The Ministry of Education (MOE) said that an increasing number of such teachers have obtained their undergraduate degrees while in-service - up from 256 in 2004 to 364 in 2008.

Education minister Ng Eng Hen on Thursday said that teacher quality was a 'critical enabler' and that MOE will continue to invest heavily in the professional development of teachers.

'We will provide more incentives to encourage in-service teachers to pursue undergraduate and postgraduate studies in areas that will benefit their work,' said Dr Ng.

To facilitate this, MOE will double the quantum for interest-free study loans with effect from next month.

Non-graduate teachers interviewed by The Straits Times welcomed the change and do not feel that it puts additional pressure on them to upgrade their skills as most of them have been doing so on their own.

Teachers and principals who are diploma holders will continue to be valued, Dr Ng assured them on Thursday.

He said that they will be assessed on their current performance and not their past educational levels.

Dr Ng added that there will be room to hire diploma holders who have specialised skills in languages, arts and music and these schemes will continue.