Madani Govt Finally Eyes Empathetic Ptptn Fix

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THE Higher Education Ministry supports Prime Minister Datuk Seri Anwar Ibrahim’s call to review the National Higher Education Fund Corp (PTPTN) loan rates and repayment terms to ease borrower burdens.
With PTPTN’s accumulated debt at RM40bil and outstanding debts at RM11bil, the ministry aims for flexible repayment negotiations to ensure affordability. It emphasised an empathetic approach to keep higher education inclusive.
Anwar suggested taxing the wealthy to fund relief while the ministry examines PTPTN’s financial sustainability. Last month, a travel ban was proposed to boost repayments, with 383,637 borrowers defaulting as of late last year.
Recently, MCA supported PTPTN’s proposal to reinstate travel bans for borrowers defaulting on loan repayments.
MCA Education Consultative Committee deputy chairperson Felicia Wong Yin Ting emphasised that borrowers must repay their debts to ensure PTPTN’s sustainability and equal education access for future generations.
Responding to Higher Education deputy minister Mustapha Sakmud’s March 10 statement about considering the ban, Wong said it sends a clear message of responsibility.
She argued that if defaulters can afford luxuries, they should prioritise repayments, urging fairness to protect educational opportunities for Malaysia’s youth.
MCA Education Consultative Committee last year called for balanced measures to address RM6bil in unpaid PTPTN loans by 430,000 defaulters, some of whom have been unpaid for decades.
In a response to Higher Education Minister Zambry Abd Kadir’s concerns, MCA deputy president Datuk Dr Mah Hang Soon proposed mandatory employer-implemented salary deductions for repayments.
Alternatively, he suggested diverting employer Employees’ Provident Fund (EPF) contributions to PTPTN instalments instead of workers’ EPF accounts. These steps aim to ensure consistent repayments, safeguarding PTPTN’s sustainability while holding borrowers accountable, MCA stated. —  Focus Malaysia

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