*PERBADANAN TABUNG PENDIDIKAN TINGGI NASIONAL ACT 1997

This Act shall come into force on such date as the Minister may appoint by notification in the Gazette.

Interpretation

an institution of learning which provides education leading to the award of a diploma, degree or the equivalent of a diploma or degree established under—

the Universities and University Colleges Act 1971

[Act 30];

a polytechnic established and maintained by the Minister under the Education Act 1996 [Act 550]; and

any other higher educational institution established or deemed to have been established under the Education Act 1996 and which is determined by the Minister to be a higher educational institution for the purposes of this Act;

“Fund” means the Tabung Pendidikan Tinggi Nasional established under section 3;

“Inland Revenue Board” means the Inland Revenue Board of

Malaysia established under section 3 of the Inland Revenue Board of

Malaysia Act 1995 [Act 533];

Perbadanan Tabung Pendidikan Tinggi Nasional 9

“Minister” means the Minister responsible for Higher Education;

“Perbadanan” means the Perbadanan Tabung Pendidikan Tinggi

Nasional established under section 5;

“recipient student” means a student to whom has been approved, and who is in receipt of, an educational loan under this Act;

“student” means a person receiving education, instruction or training of any description on a full-time or part-time basis from or in a higher educational institution.

The Fund shall consist of—

the granting of educational loans to students for the payment of fees, educational equipment and aids, and cost of living expenses during the students’ period of study at a higher educational institution;

the financing of, or the granting of financial assistance to, students in higher educational institutions other than by way of educational loan;

establishing insurance and unit trust schemes;

Perbadanan Tabung Pendidikan Tinggi Nasional 11

repayments on borrowings and such other outgoings and expenditure as may be permitted by this Act or any regulation made under this Act;

administrative expenses including the remuneration, retirement benefits, gratuities and other allowances of the officers and servants of the Perbadanan; and

other expenses incidental to the management of the Fund and the functions of the Perbadanan including any moneys required to satisfy any judgment, decision, or award by any court or tribunal against the Perbadanan, or any member of the Board or any committee, or any officer, servant or agent of the Perbadanan in respect of any act, neglect or default done or committed by him in carrying out the functions of the Perbadanan.

The Perbadanan shall have perpetual succession and a common seal, and may sue and be sued in its name.

Subject to and for the purposes of this Act, the Perbadanan, upon such terms as it deems fit, may—

The common seal shall be kept in the custody of the Chief

Executive and shall be authenticated by him or by an officer authorized by the Perbadanan in writing.

All deeds, documents, and other instruments purporting to be sealed with the common seal and authenticated in accordance with subsection (2) shall be deemed to have been validly executed, until the contrary is proved.

Notwithstanding subsection (3), any document or instrument which if executed by a person not being a body corporate would not be required to be under seal may in like manner be executed by the

Perbadanan, and any such document or instrument may be executed on behalf of the Perbadanan by an officer or servant of the

Perbadanan generally or specially authorized by the Perbadanan in that behalf.

The common seal of the Perbadanan shall be officially and judicially noticed.

Perbadanan Tabung Pendidikan Tinggi Nasional 13

The Board of Management

The Board shall consist of the following members:

The Chairman and members of the Board under paragraph (2)(g) shall be appointed by the Minister.

The Chairman and members of the Board under paragraph

14 Laws of Malaysia ACT 566

Alternate members

When attending meetings of the Board in place of a member, an alternate member or a representative of a member shall for all purposes be deemed to be a member of the Board.

An alternate member may resign his office at any time by giving a month’s notice in writing to the Minister.

The provisions of the Schedule shall apply to the members of the Board.

to provide and grant educational loans and financial assistance other than educational loans to students, and to provide services in administering, monitoring and collecting repayments of the loans;

to collect deposits and to design and provide a savings scheme for the purpose of saving towards higher education;

and

to perform such other functions as are conferred on the

Perbadanan by any written law.

