RESPONSE TO MINISTRY OF HIGHER EDUCATION ON PTPTN

I refer to my proposal on 6th May, 2009 to the Ministry of Higher Education for the exemption of repayment of PTPTN Loan for 1st Class graduates and 30% discount for 2nd Class Upper graduates. The proposal was made to serve as recognition by the Government of the students’ academic excellence. It would be disappointing to see that Malaysian students, who were not granted scholarship initially but actually performed up to expectation not being rewarded for their academic excellence.

Subsequent to the proposal, it was reported in local daily (see http://thestar.com.my/education/story.asp?file=/2009/5/10/education/3848450&sec=education) that Higher Education Minister Datuk Seri Mohamed Khaled Nordin replied that the Ministry “can only consider this when the financial situation of PTPTN is sustainable.” It was also reported that PTPTN chief executive officer Yunos Abd Ghani said the corporation was presently unable to consider the requests as “the amount would be too much for the corporation to absorb”.

Dato Seri Mohamed Khaled Nordin had also previously said the ministry was currently conducting research on how to ensure the sustainability of the PTPTN as “if the PTPTN funds continue to operate as they are, we will have a RM42bil deficit by 2020”.

Thus, I would like to take this opportunity to respond as follows:-
1. the current financial condition of the PTPTN is due to the high rate of default by borrowers. It would be unfair if the issues of default in PTPTN Loan would drag down the aim of our government to promote the development of human capital in Malaysia;

2. I am of the view that recognition of students’ academic excellence is an important aspect in developing a more vibrant and dynamic young Malaysians as well as to culture a feeling of gratitude among youth to serve our country in a more sincere manner as well as to the Barisan Nasional led government.

3. The recent by-election and the general election in 2008 had shown deteriorating support of young voters in our country, which I am not surprise considering the current higher education policy in our country. This includes the abolishment of the exemption of repayment of PTPTN Loan by 1st Class graduates, taken by the Cabinet two (2) years ago.

4. Thus, I would like to propose that the exemption of repayment of PTPTN Loan for 1st class Graduates and 30% discount for 2nd Class Upper Graduates will not burden the financial condition of PTPTN if:-
(a) A new Malaysian scholarship foundation can be set up by government to pay PTPTN for the exemption of repayment for 1st Class Graduates and the 30% discount for 2nd Class Upper Graduates; and
(b) A study to be conducted under the supervision of Ministry of Higher Education on the required amount to set up the new Malaysian scholarship foundation and to be proposed in the Budget for year 2010.

I hope that this proposal can be considered by the Ministry of Higher Education for the benefit of young Malaysians, which are the core future of Malaysia.