KUALA LUMPUR: Despite opposition, the National Higher Education Fund (PTPTN) is going ahead with its plan to list higher-education loan defaulters on Bank Negara Malaysia’s credit record, the central credit reference information system (CCRIS).

The education fund said yesterday that the listing will be implemented in stages, with the first stage, targeted at recovering RM1.23 billion borrowed from 1998 to 2010.

Education Minister II Datuk Seri Idris Jusoh (pic) had warned early last month that graduates who have defaulted on their study loans would be listed in the central bank’s credit record.

He said this was because some borrowers had taken advantage of PTPTN’s flexible policy and refused to make any repayments.

On Aug 21, 2013, the cabinet scrapped the same plan to list PTPTN defaulters in CCRIS after the proposed move was criticised by both Barisan Nasional and Pakatan Rakyat.

PTPTN chairman Datuk Shamsul Anuar Nasarah said during the first stage, 173,985 defaulters who are said to owe a total of RM1.23 billion, will be included in the system, as they had never made any effort to repay their loans.

“It was a decision that had to be taken by PTPTN, as we have no other way,” said Shamsul, who is also an Umno supreme council member.

He said PTPTN had to take drastic steps in view of the lack of funds and bad repayment record of borrowers.

“Despite various incentives, and opportunities, there are still borrowers who failed to carry out their obligations to pay back their loans,” Shamsul said. — The Malaysian Insider

This article first appeared in The Edge Financial Daily, on November 6, 2014.