The education ministry's suggestion to do away with allowances for trainee teachers, thereby forcing them to loan from the National Higher Education Loan Fund (PTPTN) is bad news for the fund which is already facing depletion, said Parti Pribumi Bersatu Malaysia president Muhyiddin Yassin.

Muhyiddin, who was once education minister, said the proposed policy will not only burden trainee teachers but increase competition among those needing PTPTN funds, which is already reducing the maximum loan amount to students by 5 to 15 percent since 2014.

"When the trainee teachers are asked to loan from PTPTN, there will be competition between students who turned to PTPTN because they failed to obtain a scholarship and the trainee teachers who will also be forced to loan (for their allowances) from the same fund.

"My worry is a portion of them will not get approval from PTPTN even though they have the qualifications," said Muhyiddin...