The Progressive Policy on Expatriate Contribution to Local Talent Development
Introducing the 1:3 Internship Policy
Fostering Local Talent Through Expatriate Talent Management
The Progressive Policy on Expatriate Contribution to Local Talent Development by the Ministry of Human Resources (KESUMA), referred to as the 1:3 Internship Policy, is implemented through TalentCorp to align expatriate hiring with local talent development, creating a win-win framework for businesses and aspiring industry-ready local talent.
This forward-thinking initiative aims to strengthen local talent by providing them with hands-on industry exposure, making them more competitive and workforce-ready while still attracting necessary foreign expertise.
Empowering the Next Generation of Malaysian Talent
For every expatriate hired, three local students receive quality internships
The Policy is essential to meet the growing need for structured and quality internships or work-based learning opportunities for 250,000 to 280,000 students annually, who are required to complete an internship or work-based learning to fulfil their academic requirements. The policy ensures students receive structured exposure that bridges the gap between their skills and industry needs, fostering collaboration between academia and industry to provide work-based learning opportunities and prepare students for the workforce. The pilot implementation of the Policy will commence for one (1) year from 15 February 2025 to 31 December 2025. After which, the official implementation will effectively take place starting 1 January 2026.
Through strategic collaboration between businesses and academic institutions, we are cultivating a thriving ecosystem that empowers both expatriates and local talent to innovate, grow, and succeed together.
Highlights
Key Features of the Policy
- Eligibility: Companies with approved expatriate employment passes are required to provide internships placement based on specific approved ratios (1:3 for EP1, 1:2 for EP2, 1:1 for EP3):
No. Employment Pass Category Proposed Ratio Company Requirement 1. Employment Pass (EPI) 1:3 1 EPI approval, 3 internship placements establishment 2. Employment Pass (EPII) 1:2 1 EPII approval, 2 internship placements establishment 3. Employment Pass (EPIII) 1:1 1 EPIII approval, 1 internship placement establishment 4. In the scenario where internship placement over the number of organisation manpower is more than 2% Companies’ internship placement quota will be set at 2% of the total organisation manpower - Structured, Quality & Paid Internships: Complete a minimum of 10 weeks of structured, quality and paid MySIP-endorsed internship with minimum pay of RM500 monthly or more according to level of study
- Simplified Application: Companies and students can apply seamlessly via the MyNext platform, integrating internship data with expatriate management system.
Policy Reassurance
The Policy is designed to complement existing systems and will not interfere with any current approval processes. The duration and approval requirements of the expatriate employment pass process will remain unaffected.
Steps to Apply
- For Companies
- Upon EP approval and receiving an email notification from TalentCorp, company will be on board for MyNext Company registration in MyNext.my.
- Once the Company Account is activated on MyNext, company can start to create internship posting under MySIP to advertise internship placement offering for student to apply.
- Proceed to recruit the interns and fulfil internship commitments based on the set ratio.
- Company to claim double tax deduction incentive under MySIP implementation via MyNext.
- For Students
- Sign up with MyNext at www.mynext.my
- Browse through MyNext Talent to explore latest internship opportunities.
- Apply for quality internships aligned with your academic requirements.
For the complete details on eligibility, benefits, and compliance on the 1:3 Internship Policy, download the FAQs below.