Archive for the ‘Scholarships and Loans’ Category

Experts advise EPF Account 1 withdrawal only as a last resort

Friday, November 6th, 2020
“It is the people’s money, so they must ask themselves if they truly need it because if they have excess cash, they will spend them all.” - Bernama pic

“It is the people’s money, so they must ask themselves if they truly need it because if they have excess cash, they will spend them all.” – Bernama pic

KUALA LUMPUR: Any fund withdrawal from Account 1 of the Employees Provident Fund (EPF) should only be considered as a last resort to ease the public’s financial burden amid the economic impact of the Covid-19 pandemic.

Malaysian Financial Planning Council deputy president, Desmond Chong Kok Fei said allowing contributors to dip into Account 1 provided a short-term relief at the expense of their long-term retirement benefits.

“Account 1 may help with instant cash, but what happens next? People may turn to other resources, seeking personal loans or using their credit cards to support their daily expenses. Both are not advisable due to the high interest rates.

“Besides, allowing it (dip into Account 1) is similar to giving an extension to the loan repayment moratorium. Could all problems be solved?

“If it remains unresolved even after six months, what makes one think they can solve their income problem by withdrawing funds from Account 1?

“Therefore, the government must seek ways to improve or enhance the people’s earnings, such as by creating job opportunities and to offer more subsidy to employers to ensure workers take home a full salary and not endure pay cuts.”

Chong said while the government could offer cash handouts, he questioned its practicality and advised employees, especially those in the B40 and M40 income bracket, to be responsible over their financial situation and plan their expenses.

The first step, he said, was to work out one’s liquidity ratio to determine how long he or she could survive in an event of unemployment or salary cut.

This, he said, could be done with a simple formula — determine the available cash and/or equivalent of cash (such as assets or shares) and divide it by the monthly expense.

“For example, if a person has RM12,000 (existing cash or asset), divide it by RM2,000 (monthly expense). This means he can sustain for another six months.”

Chong said should the Account 1 withdrawal be permitted, employees must use the liquidity ratio to determine the amount needed, depending on their personal financial situation.

“It is the people’s money, so they must ask themselves if they truly need it because if they have excess cash, they will spend them all.

“Hence, not everyone should be allowed to dip into their EPF corpus, which could leave long-term ramifications to the country due to insufficient savings when these EPF contributors retire.”

He advised those in a critical situation to apply for the targeted moratorium, visit their banks for rescheduling and restructuring of a financing, or seek help at the Credit Counselling and Management Agency.

Meanwhile, lawyer Fredric Kong Yat Sen said the Employees Provident Fund Act 1991 preamble clearly stated that it was “an act to provide for the law relating to a scheme of savings for employees’ retirement and the management of the savings for the retirement purposes and for matters incidental thereto”.

“As it is, various amendments were made to the original act to allow for different sorts of withdrawals that arguably have nothing to do with ’savings’ and ‘retirement purposes’ and this has diluted the raison d’être (reason or justification for existence) of the scheme.”

Therefore, Kong said, a further erosion of this and the allowance for Account 1 to be withdrawn to meet members’ immediate or near future needs would turn the EPF into nothing more than another bank or financial institution.

He said for an entity like the EPF to generate dividends for members, it needed capital that mainly came from contributions, which were then invested to gain more money for contributors.

“Imagine if everyone is allowed to withdraw from the EPF a substantial amount of their contributions.

“This means that year after year the EPF loses more and more capital and therefore cannot generate the amount of income and dividends that it has been able to over the years.

“So who stands to lose in the end? It is the employees who, once they retire, will find that they have nothing left.”

Kong also explained that if the government permitted Account 1 withdrawal, it did not have to be tabled in Parliament.

“Wherein Section 54(7) makes clear that the Minister who is responsible for matters relating to the EPF may, if he thinks it expedient and after consulting with the EPF board, add to, vary or modify the purposes for which a member may make a withdrawal from the Fund by way of a gazetted order.

“Therefore there is no need to amend any law.”

By Tharanya Arumugam.

Read more @

Education savings with a chance to win big

Monday, August 31st, 2020

SSPN-i Plus is a savings product provided by PTPTN to help parents plan for their children’s education.

