ALOR SETAR, Nov 5 — The government has taken into consideration current and future needs prior to introducing scheduled salary deduction for National Higher Education Fund Corporation (PTPTN) borrowers with monthly income exceeding RM1,000.
Deputy Finance Minister Datuk Ir Amiruddin Hamzah said this was based on an assessment made on the corporation’s education fund which was found to be unsustainable to meet the demand for loans.
“As we see there is something which has to be done, so the government felt borrowers with monthly income exceeding RM1,000 should repay their PTPTN loans starting with 2 per cent first.
“The rate is not a lot but it is important to repay the loan so that it could be used to provide loans for others,” he told a media conference after a Post-Budget 2019 Forum organised by Universiti Utara Malaysia (UUM) and the Kedah State Economic Planning Division here today.
The event was opened by Kedah Mentri Besar Datuk Seri Mukhriz Tun Dr Mahathir and was also attended by UUM vice-chancellor Prof Dr Ahmad Bashawir Abdul Ghani.
In tabling Budget 2019 last Friday, Finance Minister Lim Guan Eng said the government was introducing the repayment method for PTPTN loans via scheduled salary deduction for borrowers earning above RM1,000 a month.
In this regard, Amiruddin stressed that the decision of the government to provide petrol subsidy for cars with engine capacity 1,500cc and below and motorcycles with 125cc and below as tabled in the budget was only targeting those from the B40 group.
“We will be issuing details on the matter as the implementation will only be carried out in the second quarter of 2019. When we say targeted subsidy, it meant those in the B40. If one is out of the group, then one is not the target group. We are still studying the details,” he said. — Bernama