When Lina, a Malaysian HR executive, received an application for internship, she was surprised. The candidate was a foreign student pursuing a degree in Malaysia. On paper, the student looked promising—fluent in multiple languages, strong academic results, and eager to learn. But Lina’s boss dismissed the idea immediately. “Too troublesome,” he said. “Foreigners need permits even for internships. Better not get involved.”

This left Lina confused. She knew that many multinational companies in Malaysia accepted foreign students as interns. Was her boss correct? Is it true that even interns need work permits? And if so, is the process too much of a burden for employers?

The Legal Position

Internships fall under a grey area between “employment” and “education.” From an HR perspective, an internship is usually a short-term training attachment, often required as part of a student’s degree programme. But from the legal perspective, any activity where a foreigner works—paid or unpaid—counts as employment under the Immigration Act 1959/63.

That means a foreign student in Malaysia cannot simply start an internship with a company, even if it is unpaid. They must obtain permission from the Immigration Department of Malaysia.

The Immigration Framework

Foreign students in Malaysia typically hold a student pass issued by Immigration. This pass allows them to study full-time in a local higher learning institution but does not automatically allow them to work.

For industrial training or internships, the rules are as follows:

1. The Internship Must Be Course-Related
   • The placement must be part of the student’s study programme (e.g., a compulsory practical training semester).
   • Casual internships or part-time attachments outside the curriculum are generally not approved.
2. Application Must Be Made Through the University
   • The student’s university or college applies to Immigration on the student’s behalf.
   • The employer (host company) only needs to provide supporting documents, such as the internship offer letter.
3. Approval Is Endorsed on the Student Pass
   • Immigration does not issue a “work permit” in the traditional sense. Instead, an endorsement is added to the student pass specifying the approved internship details.
   • This endorsement covers the duration and company name.
4. Scope and Duration Are Limited
   • The student can only work with the company stated in the approval letter.
   • The training must follow the approved timeframe; extensions require new applications.

Employer’s Role

For many companies, the concern is whether hosting a foreign student will create a heavy administrative burden. In practice, the employer’s responsibilities are limited to:

• Providing a formal internship offer letter stating duration, scope of training, and allowance (if any).
• Submitting basic company details (SSM registration, company address, etc.) for verification.
• Ensuring the intern is only engaged within the approved scope and period.

The university’s international office usually handles the rest of the process with Immigration. Employers do not have to deal directly with the government unless Immigration requests further clarification.

Why Employers Hesitate

Many employers perceive the process as “troublesome” because:

• It requires coordination with the student’s university.
• Approval may take several weeks, so placements must be planned in advance.
• Employers are legally liable if a student is caught working without approval, even if it is just an internship.

Because of this, some small and medium enterprises (SMEs) choose to avoid foreign interns altogether. Larger companies, however, particularly multinationals and government-linked companies, often have established systems to handle such applications smoothly.

What the Law Says Beyond Immigration

The Employment Act 1955 applies once there is a contract of service. If the internship is paid, provisions on wages, hours of work, and leave may come into play. However, if the internship is unpaid or structured as training, the Act has limited application.

The SOCSO (Social Security) Act 1969 and Employees Provident Fund Act 1991 do not usually cover foreign interns unless explicitly required by the terms of the internship.

Thus, the controlling law remains the Immigration Act 1959/63—and compliance is non-negotiable.

Lessons for Employers and Students

For Employers:

• Do not assume that internships are “casual” and therefore exempt. Hosting a foreign student without Immigration approval can expose the company to penalties.
• Recognise that the process is not as burdensome as hiring foreign workers. The main requirement is to provide documentation; the university handles the application.
• Consider the benefits: foreign interns often bring international perspectives, language skills, and diversity that enrich the workplace.

For Students:

• Never arrange internships directly with a company without going through your university’s international office. Without Immigration endorsement, your internship is unlawful.
• Plan early. Immigration approval takes time, and last-minute applications may delay your training.
• Understand that even unpaid internships require approval. Payment status does not change the legal requirement.

Conclusion

So, is it true that even foreign student interns need permits? The answer is yes—but it is not a “work permit” in the sense of foreign workers. It is an endorsement on the student pass issued by Immigration, processed through the student’s university.

Is it troublesome for employers? Not really. The university usually handles the paperwork; the company only provides an offer letter and basic details. What matters is that both sides follow the rules.

For employers, the lesson is to see compliance as a safeguard, not a burden. For students, the lesson is to respect the legal process, ensuring that their valuable internship experience does not become a liability.

Internships are meant to be opportunities for growth. With proper understanding of the law, they can remain just that—fair, legal, and beneficial for everyone involved.