A MERCEDES Benz C200 FL AMG Line is up for grabs in the National Higher Education Fund Corporation’s Cabutan WOW! SSPN-i Plus 2020 which offers RM1mil worth of prizes.

The corporation which is better known by the acronym PTPTN (Perbadanan Tabung Pendidikan Tinggi Nasional) is offering a car as well as cash prizes in the draw, in line with its objective to encourage parents to save early for their children’s future.

SSPN-i Plus is a savings product provided by PTPTN under the National Education Savings Scheme (Skim Simpanan Pendidikan Nasional, or SSPN) to help parents plan for their children’s education.

The Cabutan WOW! is to encourage people to save in SSPN-i Plus.

Cabutan WOW! SSPN-i Plus 2020, launched on July 14, features two draws – monthly and annual.

From July till December, every month there will be 20 winners who will each receive RM2,020.

The annual draw at the end of the year will offer the Mercedes Benz as main prize, RM50,000 cash as second prize, and RM30,000 cash as third prize.

Besides these three lucrative prizes, 1,000 winners will receive a consolation prize of RM500 each.

According to PTPTN, all SSPN-i Plus depositors are eligible to take part in Cabutan WOW!

Depositors need to open an account or make additional savings during the Cabutan WOW! period and ensure their account stays active and there are no arrears in deposits.

Every RM50 in savings gives a depositor a draw chance in Cabutan WOW! and there is no limit to the number of chances.

SSPN-i Plus offers more benefits as it is an improved product over the previous SSPN-i.

With a RM30 package or as low as RM1 a day, the depositor gets to enjoy the many benefits of SSPN-i Plus.

Parents, adoptive parents or legal guardians who save in SSPN-i Plus will get tax exemption of up to RM8,000.

There will be extra tax exemption of RM3,000 for takaful contributions from non-civil servants, and RM7,000 for civil servants.

SSPN-i Plus offers up to RM1mil death/permanent disability benefits for takaful depositors.

The SSPN-i Plus savings packages are shariah-compliant and guaranteed by the Government, with competitive dividend rates, income tax exemption and eligibility to apply for PTPTN loan.

There are six savings packages under SSPN-i Plus.

The Intan package is affordable – as low as RM1 savings a day. One gets to enjoy all the benefits just by depositing RM30 per month.

There’s also the Delima (RM50 per month), Topas (RM100 per month), Zamrud (RM200 per month), Nilam (RM300 per month) and Berlian packages (RM500 per month).

To open an account for an adopted child, the adoptive parents or guardians need to submit a statutory declaration or child adoption certificate.

SSPN-i Plus account holders are required to activate salary deduction or auto debit to avoid arrears of monthly deposits.

Meanwhile, insurance and takaful companies in the country have been introducing funds for Covid-19 screening in aid of policyholders.

PTPTN is concerned about the pandemic’s impact and has allocated a special fund of RM100,000 as takaful protection for SSPN-i Plus depositors in case of infection.

This fund provides a one-time hospital admission allowance of RM100 and additional death benefit of RM50.

The claim period is between April 1 and Sept 30 this year, and up to RM100,000.

For more details on SSPN-i Plus, visit, go to any PTPTN counter, or call the PTPTN Careline (03-2193 3000).

Read more @

No special quota for students from oil producing states, including Sabah, Sarawak

Monday, August 24th, 2020
There is no special quota given to students from oil-producing states, including Sabah and Sarawak, to pursue their tertiary studies under the Petronas Education Sponsorship Programme (PESP), the Dewan Rakyat was told today. - NSTP file picThere is no special quota given to students from oil-producing states, including Sabah and Sarawak, to pursue their tertiary studies under the Petronas Education Sponsorship Programme (PESP), the Dewan Rakyat was told today. – NSTP file pic

KUALA LUMPUR: There is no special quota given to students from oil-producing states, including Sabah and Sarawak, to pursue their tertiary studies under the Petronas Education Sponsorship Programme (PESP), the Dewan Rakyat was told today.

Deputy Minister in the Prime Minister’s Department (Economy) Arthur Joseph Kurup said PESP will be offered to those who are eligible and based on merit.

“This year, Petronas received 10,000 applications for PESP with only 400 spots being available.

