RM2,000 Internship Support for SMEs Begins 1 March 2026: What HR & Employers Need to Know

Internships play an important role in Malaysia’s workforce ecosystem. For many students, completing an internship is mandatory before graduation. For employers and HR teams, interns help support operations while building a future talent pipeline.

To encourage more companies especially SMEs, to offer quality internship placements, the Malaysian government has introduced a financial incentive of RM2,000 per intern hired, starting 1 March.

This guide explains how internships work in Malaysia, details of the RM2,000 intern grant, and what HR teams should do to prepare.

How Internships Work in Malaysia

In Malaysia, internships are commonly offered to:

Diploma students
Degree students
Final-year students with compulsory industrial training requirements

Most internships:

Last 3 to 6 months
Come with a monthly allowance (not a full salary)
Focus on learning, exposure, and basic work experience
Are supervised by a manager or senior staff

For employers, internships are a cost-effective way to:

Support daily tasks
Train potential future employees
Reduce long-term recruitment risks
Evaluate talent before offering permanent roles

RM2,000 Per Intern Grant for SMEs Explained

Small and medium enterprises (SMEs) in Malaysia can now receive RM2,000 for each intern hired under the SME Industrial Training Matching Grant (LiKES) by Talent Corporation Malaysia Bhd (TalentCorp).

The announcement was made by Datuk Seri R. Ramanan, Malaysia’s Human Resources Minister.

Image Source: The Star

Key Details of the LiKES Internship Grant

RM2,000 incentive per intern
Available to SMEs only
Applicable for interns hired from 1 March
Funds disbursed within two weeks
Approval time reduced to 14 working days
Supports up to 25,000 Malaysian interns
Total allocation of RM30 million over three years

The LiKES programme was first introduced in 2024 and has since been improved to reduce approval delays and ease HR planning.

Why This Internship Grant Matters for HR Teams

Hiring interns involves more than paying allowances. HR teams also manage:

Onboarding and training
Supervision and mentorship
Tools, systems, and workspace access

The RM2,000 grant helps SMEs:

Offset internship-related costs
Provide better training and exposure
Offer more structured internship programmes
Increase the chance of converting interns into full-time employees

For HR, this supports long-term workforce planning rather than short-term manpower needs.

Faster Approval Means Better Internship Planning

One of the biggest improvements to the LiKES programme is the shorter approval timeline.

Previously, approval could take up to 90 days. Now, applications are processed within 14 working days, making it easier for HR teams to:

Align internship intakes with university schedules
Plan multiple intern batches in a year
Avoid last-minute hiring issues

This is especially helpful during peak internship seasons.

Additional Tax Benefits for SME Training

Apart from the RM2,000 intern incentive, SMEs are also eligible for an additional 50% tax deduction on training expenses related to:

Artificial Intelligence (AI)
Cybersecurity

This is part of the MyMahir–National AI Council for Industry (MyMahir-NAICI) initiative announced under Budget 2026 by Anwar Ibrahim.

The initiative supports businesses in:

Building digital and future-ready skills
Strengthening internal capabilities
Aligning with Malaysia’s national digital transformation goals

What HR Teams Should Prepare Before Applying

To make the most of this incentive, HR teams should prepare:

A clear internship role description
Internship duration and allowance details
Supervisor or mentor assignment
Basic training or learning plan
Company registration and SME status documents

Preparing early helps ensure a smoother application and faster approval.

Is the RM2,000 Intern Grant Worth Applying For?

Yes, especially for SMEs that:

Regularly hire interns
Plan to grow their workforce
Want to reduce recruitment costs
Aim to convert interns into permanent staff

With faster approvals and financial support, internships can now be a strategic hiring tool, not just a student requirement.

Internships are no longer just about helping students graduate. With government incentives like the LiKES grant, SMEs can build stronger teams while managing costs more effectively.

For HR teams, now is a good time to:

Review your internship programme
Plan upcoming intern intakes
Apply for available incentives
Turn interns into long-term assets for your business

While planning your next intern intake, try posting your openings with our Free Job Ad a simple way for SMEs to attract the right candidates without upfront cost.

Frequently Asked Questions (FAQ)

Who is eligible for the RM2,000 intern grant?

Only SMEs in Malaysia are eligible. The intern must be a Malaysian student undergoing industrial training, and the company must apply under the LiKES programme by TalentCorp.

Is the RM2,000 paid to the intern or employer?

The RM2,000 is paid to the employer, not the intern. It helps cover internship-related costs such as training and supervision.

How long does it take to receive the grant?

After approval, funds are usually disbursed within two weeks. The approval process takes about 14 working days.

Do employers still need to pay intern allowances?

Yes. Employers must still pay interns an allowance. The RM2,000 is an additional incentive, not a replacement.

Can SMEs claim both the grant and tax deductions?

Yes. SMEs may claim the RM2,000 intern grant and enjoy an additional 50% tax deduction for eligible AI and cybersecurity training, subject to guidelines.

Ready to Hire Quality Interns for Your Team?

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