Private, International Schools Decry SST on Scholarships, Warn of Brain Drain

PETALING JAYA: Education leaders and parents are urging the government to review its decision to impose the 6% Sales and Service Tax (SST) on waived fees, bursaries and scholarships in private and international schools, warning that it is unfair and risks damaging Malaysia’s reputation as a regional education hub.

National Association of Private Educational Institutions deputy president Dr Teh Choon Jin told The Star the policy was “illogical and unfair” as it taxed amounts students never actually paid.

SST

“For scholarship recipients, this undermines the very purpose of financial aid. They are still taxed on the full tuition fee despite receiving assistance,” he said.

Experts said taxing scholarships undermines teacher support and may drive families away, while Dr Teh warned it could reduce scholarships, limit access to education, and deter international educators and expatriates from choosing Malaysia.

Parents and expatriate educators expressed concern over the financial strain, especially teachers with multiple children enrolled in international schools who now face several layers of taxation.

Business News