I believe that they use a phono-graphix method for teaching children to read: This helps the child relate the written word with the sounds that each part of the word makes.
If you are interested to learn more about this method, I’d recommend the book Reading Reflex by Carmen McGuinness
http://www.shopinhk.com/reading-refl...-pr-42821.html
More information at
http://www.readamerica.net/
Another good phono-graphix method is THRASS. This is used at the Canadian International School. More information at
http://www.thrass.com.au/