Many fresh graduates, who left universities in the republic in June, are under pressure to secure a job before their student passes expires in January 2002. Hard-pressed employers, however, now prefer to hire Singaporeans.

Some Malaysian students, who had benefited under the Singapore government's Tuition Grant Subsidy scheme, are in a fix, as they cannot leave the island even in the face of unemployment.

Foreign students, who received grants are required to work for at least three years with companies registered in Singapore, failing which the recipient will have to repay the grant and other costs.

Another reason why some graduates are "stranded" in Singapore is because they had taken loans from financial institutions in Singaporeto fund their tertiary education.

A 22-year-old engineering undergraduate from Nanyang Technology University said she owed a bank S$15,000 (M$31,350) at an interest rate of 4.5 percent per annum.

"Even if I can afford to buy out my bond, I still have to service the loan. It will be a burden for me if I work in Malaysia and repay my debt in Singapore currency.

"I am still holding a student pass as all my job interviews had been unsuccessful. One of the frequently asked questions during interviews is whether I am a Singaporean," she said.

It has been reported that between 30 percent - 40 percent of students, who graduated from the Nanyang Technology University this year, were still unemployed. The university is a popular choice among Malaysians, who want to seek tertiary education in Singapore.

Many Chinese independent secondary school leavers consider Singapore universities, which recognise the Unified Examinations Certificate rejected by local universities, as the most affordable alternative.

Even STPM holders sometimes opt to study in Singapore after they were denied courses of their choice at local universities.