“PESP is a competitive programme and only the best students can be accepted for this outstanding programme,” he said in his reply to a supplementary question from Awang Husaini Sahari (PKR-Putatan).

Awang Husaini had asked if an advantage is given to students from Sabah and Sarawak for tertiary education scholarship, as the educational infrastructure in the two states was far behind and could affect the quality of student education and sponsorship opportunities.

Kurup said since its inception in 1975, the PESP had benefited more than 36,000 students in their pursuit of tertiary education, involving a cost of more than RM3 billion.

“Since 2010, a total of 3,426 students had received the financial sponsorship involving RM874 million. Of the total, 17 per cent or 575 students were from Sabah and Sarawak, involving a sponsorship of more than RM100 million.”

He said 245 students from Sabah had received sponsorship, of which 163 was for their studies at local universities and the remaining 82 students continued their further education abroad.

As for Sarawak, Kurup said 330 students from the state had received the sponsorship with 234 students for their studies at local universities and the remaining 96 abroad.

Nonetheless, Kurup said, the national petroleum corporation has been providing various assistance including infrastructure for educational development to reduce the gap in infrastructure between the two states and the states in the Peninsula.

These include the establishment of Mara Junior Science College (MRSM) in Ranau and residential hostels in rural areas.

By Nor Ain Mohamed RadhiArfa Yunus.

Read more @

PTPTN defers loan repayments until December

Tuesday, August 4th, 2020
Higher Education Minister Datuk Dr Noraini Ahmad said the decision was made following the recent announcement on the targeted three-month extension on bank loan moratoriums. - NST/file picHigher Education Minister Datuk Dr Noraini Ahmad said the decision was made following the recent announcement on the targeted three-month extension on bank loan moratoriums. – NST/file pic

KUALA LUMPUR: The government has agreed to defer repayments of loans owed to the National Higher Education Fund Corporation (PTPTN) until December, the Dewan Rakyat was told today.

Higher Education Minister Datuk Dr Noraini Ahmad said the decision was made following the recent announcement on the targeted three-month extension on bank loan moratoriums.

She said prior to this, the government had implemented a six-month deferment for PTPTN loan repayments that would end in September.

“The move would benefit 1.5 million borrowers, involving a total of RM750 million. Following the recent announcement by the prime minister, the government has agreed to also extend the moratorium for PTPTN loans until December, involving another RM375million, making up a total of RM1.125b,” she said in her wrap-up speech on the debate on the Royal address today.

Noraini said PTPTN introduced several initiatives to assist borrowers, including the virtual mini job-hunt, a collaboration with the Social Security Organisation (Socso), restructuring of loan repayments until 60 years old and a maximum 24-monh loan repayment postponement.

In response to a query by Syed Saddiq Syed Abdul Rahman (Independent-Muar), Noraini said the government would not proceed with the repayment scheme mooted by the previous administration to impose the repayment mechanism that enabled borrowers to start serving the loans only when their monthly salary reached RM4,000.

“If the borrowers are unable to repay the loans, they can come forward and arrange for a scheduled repayment with PTPTN.

“We are always looking for the best approach to ensure that borrowers are not burdened, but at the same time we have to also protect the interest of PTPTN.”


Read more @

Loans: A lifeline for pursuing tertiary education

Wednesday, April 1st, 2020
The PTPTN loan will allow students to fully or partly pay their tuition fees, as well as cover the cost of living throughout their studies. - NSTP/File pic
The PTPTN loan will allow students to fully or partly pay their tuition fees, as well as cover the cost of living throughout their studies. – NSTP/File pic

Higher education comes at a cost which may be prohibitive for students with limited financial resources.

Some are fortunate to obtain scholarships, while others have found benefactors to pay for their tuition and living expenditure.

But for those who are really out of luck, they must find other ways to pursue their tertiary education dream, and among the best methods is to apply for education loans.

Muhammad Danial Nor Azman, 23, who is studying for a Bachelor of English Language and Literature at International Islamic University Malaysia, has applied for a loan from the National Higher Education Fund Corporation, a government entity otherwise known as PTPTN.

“I was initially hoping to get a scholarship but my first semester results fell short of requirements. So, I decided to apply for a PTPTN loan because of its exemption policy,” he said.

