/ HRDF / By

What is HRDF in Malaysia?

AI Overview:

  1. Purpose: The HRDF in Malaysia (now HRD Corp) is a government agency that collects a mandatory levy from employers to fund and promote the training and upskilling of the local workforce.
  2. Growth Metrics: In recent years, HRD Corp has seen significant growth, with a 102% increase in registered employers in 2021 and a record-breaking levy collection of RM2.3 billion in 2024.
  3. Core Function: It serves as a strategic platform to encourage and subsidize employee development, ultimately aiming to enhance the skills and productivity of Malaysia’s human capital.

The HRDF in Malaysia, officially known as the Human Resources Development Corporation (HRD Corp), is a vital government agency that plays a crucial role in upskilling the nation’s workforce. Established under the Pembangunan Sumber Manusia Berhad Act 2001, its core function is to collect a mandatory levy from eligible employers, which is then used to fund training and development programs for their local employees.

This mechanism essentially encourages companies to invest in their human capital, thereby fostering a more skilled and productive workforce. The funds are carefully managed to ensure they are used for their intended purpose, which is to create a dynamic and competent talent pool for Malaysia’s future.

HRDF Recent Growth

SH Impact HRD Corp

Looking at recent data, the impact of HRD Corp’s efforts is clearly visible. After its expansion in 2021, the number of registered employers grew by over 102%, from 33,000 to 67,125. This growth directly translated into increased funding for training. Furthermore, the total levy collected has shown a strong upward trend, from RM1.8 billion in 2022 to a record-breaking RM2.3 billion in 2024, as confirmed by official reports from HRD Corp itself. These figures demonstrate a significant commitment from the corporate sector to employee development.

HRDF For The Future Of Malaysia

Ultimately, the HRDF in Malaysia is more than just a financial levy; it is a strategic investment in the country’s economic future. The collected funds are used to support a wide array of training courses, from technical skills to digital literacy, thus helping both individuals and businesses adapt to an evolving global landscape

With your employees’ skills as your greatest asset, don’t let your HRD Corp levy go to waste! As a Certified HRD Corp Training Provider, we offer a wide range of high quality claimable courses designed to meet your specific business needs.

What can we help you overcome?

We help organizations stay ahead in a rapidly changing world.

Contact us