programme.

The next international developments for Sherborne School are on a far greater scale, as Ralph Barlow and his team are currently negotiating a deal to establish at least 10 schools in China over the next 10 years, the �rst of which is expected to open in 2018.

Ralph says: “It is hard to overstate the opportunities which these developments will bring, both in transforming

years). There is also a Chinese sixth form (15-18 years). At WCIS, there is a pre-prep (2-7 years), a prep (7-13 years) and a senior school (13-18 years). Tianjin currently operates all year groups and Shanghai is operational through to year 12/lower sixth.

At WCIT, pupils sit international GCSEs and A-levels or IB. In Shanghai, pupils take iGCSE examinations and provision is underway for the IB Diploma. The heritage and traditions of Wellington feed into the ethos of the schools through the Wellington �ve core values, which are embodied within a carefully constructed support infrastructure including tangible links and worthwhile exchanges.

the �nancial picture for Sherborne School and also in developing an understanding of educational excellence between countries and cultures. We have learned from our experiences in Qatar and do not underestimate the challenges of growing and developing a quality brand, not least in the time required for careful planning and getting the right people involved. The legacy of this project will support Sherborne School for decades, if not centuries, to come and we also hope to share the bene�t with other local schools in the area.”

“The legacy of this project will support Sherborne School for decades, if not centuries, to come” Ralph Barlow

W elli ng ton C olleg e I nternati onal Shang hai

CASE STUDIES


China

Foreign schools can establish either dual-curriculum or pure international schools

in China. Dual-curriculum schools

teach both expatriate children and PRC nationals, who are eligible to take both foreign and China's Zhongkao and Gaokao examinations. It is estimated that these schools are generating between £5-15 million revenue through tuition fees per school each year.

Pure international school students are unable to sit the Chinese examinations. These schools reputedly generate between £9-15million revenue through tuition fees per school each year.

Although much of the market for foreign schools is in the tier one cities such as Shanghai, Beijing and Guangzhou, there is also a growing market in the second and even third tier cities. Pure international schools tend to be centered in tier one cities, as this is where the greatest number of potential students are based. However, it is a very competitive market and so many are also focusing on second tier cities. Dual-curriculum schools have seen substantial growth over recent years, mainly due to the demographics, increasing

a� ordability and the demand for them not only in the tier one cities, but also in the secondary and even tertiary cities.

Statistics from the Ministry of Education suggest that the GCSE/A-level and IB curriculum represent over � � y percent of the international school market in tier one cities. Schools such as Wellington and Dulwich have been particularly successful in establishing themselves in these locations, as well as in some of the second tier cities.

Dual-curriculum schools present the greatest opportunity for foreign independent schools. These comprise two distinct options, both of which require a local partner.

Co-operative dual-curriculum schools o� er an international curriculum and are joint ventures between a foreign and an existing Chinese senior school. According to the consultancy Parthenon, the average enrolment fee is £1,000 and the revenue scale is £11m per school, with average annual fees of £11,000. Wellington has one of these ventures in Shanghai with the Ming Hang High School.

Private dual-curriculum schools are established between

foreign schools and independent local partners. They are operated under the name of the foreign school. According to Parthenon, the average scale is an enrolment fee of £800-£1,000, with a revenue scale of £8-9m per school at average annual fees of £8,000-10,000. A special licence is required from the Ministry of Education and it is generally the responsibility of the local partner to obtain this. The local partners vary from property developers and private equity funds to government-sponsored/backed entities and individual entrepreneurs. Recently the Ministry of Education has paid increased attention to what is being taught in these schools with a view to ensuring that 'Chinese' values, are balanced with more liberal and 'Western' values.

It is also possible for foreign schools to become involved in embedded international

programmes in existing public schools, but these are less remunerative and more restrictive.

Although there are foreign exchange controls on capital, it is much easier for current account items (such as licence fees and management fees) and so this is not a problem for foreign schools establishing a presence in China. However, it does mean that structuring is a key issue for them.

