- Malaysia now applies a 6% Sales and Service Tax on tuition fees for international students, effective 1 July 2025.
- Tuition costs have risen moderately across all study levels, but Malaysia remains affordable compared to other countries.
- Despite the tax, Malaysia continues to offer one of the lowest student visa fees (USD 373) with the fastest processing time (14 days).
In a strategic fiscal move effective from 1 July 2025, Malaysia has introduced a 6% Sales and Service Tax (SST) on tuition fees charged to international students. This adjustment, part of broader tax reforms, is expected to moderately impact education costs for foreign students while reinforcing Malaysia’s position as a cost-effective destination for higher education.
The new tax regulation applies to all levels of academic programmes for international students, including Foundation, Diploma, Bachelor's, Master’s, and Doctoral degrees. With the SST added, tuition fees have seen a marginal increase, depending on the level of study.
For instance, Foundation and A-Level courses, previously costing between RM 18,000 and RM 30,000 annually, will now range from RM 19,080 to RM 31,800 an increase of RM 1,080 to RM 1,800 (approximately USD 230 to USD 380). Similarly, Bachelor's degree fees now stand at RM 26,500 to RM 47,700, up by RM 1,500 to RM 2,700 (USD 320 to USD 570) from the pre-SST range of RM 25,000 to RM 45,000.
Despite this increment, Malaysia continues to offer one of the most affordable education pathways among leading study destinations. The new SST policy is seen as a step toward aligning the sector with national tax frameworks while still preserving affordability and access for international students.
Student Visa Fees Remain Competitive
In parallel, Malaysia has reaffirmed its global competitiveness by keeping international student visa processing fees unchanged at USD 373 (RM 1,600). This remains significantly lower compared to other popular destinations such as the UK (USD 700), UAE (USD 800), and Australia (USD 1,023). Furthermore, Malaysia’s visa processing time is a standout at just 14 working days faster than the UK’s 21 days and considerably quicker than Australia’s extended 30 to 180-day window.
A recent benchmarking exercise by Education Malaysia Global Services (EMGS) highlighted Malaysia's dual advantage in both cost and efficiency. These strengths are expected to bolster the country’s appeal to prospective international students, especially those seeking a faster, hassle-free admission process.
To enhance the overall student experience, EMGS continues to offer integrated services through its centralised system. Students benefit from an online visa application platform with real-time tracking via the EMGS Hub mobile app, coordinated health screenings, and airport welcome services through the International Student Arrival Centre (ISAC) at Kuala Lumpur International Airport Terminals 1 and 2.
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This streamlined system has been a hallmark of Malaysia’s approach to student services since 2012, ensuring stability in visa fees and fostering trust among international students and their families.
Despite the newly introduced SST, Malaysia reaffirms its commitment to welcoming international students with quality education, affordable options, and robust student support services. As global competition in education intensifies, Malaysia positions itself not just as a cost-effective choice, but also as a dependable and student-focused destination for higher learning.
