COMPULSORY allowance for students who undergo industrial training in the private sector will discourage employers from offering places for internship, the Malaysian Employers Federation (MEF) said.

MEF president Syed Hussain Syed Husman said offering places for internship is voluntary and any move to make it mandatory for employers to pay a certain amount of allowance will make it unattractive for them to take in interns. 

“An internship is a chance for students or fresh graduates to gain valuable industry experience that will help them to be more employable,” he said. 

“Currently, companies that take in interns pay allowances at their discretion.

“The average amount in cities is about RM1,200, but there are interns being given allowances of less than RM1,000 per month.

“It all depends on the ability of the companies to pay. Some big companies are paying more than RM1,200 per month.” 

Syed Hussain was responding to a proposal by Youth and Sports Minister Hannah Yeoh to make it compulsory to pay allowances for internship. 

She said the Higher Education Ministry and Human Resources Ministry need to discuss the pros and cons of implementing the proposal in the private sector. 

For now, the government has not made it mandatory that private companies to pay allowances to interns.

Syed Hussain said instead of making it mandatory for employers to pay internship allowance, the government should consider giving more incentives to the employers to take in more interns. 

He believed that employers should pay internship allowance at their discretion. 

“Internship offers an opportunity for students to learn and grow their skills and get a first-hand feel of the workplace, which is not available in the classrooms,” he said. 

“Internship will enable students to transition from the world of education to the workplace less painfully. 

“The government should not make it mandatory for employers to pay a certain determined rate to the interns, but employers need to take into consideration the rising cost of living faced by the interns.” – February 17, 2023.