At the end of 1990, due to the redevelopment of the adjacent areas and inadequate enrolment, Yio Chu Kang Pei Hwa Public School announced its closure. Following the footsteps of the philanthropic predecessors who contributed to society and provided avenues for educational advancement of the younger generations, members of the Yio Chu Kang Pei Hwa Public School management board formed Pei Hwa Foundation. Its primary objective is to serve the society at large to a greater extent. Pei Hwa Foundation was registered on 21 Dec 1990 under the Companies Act. Mr. Ang Keong Lan BBM (L)(洪恭兰先生) was the first board chairman and former principal, Mr. Lee Beng Chong BBM （李明聪先生）served as the adviser. Other directors were Mr. Toh Soon Hwa, Mr. Toh Kim Hwa PBM, Mr. Ong Choon Beng, Mr. Toh Chiew Kwee and Mr. Ong Chin Eng.Mr.Goh Gong Gong PBM then served as Administrative Executive.
Although the school ceased its operation, the grand school buildings could not be left vacant. Very soon, they were rented to Yamaha Music School for conducting musical and language classes. Rental income was utilised in charitable activities and educational purpose. In 1996, board members opinioned that annual rental income of about $200,000 could not sustain its long-term goal as a charitable organization. In view of booming property prices, the board decided to sell the piece of land on which the school situated (with a few conditions attached) to the DBS Land (now CapitaLand Ltd). Administrative office remained inside the premises.
To further extend its charitable activities and realize the long-term goal of promoting the “Pei Hwa Spirit (培华精神)”，the Foundation bought the existing building along Jalan Kayu (惹兰加由路) at $2 million as its office building, in 2001.
In 2004, the Foundation first requested for the use of “Pei Hwa 培华” to name a new secondary school in Sengkang West close to Yio Chu Kang Road. The Ministry of Education granted its request and Pei Hwa Secondary School ushered in its first batch of students in 2005.The Foundation gives financial support to the new Pei Hwa Secondary School and a few of its board members serve as the members of the School Advisory Committee (SAC). The school’s current SAC chairman is also the Foundation’s chairman. Pei Hwa Spirit spurs the pupils to render community services to the needy. The Jalan Kayu Heritage Trail in the school’s website exposes them to the history of Jalan Kayu community. Pei Hwa Public School ceased classes for 13 years and now PeiHwa Secondary School takes over its role to inculcate the younger generations with the Pei Hwa Spirit.
In 2006, the Foundation paved the way for setting up Pei Hwa Alumni. Alumnus of alma mater such as Mr. Ong Kim Chwee, Mr. Tan Kim Yew, Mr. Toh Boon Swee and Mr. Ang Koon Seng are members of first batch of management committee. Its office is inside the office building of the Foundation.