PARENTS are encouraged to open an account for the National Education Savings Scheme (Simpan SSPN) as it offers various advantages and benefits for their children, says National Higher Education Fund Corporation (PTPTN) chairman Datuk Norliza Abdul Rahim.
According to Norliza, one of the special benefits that Simpan SSPN offers for its depositors is income tax assessment relief of up to RM8,000 per year.
“Operated by PTPTN, Simpan SSPN was introduced in 2004 and remains a competitive product, being the preferred choice of savings among parents in the country for their children’s education.
“Other advantages and benefits provided by Simpan SSPN include takaful protection for depositors, matching grants of up to RM10,000 for each eligible family, competitive dividend rates, government-guaranteed and shariah-compliant savings.
“Basically, Simpan SSPN is a voluntary savings scheme designed to help parents or guardians in saving for their children’s tertiary education expenses, accompanied by various benefits and incentives,” Norliza told Buletin Mutiara during an interview session at Buletin Mutiara office in Komtar recently.
Also present was Penang PTPTN director Muhammad Muhsin Abdul Rahman.
Norliza added that there are two types of Simpan SSPN, namely SSPN Plus and SSPN Prime.
“SSPN Prime is targeted at a broader audience, including individuals saving for education or retirement, while SSPN Plus specifically targets parents or guardians saving for their children’s education, with better takaful coverage.
“For SSPN Prime, deposits can be made at any time and in any amount. Meanwhile for SSPN Plus, the monthly deposit amount is set according to the selected package, as low as RM30 per month.
“Thus, it is my hope every newborn baby or child will have a Simpan SSPN account for their future,” she said.
On April 6, it was reported that PTPTN has declared a 3.60% dividend for the Simpan SSPN for the year 2023.
Higher Education Minister Datuk Seri Dr Zambry Abdul Kadir revealed that the dividend involved an allocation of RM357.65 million, benefitting over 6.25 million depositors.
He added that the dividend of 3.60% for the year 2023 is higher compared to the 3.05% dividend distributed in 2022.
Norliza also mentioned PTPTN’s collaboration with the Penang government through the ‘Anak Emas’ programme to foster saving habits among parents for their children from an early age.
“Under this initiative, eligible children born in Penang will receive a one-off payment of RM200. Of this amount, RM100 will be credited into SSPN Prime or towards opening an account, and the remaining RM100 will be deposited into the parents’ account.
“PTPTN also would like to thank the state government for choosing Simpan SSPN as the preferred tool to save money for the children’s education,” she said.
Norliza also announced PTPTN’s strategic partnership with Yayasan Waqaf Malaysia (YWM) to establish an educational endowment fund, known as myWaqafPTPTN.
According to her, it is one of the initiatives to diversify PTPTN’s funding sources for higher education financing.
She added this is a new product from PTPTN, launched in early Ramadan this year.
“The educational endowment fund serves as a platform for private companies, financial institutions, government and private agencies, as well as individuals to carry out charitable deeds through the myWaqafPTPTN. They also qualify for the 10% tax exemption for their businesses.
“Through myWaqafPTPTN, we want to reduce students’ reliance on loans when furthering their studies, thereby ensuring that they are not burdened with debt upon completing their studies. So, myWaqafPTPTN is a form of sponsorship for eligible individuals.
“What is noteworthy is the programme is not exclusive to Muslims; non-Muslims can also benefit from myWaqafPTPTN for their tertiary education.
“Thus, I encourage any private companies, government agencies and others to contribute and give back to the community through this educational endowment fund.
“For further details about myWaqafPTPTN, individuals can visit any nearby PTPTN branches in their area,” said Norliza.
On another matter, Norliza disclosed that in Penang alone, 15,000 borrowers have yet to repay their PTPTN student loans.
“We understand that in the current economic situation, it is very challenging for some students to get themselves a stable job after completing their studies.
“Nevertheless, we at PTPTN are readily accessible and borrowers are encouraged to approach us. Together, we can explore the most suitable options for them to commence replaying their students’ debt. This may include restructuring the loan repayment to alleviate their financial burden,” she said.
Meanwhile, Muhammad Muhsin also urged PTPTN borrowers and Simpan SSPN depositors to fully utilise the myPTPTN app.
He said myPTPTN is a mobile app developed by PTPTN that integrates all its facilities under one platform.
“Through this platform, users can access PTPTN services anytime and anywhere, without having to go to the PTPTN physical counters.
“Services provided include loan repayments, loan applications, checking loan payment balances and managing Simpan SSPN accounts.
“The app also facilitates customers in applying for loan repayments and Simpan SSPN savings deposits through salary deductions, direct debit and auto-debit,” he said, adding that the public can download the app via Google Play Store, Apple App Store and Huawei AppGallery.
Story by Riadz Akmal
Pix by Adleena Rahayu Ahmad Radzi