In the previous article, we briefly explained the background and objectives of the Malaysian 1:3 Internship Policy , and we used the policy's FAQ as a reference for this explanation.
Some of you may be interested in the contents of the FAQ, so I have pasted a roughly adjusted version of it below, after machine translating it from English to Japanese.
There may be some parts that are not necessarily accurate, but please use this as a starting point when referring to the original text.

——

1:3Internship Policy

A progressive policy regarding expatriates' contribution to local human resource development

FAQ (FAQ)

General Policy Summary

1. What is the 1:3 Internship Policy?

The 1:3 Internship Policy on Expatriate Employment and Local Talent Development is a government-led initiative implemented by the Ministry of Human Resources (KESUMA) through Talent Corp Malaysia (TalentCorp).

The policy ties expatriate hiring approval to local talent development by requiring companies to offer structured, paid, quality internship placements under the MySIP (National Structured Internship Program) for all expatriate hires.

This allows local students to gain industry-relevant experience and strengthen their workforce readiness, while companies benefit from a double tax deduction on expenses incurred in internship programs.

2. Why was the 1:3 internship policy introduced?

This policy is essential to meet the growing need for quality internships and work-based learning opportunities for the 250,000 to 280,000 students who make up 2 percent of the workforce.

These students are required to complete an internship or work-based learning to fulfill their academic requirements.

This policy will ensure that local students receive effective training that bridges the gap between their skill sets and the needs of the industry.

By implementing this policy, we can create more than 100,000 internships and practical training opportunities per year, striking a balance between overseas needs and the development of local human resources that can be employed in industry.

3. What is the main objective of the 1:3 internship policy?

The policy aims to provide local talent with hands-on industrial experience, making them stronger, more competitive and job-ready, while attracting needed overseas expertise.

The policy encourages companies to contribute to the country's human resource development by offering structured, paid and quality internships.

This allows young talent to gain valuable experience in the industry and increase their employability after graduation.

In addition, companies can benefit from the National Structured Internship Programme (MySIP), which provides double tax deduction for expenses incurred during the internship period.

4. Who will oversee the implementation of the 1:3 internship policy?

A key decision was taken at a Cabinet meeting on 5 June 2024 mandating Talent Corp to oversee the implementation of the policy, which links the approval of foreign employment passes with internship placement slots, with the aim of nurturing young local talent enrolled in public and private tertiary institutions and technical and vocational education and training (TVET) institutions.

5. Who benefits from the 1:3 internship policy?

This policy will benefit the following groups:

• TVET and tertiary students undergoing industrial training during their degree, diploma or certificate level studies
• Employers and companies approved for the Expatriate Employment Pass
• Industry and the International Chamber of Commerce
• Relevant Ministries

6. Will the 1:3 internship policy be implemented?

The trial period of the policy will run from February 15, 2025 to December 31, 2025, before being officially implemented from January 1, 2026.

Eligibility and Requirements

7. Which companies must adhere to the 1:3 internship?

Eligible companies are those that have been granted the Expatriate Employment Pass under the Malaysian Expatriates Service Centre (MYXpats) and Malaysia Digital Economy Corporation (MDEC).

For each approved Expatriate Employment Pass (EP), companies are required to offer three internship or work-study places to local talent (ratio 1:3).

Ratios will be adjusted based on the size of the company and the number of employees.

8. Does the 1:3 internship policy apply to all expatriates?

This policy is applicable to all approved Expatriate Employment Passes (EPI), Employment Pass Category 2 (EPII) and Employment Pass Category 3 (EPIII).

However, the pilot implementation of the policy is focused only on MYXpats registered companies in the Tier 1 and Tier 2 categories (EPI and EPII), which mainly comprise multinational companies, government linked companies and conglomerates.

9. Are there any exemptions or specific conditions that exempt a company from implementing the 1:3 internship policy?

Exceptions to this policy are available to companies or organizations that meet the following criteria:

• New companies that have been in Malaysia for less than two years
• Companies with representative or regional offices
• Companies receiving tax exemptions from the government, especially major ones such as digital and energy (not included)
• Other exemption requests may also be considered by the relevant committees based on feedback from the pilot phase of the policy.

10. What types of internships are covered by the 1:3 internship policy?

Internships covered under the National Structured Internship Programme (MySIP) are subject to this policy.

Companies must provide a quality structured internship placement for a minimum of 10 weeks, pay a salary of at least RM500 or RM600 per month depending on the level of study, and obtain approval for their structured internship programme from TalentCorp.

All intern and internship program requirements must follow those specified in MySIP.

