Malaysia Announces New Rule For Hiring Foreigners In Country
- Malaysia's Ministry of Human Resources announced a new rule linking expatriate hiring to local student internship placements
- The 1:3 Internship Policy sets different internship ratios depending on the Employment Pass tier held by the foreign worker
- The policy aims to help meet the need for internships for between 250,000 and 280,000 students who need internships annually
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Malaysia's Ministry of Human Resources has announced a new condition attached to hiring foreign workers in the country, requiring companies to provide structured internship placements for local students whenever they bring in expatriate staff.
The policy, announced on March 31, 2026 by the Ministry of Human Resources (KESUMA) and implemented through TalentCorp, is called the 1:3 Internship Policy.
Source: UGC
It requires companies with approved expatriate Employment Passes to provide internship placements for local students, with the ratio of interns required depending on the category of pass granted.
How the 1:3 Internship Policy Works
Under the new framework, companies that receive an Employment Pass Category I (EP1) must offer three internship placements for every foreign hire.
Those with an EP2 approval must provide two placements, while EP3 holders require one placement each.
The internships must run for a minimum of 10 weeks, must be paid at no less than RM500 per month, and must meet quality standards endorsed under the MySIP programme.
The policy is designed to address a significant gap in Malaysia's workforce pipeline.
Between 250,000 and 280,000 students in the country are required to complete an internship or work-based learning placement each year as part of their academic requirements.
The government says the policy will help ensure that those students access structured, industry-relevant experience rather than ad hoc placements.
Companies can manage their internship obligations through the MyNext platform, where they create postings, recruit interns, and later claim double tax deductions on internship-related expenses through the MySIP scheme.
Exemptions and Appeal Process
Not every company will be held to the full requirements immediately. Businesses that have operated in Malaysia for fewer than two years, those with Representative Office or Regional Office status, and companies that have been granted government tax exemptions in critical sectors such as digital and energy can apply for exceptions.
Companies may also appeal if their required internship placements exceed two per cent of their total workforce.
The Malaysian government stressed that the new policy will not alter or delay the existing Employment Pass approval process.
Malaysia lists conditions for residence pass
Meanwhile, Legit.ng previously reported that Malaysia's Immigration Department outlined specific categories of foreigners who qualify for a Residence Pass, including those with family ties to citizens.
Applicants were required to meet residency requirements of between three and five years on a valid long-term pass, depending on their category.
Source: Legit.ng
