KUALA LUMPUR: The Budget announcement made by Finance Minister Lim Guan Eng with regards to the implementation of a scheduled repayment system for National Higher Education Fund Corporation (PTPTN) borrowers through payroll is seen as a positive step.
This, said PTPTN chairman Wan Saiful Wan Jan, acknowledged the problems PTPTN was facing in solving the high-debt burden it has inherited from the previous government.
He added that the announcement made by the Finance Minister on PTPTN today was to fulfill the organisation’s plea for help.
“I would like to thank his team for tirelessly discussing with us, as well as to have direct discussion with me several times, on how the 2019 Budget can speed up the improvement of PTPTN,” said Wan Saiful.
He added that he will soon meet with the management of PTPTN to schedule meetings with the stakeholders as well as to discuss the mechanisms for implementation of the approved matters.
In the 2019 Budget tabled by Lim at the Dewan Rakyat today, the government has announced that it is introducing a scheduled repayment scheme of between two per cent to 15 per cent of the monthly income of the borrower to ensure that PTPTN remained sustainable.
Lim said the repayment schedule initiatives were dependent on the borrower's income level, and only applicable to borrowers earning more than RM1,000 a month.
He also said, in order to encourage repayment by borrowers, tax relief would be provided to companies that assist in settling the remaining employee loans for the year ending 2019.
In addition, individual income tax relief services for the National Education Savings Scheme (SSPN) has been raised from RM6,000 to RM8,000.
Loan disbursement will be given to students from B40 households with first-class results, and debt balance to lenders aged 60 years and above, and those earning less than RM4,000 a month, will be written off.
All these incentives will benefit 350 borrowers involving a total amount of RM4.2 million.
While promising a more detailed explanation with regards to the items tabled in meeting sessions with stakeholders across the country soon, Wan Saiful said that he would be taking a two-pronged approach in turning back PTPTN to its original role as an educational funder, in accordance with the name and intention of the establishment of this body.
“Political play has caused PTPTN to be known as a money-lending agency. This is a deviation from its more sustainable and noble role for the people, which is a future saving agency,” said Wan Saiful.
He aims to change PTPTN’s reputation to be a Higher Education Fund as it should rightly be known as.
At the same time, he also aims to educate the people with the noble values stated by Prime Minister Tun Dr Mahathir Mohamed – for Malaysians to be hardworking, honest, and ashamed to commit wrongdoings.
“All these are values required to ensure that people will be responsible for carrying out their roles and responsibilities in all respects, including in matters pertaining to PTPTN,” he added.
National Student Consultative Council secretary-general Muhammad Ammar Rafiq Ruslan said the tax relief initiative for employers who help to repay PTPTN loans was a good move to ensure the government was able to retrieve the loans.
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