Malaysia¡¯s rapid growth as an international study destination is unlikely to be dented by a new 6 per cent tax on foreign tuition fees, experts predict.

The South-east Asian country is aiming to enrol 250,000 students from overseas by the end of the decade under its Education Development Plan after emerging as a serious player in international education in recent years, particularly with Chinese students.

But last month, a new levy was introduced that adds a 6 per cent tax to fees at private preschools, schools, universities and language centres serving non-Malaysian students, in a move seen by some as contradictory. Public education remains exempt and Malaysian citizens are not affected.

James Chin, professor of Asian studies at the University of Tasmania, said he didn¡¯t see the levy as posing a serious threat to Malaysia¡¯s reputation as a study destination.

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¡°The taxes have been slowly implemented, every institution has been told that they are free to implement in any way that they want,¡± he explained.

¡°It¡¯s not going to affect the local student population so my guess is they will just go ahead and implement it without any blowback.¡±

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Chin said fees in Malaysia are low compared?with competitor countries and the tax is unlikely to make much difference, with some institutions opting to absorb the additional costs themselves.

He said Malaysia¡¯s attractiveness lies in its affordability and position as a stepping stone for students pursuing advanced degrees elsewhere.

¡°Most people come to Malaysia due to the relatively cost-effective education in English¡­and use the Malaysian degree to hop on to a Western country for a master¡¯s,¡± he said.

With annual tuition for a master¡¯s degree sometimes below US$10,000 (?7,300), Chin believes ¡°this?[the levy] is seen as a minor issue¡±.

But Philip G.?Altbach, professor emeritus at Boston College¡¯s?Center?for International Higher Education, described the move as puzzling.

¡°Malaysia has a clear emphasis on boosting international student?enrolments¡­so I¡¯m surprised. It doesn¡¯t make much sense to me,¡± he said.

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Altbach?stressed that few other countries directly tax tuition fees, although similar levies have been mooted in the UK and Australia.

¡°Other countries have charged very large visa fees, which is not exactly a tax but effectively is,¡± he said.

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While acknowledging that a 6 per cent surcharge is ¡°not a deal breaker¡±, he argued it undercuts Malaysia¡¯s efforts to position itself as a regional education hub.

¡°It doesn¡¯t show a welcoming sign that Malaysia wants to attract international students in a big way. Modestly, probably, it decreases Malaysia¡¯s attractiveness.¡±

Prime minister Anwar Ibrahim recently defended the levy, stressing that education already accounts for the largest share of the national budget and that local students would be shielded from additional costs.

¡°International students will share a small burden,¡± he said, adding that even with the tax, Malaysia¡¯s tuition fees remain among the lowest in the region.

But the British Council has warned that the expanded Sales and Service Tax (SST) could impact transnational education partnerships, which often involve local private institutions.

Enrolments could be affected ¡°especially amongst students from developing countries who can be price sensitive¡±, the council previously warned.

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tash.mosheim@timeshighereducation.com