Cancel outstanding PTPTN loans of hardcore poor and jobless grads, govt urged

Julau MP Larry Sng said the federal government should emulate the Sarawak government, which had helped Sarawakian students settle their PTPTN loans.
KUALA LUMPUR: An MP from Sarawak has called on the government to write off the outstanding National Higher Education Fund Corporation (PTPTN) loans for borrowers who are either jobless or are from the B40 category and hardcore poor households.

Larry Sng (PBM-Julau) said such an approach was far more effective than providing cash aid to those who were struggling to settle their education loans.

Sng said the federal government should emulate the Sarawak government, which had helped Sarawakian students settle their PTPTN loans.

“Help those who are really in need. If the Sarawak government can do it, why can’t the other governments do so?

“This is not just a matter of having the means to do so, but the political will and sincerity to help the rakyat,” he said when debating the 13th Malaysia Plan in the Dewan Rakyat today.

In 2023, it was reported that the Sarawak government had paid PTPTN RM90.42 million to clear 30% of the debts owed by defaulters in the state.

The fund’s chairman, Norliza Abdul Rahim, said this sum was paid following the signing of a memorandum of understanding between PTPTN and the Sarawak Foundation for the Sarawak PTPTN student loan repayment incentive scheme in March 2021.

Under the agreement, the state government will pay up to 30% of the loan balance for borrowers who have settled at least 30% of their debt.

Sng also urged the federal government to ensure that courses offered in public universities were in line with the needs of industries.

He said such a policy was needed to ensure graduates would have job opportunities.

“The government would have to manage the impact of jobless graduates, all because they took an irrelevant course. Do not waste the youths’ time and energy,” he said.

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