Human Resources



More than 7,000 Malaysian employers being compounded for not registering with HRDF

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More than 7,000 Malaysian employers are in the process of being compounded for failing to register with the Human Resources Development Fund (HRDF) as required under the Pembangunan Sumber Manusia Berhad (“PSMB”) Act 2001.

This is following investigations by the Regulatory and Enforcement Department of Malaysia’s Ministry of Human Resources. In 2018, the Minister of Human Resources YB M Kulasegaran requested all liable employers to register with HRDF.

For the past few months, HRDF has started taking action against liable employers who have avoided registering with the Fund. These employers can face a maximum fine of RM10,000 or a maximum one-year jail term or both.

“According to the law, they have already committed the offence. But going to court will be our last resort. So, employers who might have overlooked registering with the HRDF are advised to do so,” said HRDF in a statement released on 21 December 2018.

As of 2 November 2018, the Fund has identified close to 17,000 employers who are potentially liable to register with it.

[Note: To find out if you are a liable employer, check your eligibility on HRDF’s website by filling out Form 1A under the tab “Registration of Potential Liable Employer”]

Further, employers from 63 subsectors from manufacturing, services and mining & quarrying sectors are required to pay a Human Resources Development levy to promote the training and development of their Malaysian employees, apprentices and trainees.

HRDF said: “The Fund hopes that every Malaysian employee is aware that continuous learning is the key to keeping or re-gaining a good job.” It added: “Learning and development could bring considerable benefits both to the employee and the business in which they are employed”.

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