The Maldivian government has decided to include the new Malaysian tax imposed on foreign students, in the student loans of affected Maldivian students studying in Malaysia.
Malaysia's Sales and Service Tax (SST) Act was recently amended to impose a six percent tax on tuition fees paid by foreign students studying in Malaysia. The new tax on foreign students was introduced to strengthen the country's financial situation, expand taxable areas and increase government revenue, according to the country’s Finance Ministry. The SST) area has been expanded for foreign students to ease the burden on Malaysian citizens, the Ministry said.
According to the Malaysian government's decision, the tax will be levied on all foreign students studying in the private education system in Malaysia. These include foreign students studying in preschools, schools, colleges, universities and language centres. The tax will be levied on students who spend RM60,000 a year on tuition fees, which is equivalent to approximately USD 14,234.28 per year. The amendment came into effect on 1 July 2025.
In response, the Maldives’ Ministry of Higher Education, Labour and Skills Development has arranged to cover the additional tax amounts for students on the ministry’s scholarships by including it in the invoices already being paid on their behalf. The Ministry said these payments will continue in the same manner as current arrangements.
Additionally, the Ministry has also decided to include the tax amounts in the existing loan balances of those on student loans who are liable to pay the tax. The Ministry has asked students who are liable to pay the tax to fill the designated form and email it to the Ministry to update their loans.