Muhammad Danial Nor AzmanMuhammad Danial Nor Azman

Open to all Malaysians pursuing higher studies at public (IPTA) and private (IPTS) higher-learning institutions in the country, PTPTN loans are meant to help students pursue their diploma or degree in programmes that have been accredited by the Malaysian Qualifications Agency (MQA).

The PTPTN loan will allow students to fully or partly pay their tuition fees, as well as cover the cost of living throughout their studies.

While financing charges or “Ujrah” is set at a very low one per cent only, loan repayments can be exempted for borrowers from the B40 and M40 income group who obtain a first-class honours degree. And this is what Danial is aiming for as he rated himself as “slightly above average”.

“I believe I have a fair chance of getting the exemption if I put in the effort,” said the final-year student. PTPTN provides loans in three categories according to the borrower’s household income — a maximum level if the student or student guardian is listed as a recipient of Bantuan Sara Hidup (BSH); 75 per cent of the maximum level if family income does not exceed RM8,000; and, 50 per cent of the maximum level if family income is more than RM8,000.

Once approved, the loans will be partially disbursed every semester and borrowers need to maintain a minimum Cumulative Grade Point Average of 2.0 to avoid suspension.

Monthly repayments start a year after the borrower completes his studies. The repayment period depends on how much is borrowed.

Amira Asyidah Aminy Mohd BadarAmira Asyidah Aminy Mohd Badar

On the other hand, Amira Asyidah Aminy Mohd Badar, 26, had opted to take up a Mara education loan when she was pursuing a degree in business information technology with accounting at Kolej Universiti PolyTech Mara Kuala Lumpur a few years back.

The loan, under Mara’s Tertiary Education Loan Programme (TESP), is for local diploma or first-degree studies in the field and institution designated by Mara.

“What made me decide to take up the loan was that borrowers can also get a repayment discount if they fulfilled certain criteria throughout their studies,” she said.

It was relatively easy for Amira when she submitted her application online, and the loan of RM85,000 was approved for the three-year study that included registration fee, study fee, hostel fee, monthly allowance, laptop purchase and stationery.

“When I graduated in July 2016, I was advised to apply for a loan discount based on my results, which significantly reduced the amount. And I have been servicing the loan for four years now,” said the financial administrative assistant.

To be eligible for the study loan, applicants must be a Bumiputera, and it will be considered only for applicants with a minimum of one year study remaining and their socio-economic status.

A bank loan is another avenue to finance studies. One bank offering such loans is Affin Islamic Bank through its Affin Education Financing-i.

The loan is for students pursuing their foundation/certificate, pre-university (eg. A Level), diploma, degree, post-graduate (Masters and PhD) and professional courses on a full- or part-time basis at 65 panel universities and colleges nationwide.

Nazlee KhalifahNazlee Khalifah

According to Affin Islamic chief executive officer Nazlee Khalifah, the syariah-compliant scheme enables students to receive up to RM400,000 financing with a maximum tenure of 15 years at a financing base rate of four per cent.

“It covers up to 90 per cent of the total course fees, and payment to universities will be made on semester-by-semester basis. Parents, spouse or siblings aged 21 and above are required to jointly apply with the student as joint applicants,” he said.

Nazlee said students/parents were required to pay the profit charged (progressive profit) during the study period. Any default is subject to compensation charges.

“The full monthly instalment will only start upon completion of the study period. However, for any dropout or termination, the full monthly instalments will commence with immediate effect upon notification by the universities,” he said.

Other alternative funding can be sourced from savings in the Employees’ Provident Fund (EPF) and zakat scheme for Muslims.

Parents who are EPF contributors can consider withdrawing savings from Account 2 to help finance their children’s education at approved institutions locally and abroad.

Eligible courses include diplomas, advance diplomas, degrees, postgraduate degrees and professional qualifications.

The Federal Territory Islamic Religious Council (MAIWP) and religious authorities of other states offer higher education zakat schemes for low-income families or those with special needs, where the aid is used to supplement their funding from other organisations.

Before starting a course, students have to do a lot of research to find the needed resources and ensure they graduate. And once a loan is approved, they have to ensure that they can afford to make repayments.

