The Ministry of Higher Education, Labour and Skills Development has announced that the newly imposed service tax on international students in Malaysia will be covered under Government-issued student loans.

This follows an earlier statement in which the Ministry said it was working to arrange funds to assist students affected by Malaysia’s 6 percent service tax on private education services for international students, which came into effect on July 1, 2025. The tax applies to private preschools, schools, colleges, universities, and language centres that cater to non-Malaysian students.

The Ministry has now confirmed that students receiving higher education loans from the Government will have the tax amount added to their loan package. Students under Government scholarships will also have the tax covered once it is reflected in their invoices.

Students who are required to pay more than RM 60,000 in course fees have been asked to submit the necessary form via email to the Ministry.

The new tax is part of Malaysia’s revised Sales and Service Tax (SST) regulations, which mandate registration for institutions that meet the threshold. The move has raised concerns among Maldivian students and parents over increased financial strain.

Malaysia remains one of the most popular destinations for Maldivian students pursuing higher education.