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If you run a small business, you know the struggle: you want to hire interns and train fresh talent, but government incentives often come with slow approvals and long waits
That's about to change.
The Ministry of Human Resources (KESUMA) has announced a major upgrade to the SME Industrial Training Matching Grant (LiKES), providing MSMEs a one-off upfront payment of RM2,000 for every intern they hire.
The announcement was made during Human Resources Minister Datuk Seri Ramanan Ramakrishnan's official visit to Talent Corporation Malaysia Bhd (TalentCorp) on Tuesday, 6 January.
Under the revamped LiKES programme, companies will now receive a one-off payment of RM2,000 per trainee, replacing the old system of monthly reimbursements of around RM250 to RM300.
And the biggest relief for employers? The waiting time.
Previously, approvals could take up to 90 working days. Now, that timeline has been reduced to just 14 working days.
"The process is fast — only 14 working days compared to 90 days previously," Ramanan was quoted as saying by The Edge.
Human Resources Minister Datuk Seri Ramanan Ramakrishnan
Image via Shahrill Basri/The EdgeHere's what's new under the revamped LiKES programme:
- The payout: RM2,000 one-off per intern
- The speed: Approval within 14 working days
- The scale: RM30 million allocated to support up to 25,000 Malaysian trainees nationwide between 2024 and 2026
LiKES was first introduced in 2024 and is administered by TalentCorp
The programme focuses on encouraging structured industrial training placements, particularly within micro, small and medium enterprises (MSMEs).
Employers applying for the grant are required to have a proper internship structure in place and submit reports to TalentCorp detailing how the funds are used. Companies are also encouraged to hire interns after they complete their training.
When can companies apply?
While the upgrade has been announced, applications for the enhanced LiKES programme are not open yet.
TalentCorp group chief executive officer Edward Ling said the official launch will be announced once internal processes are finalised.
According to Ramanan, the RM2,000 incentive will apply to interns hired from 1 March 2026 onwards, with funds expected to be disbursed within two weeks.
There's also a tax perk for SMEs investing in tech skills
Separately, Ramanan reminded employers that SMEs are eligible for an additional 50% tax deduction on training expenses related to artificial intelligence (AI) and cybersecurity.
The incentive falls under the MyMahir–National AI Council for Industry (MyMahir-NAICI) initiative announced in Budget 2026, and is aimed at helping businesses build higher-value digital skills.
