Prime Minister Datuk Seri Anwar Ibrahim has announced that Government-Linked Companies (GLCs) offering internship positions will now be required to provide a minimum monthly allowance of RM800 to their interns. This decision was made in order to address the issue of low or non-existent wages received by interns, despite their status as graduates.
Acknowledging that interns gain valuable exposure and training during their internship period, Anwar emphasized that individuals from underprivileged backgrounds often struggle to support themselves or their families under such circumstances. As a demonstration of good practice, the Finance Ministry has mandated that all GLCs must pay their interns a minimum of RM800 per month.
This announcement was made by Anwar during his keynote speech at the Budget 2024 Consultation program held at the Finance Ministry. As the Finance Minister, Anwar highlighted that this decision stemmed from a suggestion made by a Form 6 student during a previous dialogue session with students. He emphasized the importance of considering input from students alongside expert opinions when formulating policies.
In a subsequent press conference, Deputy Finance Minister Datuk Seri Ahmad Maslan expressed hope that GLCs would implement the minimum allowance for interns immediately. He also highlighted that the same requirement would apply to GLCs that currently employ interns. The RM800 allowance was deemed essential to cover transportation, food, lodging, and provide interns with some extra income.
Ahmad Maslan acknowledged that certain GLCs already provided allowances to interns, albeit below the RM800 threshold. When questioned about the potential impact on GLCs, he assured that the impact would be minimal due to the relatively small number of interns within these companies.
Furthermore, Ahmad Maslan revealed that the government was contemplating the development of a framework to address the broader issue of internship allowances. He recognized the suggestion as a positive step and expressed the government's willingness to explore it further, stating that such a framework would provide guidelines for companies hiring interns.
The decision to enforce a minimum monthly allowance for interns within GLCs aims to ensure that interns, particularly those from disadvantaged backgrounds, receive fair compensation for their work. This move aligns with the government's commitment to promoting social equity and providing support to young graduates during their transition into the workforce.
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