CUT the length of scholarship bonds to three years and grant tax rebates for the overseas university fees paid by parents whose children return to Singapore after studying abroad.

These measures were suggested by Nominated MP Loo Choon Yong to help tackle Singapore's brain drain.

He noted that many talented young Singaporeans are leaving the country annually to study overseas and feared they 'may be lost to Singapore permanently' if they settle overseas after studying there.

'We are losing some 1,000 bright people annually to other countries,' he said. Minister Mentor Lee Kuan Yew provided the same statistic in an interview with United Press International earlier this month.

Dr Loo said he supported the notion that scholarship students must return to serve Singapore after they study overseas. But he urged the Government to cut bond periods to three years and allow them the option of serving also in the private sector, not just with the Government.

In this way, scholars who choose to work in the civil service would do so willingly. They would be attracted by the excellent compensation and improved work environment in government agencies, as well as the pride of serving Singapore, he said.

The scholarships must 'not be an instrument for converting free Singaporeans to indentured serfs,' he said.

In the light of the current shortage of places at local universities, Dr Loo also urged the finance minister to consider giving tax rebates to parents whose children study at approved overseas universities and return here to work.

These tax rebates can be the same size as the subsidy given for the child if he had attended a local university.

This can help to grow the pool of graduates in Singapore and give more Singaporeans a chance at tertiary education, said Dr Loo.

'If we lose our young, we will have nothing,' he said.

This article was first published in The Straits Times on Feb 27, 2008