Shoo (right) was celebrating Yue Tung’s first birthday with (from left) Soon Heng and her engineer husband, Lee Yong Kang, at a Japanese restaurant in Cheras.
THE pursuit of tertiary education remains a core aspiration for Malaysian families, yet the financial commitment involved can be daunting.
Forward-thinking parents increasingly recognise that disciplined saving alone is insufficient; the real advantage lies in strategic financial optimisation.
This is where the National Education Savings Scheme (Simpan SSPN), offered by the National Higher Education Fund Corporation (PTPTN), stands out as a leading education-focused savings option.
Designed to support long-term education planning, it provides income tax relief of up to RM8,000 annually on net savings — a policy incentive that eases household tax burdens while rewarding disciplined financial preparation.
Two depositors who have embedded this tax advantage into their family financial strategies share how Simpan SSPN has enabled them to convert tax liabilities into future educational capital.
Tax relief as reinvested capital
For Ong Phaik Ngoh, 45, a used-car dealer, the RM8,000 tax deduction is not merely a tax break but a catalyst for accelerated capital accumulation for her children’s education.
“The tax relief on my RM8,000 net savings is, in effect, an implied government subsidy,” she explained. “More importantly, it raises the effective rate of return on my education fund.
“A portion of this money I save on my tax bill is reinvested into my Simpan SSPN account the following year. This mechanism creates a powerful compounding effect on my tax-optimised capital, ensuring robust financial readiness when my child enters university.”
Ong has been depositing between RM4,000 and RM5,000 annually into Simpan SSPN since 2023 for her four-year-old daughter, Sophia. Her husband, meanwhile, has been contributing RM8,000 a year for their 12-year-old son for several years.
She also highlighted the strategic significance of a new ruling effective from the 2025 assessment year.
“PTPTN has confirmed that withdrawals made specifically to pay for a child’s higher education fees will no longer affect the calculation of net savings,” she said.
“This removes a major element of uncertainty and protects the full RM8,000 tax relief claim, allowing parents to access funds when needed without compromising their tax position. This level of certainty is rare in the market.”
For parents who opt for Simpan SSPN Plus, which combines savings with takaful protection, an additional tax relief of up to RM7,000 is available on the takaful contribution portion.
Together, this allows depositors to legally optimise personal tax relief of up to RM15,000 annually.
Smart planning
Shoo Hui Shan, 35, a human resources manager, chose Simpan SSPN primarily for its ability to deliver both financial security and peace of mind.
“This approach safeguards my child’s education against any unforeseen circumstances while maximising fiscal efficiency,” she said. “It is strategic planning in its truest sense — securing the future without compromising the present through unnecessary tax payments.”
Shoo has been contributing RM8,000 annually to Simpan SSPN since 2019 for her six-year-old son, Lee Soon Heng and plans to start saving for her one-year-old daughter, Lee Yue Tung next year.
She added that the competitive dividend rate further reinforces her confidence in the scheme.
Whether parents opt for separate or joint tax assessment, both categories allow claims of up to RM8,000 in annual tax relief on net Simpan SSPN savings.
Norliza says Simpan SSPN enables parents to save specifically for education while nurturing the habit of disciplined saving from an early age.
A targeted incentive
PTPTN affirms that Simpan SSPN is a cornerstone of its broader commitment to empowering families through structured financial planning for their children’s future. PTPTN chairman Datuk Seri Norliza Abdul Rahim said the scheme was designed to encourage early, purpose-driven savings.
“By introducing Simpan SSPN, we have created space and opportunity for parents to save specifically for education while nurturing the habit of disciplined saving from an early age,” she said.
She urged Malaysians to take advantage of the incentive before the year-end deadline.
“I encourage parents to open an account or make additional deposits in Simpan SSPN before Dec 31 to enjoy income tax relief of up to RM8,000 for the 2025 assessment year.
“This is a special incentive that offers a distinct advantage over other savings products, alongside a range of additional benefits.”
Secure your entitlement
The window to claim the income tax relief for the 2025 assessment year closes on Dec 31. Parents who deposit before then can transform tax payments into a tangible investment in their child’s educational future.
Depositors are also eligible to participate in the Cabutan WOW! Simpan SSPN 2025 draw, which offers total prizes exceeding RM1.5mil for 550 winners.
Secure your RM8,000 tax relief—and your child’s educational future—today.
Click here to learn more about income tax relief for 2025.
