SHAH ALAM - Finance Minister Datuk Seri Anwar Ibrahim announces that the government will provide free education for students from low-income families and exempt PTPTN debts for first-class graduates, while reintroducing travel restrictions on defaulters who can afford to repay.
The government will provide free PTPTN-funded education for students from poor households with a monthly income below RM2,700.
The initiative is part of Budget 2026’s focus on improving access to higher education and easing financial burdens among low-income families.
“The government will provide free PTPTN-funded education for 5,800 students from poor families studying at public higher education institutions (IPTAs), with an annual allocation of RM120 million,” said Anwar.
He further added that the government has also agreed to exempt PTPTN loan repayments for all students from low- and middle-income families who graduate with a First-Class Honours Bachelor’s Degree at public universities.
He added that this initiative will benefit around 6,000 borrowers, with an annual allocation of RM90 million.
The government will also impose international travel restrictions on borrowers who are capable of repaying and working abroad but deliberately fail to make repayments.