Malaysia's Ministry of Human Resources Implements 1:3 Internship Policy

Malaysia's Ministry of Human Resources announced the 1:3 Internship Policy on March 31, 2026. This policy requires companies hiring expatriate staff to provide structured internship placements for local students.

The ratio of internships depends on the Employment Pass category: companies with an Employment Pass Category I (EP1) must offer three internships for each foreign hire, EP2 holders must provide two, and EP3 holders require one. Internships must last a minimum of 10 weeks and pay at least RM500 per month, adhering to quality standards under the MySIP programme.

This initiative aims to bridge a significant gap in the workforce pipeline, as 250,000 to 280,000 students in Malaysia need internships annually. Companies can manage their obligations through the MyNext platform and may claim double tax deductions on related expenses.

Exceptions apply for businesses operating for less than two years, those with Representative Office or Regional Office status, and companies with government tax exemptions in critical sectors. The policy will not affect the Employment Pass approval process.