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1. How does JPA allocate jobs to its scholars? Will I get to choose the jobs? What if the job allocated isn't relevant to my qualifications?
JPA allocates jobs through 'Suruhanjaya Perkhidmatan Awam', they're the ones responsible for finding jobs for JPA scholar graduates. You will not be able to choose your job. Good news though about 40-60% of the time the job offered will be somewhat relevant to your studies. It might not be what you learned in school but you'll definitely need to tap into the stuff you learned in university. For example a friend of mine has a civil engineering degree is now working for JKR. His work has something to do with highway construction and road maintainability. He doesn't use all of the stuff he learned in university but his education is relevant to his job now.
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2. How soon does JPA contact its scholars regarding job offers?
They're supposed to contact scholars within 6 months, although there as some cases when they contacted someone 8 months after graduation. But it's safe to say after 6 months you're free!!
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3. If I have an offer from the private sector, can I take it?
Some companies ask potential employees if they are bonded. When I interviewed for Shell and Sony, both the interviewers asked if I was bonded. But I think if you've received an offer by all means you should take it.. besides does JPA expect it's graduates to sit on their ass and go hungry? Hell no... But if JPA call you back to serve out your bond, you can always appeal. Our govt likes making us beg for everything (

). You can write a 'surat rayuan' asking them for a release from your bond. A friend recently got called by JPA for a job after 8 months, and she was already working for a private company. So she appealed to JPA citing the fact that it's already past the 6 months. There's probably some other reasons that the wrote in the letter but the point is her appeal was accepted and she didn't have to work for the govt.
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4. Is it possible to convert the scholarship into a loan? How are the interest rates like?
Not sure if you can do that, only thing I know that can happen is when scholarship students don't honor their contract.. then they have to pay everything back.. 0% interest though.
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5. What are the chances are that I will get called back since my degree isn't a "HOT" qualification?
Right now doctors, dentists and pharmacists are almost always called back. Engineers about maybe 20-30% are called back. Engineering are supposedly a 'HOT' qualification and even not many engineering grads are called back by JPA. So I think it's quite unlikely that you will be called by JPA.
Hope I answered some of your questions to you satisfaction..