Visa needed to intern in Malaysia for 3 months?

Hi,

I am a business student from Belgium. My passport allows me to stay in Malaysia for 3 months visa free.

I am about to start an internship of 6 months in Kuala Lumpur. I thought I would need a working visa but my company says that I can work for them for 3 months without visa and leave the country after 3 months and come back again with another 3 months visa free period. My company is an start up so they haven't got their official license as a company yet in Malaysia. This internship is and paid internship. (700usd)

My question is: is it really ok to work without an working visa? And because its an paid internship, how should i deal with the taxes?

Are you paid by cash? As if its cash transaction then i don't think you need to declare it for tax purposes.