PSD explains policy on grants

Thursday May 15, 2008

WE REFER to the letters published in The Star from 14 -17 April 2008 in response to the letter “Grads prefer to stay on overseas” (The Star, April 13).

The PSD regulations require all sponsored students to return home upon graduation. Medical graduates are required to undergo their housemanship in Malaysia and will be appointed as medical officers by the Health Ministry.

However, there have been an increasing number of cases since 2003 where students have ignored this requirement and not returned home to serve their bond with the government.

Every year, the PSD issues letters to all sponsored students before graduation, requiring them to report back to the PSD after graduation and to register with the Public Service Commission so that they can be appointed into the public service.

Compensation claims by the Public Service Department (PSD) against errant scholars are based on the actual amount spent throughout the entire study period. They are no longer based on the stipulated amount in the contract.

This regulation was imposed on PSD overseas scholars refusing to return home upon completion of their studies without justification.

For those who refuse to return to fulfil their obligations to serve the government, the PSD issues a notice of demand to them or their guarantors (usually their parents), to repay, in one lump sum, the total amount spent on them throughout their studies.

Errant scholars who have disregarded the notice of demand have had their names forwarded to the Attorney-General for legal action against them or their guarantors.

Over the years, the PSD has taken various actions to track down these errant students and to compel them to fulfil their responsibilities, including participating in the Central Credit Reference Information System (CCRIS) maintained by Bank Negara.

In addition, the PSD is gradually sending more students to countries with affordable cost of living and excellent academic standards, especially in medical fields such as India, Indonesia, the Czech Republic, Jordan and Egypt where the expenses are much lower than those in the UK and Ireland.

Another option being considered is publishing the names of those who have defaulted on their loans in the major newspapers.

The PSD is considering imposing a heavier penalty on all our overseas sponsored students who fail to return home upon successful completion of their studies.

It is also considering offering a convertible loan to all future PSD-sponsored students seeking to study overseas rather than a scholarship, as is the current practice.

These students will then have the option to either repay the loan or serve the government for a specified period upon completion of their studies.

The number of years to which a PSD-sponsored medical student will be bonded to serve the government will also be lengthened.

In addition, the PSD will also be working closely with the Public Service Commission to initiate new recruitment strategies for PSD scholars in their final semester of study.

CORPORATE COMMUNICATIONS UNIT,
Public Service Department.