Saturday 13 August 2016

Analysts say Govt’s contingent liabilities likely to rise

THE thousands of Malaysians who use the light rail transit (LRT) lines, and soon the mass rapid transit (MRT) network, daily to move about in Kuala Lumpur have a lot to thank for. So do the thousands of students a year who take loans from the National Higher Education Fund Corp (PTPTN), for which the money borrowed allows them to pay for the expensive tertiary courses they take.

Infrastructure such as the rail lines and also facilities to give out study loans are part of the Government’s efforts to lower the cost of living. Allowing students to continue studying opens an avenue for them to progress in life.

But the cost of doing that is not something many see but is having a telling impact on future government finances.

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