Page 79 - BPAReport

5.9 Foreign students and interns

170. The Immigration Department (JIM) handles entry for foreign students (not registered
in Malaysian educational institutions) who are seeking employment as interns or seek to gain
practical experience with firms in Malaysia to fulfil academic course requirements. Agencies
involved in the application and approval processes include the Ministries of Tourism and of
Education, private and public universities, and employers themselves. For example, the
Ministry of Tourism will give approval to allow for internship programs at hotels that have
been rated 3 stars and above.

171. The foreign students and interns identified and approved are then forwarded to the
Immigration Department (JIM) for further action. Those who seek to take part in work
activities that do not involve payments of wages or allowances are normally granted a
Student Pass. They have a duration of six months and allow the foreign student to work no
more than 20 hours a week. Foreign students who are registered for pursuing courses of study
and training in Malaysian institutions of higher learning are normally also issued Student
Passes that allow them to seek employment for up to 20 hours a week.

172. Those foreign students or interns who are to be paid an allowance or a stipend will be
handled by the Expatriate Services Division of JIM. These students or interns will be issued a
six month non-renewable Professional Visit Pass (PVP).

5.9.1 Issues and problems

173. The agencies involved in the student application and approval process and the ESD
each have differing standard operating procedures (SOPs) and the corresponding process
flow are thus also different. This has caused some confusion and has also resulted in the
abuse of the system by employers who may not qualify for taking on interns and trainees.
There are also inefficiencies because some processes continue to be manual while others have
moved online.

174. It is not clear if the current systems and processes allow for the collection of
standardized socio economic, qualifications and skill type information for the trainees. Data
on entry and exit of trainees are not readily available.

175. It is unknown if enforcement actions are undertaken to assess that employers are
genuinely providing the practical training and guidance required by the trainee. We are not
aware of evaluations of the effectiveness of the internship or attachment programs undertaken
in terms of outcome for trainees.

176. The Independent Committee was informed that some hotels have used large
contingents of interns and trainees continuously to fill the positions required. This practice is
believed to contribute to lowering labour costs for the hotel as the trainees get minimum
emoluments and are also not subject to the other employment requirements under the law, e.g.
worker safety and health obligations.

177. Of more concern is that foreign trainees are taking the place of Malaysian workers who
should be hired permanently to fill the positions taken up by foreign interns but disguised as
training. Excessive reliance on such training arrangement may also result in holding down the

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