The Maldivian Government is working to ensure that students studying in Malaysia are not affected by a newly introduced service tax, the Ministry of Higher Education, Labour and Skills Development has confirmed.

Malaysia is set to impose a 6 per cent service tax on education services provided to international students from July 1, 2025, following amendments to the country’s Sales and Services Tax (SST) Act. The announcement, made with limited notice, has raised concerns among Maldivian students currently enrolled in Malaysian institutions.

According to Minister Dr Ali Haidar Ahmed, the Malaysian Government did not formally communicate the change ahead of time, leaving a short window between the announcement and implementation of the policy. The Ministry noted that discussions are ongoing with relevant stakeholders in Malaysia to assess the impact of the tax and explore ways to safeguard Maldivian students from additional financial burdens.

The Maldives is seeking clarity on whether exemptions can be made or if transitional arrangements are possible, given the short notice and potential implications for students already enrolled.

Malaysia remains one of the top destinations for Maldivian students pursuing higher education. The Ministry reaffirmed its commitment to supporting these students and ensuring continued access to affordable and quality education abroad.