HR Ministry: Companies Required to Provide 3 Local Students with Paid Internships For Every Expat They Hire

The Ministry of Human Resources (KESUMA) has announced that it will implement the 1:3 Internship Policy in collaboration with Talent Corporation Malaysia Berhad (TalentCorp).

This policy requires companies in Malaysia to provide internship spots to up to 3 local students for every expatriate they hire. 

Companies are required to provide up to 3 internship spots to local students for every expatriate they hire

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In a press release, KESUMA said that this policy would benefit up to 100,000 local students and that it will be implemented in stages, with full implementation starting 1 January 2026.

KESUMA asserted that the new policy is meant to strengthen expatriates’ contribution to our nation’s development while providing opportunities for local talents to undergo structured practical training to prepare them for future industrial needs.

Through this initiative, participating companies will enjoy tax relief incentives through the National Structured Internship Programme (MySIP) while assisting and training local talents to face the challenges of a competitive job market.

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The pilot stage of the 1:3 Internship Policy will be implemented from 15 February to 31 December 2025.

The new policy won’t affect approval of expat hiring processes that are ongoing

KESUMA added that to ensure the policy is implemented effectively, it will ensure that for every Expatriate Employment Pass (EP) through the Malaysia Expatriate Services Centre (MYXpats) and Malaysia Digital Economy Corporation (MDEC), the company must prepare up to 3 paid and structured industrial training spots for local students, with the ratio being 1 (Expatriate): 3 (Interns).

The adjustment of the ratio will consider the size of the organisation and the total workforce within the participating company.

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Furthermore, the policy will only be implemented after the expatriate has received EP approval and won’t affect the approval of the ongoing expat hiring process. Companies that fulfil this requirement will be given priority approval in the future.

For more information about the 1:3 policy, visit TalentCorp’s official website here.

So, what do you guys think of this new policy? Share your thoughts with us in the comments!

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