China's legal system and enforcement mechanisms are rather weak so foreign schools must take expert legal advice as to how to best protect their interests. Brand piracy is rife and so schools need to ensure that their name is protected by way of registered trademarks as soon as possible before starting negotiations to enter the market.


the secondary and even

Statistics from the Ministry of Education suggest that the GCSE/A-level and IB curriculum represent over � � y percent of the international school market in tier one cities. Schools such as Wellington and Dulwich have been particularly successful

foreign schools and independent local partners. They are operated under the name of

Thailand

UK schools cannot establish themselves in Thailand without a Thai partner.

The school owner must be a Thai national. If it is a company, the majority of the shares must be held by a Thai national. The body that regulates the operation of schools is the O� ce of the

Private Education Commission in the Ministry of Education.

There are no restrictions per se on the curriculum that can be taught by a UK school. They may teach a dual curriculum or an international curriculum. However, certain subjects must be covered in the school's curriculum and it must be

submitted to the Ministry of Education for prior approval.

A UK school requires an establishment licence from the Ministry of Education. To obtain such a licence, several conditions must be met. The site and buildings used for the school must be of a certain speci� cation.

The headteacher and the school's teaching sta� also need to be granted a licence by the Ministry of Education.

submitted to the Ministry of Education for prior approval.

establishment licence from the Ministry of Education. To obtain such a licence, several conditions

The headteacher and the school's teaching sta� also need to be granted a licence by the Ministry of Education.

Singapore

South Korea

Schools have to be registered with the Ministry of Education (MOE).

The Private Education Act provides a quality assurance framework. The Council for Private Education (CPE) was established to regulate private education institutions (PEIs).

PEIs o� ering speci� c categories of education are required to be registered with the CPE. This includes: education leading to the award of a diploma or degree; full-time post-secondary education leading to the award of a certi� cate; full-time preparatory courses for entrance/placement tests for joining MOE mainstream schools or for external examinations; full-time primary or secondary education wholly or substantially in accordance with a foreign or international

Foreigners' Schools are established pursuant to the Primary and Secondary Education

Act and are for educating expatriate children and children of Korean nationals returning to Korea a� er spending at least three years overseas. Up to 30 percent (in some cases 50 percent) of the students can be Korean nationals. The majority of the foreign schools established in Korea are Foreigners’ Schools. Dulwich College, Seoul British School, Seoul Foreign School, Seoul International School fall into this category.

curriculum; and privately funded special education schools. Registration is valid for a speci� ed period only, which will be determined by the CPE.

A PEI has to be a Singapore-registered entity. The school's ‘managers’ are required to ful� l a variety of statutory duties and obligations under the Act.

The premises of a PEI must be approved by the Urban Redevelopment Authority (URA) together with the relevant � re safety clearance from the Fire Safety and Shelter Department (FSSD) of the Singapore Civil Defence Force. Facilities, such as science laboratories and canteens must be authorised by the National Environment Agency. There is a minimum classroom space prescribed by the regulations.

The MOE and the CPE from

Foreign Educational Institutions are established pursuant to the Special Act on the Establishment and Operation of Foreign Educational Institutions in the Free Economic Zone and Jeju International Free City. They are intended to promote inbound foreign investment. Foreign Education Institutions are permitted only in designated areas such as the free economic zones in Incheon, Busan, Jinhae, Daegu, Gunsan etc, Jeju Island, peripheries of areas granted to US military bases, cities such as Yeonki and Gongju

time to time run request-for-interest (RFI) exercises to release state land, with long-term leases, for bidding by international schools. The sites leased under this exercise enjoy a 30-year term and are specially zoned for educational use.

near the new administrative capital, Sejong city. Up to 30 percent or in some cases 50 percent of the students can be Korean nationals. There are no overseas stay requirements for the Korean students. Chadwick International School Songdo, Daegu International School, North London Collegiate School, Branksome Hall Asia (the latter two located on Jeju Island) fall under this category.

Whereas a Foreigners' School can be established by a foreign, non-pro� t foreign entity or a Korean educational entity, Foreign Educational

Applicants are evaluated based on various criteria, including their track records and their � nancial abilities.

There are a variety of obligations and restrictions about the administration and operation of private schools.

Institutions can only be established by a foreign non-pro� t educational entity and the school will be registered as a branch of the foreign entity.

There are various regulations regarding the school facilities that must be complied with.

