Cheaper, quality childcare in the heartland to be expected

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Well-known childcare firms are setting up more affordable centres in the heartland, under a revised tender scheme which aims to make quality pre-school education more accessible.

Modern Montessori International (MMI) and Knowledge Universe - two of the biggest private operators - secured three of the four Housing Board sites on offer in the latest tender last month.

Before the tender scheme was revised last June, sites were awarded to the firm that offered to pay the most - sparking bidding wars which drove up rents and, as a result, fees.

Since then, only half the total tender score depends on the bid price. The rest focuses on other criteria, including affordability, which makes up 20 per cent of the score.

In the latest tender - the second under the revised scheme - applicants had to propose fees lower than the median $799 a month for full-day childcare by private centres in Housing Board areas.

For Knowledge Universe, it intends to charge $735 a month at the two sites it has been awarded, at Blk 211A Punggol Walk and Blk 348A Yishun Avenue 11. They will come under a different brand called Small Wonder.

MMI plans to charge $735 a month at its new site at Blk 463B Sembawang Drive - about 30 per cent lower than the fees at the eight centres in Housing Board void decks it already runs.

This new centre will be the first to come under its Hamilton Pre-school brand.

Sweetlands won the tender for the fourth site on offer, at Blk 886C Woodlands Drive 50. Its proposed monthly fee of $735 is also lower than the fees at its other 10 centres, where they are at least $850.

All three operators failed in their application to be anchor operators, which get priority in securing Housing Board sites but cannot charge more than $720 a month.