As Danial puts it, when asked whether he will recommend other students to take up a PTPTN loan: “I guess it depends. Are they willing to pay back their loans? Do they understand the consequences of not paying back?

“It’s different when you are exempted from paying back. You worked hard and earned that privilege.

“When you agree to take up a loan, it is your obligation to pay back. My advice to students is simple: even if you are smart enough to turn the loan into a scholarship, you need to be willing to pay back whatever the outcome is.”

For more information on PPTN loans, visit while for Mara education loans, visit

More details on Affin Education Financing-i can be found at… .

To learn about the EPF Education Scheme, visit

By Rozana San.

Read more @

Respite for PTPTN borrowers

Sunday, March 29th, 2020
BURDEN EASED: The deferment until Sept is automatic for all PTPTN borrowers.

TO cushion the impact of the movement control order (MCO), the National Higher Education Fund Corporation (PTPTN) is deferring loan repayments until Sept 30 this year.

Initially a three-month deferment, Prime Minister Tan Sri Muhyiddin Yassin announced

on Monday that it would be extended to six months to help borrowers cope in light of Covid-19. The move will involve a collection amounting to RM750mil, benefiting almost 1.5 million PTPTN borrowers.

Here’s what you should know about the deferment which is automatically granted to all borrowers effective March 19:

> Borrowers are exempted from legal enforcement and action throughout the deferral period.

> Those who wish to continue repaying can do so via internet banking; no need to fill any forms.

> Only borrowers who pay through salary deduction and direct debit are required to apply at to continue their repayment through these two channels.

> No new application for repayment through salary deduction and direct debit is required once the deferral period is over; deductions will resume as normal.

> Borrowers who have been repaying through the Credit Counselling and Debt Management Agency (AKPK) are required to consult with the agency on the matter.

> Borrowers who repaid their loans through salary deductions for March will not receive a refund as salary deductions and direct debit deferrals will be enforced starting April, except for borrowers who agree to continue their deductions.

> Employers who help to pay off their workers’ outstanding loans won’t have to reimburse their employees for their March repayments. Employers must credit the deduction amount directly to PTPTN.

> Repayment period for all borrowers without arrears prior to the deferment announcement will be extended through the restructuring of loans.

> Borrowers with arrears before the announcement was made must consult with PTPTN to restructure their loans.

> For conventional borrowers, loan restructuring will be implemented through the exchange of Ujrah.

> All loan restructuring applications can only be done after the deferral period.

> Borrowers’ Central Credit Reference Information System (CCRIS) record will remain the same as before, except for those who continue repaying during this six-month period. Their CCRIS records will be updated.

> Loan restructuring will not affect borrowers’ CCRIS records as long as they don’t have prior arrears.

> Borrowers will only receive a notification notice via the email address registered with PTPTN, and not a new agreement for the extension in the repayment period.

> Borrowers who want to update their email addresses can do so at

> Administrative cost/ujrah will be charged throughout the deferral period.

> Decisions on the deferral in repayment will be reviewed periodically.

> PTPTN will operate within a limited capacity during the MCO.

> Headquarters and all PTPTN branches are closed, as well as its careline number (03-21933000), starting March 26.

> Customers can communicate with PTPTN during the MCO by contacting the officers listed in; or by submitting their questions at Feedback will be provided within seven working days.

Read more @

Deferment of six-month PTPTN loan repayment automatic for those without arrears

Thursday, March 26th, 2020

PETALING JAYA: The government’s move to extend the deferment of PTPTN loans by six months will automatically extend the repayment period for all borrowers by the same length.

This will be done through the restructuring of the National Higher Education Fund Corporation (PTPTN) loans and is exclusive to borrowers without arrears prior to the deferment.

“Borrowers with arrears prior to the announcement of the six-month deferral are required to consult with PTPTN to restructure their loans.

“For conventional borrowers, loan restructuring will be implemented through the exchange of Ujrah,” the corporation issued in its FAQ.

Ujrah is a flat-rate service charge of 1% annually based on syariah principles.

On March 18, the government announced a three-month deferment of PTPTN loans due to the Covid-19 pandemic. However, on Monday, Prime Minister Tan Sri Muhyiddin Yassin said the three-month deferment would be extended to six months until Sept 30.

