Selangor PKR Youth chief Izuan Kasim said it would not be a wise move, given the current economic situation.

“In a highly competitive and uncertain job market, the discontinuation of this initiative will have a negative impact on university graduates,” he said in a statement.

He was responding to higher education minister Khaled Nordin’s announcement yesterday that the ministry was not planning to seek a continuation of the PTPTN loan repayment discount initiative in the 2024 budget.

Khaled said, however, the matter is subject to a final decision by the finance ministry.

He added that the ministry would instead focus on digitalisation, research and innovation, and student housing in the upcoming federal budget.

Izuan said the PTPTN discounts offered had clearly helped borrowers to repay their debt.

“We hope the decision (to discontinue the discounts) will be reviewed,” he said.

When tabling the 2023 budget, Prime Minister Anwar Ibrahim, who is also the finance minister, said the government had agreed to give discounts of up to 20% on PTPTN loan repayments for three months starting March 1.

In addition, the government also agreed to defer repayment for borrowers with a monthly income of RM1,800 and below for a period of six months to ease their financial burden.

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