I wonder if this strategy is workable:-

Step 1 - Deposit RM 6k in by Dec 31, 2018

Step 2 - Withdraw RM 6k in Jan 2, 2019

a) Eligible to claim for Income Tax deduction in for 2018 - my guess in YES
b) How to claim for 2019? - deposit RM 14k by Dec 31, 2019. Claim for RM 8k.
c) Repeat for all years but with incremental, e.g. for 2020, need to deposit RM 22k to claim the RM 8k

Benefit of this strategy

1. Claim income tax relief
2. If PTPTN goes bust (which they claim is somewhat likely due to so many students not paying), does not affect you as the money is your hands, not theirs

Caveat - you must be disciplined and set aside this for your kids and do not be tempted to use this money at all. There are so many good FD rates available now that you can park the money in- just refer to the FD thread.

Comments are welcome.

This post has been edited by saintmikal: Nov 22 2018, 08:59 AM

Most important is that the money you invest comes back into YOUR hands of which you can control.

If you believe that the organization is sustainable, just read the many many articles such as:

https://www.freemalaysiatoday.com/category/...finds-at-ptptn/

And there are many many more...just google and you will find it in more mainstream publications such as The Star, NST, Malay Mail, etc.

Imagine if there was NO income tax relief, would you put the same amount of money into PTPTN/SSPN or into a normal Fixed Deposit or even education insurance? The fact that the government increases the tax break from 6k to 8k should indicate that the reserves are stagnant/ dwindling/depleting...just like when banks want more money from you to meet their minimum reserve/cashflow level, they increase their FD rates and attractiveness.

Thank you for validating the theory.

Will start this program effective this year.

When will SSPN pay dividend?

For FY 2019. I don't recall seeing anything yet.

I thought it was suppose to be in April every year?

Got it, thanks!

If they took away the tax break, I think it would sink. Last 2 years, it was only 3%.