PETALING JAYA, Dec 6 — Deducting the salaries of workers to repay their student loans is an additional burden for employers since it differs from other forms of statutory obligations, said Malaysian Employers Federation (MEF) executive director Datuk Shamsuddin Bardan.

He said based on National Higher Education Fund Corporation (PTPTN) chairman Wan Saiful Wan Jan’s remark that the system will resemble the Inland Revenue Board’s monthly tax deduction system, it will most likely be another type of statutory obligation. 

"But the primary difference between a PTPTN loan and other obligations including the Employees’ Provident Fund or the Social Security Organisation is that not every worker is required to apply for and obtain a PTPTN loan for their studies before they join the workforce,” Shamsuddin told Malay Mail.

He said the closest feasible instance would be if a loan defaulter were to be taken to court by PTPTN, and the court issues a directive to the employer to make the deduction as needed.

“In such an instance it would be understandable, but even then it is completely separate to what is being proposed,” Shamsuddin said.

He expressed his surprise at Wan Saiful’s statement, adding that PTPTN never discussed such a matter with employers, and especially MEF.

“It would have been better had they brought it up with us beforehand. Already, 2019 is around the corner, and you cannot expect employers to be prepared for this kind of thing.

“I point out that the loan is actually a personal matter between the worker and PTPTN (not involving the employer) so to unilaterally introduce this without prior discussions will impose a large burden upon employers,” Shamsuddin said. 

He said he hoped PTPTN would reconsider its decision, even more so since the deductions will likely be based on percentage.

“Factoring in this will simply create another headache for employers,” Shamsuddin said.

At a press conference yesterday, Wan Saiful announced that it will no longer be necessary for federal student loan takers earning above RM2,000 a month to directly repay their loans since PTPTN would deduct it from their salaries instead.