Government Grants 10-Year Tax Exemption to Education Foundations, TAR Foundation Among Beneficiaries – Anwar
KUALA LUMPUR — Prime Minister Anwar Ibrahim has announced that the government will grant a 10-year tax exemption to education-based foundations that meet the conditions set by the Ministry of Finance.
He said the initiative aims to strengthen Malaysia’s education ecosystem and ensure the long-term sustainability of institutions dedicated to learning and social development.
According to Anwar, foundations established for educational purposes, including the TARC Education Foundation, are eligible for the incentive.
“If the foundation’s core objective is education, like the TARC Foundation, and it complies with the relevant regulations, we will approve a 10-year tax exemption,” he said.
He made the announcement after attending the Temu Anwar programme at Tunku Abdul Rahman University of Management and Technology (TAR UMT).
Strengthening Malaysia’s Education Sector
Anwar said the move reflects the government’s commitment to strengthening the national education system, especially institutions that play a key role in providing affordable and quality education.
He stressed that education remains a long-term investment critical to national development.
“The government sees education as the foundation of nation-building. Supporting institutions that nurture human capital is a priority,” he said.
Previous Concerns Over Tax Status
In December, MCA president Wee Ka Siong raised concerns over the expiry of TAR UMT’s tax-exempt status on December 31.
He warned that delays in approval by the Inland Revenue Board could have serious financial implications for the university.
Wee highlighted that the lack of clarity at the time had created uncertainty for administrators, students and parents.
Potential Financial Impact
According to Wee, failure to renew the tax exemption could force institutions to bear heavy financial burdens.
He estimated that if both TAR UMT and Universiti Tunku Abdul Rahman (UTAR) lost their tax-exempt status, they could face tax liabilities of up to RM20 million annually.
Such costs, he cautioned, could eventually affect tuition fees and academic development.
Positive Signal for Students and Institutions
The latest announcement by Anwar is seen as a positive development that addresses earlier concerns and provides financial stability to education foundations.
With reduced tax pressure, institutions are expected to invest more in infrastructure, academic programmes and student support services.
The government hopes the 10-year exemption will encourage more education-based foundations to grow sustainably and contribute to Malaysia’s long-term human capital development agenda.
-wilayah.com.my