COUNTRY-SPECIFIC ADVICE


schools. Registration is valid for a speci� ed period only, which will be determined by the CPE.

A PEI has to be a Singapore-registered entity. The school's ‘managers’ are required to ful� l a variety of statutory

relevant � re safety clearance

near the new administrative capital, Sejong city. Up to 30 percent or in some cases 50 percent of the students can be Korean nationals. There are no overseas stay requirements

International School, North London Collegiate School,

India

Indonesia

Schools in India are heavily regulated by both federal and state law. Each of the 29 states

imposes di� erent regulatory requirements.

While 100 percent foreign direct investment (FDI) is permitted in the education sector, in reality FDI in a society or trust (other than a venture capital fund) is di� cult and, as a result, a franchised approach is

most commonly used by foreign schools.

The entity setting up a school must usually be established on a not-for-pro� t basis – either as a registered society, a trust or a section eight company. This has a signi� cant impact upon the way in which schools structure a presence in India. Most schools in India are established and operated by trusts and/or societies in order to take advantage of tax

exemptions and concessions such as lands at concessional rate exclusively available to such entities.

The contractual arrangement between a UK school and local operators, including the remuneration structure, needs to be carefully designed. Payments from Indian entities to the UK school need to be

structured so as to comply

with Indian exchange control regulations. Local partners o� en

structure their relationship with the UK school through a Mauritian entity for tax reasons.

UK schools can only establish themselves in Indonesia by

cooperating with a local educational institution and forming what is known as an Education Cooperation Unit or Satuan Pendidikan Kerja Sama (SPK).

The establishment of an SPK is subject to the prior approval of the Ministry of Education, which can issue a licence that is

valid for six years.30 percent of

the school's teachers and 80 percent of its educational employees (e.g. librarian, administration o� cers etc) must be Indonesian and no foreign national can handle HR matters.

The school must accommodate both Indonesian and foreign students.

The school must teach the Indonesian curriculum

(religious studies, Pancasila, citizenship and the Indonesian language) to its Indonesian students. Foreign students must study the Indonesian language and Indonesian studies. The Indonesian curriculum can be enriched by combining it with

the UK curriculum, subject to obtaining prior governmental approval.

The Ministry of Education has so far issued around 123 licences for SPKs.


rate exclusively available to

arrangement between a UK school and local operators, including the remuneration structure, needs to be carefully designed.

structured so as to comply

with Indian exchange control regulations. Local partners o� en

structure their relationship

valid for six years.30 percent of

the school's teachers and 80 percent of its educational employees (e.g. librarian, administration o� cers etc) must be Indonesian and no foreign national can

(religious studies, Pancasila, citizenship and the Indonesian

Malaysia

T he approval of the Ministry of Education (MOE) is required. A

UK school must be operated through a local company with a minimum paid-up capital of RM 1 million. One of the members of the board of directors must be Bumiputra Malaysian.

Approval of the MOE Committee for the Establishment of Private Educational Institutions (PEI) and the Ministry of Home A� airs is

required.Market research showing

the feasibility of the school in the proposed location must be provided to the PEI. Relevant factors include the number of expatriate children and existing international schools in that area.

The school must be situated on at least � ve acres. Necessary planning approval must be obtained from the relevant local authority.

Classes should not be more than 25 students each and the proposed fees should be

reasonable taking into account the facilities provided.There is now no quota

on the number of Malaysian national students but they must be taught the Malay Language, History, and Islamic Studies (or Moral Studies, for non-Muslim students).

Academic sta� require teaching permits and foreign teachers must possess an employment pass issued by the Malaysian Immigration Department.

Schools are encouraged to employ

local teachers with the relevant academic and professional quali� cations. The Head can be either a Malaysian or foreign teacher as long as he or she has the relevant experience.

Before operating or promoting the school it must be registered with the respective State Education Department.

School fees can only be increased once in every three years with the prior approval of the Registrar General of the MOE.

Market research showing the feasibility of the school in

reasonable taking into account the facilities provided.

Schools are encouraged to employ

local teachers with

Vietnam

Indonesia

The Middle East Dubai

UK schools can o� er both the Vietnamese and UK curricula but

must teach Vietnamese students certain compulsory subjects prescribed by the Ministry of Education and Training (such as Vietnamese language, history and geography). UK schools may not, however, teach Vietnamese students under � ve years old a foreign curriculum.

