Student leaders and education advocates are urging the government to allocate more funds to support undegraduates—especially those from the B40 income group.
They argue that such reinvestment would transform the recently expanded sales and service tax (SST) into a force for good.
Although higher education minister Zambry Abdul Kadir has commissioned a study on SST’s impact on the education sector, student groups and civil society organisations say immediate measures are necessary to relieve the financial strain felt by vulnerable communities.
University of Malaya Students’ Union (Umsu) vice-president Lim Jing Jet said SST revenue could be used to subsidise tuition fees, particularly for high-cost programmes.
He also said funds should be allocated towards the operating budgets of public universities to reduce their reliance on commercial pathways and help prevent the creeping privatisation of higher education.
“For example, the MBBS programme under the SATU pathway at UM will increase from RM299,200 to RM500,000 in the 2025/26 academic year. We need to ensure our institutions remain accessible,” he said.
“The government could redirect some SST funds through the higher education ministry to maintain university operations without overburdening students.”
Lim also said the SST revenue could be used to benefit students by upgrading campus infrastructure and expanding housing.
“Right now, the issue isn’t just outdated facilities — it’s that existing facilities can’t cope with the growing student population,” he said.
“We already have around 21,000 undergraduates and 19,000 postgraduates, and there are plans to increase student numbers to 50,000 within five years.”
He said any infrastructure spending must be accompanied by clear planning and transparency.
Direct aid for students
Nazirah Abdullah, an Umsu past president, said SST revenue could be used to introduce targeted subsidies and emergency assistance.
“This includes subsidised meals on campus, discounted internet plans, free or low-cost digital devices, and financial aid for off-campus rent or transport,” she said.
She also called for mental health support, counselling, and internship allowances to be funded by the expanded SST revenue pool.
Nazirah said such measures would make a difference for B40 families by helping to alleviate the financial stress that often interferes with students’ academic performance.
She added that clear communication and accountability would increase student confidence.
“When students see that SST revenue is going back into their education, it builds trust and reduces resistance to tax reforms,” she said.
Parent Action Group for Education chairman Noor Azimah Rahim echoed these calls, saying that any tax increase should be matched by visible returns to students.
“We’ve seen signs of strain — more students using food banks, applying for emergency funds, or skipping meals.
“Even small increases in cost can push low-income students into hardship,” she said.
Azimah suggested that the government use SST revenue to fund campus-based support services, including counselling, affordable hostels, public transport passes, and tuition waivers.
Ali Tayyassar Razi, an international student at Universiti Malaya and former president of the Universiti Malaya International Association, said proper use of SST could enhance Malaysia’s reputation as a global education hub.
Ali added that students are more focused and productive when they are financially secure.
“For foreign students, cost is always a concern. But if that cost comes with visible improvements in housing, learning tools, support — then it becomes a worthwhile investment,” he said.
“Whether local or international, students thrive when they don’t have to worry about their next meal or whether they can afford textbooks.”
