By Marlynda Meraw
“It was brought to my attention that some Sarawakian graduates are having difficulties in making repayment of their PTPTN loan while they are those who are not able to secure the loan for various reasons. Being a responsible Government, we empathise with the predicament of these graduates and will work out appropriate mechanism to assist those in need. In this respect, I wish to announce that the State government will set aside a sum of RM30 million for this purpose next year (2020).” Abang Johari (November 4, 2019)
PAYING off student loans can be a challenge, particularly for fresh graduates at the dawn of their careers. Entry-level salaries often fall short of covering both daily living costs and the financial obligations tied to education loans. For many, this burden threatens to overshadow their aspirations, making the path ahead seem uncertain. Sarawak is no stranger to this struggle, with many young people wondering how to balance their dreams while weighed down by financial obligations.
The difficulty lies not only in the amount owed but also in the restrictive nature of debt. Repayments demand discipline, yet low starting salaries mean that other priorities—such as supporting family members or pursuing further education—takes precedence. In this context, dreams may take longer to materialise, and ambitions may require careful planning. The question remains: how can graduates build their futures while managing the responsibilities of their educational debt?
A Strategic Solution
It is in this context that Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg recognised a critical need. His understanding of the struggles faced by Sarawakian students led to a bold yet thoughtful initiative. Education, in his vision, should serve as a pathway to growth, not as a chain of financial burden. During a dialogue session with Sarawakian students at the “Lan Berambeh Anak Sarawak” programme in Peninsular Malaysia in October 2019, Abang Johari took notice of the hardships faced by students who had taken out loans from the National Higher Education Fund Corporation (PTPTN).
Since its establishment in 1997, PTPTN has provided financial assistance to Malaysian students, approving loans amounting to approximately RM55 billion for around 2.5 million students by 2020. However, repayment obligations remained a challenge, as borrowers were required to start repayments within 12 months after completing their studies, with service charges applied from the 13th month onward. Recognising the weight of this financial responsibility, Abang Johari announced an initiative to provide relief to Sarawakian students struggling to repay their loans. This brought forth the introduction of a PTPTN loan repayment support scheme, with the Sarawak government making its first allocation of RM30 million in 2021 to assist graduates in managing their student debt. A Memorandum of Understanding (MoU) was created and agreed upon between Yayasan Sarawak and PTPTN on March 5, 2021, with Abang Johari as witness.
The loan repayment initiative, managed by Yayasan Sarawak in collaboration with PTPTN, was designed to offer an incentive to Sarawakian graduates. To qualify, graduates must be Sarawakian with a ‘K’ status on their MyKad, hold a PTPTN loan that is not fully settled, and have repaid at least 30 per cent of their total loan amount. Once these criteria are met, the Sarawak government will cover an additional 30 per cent of the remaining loan balance.
In March 2021, former Yayasan Sarawak director Azmi Bujang disclosed that 9,000 Sarawakian students had been deemed eligible for the loan repayment initiative following PTPTN’s screening process. The Minister of Education, Innovation, and Talent Development Dato Sri Roland Sagah Wee Inn explained the mechanism of the initiative: If a graduate had taken out a RM10,000 PTPTN loan and had already repaid 30 per cent (RM3,000), they would be eligible for the incentive. The Sarawak government would then cover 30 per cent of the remaining balance (RM7,000), amounting to RM2,100.
“Therefore, the graduate’s remaining loan is RM4,900. With this, the graduate shall continue to repay their loan based on the new balance. We urge our graduates to fulfil their obligation in repaying their loans,” said Sagah. Sarawak is the only State in Malaysia which is helping students settle 30 per cent of their remaining PTPTN study loans.
Renewed Commitment: Expanding the Support
Abang Johari’s commitment did not end with the initial allocation. The positive response to the initiative prompted further support. In 2021, the Sarawak government allocated RM30 million to support graduates with PTPTN loan repayments, benefiting 9,634 Sarawakian borrowers who had repaid at least 30 per cent of their loans. In 2022, the initiative continued to gain momentum, with 11,095 Sarawak graduates benefiting from the loan repayment incentive, amounting to assistance of RM36.1 million. This consistent support demonstrated the Sarawak government’s unwavering commitment to easing the financial burdens of its graduates.
Since the introduction of the initiative in 2021 until 2024, Abang Johari announced that a total of 31,706 borrowers had benefitted, involving a total amount of RM116.57 million, whereas for the year 2024 alone, 5,419 eligible borrowers received financial assistance amounting to RM26.15 million. When tabling the Supply (2025) Bill during the Sarawak Legislative Assembly sitting on November 11, 2024, Abang Johari announced that an allocation of RM15 million will be provided for the same purpose.
Support for Sarawakian Students
Beyond assisting graduates with loan repayments, the Sarawak government has also introduced initiatives aimed at easing the financial burden on students still pursuing higher education. Among these are book vouchers worth RM500 and the provision of free laptops for students from households with a per capita income of RM1,500 or below. These initiatives reflect Sarawak’s broader commitment to supporting education, ensuring that financial constraints do not hinder students from accessing quality learning opportunities. By addressing both tuition costs and post-graduation debt, the State government continues to pave the way for a more empowered generation of Sarawakian graduates.
The content featured here is an excerpt from the book “Rise of Sarawak: Abang Johari’s Era of Transformation”, published by Sage Salute Sdn Bhd. All information contained herein is accurate as of the first quarter of 2025.
