TalentCorp Announces RM30 Million Internship Grant For Malaysian SMEs And Startups

In a significant move to bolster the internship landscape in Malaysia, Talent Corporation Malaysia Berhad (TalentCorp) has unveiled the Industrial Training Matching Grant Initiative for Small & Medium Enterprises (LiKES). This initiative, which is set to roll out with a RM30 million fund over three years from 2024 to 2026, aims to support Malaysian SMEs and start-ups in providing structured training and welfare for interns. The announcement was made by YB Steven Sim Chee Keong, Minister of Human Resources (KESUMA), highlighting the government's commitment to nurturing young talent through practical training incentives.

The LiKES initiative is part of the KESUMA Practical Training Incentive (ILHAM) ecosystem, which encompasses four main components: Structured Industry Training Policy, LiKES Matching Grant, ITS HRD Corp Levy Programme, and additional support programmes like MyNext by TalentCorp. This comprehensive approach is designed to create an internship-friendly environment within SMEs, which represent 97% of total businesses in Malaysia and accounted for 48.2% of the country's employment in 2022.

With the introduction of LiKES, the government aims to level the playing field for SMEs in offering competitive internship opportunities. The initiative will complement the existing National Structured Internship Programme (MySIP), ensuring interns receive adequate allowances during their training period. This move is expected to significantly contribute to work readiness and welfare among interns.

YB Steven Sim also announced immediate enhancements to the Industrial Training Scheme (ITS) under Human Resource Development Corporation (HRD Corp), allowing employers to utilize up to 50% of their levy balance as of January 2024 towards ITS for the year. Additionally, the cap on monthly internship allowances claimable for each intern under the ITS scheme has been removed. These changes are part of a holistic internship package tailored for employers, with ongoing engagement sessions aimed at developing the National Industrial Training Policy, expected to launch in May 2024.

TalentCorp, acting as KESUMA's strategic think tank, plays a crucial role in engaging with industry and academia to develop guidelines that prioritize interns' skill enhancement and welfare. These efforts will culminate in the upcoming National HR Policy, guiding employers in responsibly managing their internship programmes.

Application Process and Eligibility

The LiKES matching grant covers internship periods of up to 6 months and is open for application by SMEs and start-ups registered with the Companies Commission of Malaysia (SSM). To be eligible, applicants must offer internship placements lasting a minimum of 10 weeks and provide a stipulated minimum internship allowance. For interns pursuing various qualifications ranging from Malaysian Skills Certificate Level 1 to Professional Certificate, the minimum allowance requirements vary between RM500.00 and RM600.00 a month, with TalentCorp reimbursing a portion of these allowances.

Thomas Mathew, Group CEO of TalentCorp, emphasized that structured internships are key to developing quality talent, reducing youth unemployment, addressing skills mismatch and underemployment, and improving talent skillsets for current and future industry needs. He encouraged SMEs and start-ups, especially those operating outside of cities, to seize this opportunity to provide meaningful internship opportunities and play a proactive role in nurturing local talent.

Applications for LiKES will open on 18th March 2024. For more information on how to apply or participate in this initiative, interested parties are encouraged to visit www.talentcorp.com.my/likes or contact TalentCorp via email at [email protected].