HR Ministry: Companies Must Now Hire 3 Interns Per Expat

The Human Resource Ministry in Malaysia has introduced a new policy that requires companies hiring expatriates to also hire local interns.

This policy, known as the 1:3 Practical Training Policy (Dasar Latihan Amali 1:3), aims to provide more opportunities for Malaysian students to gain industrial training experience.

It is designed to help local students get practical exposure in the workforce while encouraging companies to support the development of local talent.

Key Highlight with New Policy to Hire Interns

Internship Requirement for Expat Hiring

Under this new policy, companies that employ expatriates must hire at least three local interns for every Expatriate Employment Pass (EP) they receive.

This means that if a company hires one expatriate, they are required to provide internships for three Malaysian students.

This rule is applicable to companies categorized under Tier I and Tier II.

The policy aims to create a balanced environment where companies benefit from foreign expertise while also contributing to the growth of local talent.

Pilot Phase and Full Implementation

The policy will be implemented in two phases.

The first phase is the pilot phase, which will start on February 15, 2025, and continue until December 31, 2025.

During this time, companies will test the new policy to see how it works in real-life situations.

After the pilot phase, the policy will be fully implemented starting in January 2026.

This step-by-step approach allows the Human Resource Ministry to make adjustments if needed before making the policy permanent.

Support for Local Talent Development

One of the main goals of this policy is to support the development of local talent.

By requiring companies to hire interns, the policy aims to benefit around 100,000 Malaysian students from universities, colleges, and training institutions.

These students will have the chance to gain hands-on experience, learn new skills, and prepare themselves for the competitive job market.

This will help students build their confidence and improve their employability after graduation.

Benefits for Companies to Hire More Interns

Double Tax Relief Incentives

Companies that participate in this program will enjoy several benefits. One of the most attractive benefits is the double tax relief incentive.

This means companies can claim double the tax deduction on the monthly allowances they pay to their interns.

In addition to the allowances, companies can also claim tax deductions for expenses related to training materials, development programs, and logistics under the National Structured Internship Programme (MySIP).

HRD Corp Industrial Training Scheme

Another benefit for companies is the HRD Corp Industrial Training Scheme.

Under this scheme, companies can use up to 50% of their Human Resource Development (HRD) levy balance to support internship programs.

This includes offering monthly allowances to interns and providing other necessary support, such as training and mentorship.

This helps reduce the financial burden on companies while promoting the growth of local talent.

Talent Matching Support

AJobThing will play a key role in supporting companies through this policy.

We will help manage internship placements by providing resources for advertising, talent access, and matching.

Many companies can find suitable candidates for their internship programs.

This platform makes it easier for companies to connect with talented students across the country.

Who Needs to Comply?

This policy applies to companies that are hiring expatriates and applying for Expatriate Employment Passes (EP) through the Malaysia Expatriate Services Centre (MYXpats) and Malaysia Digital Economy Corporation (MDEC).

It is mandatory for companies categorized under Tier I and Tier II to comply with this policy.

Companies that do not fall under these categories are not required to follow the policy but are encouraged to support internship programs voluntarily.

How Does It Work?

The process is straightforward. First, a company submits its application for an Expatriate Employment Pass (EP).

Once the EP is approved, the company must provide three paid internship placements for local students.

These internships should be structured, meaning the company must have a clear training plan, mentorship support, and proper evaluation methods in place.

This policy will not affect the approval process for existing expatriate employees.

Why This Policy Matters

This policy is important because it helps Malaysian students gain valuable work experience, which is crucial for their future careers.

It also encourages companies to invest in local talent, creating a stronger and more competitive workforce in Malaysia.

By connecting students with real job opportunities, the policy helps bridge the gap between academic knowledge and practical skills.

This not only benefits students but also helps companies find and develop potential future employees.

Source: The Star

Looking for Interns for FREE to Fulfill This New Policy?

If you're looking for interns to meet the new policy requirements, you can post your internship job openings on Maukerja and Ricebowl for FREE before 28 Feb after choosing a job ad package from AJobThing.

This will help you reach a wide pool of talented Malaysian students quickly and efficiently.