Malaysia's Human Resources Minister M Kulasegaran has announced the discontinuation of the 30% deduction of registered employers' Human Resources Development Fund (HRDF) levy contribution into a Consolidated Fund, effective 15 November 2018.
The implementation of the deduction towards a Consolidated Fund and its strategic initiatives by Pembangunan Sumber Manusia Berhad (PSMB), which manages HRDF, was first announced in the 2019 Budget speech.
The balance fund from the 30% Consolidated Fund will be used to continue the implementation of strategic human capital initiatives with enhanced mechanisms, in support of the fund's crucial role in developing a skilled local workforce, particularly employees of the fund's registered employers.
More details will be announced to all HRDF-registered employers at a later date.
Minister Kulasegaran's announcement followed the release of the Governance Oversight Committee Report at the HRDF or Kumpulan Wang Pembangunan Sumber Manusia (KWPSM) Town Hall session with employer associations and HRDF-registered employers on Saturday (10 November).
His town hall speech also announced actions taken to strengthen HRDF's level of governance and transparency. They include restructuring HRDF's organisational structure and people placement; establishing the Board Programme Committee to review existing training programmes; enhancing HRDF's policies, and more.
Earlier this month, the minister also announced his ministry's implementation of the Apprenticeship Programme and the Graduate Enhancement Programme for Employability (GENERATE) through HRDF, following the Budget 2019 speech. The HRDF will assist the skills upgrading of Malaysian youth and school leavers and improve the marketability of local graduates, with the Malaysian Government allocating an RM20 million matching grant for both programmes respectively.
In line with this, Minister Kulasegaran expressed the ministry's confidence of HRDF's continuous role in supporting its efforts on enhancing Technical and Vocational Education and Training (TVET) in Malaysia.
Photo / 123RF