KUALA LUMPUR (April 5): The National Higher Education Fund Corp (PTPTN) declared a dividend of 3.6% for the National Education Savings Scheme (Simpan SSPN) for 2023, up from 3.05% declared for 2022. 

The total payout to the higher education savings scheme’s 6.25 million depositors amounted to RM357.65 million, which was derived from an investment income of RM446.22 million, according to Higher Education Minister Datuk Seri Dr Zambry Abdul Kadir.

Based on Simpan SSPN’s deposit investment income of RM446.22 million for 2023, the payout rate is 80.2%.

“The increase in Simpan SSPN's dividend rate is in line with the increase in Bank Negara Malaysia’s overnight policy rate, which increased by 0.25% in 2023,” Zambry said during a brief press conference on Friday.

"Moreover, the rate of savings and fixed deposit accounts in local banks ranges between 2.05% and 3.45%. Therefore, this dividend is a more profitable rate of return, and maintains Simpan SSPN's competitiveness and relevance in relation to other products on the market,” he added.

Zambry said this is in line with the main thrust of PTPTN’s Strategic Plan 2021-2025 of making Simpan SSPN the premier education savings product in Malaysia.  

The latest payout brought Simpan SSPN's cumulative dividend distribution since its inception in 2004 to RM1.69 billion. 

Historically, Simpan SSPN’s annual dividend has ranged from a low of 2.5% back in 2009 and a high of 4.25% achieved for three consecutive years from 2012 to 2014. 

The 3.6% dividend rate declared for 2023 comes below Simpan SSPN’s average of 3.75% over the past two decades.

Looking at 2024, PTPTN said Simpan SSPN’s investment performance is envisioned to continue its upward trajectory premised on a year-on-year improvement for the first quarter of 2024. 

In terms of deposits, Zambry said the savings scheme saw the collection of RM3.15 billion in 2023, with 513,002 new accounts opened during the 12-month period. 

“Meanwhile, Simpan SSPN’s total deposits collected since [its establishment in] 2004 until Dec 31, 2023 totalled RM17.39 billion, involving 6.25 million accounts,” he added.

The agency under the Ministry of Higher Education has the mandate to ensure no Malaysian student who wishes to pursue tertiary education is left behind due to financial constraints.

It does this via the provision of student loans as well as its savings instrument, namely Simpan SSPN, which aims to help parents financially plan their children’s higher education. 

“In addition to offering a competitive dividend and various other benefits, Simpan SSPN most notably is the only savings product that provides relief from income tax assessment for savings of up to RM8,000 per year,” PTPTN added.