Maldives Vows to Shield Students from Malaysia’s New Education Tax

The Minister of Higher Education, Labour and Skills Development, Dr Ali Haider Ahmed, has assured that the Maldivian government will take necessary steps to ensure that Maldivian students in Malaysia are not burdened by the country’s newly introduced education service tax.

Starting 1 July, Malaysia will begin charging a six percent service tax on private education services provided to international students. The tax applies to all private preschools, schools, colleges, universities, and language centres catering to non-Malaysian students.

Speaking on the matter, Minister Dr Haider noted that the announcement came with just a week's notice, leaving little time for bilateral engagement or preventative measures. “We have not received any official communication on this decision from the Malaysian government,” he stated, while confirming that discussions are now being initiated.

Dr Haider acknowledged the large number of Maldivian students pursuing their education in Malaysia, both on government sponsorships and through private funding. He stressed that the administration is committed to doing “everything possible” to prevent the tax from becoming a financial burden on students or their families.

Under Malaysia’s revised Sales and Service Tax (SST) regulations, private institutions with tuition fees exceeding USD 14,000 annually must register for the tax. Institutions serving international students—regardless of turnover—are also required to comply. Malaysian students, however, are exempt.

The Maldivian government is currently exploring diplomatic and administrative avenues to safeguard its students from the effects of this policy change.