KUALA LUMPUR: The Malaysian Trade Union Congress (MTUC) urges the government to take strict action, including legal procedures, against National Higher Education Fund Corporation loan defaulters.
MTUC president Mohd Effendy Abdul Ghani said it took the failure of 430,000 PTPTN borrowers to repay loans amounting to RM6 billion seriously.
"This approach includes reviewing a more flexible payment plan for borrowers who wish to repay their loans.
"For borrowers who are willing to discuss their situation and begin making payments, MTUC suggests introducing a more flexible repayment plan to help them fulfill their financial commitments," he said.
Yesterday, it was reported that PTPTN will take action against 430,000 borrowers who have never paid debts involving as much as RM6 billion.
Higher Education Minister Datuk Seri Dr Zambry Abd Kadir blamed the irresponsible attitude of borrowers, which resulted in PTPTN's financial position being in a concerning state.
Effendy, meanwhile, proposed that PTPTN offer discounts to borrowers willing to settle their debts in full.
"This would encourage more borrowers to repay their debts promptly.
"The discount could serve as an effective incentive to reduce outstanding debts and help borrowers relieve their financial burdens more quickly."
Effendy also suggested that the government tighten enforcement systems to ensure better compliance from borrowers.
"For borrowers who fail to repay their loans without valid reasons, strict and uncompromising actions should be taken.
"These could include travel restrictions, barring them from applying for other loans such as housing or vehicle loans, and legal actions like salary deductions and asset seizures.
"These measures are essential to make borrowers aware of their obligations and to warn new borrowers against neglecting theirs," he said.