Malaysia uses the Human Resources Development-Fund (HRDF) claimable training as the main tool for realizing its vision of being one of the most developed countries by 2020. Malaysia decided to emphasize skill development and training of the country’s workforce by using HRDF claimable training. In the late 1900s, they even implemented HRDF and its claimable training. Furthermore, the aim was to keep the working population up-to-date and equipped to handle the increasingly complex and automated production systems.
As a part of this initiative and under the Pembangunan Sumber-Manusia Berhad Act-2001 (PSMB Act-2001), a list of curated training schemes are offered for employees to participate in. There are different types of HRDF claimable training provided by Malaysia.
This scheme is the most important funding scheme under the PSMB allows an employer to provide part-time or full-time training to his employees. In fact, the employer may analyze and identify the training needed by his employees and engage trainers from all over the world. However, PSMB’s Secretariat must provide approval before the program commences.
This scheme is for employers on an economic backfoot who can use the existing balance of their HRDF levy to continue training their workforce. So that they can develop their skills as well as rise the company internal financial. In addition, the employers may or may not need to pay a small cost in accordance with the financial assistance required on claimable training. PSMB adjusts the amount directly from levy accounts of the company with the employer’s authorization. This scheme also requires prior approval.
On the other hand, this does not require the approval of PSMB. In fact, the company can simply send their respective employees for HRDF training (claimable) and apply for reimbursements afterward. This is subject to PSMB’s terms and conditions which include that the trainer must register with PSMB and submit their relevant training for ATP (Approved-Training-Programmes) status consideration.
Basically, this scheme requires the employer to provide annual training-plans. For instance, it ensures employees get regular training for skill development and stay updated. Likewise, PSMB assists companies to come up with the mentioned plan through the Juruplan Scheme (Consultancy-Scheme for Training-Needs Analysis).
Basically, this is a discount system where the PSMB registered trainer can claim the subsidized amount from PSMB. Employees are required to pay either a small percentage or zero payment for training. Above all, this scheme was mainly adopted to give provision to smaller employers and low-income employees.
It is more focused on encouraging employers to have in-house training by subsidizing the training equipment cost. During the previous year, the PSMB allows a list of equipment that allows the employer to purchase anything and claim 80 percent financial support and provided a maximum of 20 percent levy is paid.
As a conclusion, HRDF comes many kinds of claimable training. The company must decide on which training courses are suitable for their employees. HRDF and the HRDF claimable training have been instrumental in the development of the Malaysian workforce till now. These training courses ensure employees skills are up-to-date.