Demand For MBA Falls In China, Fees At B-Schools Plateau

Course fees in most business schools in China remain unchanged in 2015, after more than 20 years of growth. Faced with dropping demand and increased competition, several business schools in China have left their fees unchanged this year at 2014 levels, instead of raising them by the annual rate of 10 percent.

MBA course fees in top B-Schools such as China Europe International Business School, Tongji University, Shanghai Jiao Tong University and Shanghai University, have remained unchanged from last year.

At China Europe International Business School, where fees have always been high, the 18-month MBA programme remained at 388,000 yuan this year. Overall, course fees in China range from 45,000 yuan to more than 380,000 yuan.

“Tuitions have remained steady in recent years”, the China Daily quotes Yvonne Li, MBA director of admission and career services at CEIBS as saying. “Based on the tuition fees for 2015, there will be a little adjustment next year. Details need to be confirmed later,” she adds.

“If I was handed a second chance, I would definitely not do an MBA course,” Liu said. “It’s not worth the money, and I’m still unconvinced this investment will pay off.”

“Compared to other schools in the world, tuition fees at CEIBS are lower,” Li said. “But if you compare them to schools in China, they are higher. Yet, it is all about the return on investment at home or abroad, and we have an excellent reputation.”

Leading global business colleges tend to raise course fees by between 4 percent and 6 percent annually. But since Asian students are more price-sensitive than those from Europe or the United States, costs have to be taken into account.

CEIBS also provides a scholarship program, with 10 million yuan earmarked for 40 percent of the yearly intake. Various loan plans for Chinese and international students are also provided. 

“The MBA programme is a professional course rather than a compulsory one,” Li said. “Students who apply for MBA courses have made the decision by taking into account their personal needs and the cost of the programme.” 

“Prestigious schools will always be favored and, in my opinion, it is impossible for them to reduce their tuition fees,” she added.

Competition is also determining the prices B-Schools in China can charge. MBA course fees at Fudan University have gone up by about 15 percent on average. But the 298,000 yuan fees for part-time MBA students will remain unchanged next year.

From the point of view of the students, the story of Liu Ming illustrates the dilemma students face. An MBA in finance and securities from the Shanghai University of Finance and Economics, he now wonders why he bothered to fork out 88,000 yuan ($13,836) for his master’s degree.

Even though his salary has increased by 30 percent, the 31-year-old is still working as a human resources manager for a securities brokerage in Wuxi, Jiangsu province. He has been on the same job for the past five years.

“If I was handed a second chance, I would definitely not do an MBA course,” Liu said. “It’s not worth the money, and I’m still unconvinced this investment will pay off.”

“I did make connections during the course, but most of the people worked at my level,” he added. “Of course, students who joined a year after I did have had to pay much higher fees of about 138,000 yuan for tuition. At least, I didn’t have to pay that price.”

“The programme costs at business schools should depend on the value they provide,” Xie Hao, executive director of the IMBA programme for the school of management at Fudan University, said.

Still, like many other Chinese business schools, Fudan is planning to revamp its MBA syllabus next year in a move to attract more students. The decision has been welcomed by one educational expert, who has has been calling for similar measures in the past few years.

“Today’s business environment is global, complex, competitive and dynamic,” Tom Robinson, president and CEO of the Association of Advanced Collegiate Schools of Business International in the US state of Florida, said.

“The knowledge, skills, and abilities necessary to perform at a high level in this environment are constantly changing. Business schools must be engaged with business to make sure they are providing relevant education to prepare students. Business schools should also provide opportunities for students to engage with current business practices through experiential learning activities, internships and access to business leaders,” he added.

Hopefully, more focused and cheaper courses will inspire students that have become disillusioned with existing programs.

In an MBA survey conducted in Shanghai this year by global recruitment service provider BRecruit, 60 percent of the 300 students polled admitted they were dissatisfied with the cost of the programmes, and the academic and employment-related activities. (Source: China daily, Image Courtesy bestvuz.biz, vk.com)