Mara reduces non-performing loan rate after action against defaulters

 

Deputy prime minister Ahmad Zahid Hamidi speaking at the signing ceremony of a memorandum of agreement between Mara Incorporated Sdn Bhd and Felcra Bhd for the development of a data centre in Bagan Datuk, Perak. (Bernama pic)

PETALING JAYA: 

Majlis Amanah Rakyat (Mara) has successfully reduced the non-performing loan (NPL) rate from double digits to a single digit, following actions taken against defaulters.

Bernama reported deputy prime minister Ahmad Zahid Hamidi as saying that the measures included legal action and asset seizures.

Without disclosing the current NPL percentage, Zahid said that it had once exceeded 10%.

“Although we are not satisfied yet, we have taken steps, including supervision,” he said.

Zahid said the actions taken were not limited to legal measures, but also mandatory asset seizures as loans were not grants or aid.

He was speaking to the press after the signing ceremony of a memorandum of agreement (MOA) between Mara Incorporated Sdn Bhd and Felcra Bhd for the development of a data centre in Bagan Datuk, Perak.

Yesterday, Mara chairman Asyraf Wajdi Dusuki was reported as saying that some borrowers from the institution deliberately avoided repaying their loans while flaunting their wealth.

In response, Zahid, who is also the rural and regional development minister, said Mara did not practise favouritism in taking action as the funds involved were taxpayers’ money.

Previously, it was reported that Mara officials had raided a house believed to be owned by a famous actress in Kota Damansara, Petaling Jaya, following her failure to repay a loan of RM1 million.

In a separate report, Zahid said the government had no plans to introduce technical and vocational education and training(TVET) programmes for students who had completed Year Six.

“Certain countries, such as the United Arab Emirates, enrol students directly into TVET programmes after Grade Six, making TVET a primary choice there. Many developed nations have also adopted this approach.

“However, we should start with Form Three students first, and only then consider extending it to Year Six students. This is to avoid creating cultural shock in the education ecosystem,” Zahid, who also chairs the national TVET council, said when winding up the Supply Bill 2025 debate for the rural and regional development ministry in the Dewan Negara today.

Earlier, senator Ros Suryati Alang suggested lowering the age threshold for TVET education to 13, citing the high number of rural and Orang Asli students who were unwilling to pursue secondary education after completing Year Six. - FMT