This move will involve collection amounting to RM750mil, benefiting almost 1.5 million PTPTN borrowers.

The corporation said borrowers who had been repaying through the Credit Counselling and Debt Management Agency (AKPK) are required to consult with the agency on the matter of deferment.


Read more @

Parents must plan for their children’s education early

Monday, March 9th, 2020

Ahmad Dazuki

START saving for your children now so that they won’t need a study loan. Malaysians must be more proactive and the National Higher Education Fund Corporation (PTPTN), said its chief executive Ahmad Dasuki Abdul Majid, is on a mission to drive the mindset change.

Borrowing, he said, is an expense that involves costs, while saving is an investment that brings dividends.

“Public perception is that PTPTN’s role is only to give out loans. But that’s only part of what we do.

“Since 2004, we’ve been providing saving facilities to help parents fund their children’s education, ” he said, adding that making consistent deposits from the day the child is born, is crucial.

The 45-year-old former Penang PTPTN general manager replaced Wan Ahmad Wan Yusoff who retired in October last year.

Ahmad Dasuki, whose appointment took effect on Jan 21, is on a mission to make PTPTN synonymous with savings.

“Take the Lembaga Tabung Haji and Employees Provident Fund for example.

“People look to these bodies to help them save for the haj pilgrimage and retirement.

“Similarly, we want parents to see PTPTN as a saving fund for their children’s education, ” he said at an interview in KL on Feb 27.

Introduced 16 years ago, the corporation’s National Education Savings Scheme’s (SSPN) takaful protection, he said, could address the dropout problem in institutions of higher learning.

“With SSPN, our future graduates won’t be saddled with education loans.

“Even if they still need to borrow, at least it’ll be minimal.”

He said the SSPN-i and SSPN-i Plus saving schemes let young Malaysians continue their tertiary education without being burdened by debt.

“Now under the 2020 Loyalty Reward programme, those who have deposited with SSPN-i before 2017 will get a 1% reward on savings made from Feb 5 to April 30 on top of the yearly dividend payout.”

He said PTPTN sets aside between RM3bil and RM3.5bil yearly for the benefit of some 180,000 students.

The majority of borrowers – or 55% of all borrowers – are from the low income group and they receive the maximum amount allowed.

PTPTN’s main challenge, he said, is to get borrowers who have never made a single repayment, to start doing so now on a monthly basis – even if they can only afford to pay a minimal amount.

“We’ll have to look into their finances to see why they are unable to pay even a single sen.

“Some may still be jobless but if that’s the case, it’s their responsibility to approach us.

“The borrower can even arrange for repayment until he or she reaches age 60. There’s always room for discussion, ” he said, adding that what’s important is that the borrower makes a monthly commitment to clear the loan.

Last year, PTPTN collected a repayment of RM2.26bil – exceeding its RM2bil target. Urging employers to reward workers by helping to pay off their outstanding loans, he said those who do so would get a tax deduction, regardless of whether the loan was settled in full or paid in monthly instalments, until next year.


Read more @

More borrowers repay PTPTN loans

Tuesday, December 31st, 2019

PETALING JAYA: The National Higher Education Fund Corp (PTPTN) recorded an increase in loan repayment this year.

Repayment by borrowers jumped to 82.5% as at Dec 30, up from 81.3% last year.

PTPTN chairman Wan Saiful Wan Jan said it had set a target of collecting a repayment of RM2bil for 2019 but as at Nov 30, RM2.07bil had been successfully collected.

He revealed that of the 172,863 students who enrolled in higher education institutions through PTPTN loans as at Nov 30,46% of them were from the B40 income group.

“As for the implementation of the government’s manifesto, PTPTN has executed 75% or three out of four related items, ” he said in a statement yesterday.

He added that those included giving a discount or eliminating the debt wholly for excellent students and students from low-income families; giving tax incentives to employers who help repay their employees’ debts without deducting their salaries; and eliminating the blacklist policy on borrowers.

“The promised delay in repayment for PTPTN borrowers who earn less than RM4,000 a month is still not implemented, ” he said, “as it involves matters outside PTPTN’s jurisdiction.”

“In addition, it has huge implications on the country’s finances.

“PTPTN has taken appropriate action which includes holding negotiations with stakeholders, ” he said.

