Fairview International
PLC
("Fairview" or the
"Company")
Comment on tax changes
announced in UK budget
Fairview, the operator of
international schools following the International Baccalaureate
curriculum, notes the changes to the tax treatment of private
schools that were announced by the UK government in its autumn
budget on 30 October 2024. The imposition of VAT at 20% from
January 2025, coupled with the removal of business rates relief and
increased employer's national insurance contributions in April
2026, was widely expected. Fairview does not own any UK
private schools so these changes will not adversely impact its
trading.
Daniel Chian, Chairman of Fairview,
said: "Like many in the
independent schools sector, I am naturally disappointed that the UK
government has chosen to apply a tax on education and I sympathise
with families and schools who will suffer hardship as a result of
these measures. However, we are reassured by the
government's commitment to ensure that local authorities and
devolved governments will be compensated for the VAT charged on
fees for pupils with special educational needs. Fairview has a
longstanding focus on supporting students with diverse needs, and
we will always work closely with parents, local authorities, and
communities to ensure that every child receives the support they
need.
"Fairview International plc at present only owns independent
schools in Malaysia and, whilst these changes will have no negative
affect on our trading or financial position, I do have two
observations on factors that may be relevant to
us.
"Firstly, we have made no secret of our plans to grow our
network of schools and have identified the UK as one of our target
countries for expansion. As much as I regret being the
beneficiary of another person's misfortune, it is surely very
probable that a number of UK independent schools will struggle
under the higher costs imposed by the new tax regime - as well as
sadly face the possibility that some students will leave due to the
imposition of VAT on fees. Fairview, through our network,
prides itself on providing high quality and premium education with
affordable school fees. This model enables us to operate
competitively even in challenging markets and our team will examine
suitable acquisition opportunities in the UK, many of which could
now be available on more attractive terms.
"Within our home market of Malaysia, we may see some marginal
benefit as families will be deterred from sending their children to
school in the UK, given the pending higher cost regime. As
one of the leading school groups in Malaysia - our Kuala Lumpur
school for example has been ranked as having the best IB Diploma
Programme in Malaysia for four consecutive years - we may attract
more students whose families choose to educate them locally whilst
nevertheless desiring the breadth of the International
Baccalaureate curriculum."
For further information, please
contact:
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Fairview International PLC
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Daniel Chian, Chairman
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fil.chair@fairview.edu.my
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Website: www.fairviewplc.uk
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Optiva Securities Limited
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Vishal Balasingham
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Tel: +44 (0) 20 3137 1903
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focusIR
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Kat Perez
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Tel: +44 (0) 7881 622 830
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kat.perez@focusIR.com
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About Fairview International PLC
Fairview owns and operates two
private independent schools in Malaysia that offer the
International Baccalaureate programme. One of these schools is
located in Kuala Lumpur, the capital of Malaysia, and the other is
located in the southern state of Johor close to the border with
Singapore. These schools trade under the Fairview brand which
was founded in 1978, and were subsequently acquired by Agodeus Sdn
Bhd, a company owned by the Chian family, in 2012.
There are three other schools in
Malaysia and one in the United Kingdom that also trade under the
Fairview brand, which are outside of the Company's group. All
schools in the Fairview network are individually recognised by the
International Baccalaureate Organisation as fully accredited to
offer the IB programme across the primary and middle years; ages 5
to 16, with Fairview Kuala Lumpur also offering the diploma
programme for 16 to 19 year olds. Each of the schools not
owned by the Company use the Fairview brand under licence from the
Company accessing the resources of the Fairview
Network.
The school in Kuala Lumpur is the
largest and flagship school that uses the Fairview brand, whilst
the school in Johor focuses on the expatriate market in Singapore
and so is internationally focused.
The Company plans to acquire more
schools which can offer international education including the
International Baccalaureate programmes both in Asia and the
UK. The Company in particular believes there is an
opportunity to acquire underperforming private independent schools
in the UK and adapt its product offering to be authorised to offer
the International Baccalaureate programme. With a rise in
popularity of the International Baccalaureate programme in both the
independent and state sector in the UK, with a growing acceptance
of International Baccalaureate graduates by UK universities, the
Directors believe that the Company's schools will appeal
particularly to the ASEAN, China and Hong Kong market; particularly
families looking for an educational foundation in the UK prior to
studying at a UK University.
Website
www.fairviewplc.uk
Social media
https://x.com/fairviewplc
https://www.linkedin.com/company/fairview-international-plc/
https://youtu.be/88BKqYyOXFk