Application and Approval Process

11. How is the 1:3 internship policy implemented?

The policy will be implemented entirely online through TalentCorp's dedicated online platform, MyNext Internship, which will act as a conduit to the Malaysian Immigration Department's Expatriate Services Department (ESD) Expatriate Employment Pass platform.

This will enable the government to grasp demand trends in the job market through expatriate application data, as well as conduct a systematic, up-to-date (real-time) and strategic 360-degree evaluation of industrial training (from companies to trainees and vice versa).

Companies are required to offer internship places to local students in public and private tertiary and technical and vocational education and training (TVET) institutions based on the following ratios:

Sample calculation:

Company A , with 1,200 employees, received EP approval as of March 2025 with the following breakdown:

Therefore, the minimum number of internships set by Company A is as follows:

Ratio of internship placements to the number of employees in the organization = (16/1,200) x 100 = 1.3

Based on this, Company A meets the requirements of the 1:3 internship policy and will accept 16 internships in 2025.

In September 2025, Company A received the following additional EP approvals :

Therefore, the general rule for the number of internships at Company A is as follows:

Ratio of internship placements to the number of employees in the organization = (35/1,200) x 100 = 2.9 (%)

With the approval of these additional EPs, the organization’s internship ratio to its total employee headcount will be greater than 2%.

Therefore, to meet the requirements of the 1:3 internship policy, the minimum number of internships in 2025 is (2/100)x1,200=24.

12. How does the 1:3 internship policy affect the employment approval process for expatriates?

This policy will come into effect only after the Employment Pass approval process is completed and will not interfere with the ongoing approval process (after the companies concerned have received their Employment Pass approval).

Therefore, there will be no impact on the validity period or approval requirements of the Expatriate Employment Pass.

13. Do companies need to submit proof of internship locations when applying for or renewing an expatriate pass?

There is no need to submit any certification for internships offered under this insurance as the information is already captured when issuing the Letter of Endorsement in MySIP.

The offered internship details will be updated and available for review in the ESD online system for future reference.

14. Are there resources and support available for companies to help implement a 1:3 internship policy?

MySIP offers a special tax deduction for internship expenses.

MySIP is a program run by TalentCorp since 2012 that focuses on early exposure to real work before graduation and early experience, actively intervening to help domestic graduates become industry-ready.

The implementation criteria for MySIP stipulate that industrial trainees shall be paid a monthly allowance of RM500 or RM600 for at least 10 weeks during their industrial training.

15. How can students apply for internships resulting from the implementation of the 1:3 internship policy?

Students can apply for internships through MyNextTalent.

www.mynext.my/talent

16. 1:3What is Talent Corp’s role in implementing the internship policy?

TalentCorp acts as the secretariat and coordinating body for policy implementation through initiatives such as the Malaysian Essential Occupations List (MyCOL), MyNext, MySIP, MyMAHIR Future Skills Talent Council and industry-academia partnerships, working closely with higher education institutions and industry players to support the development of a sustainable talent pool.

Influence and Accountability

17. 1:3How will compliance with the internship policy be monitored and enforced?

The monitoring and verification will be carried out through the submission of the following documents, which are one of the main references for considering the issuance of a MySIP recommendation letter to apply for double taxation deduction with the Inland Revenue Department of Malaysia:

• More information about TalentCorp's Industrial Traineeships
• Feedback and evaluation by trainees and companies at the end of industrial life

18. What penalties and consequences will companies face in case of non-compliance?

No specific penalties will be implemented as the policy is being rolled out to encourage active participation of the industry in developing the country's talent which will benefit the industry's future talent pipeline.

MySIP mitigates the impact of internship placement costs.

This approach is in the form of an "encouragement" whereby companies that meet the requirements will be given more weight and consideration in future approvals, and will not be treated as a "punishment" as a prerequisite for approval.

19. How will the impact of this policy on local talent development be measured?

More than 60,000 employment passes have been approved for 2023 (MYXpats and MDEC) and the 1:3 internship policy, if implemented in accordance with the recommended ratio, could create more than 100,000 internships per year.

This can be measured by the increase in the number of MySIP internship offerings captured on the MyNext platform.

Further explanation and support

20. Where can companies and expatriates find more information about the 1:3 internship policy?

Once the 1:3 Internship Policy Secretariat has received the approved number of expatriate employment and internship placements, companies will receive a MySIP invitation email providing the relevant details.

For more information, please visit the TalentCorp and MyNext websites.

21. Who should a business contact if they have questions or issues?

Please contact the secretariat for inquiries.

mysip@talentcorp.com.my

22. How will this policy evolve and expand in the future? Are there additional requirements?

Once the pilot is complete, any further information or updates will be provided accordingly.

End