THE sum owed by National Higher Education Fund (PTPTN) borrowers in default is almost as much as the total of 1Malaysia Development Bhd’s (1MDB) debts, Prime Minister Dr Mahathir Mohamad said today.

He said PTPTN was owed RM39 billion in outstanding loan repayments, “almost the same” as the sum owed by the state investment firm.

Dr Mahathir did not say how much was 1MDB’s debts. He was speaking at a gathering of students at the Malaysian Student Leaders Summit XII in Kuala Lumpur, today.

The state investor needs an estimated RM42 billion to settle the principal and interest on its loans maturing between November 2015 and May 2039, according to the Auditor-General’s Report on 1MDB.

“Do you know how much money is owed by people who received PTPTN?  It’s about the same amount as money lost through 1MDB – RM39 billion. 

“That’s how much money that has not been paid to the government for what it spent to give you a better education and therefore better opportunities for a better job and a better life,” he said.

He said those who did not pay back their loans would have difficulty getting loans in the future. 

Dr Mahathir said one should honour one’s debts even if one had to struggle and make sacrifices to do it.

“It is not honourable to not pay back what is owed.

“Certainly in any society there must be leaders. Leaders should show the best example. If they don’t, then the followers will be just as bad or worse,” said Dr Mahathir.

Dr Mahathir said one must work hard and develop good values, holding up the Japanese as an example of hardworking citizens. 

“We have to develop a system which admires and looks up to people who work hard. 

“I’m not trying to praise myself but you see I do work hard, so in a way I am praising myself,” he said, drawing laughter and applause from the students. – August 11, 2018.