Govt To Review PTPTN Repayment Exemptions For Previous Borrowers

KUALA LUMPUR, Nov 3 (Bernama) -- The government will study a loan repayment exemption policy for previous National Higher Education Fund Corporation (PTPTN) borrowers who earned first-class honours degrees.

Finance Minister II Datuk Seri Amir Hamzah Azizan said the review would consider fairness to borrowers while ensuring the country's education financing policy remains sustainable.

“We will continue to review PTPTN's policy to ensure that assistance is targeted and provided only to those who genuinely need it. Any exemptions will also be assessed in line with this policy,” he said when winding up the committee-stage debate on the Supply Bill 2027 (Budget 2027) for the Finance Ministry in the Dewan Rakyat today.

Chong Chieng Jen (PH-Stampin) interjected to highlight concerns among borrowers who took out PTPTN loans in 2025 or earlier, saying changes to the eligibility requirements breached their contracts.

Chong said previous loan agreements explicitly provided for repayment exemptions for borrowers who graduated with first-class honours degrees, and urged the government to maintain the exemption for existing borrowers until a new policy is announced.

On measures to support graduates, Amir Hamzah said the government allows PTPTN borrowers earning up to RM2,500 a month to defer repayments, while those earning between RM2,501 and RM3,000 must pay a minimum of RM50 monthly to ease their transition into the workforce.

He said borrowers who make regular repayments without falling into arrears are eligible for a 10 per cent discount, while employers who help repay their employees' loans will qualify for tax deductions from Jan 1, 2027, to Dec 31, 2028.

In a separate development, Amir Hamzah said the government, through Bank Negara Malaysia (BNM), would review insurance providers' operating procedures after complaints that policyholders at private hospitals faced restrictions on their choice of specialist doctors.

He said the government would discuss the matter with BNM to protect consumer rights and curb rising medical costs.

“Regulation of the insurance industry falls under BNM, and as part of this initiative, the central bank will review the procedures adopted by insurance providers.

“Equally important is ensuring that all industry players comply with sound regulations to prevent medical cost inflation from rising, as everyone would ultimately bear the resulting costs,” he said.

On expanding access to comprehensive healthcare protection, Amir Hamzah said the affordable MediAsas insurance and takaful product is expected to be launched in late January next year, adding that the product will use a diagnosis-based payment system to curb rising treatment costs, while allowing Employees Provident Fund (EPF) members under 55 to pay premiums using their Akaun Sejahtera.

As part of efforts to support workers' welfare, the government has agreed to provide employers of small and medium enterprises with fewer than 75 employees a first-year premium subsidy of RM200 per worker, with each company eligible for a maximum of 50 workers, he added.

The Dewan Rakyat subsequently approved the Finance Ministry's estimated 2027 operating and development expenditure of RM68,159,895,600 under Budget 2027 by a voice vote, following debate by 27 MPs.

-- BERNAMA