The scheme's project officer, Una Lee, said it was hoped that local contractors and crafts people would take up the training.
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The ground-breaking ceremony was attended by Singapore Prime Minister Lee Hsien Loong, who said the project was "not without risk" but "the right way forward" for higher education in Singapore.
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Lee said he wasn't sure if the project was still viable.
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In a statement to the Hollywood Reporter Lee said he realised that he could not give "100% to the project".
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