The Ministry of Human Resources stated that there is no provision or law that dictates companies must pay a salary for interns, and it is up to the private sector on the policy set by the company as well as based on the financial ability of the company.
If further added the 1955 Labor Act does not provide specific provisions regarding the payment of industrial training allowance in the private sector due to industrial trainees not being categorised as workers under the Employment Act 1955. Of late the issue has become contentious as many university students who conduct their internship have a problem keeping up with the cost of traveling and meals, which is becoming a burden.
Former Youth and Sports Minister, Syed Sadiq has called on the government to stop treating interns as cheap labour and to enact laws that will provide them with a decent salary.
MOHR Minister, V Sivakumar said the government has yet to establish a policy or guidelines on interns allowances for private companies adding that the issue is complex that requires research and in-depth consultation with various stakeholders, especially the Ministry of Higher Education. He further said the government is committed to ensuring that all trainees,
regardless of whether they are in the public or private sector, get fair treatment and fair. If necessary, the Government will establish clear guidelines and details on the payment of industrial/practical training allowance for the private sector.
He also suggested that employers or private companies who take these students give them a living allowance as an assistance to students.
