Malaysia: New Internship Policy to Require Employers with Employment Pass Employees to Hire Interns

Malaysia’s TalentCorp and the Ministry of Human Resources (KESUMA) have announced the introduction of a landmark 1:3 Internship Policy, aimed at boosting industry exposure and skills development for Malaysian students. Under the new requirement, companies hiring foreign nationals through an approved Employment Pass (EP) must offer up to three paid, structured internship placements for local students for every foreign national employed. The initiative is expected to create pathways for 250,000-280,000 students annually.  

As part of the policy, companies must offer a structured internship program of at least 10 weeks, with a minimum stipend of MYR 500-600 per month, adjusted according to the student’s level of study. Companies and students will be able to manage applications through the MyNext online platform, which integrates internship data with the country’s expatriate management system. Participating companies will also gain access to incentives, including double tax deductions under the MySIP scheme. 

For companies, the application process will commence once an EP has been approved and a notification is received from TalentCorp. At that point, the company must register through the MyNext online platform to complete the MyNext Company onboarding. After the company account is activated, employers can begin creating and advertising internship postings for students. They may then recruit interns and fulfil the internship commitments required under the ratio. Upon meeting these obligations, companies that are eligible for MYSIP scheme can claim the available double tax deductions through the MyNext platform.   

Students must register on the same online platform, then browse available internship opportunities through MyNext Talent. From there, they can apply for internships that align with their academic program requirements. 

The policy is running on a pilot phase until December 31, 2025, allowing employers time to adapt to the new framework. Full implementation will commence January 1, 2026. TalentCorp has emphasized that the policy will not affect existing foreign employee approval processes, ensuring no change to EP timelines or requirements.  

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen.