KUALA LUMPUR – MCA president Datuk Seri Wee Ka Siong has expressed concern over the impending expiry of Tunku Abdul Rahman University of Management and Technology’s (TAR UMT) tax-exempt status on December 31, warning that the Inland Revenue Board (IRB) has yet to approve an extension.
Wee Ka Siong said the delay could have serious consequences for thousands of students if the university is required to pay tax.
“Are we to suffer the same fate?” he asked, alluding to similar tax uncertainties faced by other institutions.
He noted that when the issue first arose last year, he immediately appealed to Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim to intervene.
However, despite the Prime Minister’s announcement of a solution, the matter remains unresolved after 14 months.
Wee Ka Siong cautioned that if both TAR UMT and Universiti Tunku Abdul Rahman (UTAR) were to lose their tax-exempt status, they could face taxes of up to RM20 million annually.
“Based on a cost per student of RM8,000 per year, this would impact the education of up to 5,000 students. This would undoubtedly cause significant harm to our community’s education,” he said.
He stressed that such a situation never occurred during the Barisan Nasional (BN) administration.
“Under BN, both universities were granted permanent tax-exempt status—a commitment that endured for decades. Our universities’ permanent tax-exempt status was a contract with the government over 50 years ago, and we have operated on the basis of that agreement ever since.
“BN’s six decades in government never breached this. Today’s government has overturned that decision. How can we accept this?” he added during his address at the MCA 30th Central Delegates’ 3rd General Assembly today.
Wee Ka Siong also highlighted that scholarships and bursaries at the two universities are awarded strictly on merit and financial need, benefiting students of all races.
He noted that the combined annual intake of Chinese students alone at these universities exceeds the total number admitted by more than 20 public universities.
“Over the decades, these two institutions have educated more than 400,000 graduates for the nation.
“We have never asked the government for any gesture of appreciation; we only seek tax-exempt status and policy support so that they can continue nurturing professionals who will give back to society, ultimately benefiting the government, the nation, and all citizens.
“Prime Minister, should these two universities be treated this way?” Wee Ka Siong asked. – December 7, 2025