LEVEL PLAYING FIELD FOR SMES IN INTERNSHIP PROGRAMMES

KUALA LUMPUR: Talent Corporation Malaysia Bhd (TalentCorp) has introduced a new grant that allows small and medium businesses (SMEs) to receive up to RM300 reimbursement for each intern’s monthly allowance. The grant, known as the Industrial Training Matching Grant Initiative for Small & Medium Enterprises (LiKES), has been assigned a total of RM30 million and is set to operate until 2026. Human Resources Minister Steven Sim stated that this marks the first time the government has introduced an internship matching grant specifically for SMEs and startups.

He emphasized that this initiative will help create a more level playing field for SMEs, which make up 97% of total businesses in Malaysia. According to Sim, more employers will now be able to contribute to the nation’s growth by participating in nurturing young talents through structured and well-paid internship programs. He also highlighted the unequal distribution of practical training opportunities across Malaysia and how the LiKES grant can help expand internship programs nationwide to provide more opportunities for students.

Furthermore, Sim announced enhancements to the Industrial Training Scheme (ITS) under the Human Resource Development Corporation (HRD Corp). Employers can now utilize up to 50% of their levy balance as of January 2024 towards ITS for the year. TalentCorp’s group chief executive officer, Thomas Mathew, mentioned that the LiKES grant will empower young talents to enrich the SME sector and financially support SMEs in developing local talent.

He added that the grant aims to reduce the cost of living for industrial trainees, especially in areas like Klang Valley, Penang, and Johor Baru where most industrial training placements are offered. The LiKES grant covers internship periods of up to six months and is open for application by SMEs and startups registered with the Companies Commission of Malaysia (SSM). Eligible applicants must provide internship placements lasting a minimum of 10 weeks and offer a specified minimum internship allowance.

Interns pursuing Malaysian Skills Certificates level 1 to level 3, Diploma, and Malaysian Skills Diploma are required to receive a minimum allowance of RM500 a month, with TalentCorp reimbursing RM250. On the other hand, interns pursuing higher qualifications like the Malaysian Advanced Skills Diploma, bachelor’s degree, master’s degree, or professional certificate, require a minimum allowance of RM600 a month, with TalentCorp reimbursing RM300.

SMEs association national president Datuk William Ng expressed optimism that the LiKES grant will create a fair playing field for SMEs to compete for talent with larger companies. He highlighted the importance of quality internship programs, especially in non-urban areas where opportunities may be limited. Ng acknowledged the challenges faced by SMEs in attracting interns due to perceived lack of attractiveness compared to larger companies.

He noted that many students tend to choose larger companies over SMEs when offered similar pay, but SMEs provide valuable exposure across different aspects of the business. Ng also mentioned that SMEs are willing to offer competitive intern allowances ranging between RM500 to RM1000, with very few paying below RM500. Aminudin Omar, the chief executive officer of Terengganu Human Resource Development Centre, expressed interest in bringing the LiKES grant to SMEs in Terengganu to provide more internship opportunities for local graduates.

He emphasized the importance of industry skill training for students and hopes to implement the grant in Terengganu post-Hari Raya by facilitating discussions between TalentCorp and SME owners. Omar highlighted the need for more internship opportunities in the East Coast to support career growth for graduates who wish to work in their hometowns. He expressed excitement to see how the LiKES grant will be utilized in Terengganu and encouraged interested parties to visit www.talentcorp.com.my/likes for more information.