MCA Youth Secretary-General Saw Yee Fung is calling for the government to consider stricter action against those who have defaulted on their National Higher Education Fund Corporation (PTPTN) loans.
She suggests restricting defaulters from applying for car and house loans to ensure accountability.
A travel ban alone is not enough
This proposal follows her assertion that a travel ban alone does not carry substantial consequences for those who deliberately default on their repayments.
According to her Facebook post and a report by Sin Chew Daily, Saw explained that the Ministry of Higher Education’s current travel ban on PTPTN defaulters lacks clear standards and suffers from weak enforcement.
“Under such a policy, the government cannot recover its debts, and the sustainability of the education loan system cannot be guaranteed. Ultimately, only students will be affected,” she stated.
Unfair to graduates who repay their PTPTN loans
She further explained that fewer than 0.7% of borrowers are currently on the list of those prohibited from leaving the country. She argued that this figure is too low to have any real deterrent effect and fails to solve the long-term problem.
Consequently, her suggestion includes not only restricting defaulters from securing car and home loans but also implementing automatic wage deductions. These would be set at amounts proportionate to the borrower’s income.
“If the government condones such behaviour, it would be unfair to graduates who repay their loans in good faith,” Saw added.
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