The Malaysian Insight

PTPTN must take into account the income disparity and higher cost of living for Sabah borrowers, a town hall on ways to help the debt-stricken fund recover payments heard.

National Higher Education Fund Corporation (PTPTN) borrower Gary Chong said there are disparities in living costs, wages and job supply between the state and the peninsula.

The 30-year-old engineer said the RM1,100 minimum wage makes it near impossible for graduates to repay their student loans.

With only that much as starting pay, he said, after RM600 has gone to rent a place in Kota Kinabalu and taking into account pressing financial commitments, the amount left over is hardly enough to cover other expenses.

“It is ridiculous. If they are lucky, it will take them at least five years to be able to make about RM2,000 a month.

“They might as well stay in the kampung and become farmers,” he told the PTPTN independent advisory panel, which conducted the town hall at Universiti Malaysia Sabah yesterday.

The fund is on a multi-state roadshow to gather feedback on ways to recover loan payments and resolve its RM40 billion debt.

It borrows from commercial banks to give out loans to tertiary students and is struggling to recoup payments from the majority of borrowers.

The minimum wage was standardised at RM1,100 nationwide under Pakatan Harapan.

Sabahans have long complained that their cost of living is 30% higher than in the peninsula and there are fewer jobs for those with university qualifications in the state, which has about 40,000 unemployed graduates.

In response, PTPTN panellist Shahruddin Sheikh Salim said it will note Chong’s views but added that the cost of living and unemployment are not matters the fund can address.

He said he will, nevertheless, raise the concerns with Education Minister Dr Maszlee Malik.

Another participant, who gave his name only as Jerry, suggested that a politician or political representative of the education minister sit on the advisory panel.

A politician should be a member of the panel as addressing PTPTN’s issues was part of PH’s election manifesto, he said.

The ruling pact must be held accountable for “going back on its word”, he said, referring to the pledge to allow borrowers to defer repayments until they start earning at least RM4,000.

Last year, PTPTN chairman Wan Saiful Wan Jan, who is also a Bersatu supreme council member, apologised for the fund being unable to uphold PH’s election promise.

He said he did not know how massive PTPTN’s debt was when the manifesto was created before the elections on May 9 last year. – May 30, 2019.