Is This Why Our Ministers Are Trying To Discourage Singaporean Students From Local Universities?

Because our local universities are going overseas to recruit foreign "meritorous" students?  Are these "meritorous" students being admitted based on the same GCE A level exam results like our local students? If a degree is not important for success in Singapore, why are our local universities going overseas to fill up its places with more foreign students?

The Hindu, 2 Jun 2013
May 16, 2013, will be an unforgettable day for a Chennai girl. On that date, the Madras High Court intervened to enable her to secure a seat for a course in Astrophysics in the National University of Singapore before the deadline.
The girl’s mother, after obtaining divorce, had remarried. At the time of school admission, the stepfather’s name was given in the records. She completed Class XII in a city school which had an arrangement with the National University of Singapore to select meritorious students for placement in the university.
The university staff came to the school and interviewed meritorious students, analysed their grades in Standard X. She was provisionally selected for admission to the Astrophysics course. Full story

Related:
OPINION: Singapore leaders seek to reduce local graduates as mass intake of foreigners led to excess supply of degree holders