05/12/2025

FRIDAY | DEC 5, 2025

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Stress from student debt reducing productivity: MEF

Ű BY FAIZ RUZMAN newsdesk@thesundaily.com

PETALING Employers

JAYA:

Malaysian

PUCHONG: Eighteen families affected by the Putra Heights gas pipeline fire can heave a sigh of relief as their homes in Kampung Kuala Sungai Baru, Puchong have been fully repaired and rebuilt. The handover of keys yesterday marks a milestone in government disaster assistance under the Housing and Local Government Ministry Sentuhan Kejayaan 2025 programme. Speaking at the ceremony, its minister Nga Kor Ming said the programme reflects the commitment of the government to rebuilding lives. He highlighted the creation of the National Housing Disaster Trust Fund, Malaysia’s first fund designed to provide comprehensive support for disaster victims. “Compared with previous governments, when disasters such as fires or floods occurred, district offices could only provide RM5,000 or, at most, RM10,000. The rest was borne by the (affected individuals) themselves. “But under the Malaysia Madani aspiration, I proposed to the Cabinet that any house damaged by a major disaster not only receive financial assistance and support, but for the first time in history, destroyed houses will be rebuilt. “This is proof that the government truly cares for the people.” Also present at the ceremony were Puchong MP Yeo Bee Yin and Petronas Gas Berhad CEO Abdul Aziz Othman. Nga also acknowledged that reconstruction of homes in Taman Putra Harmoni, the site of the gas pipeline incident, has yet to begin due to unresolved complaints and ongoing court cases. “Some residents did not agree to receive government assistance or have taken legal action. As a result, although funds and machinery are available, these legal disputes prevent Federation (MEF) president Datuk Dr Syed Hussain Syed Husman said financial stress linked to National Higher Education Fund Corporation loan repayments is reducing workplace productivity by up to 15%. He told theSun MEF’s engagements with employers revealed that the debt has become a part of the financial burden faced by fresh graduates and early-career employees whose salaries have not kept up with rising living costs. “Impacts observed include reduced focus and cognitive overload, in which financially stressed employees spend work hours worrying about bills and repayments. “There is lower engagement and motivation, higher absenteeism because employees may take part-time jobs or gig work, and increased requests for salary advances or early wage access, which is a sign of financial strain. “Overall, financial stress, of which the debt is a part, could reduce productivity by an estimated 10% to 15% based on internal employer observations and HR feedback shared with MEF.” He added that loan obligations also influence career decisions and Ű BY HARITH KAMAL newsdesk@thesundaily.com

Perak exempt from rare earth ban IPOH: Perak continues to enjoy a special exemption by the federal government to export rare earth elements (REE), despite the ban on exporting the material being in effect until 2027, as the state is still in the pilot project phase. Menteri Besar Datuk Seri Saarani Mohamad said the state was given special permission to export to prevent material that has already been extracted from being wasted, with approval being granted from time to time until it is halted by the Natural Resources and Environmental Sustainability Ministry. “But for the time being, we (Perak) are still allowed (to export), and we are working to build the NR-REE (non radioactive rare earth elements) industry, not just the upstream industry (for) extraction, but also the midstream industry to separate the element and the downstream industry. “We want to develop an industry that could grow and produce end-products from REE,“ he said at a press conference after officiating at the Perak Geospatial Aspirations event on Wednesday. On Nov 13, the federal government implemented a short-term moratorium on the export of raw REE from 2025 to 2027, in support of the development of the midstream industry. Meanwhile, Saarani said the state government welcomes the presence of external parties who wish to share technology, but emphasised that Perak would not permit any party that wants to extract the state’s natural resources without joint development. – Bernama parliamentary statement on Dec 3, in which he revealed mounting student debts of RM257.56 million among higher-income households and RM10.23 billion among aid recipients (as of Oct 31). “Employers be positioned as debt collectors, guarantors or the party responsible for repayment compliance. The root of higher education loan repayment difficulties is income stagnation, especially within B40 and lower-M40 segments.” theSun on Dec 4 reported that expert and survey findings showed repayment failures stem from different causes. Low-income borrowers lack sustainable income, middle-income groups are squeezed by childcare, loans and rising living costs, while high-income defaulters delay payment out of attitude or choice, not affordability. The report was a follow-up to Higher Education Deputy Minister Datuk Mustapha Sakmud’s must not

