National Training Funds

Developing World-class Skills

Base For Future Prosperity
Mr. Muhammad Ghazali Abdul Aziz
Chief Special Purpose Vehicle
Human Resources Development Fund Malaysia
Ministry of Human Resources, Malaysia
ADB, Manila, 1-2 Dec 2015

HRDF : Introduction
Governed by Pembangunan Sumber Manusia
Berhad (PSMB) Act, 2001, the Human Resources
Development Fund (HRDF) was established in
1993 under the legal requirements of the Human
Resources Development Act 1992 (now known as
the Pembangunan Sumber Manusia Berhad Act
2001).
HRDF levy is the mandatory payment
imposed by the Malaysian Government on
specified groups of employers for the
purpose of up-skilling and re-skilling of their
employees.
Under the law, certain classes of Employers are
liable to pay a Human Resource Development
(HRD) levy for each employee at the rate of 1.0%
per annum of the monthly wages of the employee.
However, the Minister of Human Resources may,
from time to time, by order published in the
Gazette, reduce or increase the rate of the levy

HRDF : Vision &

Mission

Vision: To be the human capital

development authority in
strengthening the economic
development of Malaysia
Mission: Spearhead the human
capital learning and development
in Malaysia through strategic
interventions that fulfil the current
and future needs of the industry

HRDF : Brand
Promise
People: Everything that we do is to support
the people of the organisation and the country
by identifying, nurturing and growing their
skills and capabilities, and empowering and
enriching their lives.

Prowess: Our efforts are focused on tapping

the potential and increasing the prowess of
Malaysias human capital, in every way
possible.
Progress: We endeavor to play our role as a
responsible and visionary organisation, making
progress inclusive and meaningful, especially
for the people of Malaysia who are both the

HRDF :
Increasing
the supply of highly-skilled
Objectives
Malaysian workers.

Enhance the .knowledge of workers

and equip them with up-to date skills.
Prevent the skills of workers from
becoming obsolete in a changing
technological environment.
Cultivate a training culture amongst
employers.
Maintain and enhance the
competitiveness of Malaysian products
through skills retraining.

HRDF : Employers
Registration
HRDF
works in close collaboration with the MANPOWER
DEPARTMENT and the INSPECTORATE &
ENFORCEMENT section of THE MINISTRY OF
.
HUMAN RESOURCES MALAYSIA and the SOCIAL
SECURITY ORGANISATION MALAYSIA to encourage
employers registration with HRDF.
As of end December 2014, a total of 15, 675 employers
were registered with HRDF with the highest from:
1. SERVICE SECTOR: 8, 763
2. MANUFACTURING: 6, 977
Small and Medium Enterprises (SMEs) constitute
89% of total employers in the registered with
HRDF

HRDF : Key
. TRAINING,
LEADERSHIP & CONTENT
Components
Sectoral Training Committees (STCs)

National Human Resource Centre (NHRC)

Training Incentive Scheme & Train-The-Trainer (TTT) Programme
.

2.

SCHEMES & SOLUTIONS

Recognition of Prior Learning (RPL) Scheme
Future Workers Training Scheme
Housewives Enhancement & Reactivation Talent Scheme (HEARTS)
Apprenticeship Scheme
Approved Training Places & Approved Financial Assistance by Skill
Area
Training Assistance Schemes
Certification Programmes

3.

FLAGSHIP INITIATIVES
HRDF Conference & Exhibition
Human Resource Development Award
National Human Resources Standards

TVET in Malaysia
WAY FORWARD ON TVET: ELEVENTH MALAYSIA
PLAN, 20162020

AREA 1
Improve the
efficiency of the
labour market to
accelerate
economic growth

AREA 2

Transform TVET
to meet
industry
demand

AREA 3

AREA 4

Strengthen
lifelong
learning for
skills
enhancement

Improve the
quality of the
education
system for better
student
outcomes and
institutional
excellence

TVET: Strategies
The Eleventh Plan focuses on 3 Main
Strategies

1
Strengthe
ning the
Governan
ce of
TVET

Strategy
2:
Enhancing
the
Quality of
TVET
Programm
es and
Delivery

Strategy
3:
Enhancin
g TVET
branding
to
increase
its
attractive
ness

HRDF & TVET in

Malaysia
HRDF: Recognition of Prior
Learning(RPL) Scheme
Introduced by HRDF in 2009.

RPL Scheme enables workers to get

recognition on their skills and
competency according to the level
determined by the Department of Skills
Development (DSD).
It is also to support the effort by the
Ministry of Human Resources (MoHR) in
implementing Malaysia Skills
Certification (SKM) through RPL scheme.
This scheme will also encourage workers
with skills and experience to apply for
the Malaysia Skills Certification (SKM),
Malaysia Diploma Skills (DKM) or
Malaysia Advanced Diploma Skills
(DLKM) according to their competency

TO DATE:
RM3.1millio
n financial
assistance
&
3, 516
training
places

HRDF: Industrial Training

Scheme

This scheme enables employers

to obtain financial assistance
from HRDF at the rate of 100%
if the employer sponsors
students from universities,
colleges or training institutions
for practical training at their
premise for a minimum of 3
months and a maximum of 8
months
The objective of this scheme is
to expose students to work
experiences as well as ethics at
the workplace and also to

Monthly
allowances for
trainees up to
a maximum of
RM500 per
trainee

HRDF: Apprenticeship
Scheme

The purpose of this scheme is to

increase the supply of skilled workers
to the industry; jointly determined by
HRDF and the industry concerned.
The targets are Malaysian school
leavers and dropout students.

The training is a combination of

theory and practical at approved
training centers with emphasis on
practical and structured on-the-job
training at the premises of sponsoring
employers.
Upon successful completion of
training, apprentices will be awarded
the Malaysian Skills Certificate Level
1, Level 2 and Level 3( based on
programme) by the Department of
Skills Development and

TO DATE:
RM43 million
training fee to
train 3,815
apprentices
RM14 million in
apprentices
allowance
80% of
apprentices were
employed within
6 months of

HRDF: SME Training Partners

(SMETAP) Scheme

HRDF collaborates with training providers such as the Industrial

Training Institutes; Centre for Instructor and Advanced Skills
Training; Advanced Technology Training Centre; and National
Institute of Occupational Safety and Health to provide 100%
financial assistance in collaboration for technical programmes
such as:
1. Business Finance For SME Entrepreneurs & Managers
2. Certificate In Industrial Relations
3. Coaching & Mentoring For Performance Improvement
4. Customer Relationship Skills
5. Effective Sales Strategies Programme
6. Evaluation On Effectiveness Of Training
7. Expanding Your Market Programme
8. IT Security Management
9. IT Security Practices
10.Problem Solving & Creativity
11.Train The Trainer
12.Web Designing

Thank You
Mr. Muhammad Ghazali Abdul Aziz