Malaysian Budget 2015

University
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I would like to share some point from budget 2015 which will be important for us.
FIRST: Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN)

  1. Since the establishment of Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) in 1997 to date, 2.1 million borrowers have taken loans worth RM47.8 billion. However, as at 31 August 2014, only RM5.36 billion or 46% of RM11.76 billion has been collected.

  2. Sadly, 174,000 borrowers have not made any payments since 2010. As such, the Government will take appropriate new measures to recover the outstanding loans.

  3. It is a sin to die without settling one’s debts as the soul will not rest in peace.

  4. To encourage repayments, the Government proposes that a 10% rebate is given to borrowers who continuously make repayments for 12 months until 31 December 2015. An additional 20% discount will be offered to borrowers who make lump sum repayments from today until 31 March 2015.

  5. Since 2005, National Education Savings Scheme (SSPN-i), SSPN-i account holders with a monthly household income not exceeding RM2,000 have been enjoying matching grants. To encourage more parents to become depositors and obtain the same benefits, the Government proposes contributors’ monthly household income limit be increased to RM4,000.

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SECOND: Enhancing Graduate Employability

  1. To date, it is estimated that 53,000 graduates remain unemployed after six months of graduating. To enhance graduates’ employability, the Government proposes that the curriculum and skill training programmes at public skill training institutions as well as institutions of higher learning be reviewed. For this, Talent Corp will provide RM30 million for Industry Academia Collaboration programme where universities, Government entities and industries will collaborate to develop the curriculum for the internship programmes and industrial training.
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2. In addition, graduates’ self-confidence and English proficiency skills will be enhanced. Currently, students need to have a minimum of Band 1 in Malaysian University English Test for entry into public institutions of higher learning (IPTA). Beginning 2015:

(i) for entry into IPTAs the minimum MUET band will be increased according to the field of study, for example:
(a) Arts and Social Science courses - Band 2
(b) Science, Technology, Engineering and Mathematics (STEM) courses - Band 3
© Law and Medical courses - Band 4

(ii) to graduate, students must achieve
(a) Arts and Social Science courses - Band 3
(b) STEM courses - Band 4
© Law and Medical courses - Band 5

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3.In the second quarter of 2014, there were a total of 13.5 million jobs, an increase of around 1.6 million jobs compared to 2010. To safeguard the welfare of workers:

(i) The Employment Act 1955 and related labour acts will be reviewed, including better terms and conditions of employment, appointment and dismissal, flexible working arrangements and termination benefits;

(ii) The JobsMalaysia portal will be improved to meet the needs of an increasingly dynamic labour market;

(iii) The Government will introduce an Employment Insurance System aimed at assisting retrenched workers by giving temporary financial assistance as well as providing opportunities for reskilling and upskilling; and

(iv) Providing technical training and education assistance to Indian youth, particularly those from low-income families with an allocation of RM30 million.

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4.In 2011, Skim Latihan 1Malaysia has enabled aound 45,000 graduates from the low-income households and rural areas to obtain jobs. The Government supports CSR effort by the employers in its implementation through double deduction incentive to companies for the purpose of tax computation until 31 December 2016. I propose the tax incentive be extended until 31 December 2020.