After this expansion, all industries are now covered under HRDF's training except for Federal & State Government, as well as NGOs involved in social welfare activities. 

Malaysia's Human Resources Development Fund (HRDF, also known as PSMB) has confirmed the expansion of the Pembangunan Sumber Manusia Berhad Act 2001, effective 1 March 2021.

The expansion implies an increase in the number of employers and industries covered, thus an increase in employees that are eligible for training under HRDF from the current 2.5mn in 2020 to 6.1mn effective March 2021.

In a nutshell, after this expansion, all industries are now covered under HRDF's training except for Federal & State Government, as well as NGOs involved in social welfare activities.

This push is mandated by the Government in the 11th Malaysia Plan (11MP) under Strategic Thrust 5 - Focus Area C: Strengthening the Lifelong Learning for Skills Enhancements where the access to Human Resource Development Fund (HRDF) is to be expanded to all industries.

In a statement, HRDF shared: "The 11MP has identified high-quality human capital to propel the country’s future economy and targets for 35% of the workforce to comprise skilled workers."

It added: "The expansion is a crucial step towards the overall development of Malaysia’s human capital; assisting towards increasing the number of skilled local workers that are responsive to business needs with the Ministry spearheading the mission."

Notably, employers of the new sectors are given an exemption of HRD levy for three months under the Act, i.e. from 1 March to 31 May 2021. The registration of HRDF employers under the new industries takes effect from 1 March 2021.

Further, employers who have received the letter have been identified as potentially liable to register with HRDF. Thus, they need to respond by filling in Form 1 through HRDF's online application and submit it within 30 days from the date of the letter. Failure to comply within such period is an offence under PSMB Act 2001, per HRDF's statement.

Photo / HRDF's Facebook

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