Encourage the government to forgive PTPTN loans for impoverished and unemployed graduates
Government Funding for Education Loans and Course Alignment in Malaysia
The Malaysian government is currently providing limited direct funding to repay education loans such as PTPTN, with calls for relief measures, particularly for the hardcore poor and unemployed graduates. One such example is the Sarawak state government, which has paid off up to 30% of PTPTN debts for qualifying students [1]. However, there is no broad government-wide cancellation or repayment funding at the federal level announced recently; instead, PTPTN offers loan restructuring campaigns like “Lestari Pendidikan” to aid repayment [4].
Larry Sng, a Member of Parliament from Julau, has emphasised the need for the federal government to help those truly in need, questioning why they can't do the same as Sarawak [6]. In 2023, it was reported that the Sarawak government paid PTPTN RM90.42 million to clear 30% of the debts owed by defaulters in the state [3]. 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 [7].
In addition to education loan repayment funding, cash aids like RM100 SARA 2025 help Malaysians generally but don't specifically address education loans [2][3]. Sng has suggested that a policy like the Sarawak government's approach in helping Sarawakian students settle their PTPTN loans could be more effective than broad-based cash aid [6].
Regarding the alignment of public university courses with industry needs, Sng has urged the federal government to ensure that programs offered in public universities match the demands of the job market to prevent graduate unemployment [1]. This call is made in official discussions, highlighting the need for political will to manage the issue and avoid wasting the youths' time and energy on irrelevant courses that may lead to joblessness [6].
In conclusion, government funding for education loan repayment is limited and more targeted at specific groups or via loan restructuring, while policy emphasis is increasing on aligning education offerings to industry demand. Sng's comments were made during a debate on the 13th Malaysia Plan in the Dewan Rakyat, emphasising that it's not just about having the means, but also the political will and sincerity to help the rakyat [6].
- The Sarawak state government, in Malaysia, has taken a proactive approach in providing relief for education loan borrowers, paying off up to 30% of PTPTN debts for qualifying students.
- Larry Sng, a Malaysian Member of Parliament, has advocated for the federal government to emulate the Sarawak government's approach, suggesting that a policy focusing on repaying Sarawakian students' PTPTN loans could be more effective than general cash aids.
- In the realm of education and self-development, there is a growing focus on aligning public university course offerings with industry demands, with political discussions underscoring the necessity for this alignment to prevent graduate unemployment and waste of youth resources.
