The dividend payout, which is estimated at RM147.3m, will benefit over 4.4m depositors, says PTPTN chairman

by ALIFAH ZAINUDDIN / pic by HUSSEIN SHAHARUDDIN

THE National Higher Education Fund Corp (PTPTN) yesterday declared a dividend of 4% for its National Education Savings Scheme (SSPN) as higher investment income pushed profit to its highest level.

The dividend payout, which is estimated at RM147.25 million, will benefit over 4.39 million depositors, said chairman Wan Saiful Wan Jan.

This is the fifth consecutive year that PTPTN announced a 4% dividend.

In 2018, the 4% dividend was distributed to 3.52 million accounts, valued at RM118.61 million.

“I am grateful that with determination and management efficiencies, PTPTN was able to declare a dividend of 4% in 2019 despite a challenging economy,” Wan Saiful said in a statement.

He said the depositors benefit more than just the 4%, given the privileges they enjoy such as tax reliefs of up to RM8,000, takaful coverage and loyalty rewards.

The fund, via a loyalty programme, had also declared an additional 1% payout for its SSPN-i.

SSPN recorded its highest investment profit to date worth RM205.27 million, up RM41.73 million from the year prior.

The 25% gain is attributed to SSPN’s shortand long-term shariahcompliant investment method in the domestic money market.

PTPTN had previously set a strategy that focuses on long-term fixed deposits which had lessened the impact of volatility in global equities.

Meanwhile, PTPTN’s deposit collection for 2019 also hit a new peak of RM1.37 billion.

The amount marked an increase of 21.34% or RM240 million from 2018, bringing its cumulative collection to RM5.88 billion as at December 2019.

“This increase is indicative of a growing number of Malaysians who have begun to realise the importance of financial planning in helping their children further their studies.

“In 2019, a total of 455,952 new accounts were opened bringing the total number of accounts to 4.39 million since SSPN was introduced 15 years ago,” Wan Saiful said.

Looking ahead, PTPTN is targeted to collect RM1.5 billion from SSPN deposits in 2020.

“This target is based on SSPN’s positive achievement in 2019, and its proactive operation and marketing strategy that will be implemented throughout this year,” PTPTN CEO Ahmad Dasuki Abdul Majid said.

He said PTPTN will continue to duplicate efforts to sway Malaysians away from a culture of debt to a culture of savings.

“Savings is an investment that will generate profit on every deposit made compared to constant loans which later becomes an expense.

“SSPN savings do not only bring financial returns, but they also generate human capital who are successful and disciplined in the future,” Ahmad Dasuki said.