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Malaysia Immigration Update: Extension of Pilot Phase for the 1:3 Internship Policy to 31 March 2026
- From News from ASEAN - Q1 2026
- Immigration Regulation Malaysia
- Extension of Pilot Phase for the 1:3 Internship Policy to 31 March 2026
- Compliance with employment policy requirements
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The Ministry of Human Resources (KESUMA) has announced an extension of the pilot phase of the 1:3 Internship Policy from December 2025 to 31 March 2026, with full implementation now scheduled to begin on 1 April 2026. The extension is intended to provide employers with additional time to familiarize themselves with the policy requirements and prepare for full compliance.
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Policy Overview
The 1:3 Internship Policy links expatriate Employment Pass (“EP”) approvals to local talent development.
Employers obtaining EP approvals are required to offer structured, paid internships under the National Structured Internship Programme (MySIP), administered by TalentCorp.
Who Is Affected
The Policy applies to employers seeking EP approvals under:
- Expatriate Services Division (MYXpats)
- Malaysia Digital Economy Corporation (MDEC)
- Iskandar Regional Development Authority (IRDA)
It covers all EP categories (EP I, EP II and EP III) including new and renewal applications.
During the pilot phase, application is limited to MYXpats Tier 1 and Tier 2 employers. Employers under Tier 3, Tier 4 and Tier 5 remain excluded from the pilot implementation.
The Policy provides exemptions for:
- Companies operating for less than two years;
- Representative/Regional Offices (REROs); and
- Companies receiving government tax exemptions.
Internship Requirements
For every EP approval, employers must offer internship placements based on the following ratios:
- EP I: 1:3
- EP II: 1:2
- EP III: 1:1
Internships may be offered in any relevant function within the organization and are not required to be linked to the expatriate’s role. Where required internships exceed 2 % of total manpower, the quota will be capped at 2 %.
Participating employers may claim double tax deductions on qualifying internship expenses once endorsed by TalentCorp.
Implementation and Compliance
Employers will receive onboarding instructions from TalentCorp following EP approval. Internship postings must be advertised on the MyNext platform, and placements fulfilled within six months of notification.
While no penalties or EP cancellations will be imposed during the pilot phase, compliance will be considered in future EP applications. Persistent non-compliance may impact the approval of subsequent expatriate passes.