The Employees Provident Fund lets a member under 55 withdraw from Akaun Sejahtera to fund education for themselves, their spouse, children or parents at approved institutions locally and abroad. KWSP caps the withdrawal at the total tuition fees or outstanding education loan, or the entire Akaun Sejahtera balance, whichever is lower, and pays either the member as a reimbursement or the institution directly.
If money reaches an Australian student from a parent in Malaysia, there is a reasonable chance it did not start in a bank account. Malaysia's national retirement scheme allows a member to take savings out early to pay for education, and study abroad is expressly inside the rule. That changes two practical things at the Australian end: what the payment is allowed to cover, and who it is made out to.
Key Takeaways
- KWSP, the Employees Provident Fund, allows a withdrawal from Akaun Sejahtera to fund education for the member, their spouse, children and/or parents at approved institutions, both locally and abroad.
- The amount is the total tuition fees or outstanding education loan, or the entire Akaun Sejahtera balance, whichever is lower.
- Beyond tuition, the withdrawal covers hostel and accommodation fees and a one-way flight for a first-year student studying outstation or abroad.
- The fund pays either the member, as reimbursement against a receipt less than a year old, or the higher learning institution directly.
- Akaun Sejahtera is one of three accounts created by the restructuring of 11 May 2024, and education is one of six purposes it may be drawn on for.
The account the money comes out of
Since 11 May 2024 an Employees Provident Fund member under the age of 55 has three accounts rather than two. KWSP sets them out by purpose. Akaun Persaraan, formerly Account 1, accumulates savings for the long term so that retirement is comfortable. Akaun Sejahtera, formerly Account 2, meets what the fund calls pre-retirement life cycle needs over the medium term. Akaun Fleksibel is new, started empty, and can be drawn on at any time for short-term needs.
Education is one of six purposes named against Akaun Sejahtera. The others are housing, health, insurance and takaful protection, hajj, and reaching the age of 50. Balances that sat in Account 1 and Account 2 moved across to Akaun Persaraan and Akaun Sejahtera respectively, so a member who had been contributing for years already had an education balance on the day the new structure began. KWSP's press release on the restructuring states that new contributions are split across the three accounts in a 75, 15 and 10 per cent proportion, which fixes how quickly the middle account refills after a withdrawal.
That is the account a tuition payment is drawn from. It is not a savings pot set aside for study; it is a share of the member's retirement money that the scheme permits to be spent early on a named list of things.
Who the withdrawal may be made for
The rule is drawn wider than the member. KWSP states that a member may withdraw savings from Akaun Sejahtera to help fund education for themselves, their spouse, children, and/or parents at approved institutions, both locally and abroad. A parent paying for a child is the common case, but a member paying for their own parent is inside the same rule.
Eligibility is set out as a short list. The applicant must be below 55, must have savings in Akaun Sejahtera, and must be currently pursuing or have completed a qualification at certificate level 3, diploma or higher. Institutions abroad qualify where the programme is full-time. Both Malaysians and non-Malaysians may apply, and there is one exclusion that catches people out: a student who receives full sponsorship or a full loan for their education is not eligible. Partial sponsorship or a partial loan still is.
The fund also asks for proof of relationship where the applicant is not the student, along with the student's enrolment confirmation letter and a course recognition or accreditation letter. The last of those is the mechanism behind the word approved. An Australian institution is not named on the withdrawal page; it qualifies by being recognised, and KWSP publishes a list of overseas higher learning institutions for the purpose.
What the withdrawal is allowed to pay for
The ceiling is the smaller of two numbers. KWSP states that what can be withdrawn is the total tuition fees or outstanding education loan, or the entire savings in Akaun Sejahtera, whichever is lower. A large fee bill does not unlock more than the balance, and a large balance does not unlock more than the bill.
Inside that ceiling, three things are covered. Tuition fees and charges imposed by the higher learning institution, or the outstanding loan amount where the fees were borrowed. Hostel and accommodation fees. And a one-way flight for first-year students studying outstation or abroad, reimbursed once, at first-year registration. Living costs beyond accommodation are not on the list.
Timing is set the same way. A member may withdraw every semester or academic year, and, where the payment is to settle an outstanding amount with the institution, within three years from the date the course ended, was quit, or was failed. That three-year tail means an unpaid balance from a finished degree is still reachable.
Why it arrives as a reimbursement or as a fee payment
For someone in Australia watching the money land, the most useful part of the rule is the payment mechanism, because it decides who the payee is.
KWSP describes two options.
| Payment option | When KWSP uses it |
|---|---|
| To the member | Fees have already been paid to the higher learning institution, on condition that the receipt does not exceed one year from the application date |
| To the higher learning institution | To settle outstanding tuition fees |
So the withdrawal is either a reimbursement of a bill already paid, or a direct settlement of a bill still owed.
