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HRD Corp collects record RM2.3 billion levy, pledges faster fund disbursement | Scoop
Human Resources Minister Steven Sim Chee Keong delivers a speech at the 2025 HRD Corp Chinese New Year open house at SJK (C) Sin Ming yesterday. - Bernama pic, February 10, 2025
News

HRD Corp collects record RM2.3 billion levy, pledges faster fund disbursement

With levy approvals now in just 24 hours, the agency aims to accelerate workforce upskilling and reskilling efforts

Scoop Reporters
Updated
8:49 AM MYT

 

PUCHONG – The Human Resource Development Corporation (HRD Corp) collected a record RM2.3 billion in levies last year, surpassing the RM2.1 billion collected in 2023, said Human Resources Minister Steven Sim Chee Keong.

“Last year’s levy collection set a new record high at RM2.3 billion, compared to RM2.1 billion in 2023. Some may ask what the levy is used for. We are not here just to collect levies.

“We want to ensure it is utilised,” he said after HRD Corp’s Chinese New Year open house at Sekolah Jenis Kebangsaan (C) Sin Ming yesterday, as quoted by Bernama.

Sim added that RM2.27 billion of the total levy collected last year was approved for use, reflecting a nearly 30 per cent increase from RM1.7 billion in 2023.

He noted that HRD Corp successfully disbursed 85 per cent of levy claims last year, ensuring that funds were fully paid to employers and training providers for training programmes, a 30 per cent increase compared to 2023.

HRD Corp aims for faster processing

Sim emphasised HRD Corp’s commitment to ensuring the levies collected are effectively utilised to upskill and reskill the workforce.

“HRD Corp is the trustee of the levy collected from employers. We are committed to ensuring these levies are used for their intended purpose, which is to upskill and reskill our workforce,” he said.

He also outlined the corporation’s plans to enhance efficiency, targeting a reduction in levy grant approval times to just one hour this year while shortening levy payment processing from seven days to three days.

Last year, HRD Corp had already expedited the approval process for levy use from seven days to just 24 hours.

MACC probe into HRD Corp ongoing

On the ongoing Malaysian Anti-Corruption Commission (MACC) investigation into HRD Corp, Sim said the ministry is still awaiting the findings of the probe.

In July 2024, MACC launched an investigation following the 2024 Auditor-General’s Report, which highlighted concerns that certain HRD Corp decisions did not comply with procedures or safeguard the agency’s core functions.

Additionally, the Public Accounts Committee revealed that HRD Corp had diverted RM3.77 billion in levy funds, originally earmarked for training programmes, towards investment activities. – February 10, 2025

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