In July 2026 the government gazetted the Income Tax (Deduction for the Sponsorship of Scholarship to Malaysian Student Pursuing Studies at Technical and Vocational Certificate, Diploma, Bachelor's Degree or Professional Certificate Levels) Rules 2026 – P.U.(A) 252/2026. It applies from the year of assessment 2026.
What companies get
A double deduction for the scholarship costs – so every RM1 you spend on an eligible scholarship reduces your taxable income by RM2.
Eligible costs include:
- tuition and other fees required for the course
- education support and reasonable living expenses during the study period
Who qualifies
The sponsor: a company incorporated under the Companies Act 2016 and resident in Malaysia.
The student:
- Malaysian citizen, resident in Malaysia
- studying full-time
- has no source of income
- parents' or guardian's total monthly income of not more than RM15,000
The course: a technical or vocational certificate, diploma, bachelor's degree or professional certificate at a recognised institution.
The timing: the scholarship agreement must be signed between 1 January 2026 and 31 December 2030, and the company reports the scholarship to the Ministry of Higher Education.
How MTTC's Future Talent Funds makes it easy
The MTTC Future Talent Funds is a ready-made scholarship scheme for companies:
- choose a Full, Half or One-Time scholarship
- sit on the interview panel and select scholars with us
- receive semester reports on your scholar's progress
- pay yearly against an invoice – tuition goes directly to the college
- the year's top sponsor gets naming rights on the Funds
You develop the BIM, design and digital construction talent your industry needs – and claim a double tax deduction for it.
This guide is general information, not tax advice. Tax rules can change – check with LHDN or your tax adviser before claiming.