Separately, Wan Saiful said the National Education Savings Scheme (SSPN) gained RM151.5mil in the third quarter of this year in cumulative investment returns.

“The performance showed a 25.9% increase from the RM120.33mil for the same period in 2018.

“PTPTN expects the fourth quarter of cumulative investment profits to continue to perform excellently.

“The deposited amount for SSPN accounts as at Nov 30 is RM798mil compared to RM671.97mil in the same period last year.

“This figure represents an increase of 18.76%, bringing SSPN’s overall deposit amount to RM5.3bil, ” he said.

A total of 4.32 million SSPN accounts had been opened since its launch in 2004, Wan Saiful said.

Wan Saiful also noted the recognition accorded to the corporation throughout the year, commending his officers for carrying out their duties well.

Read more @

Save for education via SSPN

Monday, December 23rd, 2019

The SSPN-i and SSPN-i Plus savings schemes with PTPTN offer tax relief.

DID you know that there is an educational savings scheme that not only offers various benefits and dividend, but also tax relief for parents to enjoy?

The syariah-compliant National Education Savings Scheme (SSPN) was introduced by the National Higher Education Fund Corporation (PTPTN) for higher education.

Deputy Chief Executive (Policy & Operation), PTPTN, Mastura Mohd Khalid said that privileges included a maximum tax relief up to RM8,000 for savings in the SSPN-i and SSPN-i Plus.

“SSPN-i and SSPN-i Plus are the best educational savings plans offering tax relief for parents as depositors.

“There are many parents who have been saving for their children for several years and have been enjoying the tax relief over the years.

“Therefore, for parents who want to enjoy the tax relief this year, they have to make savings before Dec 31,” she said.

The tax relief for SSPN-i and SSPN-i Plus are calculated based on the current year’s net savings amount and those eligible for tax relief include:

1. Parents and adopted parents/legal guardians who have been saving in the SSPN accounts for the benefit of their children are given tax relief up to RM8,000 a year, depending on the current year net savings amount.

2. Parents who have separate tax assessment and have opened SSPN savings accounts separately for the same child, are given a maximum tax relief up to RM8,000 each for that year.

3. Parents who have joint tax assessment and have opened SSPN savings accounts separately are given a maximum tax relief up to RM8,000 a year.

Mastura explained, however, that individuals who have been saving for their own selves would not get tax relief.

She said that the rationale of tax relief privileges is to encourage more parents to continuously opt for educational-purpose savings on a yearly basis.

‘I appeal to parents who may have missed out on this tax relief privilege in the previous years, to start saving in SSPN,’ said Mastura.

‘I appeal to parents who may have missed out on this tax relief privilege in the previous years, to start saving in SSPN,’ said Mastura.
Apart from tax relief, parents who opt for SSPN educational savings would get competitive dividend as well as comprehensive takaful protection.

“If there is death or permanent disability, their children or beneficiaries will get takaful benefit under SSPN-i and up to RM1mil under SSPN-i Plus, subject to terms and conditions.

“This proves that this savings scheme ensures that their children can study using the savings even if anything happens to their parents in the future,” she said.

Since the launch of SSPN in 2004, 4.29 million accounts have been opened for both SSPN-i and SSPN-i Plus savings accounts, with total deposits worth RM5.17bil up to Oct 31, 2019, said Mastura.

The tax relief on SSPN savings was instituted since the 2007 assessment year, amounting to RM3,000 per year for depositors.

According to Mastura, the tax relief amount was increased to RM6,000 in 2013, and was raised to RM8,000 a year via Budget 2019.

PTPTN is targetting RM1bil in total savings with 500,000 new account holders this year.

“We also give out cash prizes in draws for SSPN-i and SSPN-i Plus depositors,” she added.

Currently, PTPTN is offering prizes in two categories – Cabutan WOW! for SSPN-i Plus depositors and Cabutan 15 Tahun for loyal SSPN-i depositors, with prizes worth a total RM1.1mil.

“I appeal to parents who may have missed out on this tax relief privilege in the previous years, to start saving in SSPN or to increase their deposits before Dec 31 in order to be eligible for tax relief in 2019.

“Parents can open account or top up deposits via online at So don’t wait – save, save, save for the future,” Mastura said.