Minister of Higher Education, Labour and Skills Development Dr. Ali Haidar Ahmed has revealed that despite Malaysia's decision to impose a six percent tax on students, it will not be a burden for them.

Malaysia has decided to impose a six percent tax on all foreign students starting from July 1. Reports state that the Sales and Service Tax (SST) regulations have been amended to require educational institutions that charge foreign students more than 60,000 Malaysian Ringgit annually to pay taxes.

Given Malaysia’s popularity as an education destination for Maldivian students, the tax was initially expected to significantly raise their living and tuition expenses.

Haidar has revealed that although Malaysia has decided to impose a six percent tax on foreign students, it has not been officially announced yet. The minister said that if such a tax is implemented, arrangements will be made to ensure it does not become a financial burden.

Haidar stated that if a tax exemption or reduction cannot be secured, the government will cover the tax for students it sponsors to study abroad.

Further, Haidar said that so far, there have been no official discussions with any relevant authorities. However, he stated that in the future, they will hold consultations and seek amicable solutions.

A significant number of Maldivian students are currently studying in Malaysia under government-funded scholarships.