The government will deposit the required funds to State sponsored students studying in Malaysia before the deadline to offset the new tax levy, the Minister of Higher Education, Labour and Skills Development, Dr Ali Haidar Ahmed has assured.
Malaysia will charge a six percent service tax on private education services for international students starting 1 July. The new tax applies to private preschools, schools, colleges, universities, and language centres serving non‑Malaysian students.
The Maldives government had earlier promised to make arrangements to ensure that Maldivian students studying in Malaysia do not have to bear the burden of the new tax.
Speaking to PSM News, Minister Dr Haidar said the government will offset the increase in tuition fees for State funded students in Malaysia as a result of the new taxes, adding that efforts are underway to deposit the money to respective students before the next tuition fee cycle.
The Minister assured that the government will fully offset the increase in tuition fees due to the new tax introduced by Malaysia, insisting that students will not have to bear any additional financial burden.
The tax is part of Malaysia’s revised Sales and Service Tax (SST) rules. Private institutions charging over USD 14,000 per year in tuition must register for the tax. Higher education institutions and language centres must register regardless of turnover if they teach international students. Malaysian students will be exempt.