How paid internships can benefit both interns and employers

 

TalentCorp’s National Structured Internship Programme supports interns’ industry transition through paid internships while participating companies are eligible for double tax deductions.

PETALING JAYA: Siti Suraya Sho’ib, 26, embarked on her journey with Black Canyon as an intern back in 2022, with little knowledge of how that period would launch her career in the company.

Now, Siti is an assistant manager at the company’s branch in Aeon Klebang, and realises how her internship under the National Structured Internship Programme (MySIP) equipped her for the job.

She said the four-month internship allowed her to fully immerse herself in every aspect of a restaurant’s operations while being paid eased her financial worries.

“Despite relocating far from home for my internship, I found my financial burden manageable, especially compared to friends with unpaid internships. This stability enabled me to fully focus and excel in my internship.

“After completing my internship, I was pleasantly surprised when the company offered me the position of assistant restaurant manager trainee, which ultimately led to my promotion to assistant manager,” she told FMT.

MySIP, a TalentCorp initiative under the human resources ministry’s oversight, aims to offer internships that match industry needs while helping graduates prepare for the job market.

The Employment Act 1955 does not cover interns as they are not deemed employees or independent contractors, and their work is for training purposes. But without laws for safety, welfare, and payment, employers could take advantage of interns as cheap labour.

To circumvent this, MySIP provides guaranteed paid internships for students, incorporating technical and vocational education and training with allowances tailored to academic backgrounds.

Dion Chan, 23, who interned as a business development executive at 1 Utama Shopping Centre through MySIP, said the allowances provided a sense of security for interns, enabling them to focus on learning and delivering optimal performance.

After completing his internship, Chan transitioned into a permanent role within the company, where he has been actively involved in key projects for three years now.

“The benefits, the supportive environment, and the exposure to various aspects of the industry have been invaluable to my development,” he said.

“The aim of internships is to offer students practical field experience. While some receive payment, others don’t. However, considering the high cost of living, especially in urban areas, fair compensation for interns is crucial as a token of appreciation.”

Imran Norazli, 25, agreed, saying there were significant advantages to applying for an internship placement through MySIP.

“All the companies which are offered on the platform are guaranteed to pay allowances, which is reassuring for interns seeking fair compensation.

“I highly recommend MySIP to anyone seeking internship placements,” said Imran, who received a job offer upon completing his internship as a customer service trainee at Bandar Utama City Centre Sdn Bhd.

Paid internships produce high-quality talents

1 Utama customer service manager Wan Norzety Elany Wan Muhamood said it was fair to pay interns because of the high cost of living in the city. On top of that, she said, it motivates them and improves their performance.

“When interns are paid, they perform better, leading to the creation of more quality talent that benefits the company. In recent years, we’ve hired many interns as permanent staff because of their high quality,” she said.

Meanwhile, Johnny’s Restaurant & Black Canyon recruitment manager Fei Fei Poh said it was important to treat interns with respect as they join the industry to learn and sharpen their potential.

“Employers must not view interns as mere cheap labour. They demonstrate dedication and are capable of performing at the same level as regular employees. Internships provide them with invaluable hands-on experience.”

For eligible employers, MySIP offers a double tax deduction per intern, covering allowances and various expenses like training, accommodation, travel, meals, and digital communication costs.

Employers can find suitable interns through TalentCorp’s MyNext platform. - FMT