MCA has urged the government to initiate action that balances accountability with compassion to tackle the RM6 bil in outstanding amount owed by 430,000 National Higher Education Fund Corporation (PTPTN) defaulters who have never made a single repayment even upon their graduation decades ago.
Referring to the distressing revelation by Higher Education Minister Datuk Seri Zambry Abd Kadir yesterday (Sept 23), the MCA Education Consultative Committee suggested that the government could mandate employers to implement automatic salary deductions for PTPTN repayments.
“Alternatively, the employer portion of the EPF contribution could be diverted towards PTPTN instalments instead of the worker’s EPF account,” MCA deputy president Datuk Dr Mah Hang Soon pointed out in a media statement.
“These would ensure that loan repayments are made consistently, thus reducing the burden on both the borrowers and PTPTN. “
For self-employed individuals or sole proprietors, the government can introduce a policy that prohibits the renewal of business licenses for PTPTN borrowers who have outstanding loans. This would incentivise repayment and ensure accountability among self-employed borrowers.
Moreover, authorities in the likes of PTPTN, the Inland Revenue Board (LHDN), Insolvency Department and the Immigration Department can blacklist the defaulters, thus preventing them from leaving the country until their outstanding loans are settled.
Additionally, the defaulters should be prohibited from applying for new loans, credit facilities especially personal credit cards or purchasing properties, shares and vehicles.
“These would encourage borrowers to engage with PTPTN regarding their repayment options. Arrangements should be made to pay in instalments if paying the lump sum along with the accrued interest becomes burdensome,” reckoned Mah who is also the MCA Education Consultative Committee chairman.
“Considering that the RM6 bil is equivalent to 20,000 Rumah WIP, the irresponsible behaviour of these defaulters not only jeopardises the financial health of PTPTN but also undermines future generations from accessibility to tertiary education.”. – Sept 24, 2024