That shapes the corridor in a way a plain family transfer does not. A reimbursement lands in the member's own hands in Malaysia, and any onward transfer to a student in Australia is a separate payment the fund has nothing to do with, moving the way any international transfer does and carrying its own costs and charges. A direct institutional payment does not pass through the student at all; it goes from the fund towards the university, and the student sees a cleared balance rather than a credit. A family that expects one and gets the other has to rearrange how the term is paid for.
The documents follow the same split. A reimbursement needs the payment receipt from the institution, dated inside the year. A direct settlement needs the outstanding amount to still be outstanding. KWSP also asks for a MyKad or original identification document, and, for mail submissions or where thumbprint verification fails, a completed KWSP 3 (Pindaan) form.
The contributions that became compulsory
The eligibility list on the withdrawal page names Malaysians and non-Malaysians alike, so the rule is not limited to Malaysian citizens. What changed for the second group is that contributing became compulsory.
On 1 October 2025 KWSP announced that mandatory contributions for non-Malaysian citizen employees take effect beginning with wages for October 2025, corresponding to the contribution month of November 2025. Employer and employee each contribute 2 per cent of monthly wages. The coverage applies to all non-Malaysian citizen employees working in Malaysia, excluding domestic servants, who hold a valid passport and employment pass issued by the Immigration Department of Malaysia.
The effect is on the balance rather than on the right. An expatriate family in Kuala Lumpur with a child at an Australian university reaches the education withdrawal through the same Akaun Sejahtera a Malaysian family draws on, and from the November 2025 contribution month that account is being added to as a matter of law.
Where to look next
- Receiving money from Malaysia - the live reference rate for the ringgit against the Australian dollar, struck and dated on the page.
- Sending money to Malaysia from Australia - the opposite direction, and the Bank Negara Malaysia policy notices that meet a resident receiving from abroad.
- How international transfers work - the sequence any payment moves through before a national rule reaches it.
- Understanding transfer fees - the separate question of what moving the money itself costs.
- AUD to MYR - the convert page for the pair, with the story of why the ringgit is not traded offshore.
Sources
- Education Withdrawal, KWSP - the purpose of the withdrawal and the family members it may be made for, the ceiling at total tuition fees or outstanding education loan or the entire Akaun Sejahtera balance whichever is lower, the covered items including hostel and accommodation fees and the one-way first-year flight, the eligibility list including institutions abroad on full-time programmes and the full-sponsorship exclusion, the every-semester and three-year timing, the two payment options with the one-year receipt condition, and the document list.
- EPF Account Restructuring 2024, KWSP - the three accounts effective 11 May 2024, the purpose of each, the six pre-retirement purposes Akaun Sejahtera may be drawn on for including education, and the carry-over of Account 1 and Account 2 balances.
- EPF Account Restructuring Set to Address Members' Life Cycle Needs, KWSP press release - the 75, 15 and 10 per cent split of new contributions across the three accounts.
- EPF Begins Mandatory Contributions for Non-Malaysian Citizen Employees Effective October 2025, KWSP, 1 October 2025 - mandatory contributions from October 2025 wages, the 2 per cent contribution from both employer and employee, and the coverage of non-Malaysian employees holding a valid passport and employment pass, excluding domestic servants.
General information about the Malaysian Employees Provident Fund education withdrawal and how money for study in Australia may be drawn from it. Not financial advice, not tax advice, and not a recommendation of any product or institution. Reviewed by the Tradergy editorial team, September 2026.
Common questions
Can Employees Provident Fund savings be used for a course outside Malaysia?
Yes. KWSP states that a member may withdraw from Akaun Sejahtera to help fund education for themselves, their spouse, children and/or parents at approved institutions, both locally and abroad. The eligibility list names institutions abroad on full-time programmes.
How much can be withdrawn?
KWSP states the amount is the total tuition fees or outstanding education loan, or the entire savings in Akaun Sejahtera, whichever is lower. It is a ceiling set by the smaller of the bill and the balance, not a fixed entitlement.
What does the withdrawal cover besides tuition?
KWSP lists tuition fees and charges imposed by the higher learning institution, or the outstanding loan amount, together with hostel and accommodation fees, and a one-way flight for first-year students studying outstation or abroad. The flight is reimbursed once, at first-year registration.
Is the money paid to the student or to the university?
Either. KWSP describes two payment options: payment to the member where fees have already been paid to the institution, on condition that the receipt is not more than one year old at the date of application, and payment to the higher learning institution to settle outstanding tuition fees.
Do non-Malaysians working in Malaysia contribute to the Employees Provident Fund?
They must, from October 2025. KWSP announced on 1 October 2025 that mandatory contributions for non-Malaysian citizen employees take effect with wages for October 2025, with employers and employees each contributing 2 per cent of monthly wages. The coverage applies to non-Malaysian employees holding a valid passport and employment pass, excluding domestic servants. Separately, the education withdrawal page lists both Malaysians and non-Malaysians among those who may apply.