Corporation to be responsible for the recovery and collection of repayments of skills training loan
(1) The Corporation shall be responsible for the recovery and collection of repayments of skills training loans paid out to loan recipients.
(2) Any skills training loan or any part of any skills training loan that is not repaid may be treated as a civil debt owed by the loan recipient to the Corporation and the Corporation may recover such debts through any means provided under the law for the recovery of such debts.
Return of amount of skills training loan
Any loan recipient, shall return any amount of any skills training loan—
(a) which was made to him by mistake;
(b) which was overpaid;
(c) for which payment was made to him as a result of fraud or misrepresentation or any other illegal act;
(d) if training was not completed by the loan recipient in accordance with the approved training programme; or
(e) if training was not attended by the loan recipient.
Responsibility of loan recipient
The loan recipient shall inform the Corporation of—
(a) any change of address; and
(b) his employment, including self-employment when he is employed.
Collection agents
(1) Without prejudice to the responsibilities and powers of the Corporation to recover the repayment of skills training loan under section 55, the Inland Revenue Board shall be appointed to be a collection agent for and on behalf of the Corporation for the recovery of any skills training loan due for repayment to the Corporation by any loan recipient.
(2) In addition to the Inland Revenue Board, the Corporation, with the approval of the Minister and the concurrence of the Minister of Finance, may appoint such number of collection agents as may be expedient or necessary for the recovery of skills training loan repayments.
Commencement of repayment of skills training loan
(1) It shall be the duty of a loan recipient to commence repayment of his skills training loan to the Corporation not later than the time period specified in the loan agreement.
(2) Notwithstanding subsection (1) and subject to the terms and conditions of the loan agreement entered into between the Corporation and the loan recipient under this Act, the Chief Executive, on application by the loan recipient made before the expiry of the specified time period referred to in subsection (1), may extend the period of time for the commencement of repayment of the skills training loan upon such terms and conditions as the Chief Executive deems fit to impose.
Notice of loan repayment
The Chief Executive shall cause to be issued to each loan recipient a notice specifying the amount and date of commencement of repayment of the skills training loan in respect of each loan recipient before the specified period for the repayment of the loan.
Recovery and collection of repayments of skills training loan
(1) For the purpose of the recovery and collection of the repayments of skills training loans—
(a) the Corporation shall provide the Inland Revenue Board or a collection agent appointed under section 58—
(i) a copy of the record kept and maintained under section 54;
(ii) a copy of the notice of loan repayment issued under section 60; and
(iii) any other particular as may be requested for by the Inland Revenue Board or collection agent; and
(b) the Inland Revenue Board or the collection agent shall—
(i) keep and maintain a record of the collection of the repayments made in respect of each loan recipient in such manner and containing such particulars as the Inland Revenue Board or collection agent deems fit and necessary to show the true state of affairs of the collection of the repayments;
(ii) furnish the Corporation with a copy of the record kept and maintained under subparagraph (i) within such period as may be agreed between the Corporation and the Inland Revenue Board or collection agent; and
(iii) not later than the first working day of the following week or month or every quarter of the calendar year as may be agreed between the Corporation and Inland Revenue Board or collection agent, commencing from the first collection of the repayments of the skills training loans, pay to the Corporation the total sum of repayments collected under this Act together with such returns as the Inland Revenue Board or collection agent may receive on the sum so collected.
(2) The Inland Revenue Board or collection agent, in its sole discretion, may devise such administrative methods, procedures and processes to facilitate the collection of the repayments of skills training loans that have fallen due to the Corporation.
Lawful methods for collection of repayments of skills training loan
For the purpose of this Act, the Inland Revenue Board or collection agent may use such methods that are permitted under the law to give effect to the collection of the repayments of skills training loan in respect of each loan recipient.
Employer and self-employed person shall assist the Inland Revenue Board
It shall be the duty of an employer of a loan recipient and the duty of a self-employed person, upon being notified in writing by the Inland Revenue Board—
(a) to deduct from the wages of the loan recipient or, in the case of a self-employed person, from his own wages such sum of money as is notified by the Inland Revenue Board, being the monthly amount of repayment required of the loan recipient towards the discharge of his skills training loan; and
(b) to remit the amount so deducted to the Inland Revenue Board not later than the last day of the month following the month in which his wages is paid.
Notice of Corporation to be conclusive
The notice issued by the Corporation under section 60 shall be conclusive proof of the amount of skills training loan outstanding and due to the Corporation from a loan recipient for the purpose of the recovery and collection of the repayments of that skills training loan by the Inland Revenue Board or a collection agent under this Act.
Payment of commission to collection agents
The Corporation, with the approval of the Minister of Finance, may pay to the Inland Revenue Board or a collection agent appointed under section 58 such rate of commission for services rendered in collecting the repayments of skills training loans.
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).
