Malaysia missed its target of 250,000 international students by 2025. Its new ambition is twice as high.
In February 2025, GSL News reported that Malaysia appeared on track to reach the 250,000 goal set in its 2015–2025 higher education blueprint; however, it fell short. Ministry of Higher Education (MOHE) figures show 159,138 international students enrolled in Malaysian public and private institutions as at 31 December 2025, or 12.6% of total enrolment.
However, rather than scale back, the government has raised the bar. The Malaysia Higher Education Blueprint 2026–2035, launched in January 2026, aims to make Malaysia a global education hub with 500,000 international students by 2035 – more than three times the latest official year-end enrolment.
Applications up 17% in a year
Education Malaysia Global Services (EMGS) processed 95,522 new international student applications in 2025, up 17% from 81,992 in 2024. Applications have almost doubled since 2022, when EMGS recorded 51,677.
The growth is in full degrees. Degree-level applications rose 25% to 46,752, while master’s applications grew 4% and PhD applications fell 7%.
China remains Malaysia’s largest source market; however, Chinese applications declined by 4% to 31,866 in 2025. EMGS chief executive Novie Tajuddin has attributed the dip to many leading universities reaching their international student quotas. Momentum has moved to South Asia (up 41%) and Central Asia (up 44%). Myanmar and Kazakhstan have entered the top 10, replacing Nigeria and Egypt from our 2025 table.
Table 1: Malaysia top 10 source countries for new applications, 2024–2025
| Source country | 2024 | 2025 | % change |
| China | 33,216 | 31,866 | –4% ↓ |
| Bangladesh | 6,917 | 9,998 | 45% ↑ |
| Indonesia | 5,556 | 6,513 | 17% ↑ |
| India | 2,591 | 3,797 | 47% ↑ |
| Pakistan | 2,417 | 3,619 | 50% ↑ |
| Sudan | 2,354 | 3,217 | 37% ↑ |
| Myanmar | 1,718 | 3,189 | 86% ↑ |
| Japan | 1,775 | 2,100 | 18% ↑ |
| Yemen | 1,996 | 2,061 | 3% ↑ |
| Kazakhstan | 1,172 | 1,704 | 45% ↑ |
Source: EMGS 2025 Annual Highlights
Why students are choosing Malaysia
The drawcards to studying in Malaysia identified in 2025 still hold: affordability, English-medium teaching, cultural and religious familiarity for many Asian and Muslim-majority markets, and a growing number of foreign university branch campuses. However, the competitive backdrop is changing rapidly. EMGS notes in its 2025 report that tighter student and migration policies in the UK, Australia, Canada and the US are pushing families to weigh visa certainty and cost more heavily – this increases the attractiveness of alternative destinations such as Malaysia.
Malaysia has also invested in the student journey. EMGS reports Visa Approval Letters for complete applications can be issued in as little as six days. Throughput at its International Student Arrival Centre at KLIA rose about 80% in 2025, with more than 10,000 arrivals in a single peak month.
Transnational education sits at the centre of Malaysia’s strategy. Tajuddin told The PIE Live Asia Pacific 2025 that branch campuses are built into the government’s 10-year plan. He also said the post-study Graduate Pass, which lets graduates stay for up to a year, has been opened to 32 countries.
Headwinds
Growth has brought scrutiny at home. In July 2026, MOHE publicly rejected claims that international students were taking places from Malaysians. It stressed that public university undergraduate places still prioritise local students.
The cost for some international students is increasing. Since June 2025, a 6% sales and service tax applies to private education for international students where annual fees exceed RM60,000. The British Council has expressed concern that this could impact international students enrolling in UK transnational education programmes, which are primarily run in collaboration with private local institution partners.
Some researchers question whether a numbers target is the right goal. In a June 2026 ISEAS paper, Koh Sin Yee argues that Malaysia should balance international recruitment with domestic graduate needs and build on its existing strength as a regional hub.
A structural shortage of beds
Housing is where Malaysia’s ambitions meet a hard constraint. JLL said in August 2026 that purpose-built student accommodation in Malaysia’s key university cities remains underdeveloped. JLL describes the shortage as structural rather than cyclical.
There is no official national count of PBSA beds. One industry estimate puts institutional PBSA stock at roughly 15,000 beds, a small fraction of a student population of more than 1.2 million. Moving from about 160,000 to 500,000 international students would widen that gap considerably.
Investors are paying attention. JLL places Malaysia among the markets drawing institutional capital as it spreads beyond Australia, with domestic institutions, family offices and regional fund managers increasingly active. It also cautions that success will depend on understanding local university partnerships, student preferences and price sensitivity.
University-linked operators are also investing in increased capacity. In July 2026, Taylor’s Education Group broke ground on Haus on 15, a 401-bed PBSA development with Gamuda Land on its former Taylor’s College campus in SS15, Subang Jaya. The corridor is also home to Taylor’s University, Monash University Malaysia, Sunway University, INTI and SEGi. The accommodation will be run by Taylor’s Hostel Management, whose Taylor’s Residence won all three awards it was nominated for at the APSAA Awards 2026. Taylor’s Residence was also nominated as a finalist for Best Customer Service at the recent GSL Awards. In parallel, Taylor’s Residence is expanding its on-campus accommodation capacity from the current 1,002 beds to 3,502 beds, with an additional 2,500 beds planned at Taylor’s Lakeside Campus by 2030, reinforcing its long-term commitment to expanding quality, purpose-built student accommodation to support the growing student population. But expanding the supply of beds is only part of the equation. The quality of the student living experience matters just as much.
As Malaysia attracts more international students, accommodation providers must get the fundamentals right: safety, quality facilities, professional management and consistent service standards. However, quality student accommodation goes beyond providing a room. International students face challenges adjusting to new cultures, independent living, academic pressures and being away from home. This is where proactive pastoral care, mental health and wellbeing support, and meaningful community engagement become essential. Malaysia’s PBSA sector must evolve beyond managing buildings and occupancy towards creating supportive living communities where students feel safe, connected and valued, enabling them to thrive academically, socially and personally throughout their student journey.
– Elaine Yap, Senior Vice President, Taylor’s Hostel Management
Looking ahead
While Malaysia did not achieve its target of 250,000 international students by 2025, its trajectory is hard to argue with. Applications are at record levels, the source-market base is broadening, and the government has set a target that would put Malaysia in a different league by 2035.
Whether it gets there will depend partly on beds. For operators, developers and investors across Asia-Pacific, Malaysia is one of the region’s clearest emerging PBSA opportunities, and one to watch closely at GSL’s APAC summit later this year.
Join the conversation!
Making its Asia debut, GSL’s Investor Summit will be held in Singapore on 17 & 18 November 2026. The invitation-only Summit convenes sovereign wealth funds, pension funds, family offices and select industry leaders to explore investment strategies, regional opportunities, and the evolving residential living sector. Visit the event page to learn more.
