Maldives in talks with Malaysia over 6% tax on foreign students

Higher Education Minister Dr Ali Haider Ahmad has said the Maldivian government is engaged in discussions to ensure that Maldivian students studying in Malaysia are not affected by the new 6% tax on tuition fees.

Malaysia is set to impose the tax from 1 July 2025 as part of a reform to its Sales and Service Tax (SST) system. The tax will apply to foreign students studying in private schools, colleges, and universities across Malaysia.

Malaysia is among the countries with a large number of Maldivian students pursuing higher education. These include students funded by government loans and scholarships, as well as those who are self-financed.

Speaking to Atoll Times on Saturday, Minister Haider said the government is seeking clarity from Malaysian authorities regarding the implementation of the tax. He said that discussions will be held through diplomatic channels to request exemptions or lower rates for Maldivian students.

“We will discuss with the Malaysian government through diplomatic means to secure concessions. The aim is to prevent the imposition of this tax on Maldivian students or to seek a reduced rate,” said Haider.

He added that if the discussions do not lead to a resolution, the Maldivian government will ensure students are supported financially so they are not impacted by the policy change.

“If the talks do not make progress, the government will provide the required financial support. The Maldivian government will ensure students are not affected,” the minister stated.

Under the new Malaysian policy, private educational institutions that charge tuition fees of RM60,000 (approximately MVR 218,496) or more per year will be required to register for SST and collect a 6% tax on fees paid by foreign students.

According to Malaysia’s Ministry of Finance, the tax reform is part of broader measures to strengthen the country’s fiscal position.