Gov’t to Cover New Malaysian Tax on Student Tuition Fees Through Loans and Scholarships

The government has decided to cover the additional cost resulting from a new tax introduced by the Malaysian government on tuition fees paid by foreign students.

The measure will apply to Maldivian students currently studying in Malaysia under government scholarships or student loan schemes.

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The amendment to Malaysia’s Sales and Service Tax (SST) Act came into effect on 1 July 2025 and imposes a six percent tax on tuition fees paid by foreign students enrolled in private educational institutions. This includes preschools, schools, colleges, universities, and language centres. The tax applies to students whose annual tuition fees reach RM60,000.

The Malaysian government introduced the amendment as part of a broader effort to improve the country’s financial position, expand the scope of taxable areas, and increase national revenue. The tax on foreign students is also intended to ease the financial burden on Malaysian citizens.

In response, the Maldives’ Ministry of Higher Education, Labour and Skills Development has confirmed that the tax amounts for students on government-funded scholarships will be paid as part of the existing invoicing process, without changes to current procedures.

For students on loan schemes, the Ministry has decided to include the tax amounts in their existing loan balances. Affected students are required to submit a designated form to the Ministry via email to update their loan arrangements accordingly.