New Policy Mandates 3 Internships For Locals Per Expat Employee

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The human resources ministry said the new 1:3 internship policy aimed to benefit 100,000 local students from higher education institutions nationwide.
PETALING JAYA: The human resources ministry, through Talent Corporation Malaysia Bhd, will implement a new policy requiring firms to provide up to three internship placements for local students for each expatriate employed.
The ministry said the new 1:3 internship policy aimed to benefit 100,000 local students from higher education institutions nationwide.
It said in a statement that the initiative would offer “local talent the opportunity to undergo structured internships, preparing them to meet industry demands and future workforce needs”.
The policy is expected to be implemented in phases, starting with a pilot phase from Feb 15 to Dec 31, and will take full effect from Jan 1, 2026. The ministry added that under this policy, companies would enjoy tax incentives through the Paid & Structured Internship Incentives Programme (MySIP), while helping train local talent to face a competitive job market.
The ministry said for each employment pass (EP) approval through the Malaysian Expatriate Services Centre (MYXpats) and the Malaysia Digital Economy Corporation, companies would be required to provide up to three paid and structured internship placements.
This ratio would be adjusted based on the company’s size and workforce, it added.
The ministry also said that the policy would only take effect after the EP approval was granted and that it would not affect the current expatriate employment approval process.
It added that companies that met these requirements would also receive priority for future approvals.
The internship placement requirements are based on the EP categories – for each EPI approval, firms must provide three internship positions; for each EPII approval two internship placements must be provided; and for each EPIII approval one internship placement must be in place.
If internship placements exceed 2% of the total workforce, the minimum internship placement rate will automatically be set at 2% of the company’s workforce.
The ministry added that during the pilot phase, the policy would only apply to companies seeking approval for the EPI and EPII categories.
The ministry assured that the new policy would not incur additional cost for the firms as it would be supported by the ministry’s Practical Training Incentives initiative (Ilham), including through MySIP and HRD Corp’s internship scheme. - FMT

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