As the National Higher Education Fund Corp (PTPTN) enters its 27th year of supporting the higher education needs of Malaysian students, the stakes have never been higher. Its mandate remains: to ensure no Malaysian student who wishes to pursue tertiary education is left behind because of financial constraints.

This unwavering commitment has guided PTPTN’s operations as it ended 2023 on a high, reflecting a robust strategy to elevate the accessibility and quality of higher education financing. Its strategy is twofold: to continue providing financial support via loans to students while promoting early education savings for the future.

A key highlight of the year is its Simpan SSPN savings scheme, which has achieved a new high of RM17.39 billion in deposits and 6.25 million accounts since its introduction in 2004. To recap, PTPTN was set up in 1997 to provide education loans to tertiary students in Malaysia. Realising that savings provide a more sustainable and holistic path for Malaysian students, the fund took the initiative to shift the Malaysian mindset on education from borrowing to saving by rolling out a savings scheme beginning in 2004.

The milestones achieved by Simpan SSPN indicate a deep-seated trust in and reliance on this programme by Malaysian parents, which in turn underscores PTPTN’s success in fostering a savings culture among Malaysians, crucial for reducing reliance on educational loans.

PTPTN chairman Datuk Norliza Abdul Rahim says: “This achievement is the result of the commitment and dedication of all members of PTPTN. I am truly grateful that the ongoing effort to shift the Malaysian society’s mindset from borrowing to saving - thereby preventing the community’s dependency on loans - is increasingly well received. This success is reflected in the performance of the Simpan SSPN, which is increasingly embraced by all segments of society.”

PTPTN had also remained diligent in supporting Malaysian students financially to pursue higher education via student loans. As at end-2023, the fund had helped 3.95 million students with loan funds amounting to RM71.32 billion since its inception.

In tandem, loan repayment - a longstanding challenge for PTPTN - also continued to improve. The fund received loan repayments amounting to RM2.91 billion in 2023, which is RM144.37 million more than in 2022 and up 5.21% year on year. This repayment momentum is expected to carry into 2024, supported by, among others, the discounts of 10% to 15% announced in Budget 2024 effective between Oct 14, 2023, and March 31, 2024.

Going digital with myPTPTN

As digitalisation gathers pace across all facets of life, PTPTN remains committed to enhancing its services and continuously improving its myPTPTN app. Up to Dec 31, 2023, more than 1.1 million users have registered as myPTPTN users, a clear indication that the initiative has resonated well with the Malaysian public.

Through myPTPTN, users can effortlessly manage their loans and savings, apply for financial aid and access various other services, showcasing PTPTN’s dedication to improving user experience and accessibility. This digital leap forward ensures that PTPTN remains relevant and responsive to the needs of a tech-savvy generation, providing services that are not just necessary but also convenient and aligned with a contemporary lifestyle.

PTPTN’s Norliza says: “The year 2023 showcases PTPTN’s comprehensive efforts in delivering end-to-end digital services to customers. The myPTPTN app will open up space and opportunities for the community to access PTPTN’s services anytime and anywhere without boundaries, more easily, quickly and securely.”

Its momentum of growing excellence has not gone unnoticed by stakeholders. In 2023, PTPTN won multiple awards and recognitions including a Special Award from PayNet for 100% Rate of Digital Payment Usage through the Cashless Boleh Campaign. PayNet is the national payments network and shared central infrastructure for Malaysia’s financial markets.

Other recognition received in 2023 includes the Best Savings Institution for the New Generation Award by PA&MA as well as two from Astro Malaysia Holdings Bhd - the Most Effective Use of Integrated Media and the Most Creative Govt Sector/Non-Profit Marketing.

Recognition also came by way of increased partnerships and strategic collaborations with public and private agencies in 2023 to make the Simpan SSPN the premier avenue of choice for Malaysians to access incentives offered by both sectors. Among these were strategic partnerships with the Sabah state government through the Bantuan Khas Tunai Peperiksaan (Bakti), Bantuan Tunai Pendaftaran IPT Secara One Off (Budi), and Bantuan Ihsan Tabungan Pendidikan Negeri Sabah (Bistari) programmes, all aimed at providing financial assistance to students at various stages of education.

In addition, PTPTN collaborated with the Malaysian Armed Forces Veterans Foundation (YVATM) through the Veterans Children’s Savings Incentive Programme and a scholarship programme. Also, as many as 18 ministries and four public agencies at the federal and state levels have provided the Excellent Service Award (APC) incentives in the form of Simpan SSPN accounts.

New horizons in 2024

Looking ahead to 2024, PTPTN is committed to continuing to execute its mandate. In line with its objectives, the fund aims to outperform 2023 by targeting RM3.2 billion in Simpan SSPN new deposits as well as RM3.1 billion in loan repayments this year.

On top of the financial targets, PTPTN is also driven to continue enhancing its service delivery. Having migrated all of its services to the myPTPTN app for user convenience, the national education fund will now focus on elevating the app’s user experience and functionalities further to improve its service delivery and continue its digital transformation.

The national fund had also kicked off 2024 with an exciting initiative that expands its horizons and diversifies PTPTN’s funding sources for higher education funding to include Islamic higher education endowment, or waqaf. On Feb 22, 2024, PTPTN marked this historical milestone by signing a memorandum of agreement (MoA) with Yayasan Waqaf Malaysia (YWM) to ensure the effective and efficient management and distribution of PTPTN’s Cash Waqaf.

“This outstanding performance is a testament to the commitment and dedication of PTPTN employees at all levels, including support from the Ministry of Higher Education, PTPTN management members, and all members of the PTPTN management board. Therefore, PTPTN extends its gratitude to all strategic partners, depositors, PTPTN borrowers and the media for their consistent support of PTPTN’s efforts,” says Norliza.

“I sincerely hope that this excellence continues, and I am highly confident that PTPTN’s top management, headed by its CEO Ahmad Dasuki Abdul Majid, will continue to drive growth and ensure that more people have the opportunity to achieve success, in line with PTPTN’s motto, ‘Your Opportunity to Succeed’.”

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