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KUALA LUMPUR, The Ministry of Higher Education (KPT) and the National Higher Education Fund Corporation (PTPTN) are working closely with Madani Monitoring Unit under the Ministry of Finance to study and propose a new PTPTN financing model that is more efficient and sustainable for the long term.
Deputy Higher Education Minister Datuk Mustapha Sakmud said currently the PTPTN loan financing model depends on repayment performance as the main source of revolving funds in ensuring the sustainability of financing for the benefit of borrowers in the future.
“Any need or lack of funds for the purpose of PTPTN loan financing will be accommodated by obtaining funds through loans from local financial institutions or through the issuance of sukuk with government guarantees,” he said during a question and answer session at Dewan Rakyat today.
He was replying a question by Datuk Shamshulkahar Mohd Deli (BN-Jempol) who wanted to know the government’s initiative to encourage the repayment of PTPTN loans since it was repor
ted that 430,000 borrowers failed to make repayments with arrears amounting to RM6 billion.
Mustapha said PTPTN has stopped loan repayment enforcement and travel restrictions on defaulting borrowers since June 2018, but from time to time PTPTN reminds borrowers about their arrears and their responsibility to make repayments.
In fact, he said PTPTN also provides certain incentives to encourage borrowers to make repayments such as structuring and scheduling repayments according to their respective abilities.
Replying to a supplementary question by Sabri Azit (PN-Jerai) regarding the plan to study the cancellation of PTPTN debt of borrowers from the B40 group, Mustapha said it would be difficult to implement because the government’s commitment is very big at the moment.
Source: BERNAMA News Agency
