KUALA LUMPUR: Vector Infotech Sdn Bhd is setting a good example of encouraging youths to settle their National Higher Education Fund Corporation (PTPTN) loans via merit and hard work.
Its managing director Hii Ding Sin said they recruited employees who displayed the right attitude and competencies via a student internship placement programme.
“We will unleash their hidden talents during the industrial training. Those selected will be offered jobs. Based on their performance, we will help them to repay their PTPTN loan,” he said.
The assistance will be given without any deduction from their bonus or allowance.
“We hope that this assistance would lessen their financial burden. Through this effort, it is a win-win situation,” he said, adding that it would also motivate the employees to give their full commitment to their job.
“For us, this is more about appreciating our employees for their effort and hard work,” he said.
"Our company has repaid PTPTN loans of up to RM64,541 for employees in the past few months and plans to pay for other employees in the near future".
Hii said the company appreciates the incentives offered by PTPTN, and hopes that the measures taken would encourage employers or other companies to join the programme as part of their commitment to the community.
PTPTN is urging more companies to grab the opportunity to enjoy the unlimited tax exemption before it ends on Dec 31.
PTPTN senior general manager Abdul Ghaffar Yusop said this is in line with the 2019 Budget.
“This could be an incentive for companies to reward their employees as, usually, they are given an annual bonus or holiday package,” he said.
Abdul Ghaffar said the companies are entitled for the tax exemption based on the amount spent to settle the loan.
“The companies could choose to settle the amount in one lump sum or via monthly instalments,” he said.
Abdul Ghaffar said it was a favourable situation for both sides, as the government has helped to nurture outstanding talents by offering study loans.
He said there is no minimum or maximum payment to be imposed as it will all depend on each company’s discretion.
However, he said, if the company asks for repayment from their employees, it is an offence.
“Employees have to report to PTPTN and we will forward the case to the Inland Revenue Board,” he said.
Abdul Ghaffar said employers who make false claims will also have action taken against them according to the Income Tax Act 1967.
He added that the offer is not valid for self-employed workers who are paying their own loans, as the rules require the employees to be employed by a company.
All repayments are to be made via online. For more information on the tax exemption and loan repayment programme, employers can visit www.ptptn.gov.my.