Former PTPTN board member Ong Kian Ming says objections to the proposed income contingent loan repayments for borrowers were not primarily about the concept itself.
Ong Kian Ming, who was a deputy international trade and industry minister, said the concerns raised in late 2018 revolved around the proposed ICLR’s impact on borrowers. “This would have meant a big jump in monthly repayments for those earning above RM4,000 per month, for example.”His statement follows Tasek Gelugor MP Wan Saiful Wan Jan’s recent criticism of Prime Minister Anwar Ibrahim’s proposal to collect student loan repayments through automatic monthly salary deductions.
“New borrowers would know about the ICLR right from the start and not be shocked by higher repayment rates if they were to earn a higher salary soon after graduating,” he said, adding that they could then manage their finances effectively.