AROUND 30 per cent of the 1.2 million National Higher Education Fund Corporation (PTPTN) loan defaulters are believed to have the means to afford holidays abroad, according to PTPTN chairman Datuk Seri Norliza Abdul Rahim.
The finding emerged from checks conducted through data matching with multiple agencies.
“I believe firm action should be taken against this group, as they clearly have the means to repay their loans but have failed to take responsibility for doing so,” Norliza told Mingguan Malaysia.
As of 31 August, PTPTN’s total loan repayment arrears stood at RM11.18 billion, with 359,000 borrowers owing RM5.25 billion who have never made any repayments.
“Among them are individuals who have been employed for many years, some even up to the age of 60, yet still fail to settle their debts. Therefore, it is only appropriate that those known to have the financial means to repay their loans should be pursued for collection,” she said.
Norliza added that some defaulters earning substantial incomes are employed overseas.
“For example, many of our citizens are employed in Singapore, where their income is three times higher (based on currency value). It is unreasonable for those earning between RM6,000 and RM10,000 not to repay their loans.
“Repayments can be as low as RM100 or RM200. So I believe that in such cases, travel restrictions should be imposed on them, as with their level of income, there is no justification for failing to make repayments.
“In fact, the amount of outstanding arrears has a significant impact on the sustainability of PTPTN's funds and its ability to continue providing educational opportunities for future generations.” - October 26, 2025
