In a move that has sparked public debate, Prime Minister Datuk Seri Anwar Ibrahim has defended the government’s decision to grant a tax waiver of RM83 million to Universiti Tunku Abdul Rahman (UTAR), stating that the decision aligns with Malaysia’s long-standing policy of supporting non-profit educational institutions, particularly those aiding underprivileged students.
Speaking at the 78th annual general meeting of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), Anwar addressed the criticism surrounding the tax relief. Some opposition figures had suggested the exemption as a sign of preferential treatment towards UTAR, a university with strong ties to the Chinese Malaysian community. However, the Prime Minister firmly refuted these claims, emphasizing that the exemption is strictly for educational purposes and fully complies with the government’s policy on non-profit educational foundations.
"Yes, UTAR is a Chinese Malaysian university, but our policy is transparent. Any educational institution that operates on a non-profit basis and works to support underprivileged students is eligible for tax exemption," Anwar stated.
He acknowledged the controversy surrounding the tax relief but clarified that the delay in granting the exemption stemmed from UTAR’s failure to fully separate its educational activities from its commercial ventures. According to Anwar, the UTAR Education Foundation had recently agreed to divide its operations, but the government had already taken steps to provide tax relief for educational activities in the interim.
“I suggested for their operations to be separated between their commercial ventures from their educational activities. But if the funds are being used to build faculties, provide support for underprivileged students, or exempt tuition fees for poor students, the government will continue to grant tax exemption,” Anwar explained.
The Prime Minister highlighted that the government's policy is to support non-profit educational foundations that serve the public good, regardless of the ethnic background of the students involved. "There is no issue here," he said. "This is about helping poor students, and that remains our priority, regardless of race."
Critics have questioned whether the RM83 million waiver sets a precedent for how private institutions will be treated in the future regarding their tax obligations. However, Anwar stressed that this waiver is consistent with the government’s broader policy of supporting educational foundations, provided their commercial and educational activities are clearly separated.
While the debate continues, Anwar’s position remains firm: as long as the funds are used for educational purposes and to assist underprivileged students, institutions like UTAR will remain eligible for tax exemptions. The government’s goal, he said, is to ensure that all students in need have access to quality education, free from the burden of financial constraints.
As UTAR moves to fully separate its operations, the issue has underscored the importance of transparency in how educational institutions manage their finances, particularly when it comes to tax exemptions granted in the name of public good.
By: Kpost
Information Source: TheStar
Kpost is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
The User Content (as defined on Newswav Terms of Use) above including the views expressed and media (pictures, videos, citations etc) were submitted & posted by the author. Newswav is solely an aggregation platform that hosts the User Content. If you have any questions about the content, copyright or other issues of the work, please contact Newswav.
