STRATEGIC PLAN - Kementerian Pengajian Tinggi

• Improving the National Education Savings Scheme (SSPN)The SSPN is a savings scheme or instrument designed by PTPTN for the purpose of highereducation. It will reduce the government’s burden to provide aid for education andfunding education subsidies. In addition, the collection of SSPN deposits is also sourcedto fund education loans.Phase 1 Status SummaryFor 2010, the level of achievement for specific strategic objectives are as follows:• Ensuring all eligible students received funding through the improvements in the managementof education fundingA total of RM3.0 billion was raised as targeted, through funding from various financialinstitutions.• Improving loan repaymentA total of 81% or RM638 million from the targeted RM792 million for the year 2010 wasrecovered. This amount represents an increase of 15% or RM85 million from the previousyear (2009: RM553 million).Among the factors that affected collection are:oooothe loan repayment management system is still undergoing improvements, andcurrent system being used operates on a semi manual basis;the restructuring system based on the Ujrah method of financing has led to delaysin recovery and enforcement matters as it involved the offer and acceptanceof new agreements, debt rescheduling and etc.;the borrower’s salary does not commensurate with the students’ qualifications,resulting in their inability to repay loans; andthe borrowers’ attitude of disregarding warning letters and notices of claims,resulting in enforcement action.• Ensuring transition to Ujrah financing is completed by 2011 Offers to switch to Ujrahfinancing was implemented from September 2010, after the ELMAS system was developed.This was done from June 2010. This resulted in only 62% or 492,436 from the 800,000targeted borrowers in being offered the switch to Ujrah financing.78The National Higher Education Action Plan 2011 - 2015