On 23 May 2007, UNSW Asia Singapore campus announced its planned closure on 28 June 2007, at the end of the first semester due to financial issues and lower than expected student numbers.

[1][2] As a result of the sudden closure, rifts within the UNSW management were publicised, and accusations were exchanged between the University and the Economic Development Board.

[3][4] Questions were raised over the Economic Development Board's role in bringing in potentially over-ambitious business plans.

[6] The University is expected to repay all loans, and will have to restore the land for its campus to its original state, potentially incurring further costs.

[8] As a full university, UNSW Asia was to be an English-medium institution offering undergraduate, postgraduate and research programs across multiple disciplines grouped into the two clusters, namely science, engineering and health; and commerce and humanities.

Six bachelor's degree programs were to be offered for undergraduates, namely those in science, engineering, commerce, international studies, design and media, and were to have corresponding honours courses.

Applications open in January 2006 for the pioneering batch of about 500 to 600 students, and UNSW Asia began classes in March 2007.

Successful completion of the course would guarantee a place in UNSW Asia, although they may also apply to enter the Australian campuses.