2026 Budget: Free education for low-income students, PTPTN repayment exemptions for top graduates

Hazween Hassan

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Type :	Newspaper Clipping
Subject :	Institusi Pengajian Tinggi
Main Author :	Hazween Hassan
Title :	2026 Budget: Free education for low-income students, PTPTN repayment exemptions for top graduates

Place of Production :	Pekan
Faculty :	New Straits Times
Year of Publication :	October 10, 2025
HTTP Link :	Click to view web link
JPG Related Image :	Click to view Image file

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KUALA LUMPUR: The government will provide free education through the National Higher Education Fund Corporation (PTPTN) for 5,800 students from low-income families studying at public universities, with an annual allocation of RM120 million, starting next year. Under the 2026 Budget, tabled by Prime Minister Datuk Seri Anwar Ibrahim today, the move forms part of efforts to expand access to higher education, alongside 1,500 new degree places across ten fields of study at five research universities, including law, accounting, economics, Islamic finance, artificial intelligence, and languages — offering more opportunities for high-achieving youths, including STPM graduates. The government will also grant PTPTN loan repayment exemptions to students who graduate with first-class honours bachelor's degrees from public universities and come from low- and middle-income families, benefiting around 6,000 borrowers with an annual allocation of RM90 million. Travel bans will be imposed on borrowers who are capable of repaying their loans but default while working overseas. In the medical sector, two public-private partnership projects — the Universiti Kebangsaan Malaysia (UKM) Health Technopolis and Universiti Malaya (UM) Health Metropolis — will be implemented to enhance education and expand access to modern healthcare facilities in Petaling Jaya and Kuala Lumpur. The government will also allow public university teaching hospitals to establish endowment funds, with donations qualifying for income tax deductions, and all contributions and income generated from the funds being fully tax-exempt. To strengthen the aeronautics sector, RM16 million has been allocated. Universiti Malaysia Perlis (UniMAP) will develop the Air Space Sandbox in Sungai Batu Pahat, Perlis — the country's first low-altitude flight testing facility, vital for logistics, mapping, smart agriculture, and security. Universiti Tun Hussein Onn Malaysia (UTHM) will continue as the first university in ASEAN with its own airport, supporting the maritime aviation industry and producing local amphibious pilots.

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