My updated view on Skim Simpanan Pendidikan Nasional (SSPN)

I previously wrote about the Skim Simpanan Pendidikan Nasional (SSPN) offered by the Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) here and here.

I used to think that the SSPN is not worth my time. This was mainly because of the low rate of return it provides. However, I have to say, my view has changed. I’ve overlooked the fact that there’s actually tax relief provided to those who saves money in SSPN for their kids. The tax relief given is up to RM3,000 per year. That’s pretty substantial in my opinion.

On top of that, assuming my tax rate is 12%, I have technically given myself an instant return of 12% (i.e instead of giving the money to the tax office, I’m sacrificing it into the SSPN account and therefore keeping the money to myself).

In summary, I’ll definitely look into using this vehicle in the future.

About nadlique

This blog is about the journey of a 28-year-old Malaysian towards financial freedom. This blog was started back when the blogger was 21 years old. However, his journey towards financial freedom had begun way before that. Materials such as investing, business, entrepreneurship, equities, and real estate are presented. The author also posts his thoughts and observations on life in general.


  1. I believe this only applicable to those who have kids?

  2. I agree with Nadlique. That’s a good saving with good return. When calculating any investment, we must not look the direct return only. In this case, we need to add the tax saving into the total return to get the REAL return for that saving.

    Recently, I have also shared 1 Malaysia Saving Scheme at blog. The interesting part about this scheme is that the government will add 5% to your contribution up to RM60 a year. You don’t have to have kid to enjoy this scheme. However, you need to be self-employed to enjoy this scheme.

  3. I think that a depositor can open a SSPN account for a beneficiary even if they are neither legal guardian nor family members. I referred to this FAQ:

  4. Syahril says:

    Bro, I dont understand how u came up with 12% instant return.

  5. What is the % return on saving with SSPN?

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