sim said the Ministry will focus on creating a more structured approach to young talent training. With him were (from left) Talent corporation Malaysia Berhad group chief strategy officer Nazrul aziz, Mathew and human resources Ministry deputy secretarygeneral (Policy and International) datuk amran ahmad. — MuhaMad shahrIL rOsLI/ The star
KUALA LUMPUR: Talent Corporation Malaysia Bhd (TalentCorp) has launched a new grant where small and medium businesses (SMEs) can be reimbursed up to RM300 for each intern’s monthly allowance.
The grant, coined as the Industrial Training Matching Grant Initiative for Small & Medium Enterprises (LiKES), has been allocated a total of RM30mil and will run till 2026.
Human Resources Minister Steven Sim said this is the first time the government has an internship matching grant for SMEs and startups.
“This will help level the playing field for SMEs who constitute 97% of total businesses in Malaysia.
“Now, more employers can take part in a collective nation-building effort to nurture our young talents,” he said.
“Through this grant, high potential SMEs facing challenges of funding can carry out structured and well-paid internship programmes.
Sim noted that there is an uneven distribution of practical training opportunities throughout Malaysia.
“This grant can help further expand the internship programme throughout Malaysia so that there are more opportunities for the students,” he said.
In addition, Sim announced enhancements to the Industrial Training Scheme (ITS) under Human Resource Development Corporation (HRD Corp).
Effective immediately, employers can utilise up to 50% of their levy balance as of January 2024 towards ITS for the year, he said.
TalentCorp group chief executive officer Thomas Mathew said the LiKES grant will enable young talents to enrich the SME sector.
“It supports SMEs financially to play a proactive role in developing local talent by assisting the transition from school to employment.
“LiKES also aims to alleviate the cost of living for industrial trainees while they undergo industrial training, especially for those in Klang Valley, Penang, and Johor Baru, where most industrial training placements are offered,” he said.
The LiKES grant covers internship periods of up to six months, and is open for application by SMEs and start-ups registered with the Companies Commission of Malaysia (SSM).
Eligible applicants must offer internship placements lasting a minimum of 10 weeks, and provide a stipulated minimum internship allowance.
For interns pursuing Malaysian Skills Certificates level 1 to level 3, Diploma and Malaysian Skills Diploma, the minimum allowance required is RM500 a month, with TalentCorp reimbursing RM250 a month.
On the other hand, for interns pursuing the Malaysian Advanced Skills Diploma, a bachelor’s degree, master’s degree, or a professional certificate, the minimum allowance required is RM600 a month, and TalentCorp will reimburse RM300 a month.
The grant is now open for application.
SMEs association national president Datuk William Ng said that LiKES will equalise the playing field for SMEs who are fighting for the same talent pool with the larger companies.
“Hopefully, this grant will enable more SMEs to have a quality internship programme, especially those in non-urban states where there are lesser opportunities,” he said.
Ng said that the challenges are not just funding for intern payment, but also the perceived lack of attractiveness of SMEs.
“Many students will choose a larger company when offered the same pay.
“However, SMEs are also attractive and good employers. With an SME, interns can have a wider exposure to the business as compared with a larger company where they are placed in one specialised unit,” he said.
He added that currently SMEs are willing to offer competitive intern allowances between RM500 to RM1000.
“I personally do not know any that pay under RM500,” he said.
Terengganu Human Resource Development Centre chief executive officer Aminudin Omar said that he hopes to bring the LiKES grant to SMEs in Terengganu.
“We used to only focus on permanent employment, but we realised that students need training in essential industry skills.
“I am hoping to arrange a meeting after Hari Raya between TalentCorp and the SME owners in Terengganu so that they can utilise the LiKES grant soon,” he said.
He added that there are many East Coast graduates who hope to continue working in their hometown and more internship opportunities is essential for career growth.
“We are very excited to see how LiKES will be implemented in Terengganu,” he said.
For more information, visit www.talentcorp.com.my/likes
