Government clarifies HRD Fund usage

A Malaysian government agency has shed light on rules around applying to the Human Resources Development Fund for reimbursements.

Government clarifies HRD Fund usage
Malaysian employers can submit to a government fund for costs incurred in providing training for their employees, but not for their starting pay, a government agency has clarified.

The country’s Human Resources Development Fund (HRDF), under the umbrella of the Ministry of Human Resources, yesterday released a statement stipulating that employers, particularly security firms, could submit claims for costs incurred in providing training for their employees, but not the starting pay paid by them to the employees.

The statement was in response to incorrect claims from Security Services Association of Malaysia president Datuk Seri Mustapa Ali that the starting pay of RM475 a month paid by security firms could be claimed via HRDF.

Mustapa’s reasoning behind his claims was that before they security guards were hired, they had to undergo a health check, including a police-conducted mental health test, as well as a six-day course at a police training centre.

HRDF’s statement reiterated that employers can only submit to a government fund for costs incurred in providing training, and stated employers registered under the Human Resources Development Fund Act are required to pay a monthly levy to HRDF.

"The money is later claimed by employers to cover various costs, including for training of their employees," it read.

HRDF is working with the government to implement the 1Malaysia Globally Recognised Industry Professionals (1MalaysiaGRIP) programme, which aims to upskill Malaysians.

HRDF registered employers can tap 30% of the HRD levy under the 1MalaysiaGRIP to train their own employees. If the 30% remains unutilised, the fund will remain in the HRDF.

The training courses under 1MalaysiaGRIP programme will be finalised based feedback and recommendations from the appointed Sectorial Training Committees (STCs), which are represented by employers’ associations, and representatives from government departments and agencies.

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