KUALA LUMPUR – In a powerful move to ease the financial burden on private educators and open new doors for quality learning, Prime Minister Datuk Seri Anwar Ibrahim has announced a full one-year exemption from the education levy, starting January 2026, for all private education and training institutions.
This isn’t just another policy shift—it’s a historic first for Malaysia.
From kindergartens to colleges, vocational training centers to private universities, the exemption will cover a wide range of education and training providers. It’s a gesture that speaks to the heart of Malaysia’s commitment to reshaping how we invest in our future.
Speaking at the National Training Week 2025 summit in Bukit Jalil, Anwar shared that this decision came after countless appeals from institutions across the country. These were not just requests—they were cries for breathing space, especially with the upcoming 6% service tax on private education services set to begin in July 2025.
“This is the first time in our country’s history that we are fully waiving the education levy for an entire year,” Anwar said. “We’re doing this so that these institutions can focus fully on delivering quality education and training—because our children deserve nothing less.”
Also present at the summit was Human Resources Minister Steven Sim, showing strong government support across ministries.
Anwar, who also serves as Finance Minister, emphasized that this initiative is not just about finances—it’s about restoring the soul of education. He directed key government officials to ensure institutions live up to their responsibility: to provide world-class training to Malaysian students and workers alike.
And his message didn’t stop at education providers.
He turned his attention to profitable private companies, saying they too must step up: “They must be willing to give back, even a little, to their workers.”
While public institutions are unaffected by the levy as they’ve never been subject to the tax, private institutions now have a window of opportunity—one free of levy payments—to invest more in teachers, tools, and training.
It’s a bold move. And if carried out with heart and responsibility, it could reshape the future of education in Malaysia.
