Miri MP Chiew Choon Man said the government should look to the 30% repayment incentive programme introduced by the Sarawak government previously.

Under this initiative, the state government will settle 30% of its students’ PTPTN loans once they pay up 30%.

“This (programme) can serve as an example of how creative strategies can significantly enhance repayment rates while continuing to support students throughout their educational journey,” the DAP man said in a statement today.

Yesterday, PTPTN CEO Ahmad Dasuki Abdul Majid said the proposal to suspend or reduce funding for certain university courses was part of a collaboration with local universities to encourage better repayment behaviour among borrowers.

He added that funding will continue for courses with a high repayment rate.

PTPTN, which has disbursed over RM74 billion in loans to date, is facing low repayment rates. As of September 2024, more than 2.7 million loans, totalling RM32 billion, remained unsettled.

In his statement, Chiew said PTPTN funding is crucial for many students, especially those from B40 households, as it enables them to pursue higher education and secure better career opportunities.

“A comprehensive loan structure that covers both tuition fees and living expenses is essential. This support allows students to focus on their studies without the burden of financial stress.

“By ensuring that students can complete their education, we not only invest in their futures but also contribute to the economic growth of our nation,” he said.

Chiew also stressed that education plays a key role in social mobility, particularly for individuals from lower-income families looking to break out of poverty.

“Increasing barriers to access higher education only perpetuates existing inequalities.”