Perbadanan Tabung Pendidikan Tinggi Nasional 15

Powers of the Perbadanan

Without prejudice to the generality of subsection (1), the powers of the Perbadanan shall include power—

the manner and the terms and conditions under which deposits into the Fund are to be made;

the provision for separate accounts to be kept for each depositor;

the manner and the terms and conditions under which withdrawals are to be made of any amount standing to the credit of a depositor’s account;

the evidence to be produced on an application for withdrawal; and

any other matter pertaining to the making, and withdrawal, of deposits.

Perbadanan Tabung Pendidikan Tinggi Nasional 17

Power to establish insurance and unit trust schemes

The establishment of the insurance or unit trust scheme in subsection (1) shall be subject to the requirements and procedures of relevant written laws.

Power to borrow

The moneys of the Fund in subsection (1) may be invested in—

For the purposes of this section, “securities” has the same meaning as that assigned to “securities” under section 2 of the

Securities Industry Act 1983 [Act 280].

Additional powers of the Perbadanan

where it appears to be requisite, advantageous or convenient for or in connection with the discharge of the functions, exercise of the powers and carrying on of the activities of the

Perbadanan, enter into equity participation, partnership, joint-venture, undertaking or any other form of co-operation or arrangement in association, or otherwise, with—

an enterprise, a company, a private undertaking or a syndicate of persons constituted for the carrying on of business in Malaysia or elsewhere;

a person; and

establish or promote the establishment of companies under the Companies Act 1965 [Act 125] to carry on or engage in any activity which has been planned or undertaken by the Perbadanan.

Perbadanan Tabung Pendidikan Tinggi Nasional 19

Guarantee and indemnity

Members of a committee established under subsection (1)

may be appointed from amongst members of the Board or such other persons as the Board thinks fit.

Persons who are disqualified from being members of the

Board under the Schedule shall also be disqualified from being members of a committee.

A member of a committee shall hold office for such term as may be specified in his letter of appointment and is eligible for reappointment.

A member of a committee may resign at any time by giving notice in writing to the Chairman of the Board.

The Board may revoke the appointment of any member of a committee without assigning any reason for the revocation.

Subject to this Act and directions given by the Board, a committee may regulate its own procedure.

Meetings of a committee shall be held at such times and places as the chairman of the committee may determine.

20 Laws of Malaysia ACT 566

A committee may invite any person to attend its meeting for the purpose of advising it on any matter under discussion but that person shall not be entitled to vote at the meeting.

A committee shall cause—

Members of a committee and any person invited under subsection (9) shall be paid such allowances and other expenses as the Board may determine, after consultation with the Minister.

Delegation of functions

Any function or power delegated under this section—

A delegation made under this section shall not preclude the

Board itself from exercising or performing at any time any of the functions or powers so delegated.

Perbadanan Tabung Pendidikan Tinggi Nasional 21

Power of Minister to give directions

The Minister may give direction not inconsistent with the provisions of this Act to the Board from time to time.

The Board shall give effect to all directions given under this section as soon as possible.

The provision of educational loans under this Act shall be charged to the Fund provided that the Perbadanan shall keep and maintain the Fund in credit at all times.

Disbursement of educational loans

For the purpose of subsection (1), the Perbadanan may prescribe such means test as the Perbadanan deems necessary and expedient in order to determine and select students eligible for the educational loans.

22 Laws of Malaysia ACT 566

Duty to maintain record of educational loans

The record kept and maintained under subsection (1) shall include the following:

Subject to any order issued or made under any written law relating to banishment or immigration, the Inspector General of

Police or the Director General of Immigration upon receiving a request under subsection (1) in respect of any recipient student shall take or cause to be taken all such measures as may be necessary to give effect to it and which measures may include the use of reasonable force and the sizure, removal or retention of any certificate of identity and any passport, exit permit or other travel document relating to that recipient student.

