Social mobility is crucial to the maintenance of a healthy liberal society. Inflexibility will have elites entrenched within the state apparatus and eventually becoming de facto dictators themselves, unless there is some sense of altruism among the elites. The monopoly of power itself is illiberal in so many ways. There are ways to address the […]

Not all borrowers are the same. Some are goods borrowers who repay their loans mostly on time. Others do not. Under typical market operations, the good borrowers get to pay lower rates as compared to the bad ones. This mitigate the risk of default and it discourages too many bad borrowers from borrowing. If everybody […]

The Malaysian government-setup National Higher Education Fund Corporation (PTPTN) is apparently in trouble. It finds itself in a big fiscal hole. With a mandate to provide Malaysian students at local tertiary institutions with cheap source of education financing, PTPTN lends at 1% to students but borrows at much higher rates from financial institutions, according to […]

Borrowers obviously will celebrate if they see a reduction in their repayment obligation. When the National Higher Education Fund Corporation (PTPTN) reduces its service charge or really, interest rate, from 3% to 1%, already I read borrowers singing high praises to the body. The reduction of rate also turns the financing facility into a subsidy, […]