Planning to Study in Malaysia? Here's the Actual Impact of the New 6% Service Tax on International Students

27 June 2025

Do you know if studying in Malaysia becomes more costly? If you’re an international student who intends to study at a private college or university in Malaysia, there’s something that you need to find out. From July 1, 2025, the Malaysian government will charge a 6% service tax on foreign students in private schools on education services. What effect will this have on your study plans, and should it make you think again? Let us review the facts and keep you one step ahead of the rest.

This additional taxation law is Malaysia’s move to build a better taxing collection system, wherein it will be able to further strengthen the necessary public facilities and infrastructures. Malaysian residents are excluded from this tax, but international students will be giving an additional 6% over their typical tuition and academic service fees.

Malaysia has been a top destination for more than 130,000 overseas students for years now, mainly because it is cheap, with reasonable fees, and quality English tuition, in a welcoming multicultural setting. Yes, this new tax does incur an extra expense, but Malaysia is still significantly cheaper than places like the UK, Australia, or the US. All the same, it’s more vital than ever to plan your finances well in advance of making an application.

Why Has Malaysia Imposed This Tax?

The government’s goal is to enhance the nation’s fiscal resilience and drive long-term growth. Imposing the tax on foreign student services is forecasted to enable Malaysia to deliver quality education without straining local resources. The action is also in line with international best practice taken by other developed nations.

Who Will This Tax Impact?

• All foreign students who seek to study in private schools, universities, or colleges in Malaysia.
• It will be levied on tuition fees, registration fees, and even other service-based charges such as administration or student services.
• Even existing students may need to pay the tax for their future semesters, subject to the policy of their institution.

How Should Students Prepare?

If you plan to study in Malaysia soon, it’s critical that you prepare yourself financially. Here are some things to do:

• Write to your preferred institution and ask them to provide you with a clear statement of your overall cost including taxes from July 2025 onwards.
• Verify the scholarship details to ascertain whether the 6% tax is included or will be paid in addition.
• Contact a trustworthy study abroad consultant such as BCES Admissions Abroad who can walk you through the process and recommend the best option according to your budget.

While a 6% tax will make a slight cost, Malaysia still offers good-quality education at an infinitesimal cost relative to most of the Western world. Whether it is the globally renowned degrees, the welcoming and safe environment, or the extremely low cost of living, Malaysia is a smart and affordable option—especially if you arrive prepared and have a sense of where the proper courses may be located.

We understand that these changes can be daunting. You don’t have to navigate it all alone, however. Our professional advisors are available to guide you through the new fee structure, help you choose the right university for your needs, and even locate scholarship programs that lower your overall cost. Call BCES Admissions Abroad today at 9319996328 for a one-on-one appointment. We will bring you safely to your further studies in Malaysia—no confusion, no hassle.