Where a recipient student in respect of whom a certificate has been issued under subsection (1) produces a written statement signed on or after the date of the issue of the certificate by the Chief

Executive or an authorized officer to the effect that moneys due to the

Perbadanan specified in the certificate have been paid or that security has been furnished for their payment, the statement or the payment, as the case may be, shall be sufficient authority for allowing that recipient student to leave Malaysia.

No legal proceedings shall be instituted or maintained against the Perbadanan, its officers and servants, the Government of

Malaysia, a police officer or any public officer in respect of anything lawfully done under this section.

Perbadanan to be responsible for the recovery and collection of repayments of educational loans

For the avoidance of doubt, an educational loan which is not repaid or in arrears shall be treated as a civil debt owed by the recipient student to the Perbadanan and the Perbadanan may avail itself of such means under the law for the recovery of such debt.

24 Laws of Malaysia ACT 566

Limitation for action founded on a contract for educational loans

Notwithstanding subsection (1) and subject to the terms and conditions of the educational loan agreement entered into between the

Perbadanan and the recipient student, the Board, on an application by the recipient student made before the expiry of the six-month period in subsection (1), may extend the period of time for repayment of the educational loan upon such terms and conditions as the Board deems fit to impose.

Perbadanan Tabung Pendidikan Tinggi Nasional 25

Recovery and collection of repayments of educational loans

the Perbadanan shall provide the Inland Revenue Board or a collection agent appointed under section 24—

a copy of the record kept and maintained under section 22;

the Inland Revenue Board or the collection agent shall—

keep and maintain a record of the collection of the repayments made in respect of each recipient student in such manner and containing such particulars as the

Inland Revenue Board or collection agent deems fit and necessary to show the true state of affairs of the collection of the repayments;

The Inland Revenue Board or collection agent, in its sole discretion, may devise such administrative methods, procedures and processes to facilitate the collection of the repayments of educational loans that have fallen due to the Perbadanan.

Lawful methods for collection of repayments of educational loans

to deduct from the salary of the recipient student such sum of moneys as notified by the Perbadanan or Inland

Revenue Board, being the monthly amount of repayment required of the recipient student towards the discharge of his educational loan; and

to remit the amount so deducted to the Perbadanan or

Inland Revenue Board on a monthly basis.

An employer who contravenes subsection (1) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding one year or to both.

Certificate of Perbadanan to be conclusive

In the absence of the Chairman for any reason, the Minister shall appoint a member of the Board, except the Chief Executive, to carry out the duties of the Chairman.

Chief Executive

The Chief Executive shall be responsible for the overall administration and management of the functions and the day to day affairs of the Perbadanan.

28 Laws of Malaysia ACT 566

The Chief Executive shall have general control of the officers and servants of the Perbadanan.

The Chief Executive shall perform such further duties as the

Perbadanan or the Minister may direct from time to time.

In discharging his duties, the Chief Executive shall act under the general authority and directions of the Board.

If the Chief Executive is temporarily absent from Malaysia or is incapacitated through illness or for any other reason is unable to perform his duties, the Board may direct any other officer to carry out the duties of the Chief Executive during such temporary absence or incapacity.

Appointment of officers and servants of the Perbadanan

For the purpose of subsection (1) the Perbadanan, with the approval of the Minister, may determine the terms and conditions of service of such officers and servants.

Appointment of agents, consultants, etc.

Without prejudice to the generality of subsection (1), regulations may be made for prescribing—

The Perbadanan may transfer assets into or from the Reserve

Fund from time to time.

The transfers into the Reserve Fund shall be determined by the Perbadanan and the transfers out of the Reserve Fund shall be determined by the Minister.

Notwithstanding subsection (3), the amount of moneys to be transferred into the Reserve Fund in relation to the deposits under section 11 shall be such percentage of the deposits received as may be determined by the Minister.

Expenditure and preparation of estimates