Really, seems that way.
The polytechnics in recent years is being portrayed as up and
coming.
Many O lvl students choosing the poly route. So with more and more
money to the poly, the poly can expand and make itself more
attractive.
Which the elites wouldn't like, because moe is not so willing to
spend on the JC's to beautify and expand to attract new students.

So they force ngee ann kongsi to donate more to other instituitions
for fear of the polytechnics rising.