He also said employers remain cautious due to practical risks. “Some employees with very tight cash flow may sign up but later request reversal, creating administrative loops. “Employers worry about being blamed for arrears if employees resign, are terminated or go on unpaid leave. Smaller companies with basic payroll systems may find frequent changes difficult to track.” Syed Hussain said employers could still play a supportive role in improving financial resilience without being made liable for repayments. “Employers should not be expected to shoulder financial obligations related to student loans, but they could run financial management programmes, educate younger employees on the importance of structured repayments and work with the corporation to conduct on-site briefings or digital clinics during employee onboarding.

employees, especially in sectors in which wages remain compressed.” On salary deductions, Syed Hussain said employers support voluntary arrangements but emphasised that participation must be strictly initiated by the workers. “Employers are generally supportive of voluntary mechanisms, provided that the process remains voluntary and employee-initiated, the administrative burden is minimal and there is no implied obligation or liability on employers. “However, MEF emphasises that employers should not be turned into debt collectors for government agencies. “Any deduction scheme must be opt-in, based on written employee consent and simple to administer, similar to the Employees’ Provident Fund, Socso or zakat deductions, and non-punitive, meaning no penalties for employers due to delays, system errors or employee status changes.”

o ‘Impacts observed include cognitive overload, absenteeism and high turnover’ “Employees may job-hop in search of higher salaries to ease repayment pressure. Fresh graduates with higher education loan debts may avoid formal sector jobs that enforce direct deductions, leading to higher turnover or preference for gig or contract roles. “Some resign to pursue freelance or gig platforms offering faster cash flow, even if long-term career progression is compromised. “The debt is a structural factor contributing indirectly to retention challenges among younger turnover patterns among younger workers.

Houses of 18 families affected by gas pipeline fire rebuilt

Nga poses for a photograph with a homeowner in front of a rebuilt unit at Kampung Kuala Sungai Baru during the handover of keys ceremony. – ADAM AMIR HAMZAH/THESUN

construction from moving forward.” “To address this, we have appointed Sime Darby as the master developer for Taman Putra Harmoni. As the original developer of Putra Heights, they already have building plans and a master plan, which would speed up the process. “I appeal to everyone to adopt a spirit of compromise. The government comes with sincerity to help.” He praised Syarikat Perumahan Negara Berhad for fast-tracking reconstruction. The agency rebuilt and repaired the 18 homes with a total allocation of RM4.85 million. “Normally, building a house takes 24 months under the Housing Act. But I told them we cannot wait, work must be done day and night. “That is how we completed it

pipeline leak triggered a massive explosion and subsequent fire, with flames soaring up to 30m. On Oct 18, 36 Putra Heights residents filed a civil suit at the Shah Alam High Court against five parties over the incident, which left 150 people injured and destroyed numerous homes. The plaintiffs named Petronas Gas Bhd, Hong & Hong Homes Sdn Bhd, Pinterest Ventures Sdn Bhd, the Subang Jaya City Council and the government as defendants. The residents appointed former attorney-general Tommy Thomas as their lead lawyer. They are seeking compensation for property damage, health issues, emotional distress and are demanding accountability and transparency from the authorities.

within six months,” Nga said, adding that all work was fully funded by the government. One of the beneficiaries, Zainuddin Abdul Halim, 61, expressed gratitude for the support and recounted his family’s ordeal. “ Alhamdulillah , I am grateful for the assistance provided. Although it cannot fully replace what we lost, it has helped us continue our lives. “There are just a few things still unresolved – electricity, water and minor issues but we are grateful for what we have. “We cannot live as before. We have to adjust our lives now. Thankfully, I had insurance. The disaster coverage helped a lot.” On April 1, a serious industrial accident struck Putra Heights in Subang Jaya when a Petronas gas