Dr Yaacob made the point to explain why, for the first time, money from the Mosque Building and Mendaki Fund (MBMF) is being earmarked to help improve the curriculum and teacher training at full-time Islamic religious schools here.

Speaking to some 400 community leaders at a Hari Raya dinner at the Istana, he highlighted the need to ensure the community's institutions stay relevant.

'Religious education cannot lag behind contemporary society if we want religion to be our guide', he said.

'We cannot allow our young students to learn in run-down classrooms, and be taught by teachers strapped by ineffective methods and outdated curriculum, no matter how sincere they are.'

He added: 'It is our collective responsibility to ensure system-wide improvements across all educational pathways.'

Parliament is expected to approve changes to the law on Muslim affairs later this month, to allow for higher contributions to the MBMF and for it to be used for religious education.

Every working Muslim contributes to the fund and next year, about $3 million of its projected takings of $12.9 million will be for the madrasahs. Depending on their income, Muslims will give between $2 and $16 a month.

Funding has been a perennial concern for the madrasahs, which rely largely on fees, donations and grants from the Islamic Religious Council of Singapore (Muis).

But some Muslims have questioned the need to fund a private school system when a good public alternative exists.

Read the full story in Saturday's edition of The Straits Times.