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09 April 2026

Malaysia further extends the Internship Policy pilot phase until 31 May 2026

On 31 March 2026, Malaysia's Expatriate Services Division (ESD) announced an extension of the 1:3 Internship Policy pilot stage until 31 May 2026. The policy will become mandatory for all employers hiring expatriates under Employment Pass (EP) categories I to III effective 1 June 2026. Employers should prepare to comply with the policy as no further extensions are expected. With the 1:3 Internship Policy coming into effect concurrently with the revision of minimum salary requirements for EP holders, employers may evaluate and calibrate their internship hiring plan based on the updated EP categories.

A Tax Alert prepared by EY's People Advisory Services, and attached below, provides additional details.

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Attachment

Full text of Tax Alert

Document ID: 2026-0828

 

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