The government has approved a 10-year tax exemption for educational foundations and institutions to support their long-term sustainability and continued contribution to national development.
Prime Minister Datuk Seri Anwar Ibrahim said the exemption was granted under Section 44(6) of the Income Tax Act 1967 and is subject to regulations set by the Ministry of Finance.
He explained that the incentive applies to foundations that operate in accordance with government guidelines and are established for genuine educational purposes.
“All educational foundations that comply with the Ministry of Finance’s regulations and are focused on education, such as the TAR Foundation, are eligible for a 10-year tax exemption,” he said.
Anwar was speaking to reporters after attending the ‘Temu Anwar’ dialogue session at Tunku Abdul Rahman University of Management and Technology (TAR UMT) Kuala Lumpur yesterday.
During the programme, the Prime Minister also presented a RM40 million government grant to TAR UMT to support the university’s efforts in providing continuous access to quality higher education at affordable fees.
He said the grant reflected the government’s commitment to ensuring that higher education remains accessible to students from diverse backgrounds, particularly those from low- and middle-income families.
Earlier, Anwar spent nearly an hour engaging with close to 2,000 students during the session, where he discussed national development, education reforms and youth empowerment.
He also encouraged students to remain resilient, innovative and committed to lifelong learning in facing future challenges.
The Prime Minister said the tax exemption initiative and financial assistance form part of the government’s broader strategy to strengthen Malaysia’s education ecosystem and enhance the role of private and foundation-based institutions in human capital development.
-EDUCATION TVET ASIA