There are some broadly worded 'culture-related' rules on the curriculum provided by a UK school. The curriculum must demonstrate educational

objectives without damaging national security and public interests, spreading religion or distorting history, negatively a� ecting cultures, ethics and the traditional customs of Vietnam, and whilst ensuring grading of students is kept consistent.

UK elementary and middle schools are subject to a maximum of 10 percent Vietnamese students. For high schools the limit is 20 percent.

Approvals necessary to operate a UK school include: an Incorporation Certi� cate (issued by the local Department of Planning and Investment);

an Investment Registration Certi� cate (if more than 49 percent of the school is held by foreign investors); an Enterprise Registration Certi� cate; and a licence issued by the provincial People’s Committee where the school is located. A licence issued by the Department of Education and Training where the school is located is also required, but can be obtained only a� er the UK school has been constructed and other implementation matters connected with establishing a school in Vietnam completed. This must be no later than 24 months from the issue of

the decision by the provincial People’s Committee where the school is located .

The Ministry of Education and Training is the main body that regulates the operation of schools.

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T he KHDA, the Dubai regulatory authority. has identi� ed two basic

models for incoming schools to adopt: branch schools and managed schools.

Branch schools require a local partner who provides the capital and land. The UK school must give undertakings about ensuring that the same level of student and parent satisfaction and standard of service is achieved in the Dubai

school. This is the usual approach adopted by UK schools.

Managed schools are operated by a Dubai-based partner who has been given access to the UK school's know-how in operating a school, but without access to the school brand. This approach is rarely used.

Abu Dhabi

Abu Dhabi is less prescriptive than Dubai as regards the structures used.

However, it is best to work with

an experienced local partner, given the relatively complex processes for setting up a school laid down by the Abu Dhabi Education Council (ADEC).

Qatar

T he Supreme Education Council (SEC) has authority to set up

private schools in partnership with schools that have an ‘international reputation’. It grants licences for up to � ve years. The � nancial terms are closely regulated and no school can increase its fees without the SEC's consent.

The SEC supervises the curriculum of schools as well as

their buildings and the quality of education. It has the authority to launch investigations against the licence holder and sta� members if there is a breach of the law and can impose penalties.

Local operators must provide a bank guarantee although this requirement can be waived by the minister.

COUNTRY-SPECIFIC ADVICE


the decision by the provincial People’s Committee where the school is located .

The Ministry of Education and Training is the main body that regulates the operation of schools.

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against the licence

school must give undertakings about ensuring that the same level of student and parent satisfaction and standard of service is achieved in the Dubai

This approach is rarely used.

twobirds.com

Internationalising SchoolsMark AbellPartner, UK+44 (0)20 7905 [email protected]

Graeme Payne Partner, UK+44 (0)20 7982 6474 [email protected]

Shelley Nadler Legal Director, UK +44 (0)20 3017 6949 [email protected]

Nick Green Associate, UK+44 (0)20 7982 [email protected]

Melissa MurrayPartner, Abu Dhabi+971 2 6108 [email protected]

Sven-Michael WernerPartner, Shanghai+86 21 2312 [email protected]

Padraig WalshPartner, Hong Kong+852 2248 6073 [email protected]

Lorraine TayPartner, Singapore+65 6428 [email protected]

Beng Chai TayPartner, Malaysia+65 6428 [email protected]

Risti WulansariPartner, K&K Advocates, Indonesia+6221 2902 3331 [email protected]

Soowon HongPartner, HMP Law, South Korea+82 2 772 2819 [email protected]

Nipun GuptaConsultant, India+44 (0)20 7982 [email protected]

Lyle Abel Partner, Sydney+61 2 9226 9812 [email protected]

Joyce AngPartner, Singapore+65 6428 9422 [email protected]

Beijing & Bratislava & Brussels & Budapest & Düsseldorf & Frankfurt & The Hague & Helsinki & Hong Kong & London & Lyon & Madrid & Milan & Munich & Paris & Prague & Rome & Shanghai & Singapore & Stockholm & Sydney & Warsaw

Internationalising Schools supplement

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