PETALING JAYA: The government has allocated over RM72 billion to the National Higher Education Fund Corporation, demonstrating its commitment to making higher education accessible to all Malaysians.
Higher Education Deputy Minister Datuk Mustapha Sakmud said for this effort to continue, a sustainable financing model is needed to support future generations of students.
He said any move to abolish or settle student loans falls under the jurisdiction of the federal government, but state governments have the autonomy to assist their citizens if they have the financial means.
He was responding to a recent comment by Warisan president Datuk Seri Shafie Apdal, who said his party would abolish loans for Sabah students if they came to power.
“If a state government decides to settle the loans of its students, (the corporation) is open to that cooperation,” Mustapha told theSun in a recent interview.
He also said Sarawak has implemented a similar initiative in which it has introduced measures to pay off student loans for Sarawakians, using its own revenue.
“Sarawak has the financial capacity. With an annual revenue of about RM16 billion, it has reserves large enough to support such initiatives. Sabah, comparatively, has about RM7 billion in revenue. So, if any future Sabah leadership believes they have the capacity, it could be done at a state level.”
He also raised concerns about fairness if the student loans were to be abolished.
“At present, about 85% of borrowers are repaying their loans, although not all are consistent. Only a small percentage default entirely. So, if we write off 50% of outstanding loans, what about those who have been paying all this while?”
He said any national decision to cancel loans must take into account the sentiments of those who have fulfilled their obligations.
“The issue is not just financial, it is also ethical. We have to consider what message we send to those who worked hard to repay.”
He added that the corporation remains open to collaboration with state governments that want to ease the burden of their students.
“States are welcome to settle debts for their residents. But it must be understood that this is not a federal obligation. It is a state initiative.”
He said while Shafie’s pledge may be politically attractive, the feasibility of abolishing student loans rests on a state’s financial strength and long-term planning.
“At the federal level, we are committed to ensuring education remains accessible. But structural reforms and fiscal discipline are key.”
