well, getting into uni should be based on merits of individual
not by nationality. it will make that university more popular for
bright students, which could be of any nationality...
i noticed one uni in china has normal gmat score as 780...
that is the highest in the world... it requires good brains to get
780... if we make 'reserved' seats for nationality then it will
definitely make people lazy to compete.
But isn't that using tax payers money to pursue a policy that is
against the inalienable rights of Singaporeans? 
Those Universities are built using Singaporeans' money and now
it's used to subsidize foreigners. 
Based on your logic. If Singapore University places should be
based on merits regardless of nationality. Then I ask you.
If all the smart people come to Singapore (surely there are more
smart people in the world compared to just Singapore), displaces
all the Singaporeans from University, after 3-4 years of study, all
move back to their home countries or other advanced economies.
What would happen to our dear little Singapore? No University
graduates, we will be reduced to working as maids and bricklayers
in Thailand, Indonesia, Philippines and China. 
But then if you are foreigners then it's totally good for you,
cheap education which you can't get in your own decrepit 3rd world
country. 