PETALING JAYA: The Human Resources Ministry's proposal to mandate hiring three interns for every expatriate employed is impractical for the manufacturing sector, says the Federation of Malaysian Manufacturers (FMM).
FMM highlighted that the manufacturing industry is undergoing a rapid transformation driven by the Fourth Industrial Revolution, which requires skilled talent to fill vacancies immediately.
"As such the urgency to meet production demands makes it impractical to rely solely on internship programmes to bridge these gaps," said FMM president Tan Sri Soh Thian Lai in a statement on Friday (Jan 17).
The ministry reportedly stated that the policy's pilot phase would begin on Feb 15 and run until Dec 31 this year, with full implementation scheduled for January 2026.
Through this policy, the ministry said participating companies would enjoy tax relief incentives under the National Structured Internship Programme while supporting and training local talent to face the challenges of a competitive job market.
The ministry said the pilot phase would only apply to companies categorised under Tier I and Tier II.
Soh instead proposed a "place and train" system, such as apprenticeship schemes, which have proven effective in generating interest among interns for long-term careers in the manufacturing sector.
He said this approach allows interns to gain hands-on experience, aligning their skills with industry requirements while addressing immediate workforce shortages.
"In fact, FMM has repeatedly called on the government to set-up the National TVET Apprenticeship Fund, with an initial seed fund of RM100mil provided by the government and sustained through the channeling of 60% of the foreign worker levy to the fund," said Soh.
FMM also called for the lifting of the freeze on foreign workers whose intake was approved but delayed due to administrative issues, preventing them from meeting the May 31, 2024 deadline.
"The freeze should also be lifted for the intake of new foreign workers across industries experiencing critical labour shortages, including manufacturing," Soh added.
He urged the Human Resources Ministry to engage with the manufacturing sector to refine the intern hiring policy and provide greater clarity on the multi-tier levy mechanism.
"These measures will enable manufacturers to plan effectively, hire and continue driving Malaysia's economic recovery and long-term growth," said Soh.