Government Says Cancellation of PTPTN Debt for Underprivileged M’sians May Not Happen

Deputy Minister of Higher Education, Datuk Mustapha Sakmud has shared that debt cancellation of the National Higher Education Corporation Fund (PTPTN) is difficult to implement as the government currently has a large financial commitment.

He said this during today’s morning session of Dewan Rakyat (October 22), when asked by Member of Parliament for Jerai, Ustaz Sabri Azit, about whether the Ministry of Higher Education (KPT) has reviewed a PTPTN debt cancellation plan targeted at the underprivileged and B40 households as the government had promised before.

In response, the Deputy Minister mentioned the government’s high financial commitment as well as their need to take into account the commitment of borrowers who have already paid their debts.

“This PTPTN issue has been a long-standing issue and all parties have put it into their respective manifestos, including this side (the government) and also that side (the opposition),”

“It’s just that, in the current situation, it is quite difficult for us to eliminate (the debt) with such big commitments from the government and we also have to think, if we want to eliminate it for those who haven’t paid, we also have to think about those who have already paid,” he said.

He added that the amount that has been paid, which he estimates at RM76 billion, will go into funding the education of future students.

A new funding model for PTPTN may be proposed

He went on to explain that KPT and PTPTN are working closely with the MADANI Monitoring Unit under the Ministry of Finance to study and propose a new funding model for PTPTN, that is more efficient and sustainable for the long-term financing of higher education in Malaysia.

Additionally, regarding the RM6 billion in arrears by 430,000 PTPTN borrowers, PTPTN will provide certain incentives to encourage them to make repayments, including by allowing borrowers to restructure their repayment plans to their respective abilities.

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