Budget 2024: Group proposes expanding full PTPTN funding to M40 students

KUALA LUMPUR: The National Association of Bumiputera Private Higher Education Institutions Malaysia (PKIBM) has proposed extending the 100 per cent financing for National Higher Education Fund Corporation (PTPTN) loans to all students in the M40 category.

PKIBM president Amir Hamzah Md Isa said under the current policy, students from M40 families are offered only 75 per cent financing, compared to the B40 group which receives full funding of RM4,000 per semester for diploma-level studies.

"In extending the benefits enjoyed by the B40 to the M40, it not only eases the financial burden on parents but also aligns with the government's initiatives to enhance school leavers' opportunities for higher education," he said in a statement on Monday (Oct 9) ahead of the tabling of Budget 2024 on Friday (Oct 13).

Amir Hamzah also emphasised the need for the government to extend educational loan opportunities from Majlis Amanah Rakyat (Mara) to eligible bumiputra students enrolled in private higher education institutions (IPTs) associated with exceptional bumiputra-owned colleges (MyQUEST 2022-Competitive) that provide essential diploma-level programmes.

"Bumiputra students from B40 and M40 families, who have achieved good to average results in their Sijil Pelajaran Malaysia, are more likely to opt for diploma programmes due to their shorter duration. Graduates in critical fields are highly sought after by industries and find it easier to secure employment," he added.

Amir Hamzah also suggested that the government should subsidise flight tickets for students from private IPTs travelling within the peninsula, Sabah, Sarawak and Labuan, similar to what is done for public university students.

The private higher education sector is recognised as a strategic industry for the country, contributing RM31.5bil to the national income and economy, but the fact remains they operate independently and mostly rely solely on student tuition fees for funding, he added.

"The sudden drop in new student enrollment over the past two years has relatively impacted the cash flow of the institutions involved," he said, adding that he hopes the 2024 Madani Budget that will be tabled on Friday can aid and support the sustainability of bumiputra private IPTs to continue operating.

For this purpose, he suggested the government offer an easy financing scheme to eligible bumiputra private IPTs affected by various uncertainties post-Covid-19.

He said the Easy Financing Scheme, known as Skim Pembiayaan Mudah Jaya, under the National Economic Recovery Plan (Penjana) offered by Mara with a maximum amount of RM5mil, which has significantly helped many bumiputra private IPTs, should be continued in a targeted manner.

"Introduce the Incentive for Digitalisation Plan for private IPTs to improve teaching processes, internet infrastructure and facilities on campuses as well as learning centres. This will make private IPTs more competitive globally and boost their income," he said.

Amir Hamzah hoped the government would focus on the future of over 500,000 students in private IPTs and provide support for the sustainability of bumiputra-owned institutions under Budget 2024. - Bernama