Gov’t urged to explain approach to ensure sufficient PTPTN funds
The government has to explain its approach to ensure that the National Higher Education Fund Corporation (PTPTN) has enough funds to provide loans to new and existing students.
This, if the government has no plan to assist PTPTN to implement syndicated loans with financial institutions or issue a guaranteed sukuk programme in the near future, said Kulai MP Teo Nie Ching (below) in a statement today.
The government has to explain its approach to ensure that the National Higher Education Fund Corporation (PTPTN) has enough funds to provide loans to new and existing students.
This, if the government has no plan to assist PTPTN to implement syndicated loans with financial institutions or issue a guaranteed sukuk programme in the near future, said Kulai MP Teo Nie Ching (below) in a statement today.
Teo's concern over PTPTN followed the government's initiative under the "Prihatin" stimulus package to cushion the financial burden on the people due to the Covid-19 outbreak and the movement control order (MCO).
"One of the initiatives announced to help the youth amid the Covid-19 crisis was to extend the deferment on PTPTN loan payment from three months to six months which involves a collection of RM750 million.
"By principle, I support this initiative.
'However, thorough planning and preparation are needed to ensure that PTPTN's financial position and future borrowers are not affected," said the former deputy minister of education.
She said on average, PTPTN has to provide an allocation of up to RM4.3 billion a year to provide loans for 180,000 new borrowers and 420,000 existing borrowers.
"Loan or sukuk from financial institutions are the main financial source of PTPTN.
"As of 2019, a grant from the federal government was RM5.295 billion which was channelled from 1997 to 2002.
"Since 2003, every year PTPTN collected funds from loan or sukuk," she added.
In total, the amount of PTPTN long-term loan fund as of 2019 is RM54.2 billion while the amount paid is RM16.9 billion, she said.
Keep up with the latest information on the outbreak in the country with Malaysiakini's free Covid-19 tracker.
Malaysiakini is providing free access to the most important updates on the coronavirus pandemic. You can find them here.
Help keep independent media alive - subscribe to Malaysiakini.
Are you sure you want to delete this comment?
This action cannot be undone.