The PTPTN (Perbadanan Tabung Pendidikan Tinggi Nasional) was initiated with the objective to provide financial assistance to students to pursue their education in local public and private universities, as well as polytechnics. Students who pursue their diploma, first degree, master’s degree, doctoral degree or professional courses are eligible to apply for these loans.
Between 1997 and 2015, 2,464,937 loans with an approximate value of RM55.83 billion were approved for students pursuing their higher education studies in Malaysia (PTPTN Annual Report, 2015). Another projected PTPTN’s funding requirement is to be around RM24 billion in the next 5 years or RM46 billion in the next 10 years. This is around 2.4% of the national debts of RM1 trillion debts and can go up to 4.7% in the next 10 years for the same debts. The average funding requirement is around RM4.5 billion to RM5.00 billion per year. This is especially in the backdrop of RM19 billion in receivable and more importantly a portfolio of RM8.1 billion in overdue or unpaid balances.
Not all can afford to repay these loan as they cannot get employment. some barely survive. work are scarce. given more to foreigner. it is not that they do not want to repay or contribute. I met with many who said so. what government should do is to take these ‘graduates’ from academic and include life building skills and experience. extend the PTPTN support until that stage. I see PTPTN as a loan shark more of profit than helping. Malaysia incorporated- get corporate to help train these graduates all levels not only degree and above. PTPTN should JV with these corporate and get their funds there.