Malaysia: Expansion of the Pembangunan Sumber Manusia Berhad (PSMB) ACT 2001

March 16, 2021
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The Pembangunan Sumber Manusia Berhad (PSMB), also known as the Human Resources Development Fund (HRDF) is broadening its access by expanding the coverage of the PSMB Act 2001 from 1 March 2021.

The expansion is a crucial step towards the overall development of Malaysia’s workforce, increasing the number of available skilled local workers. These workers will enjoy training opportunities as part of the initiative.

The levy collected is allocated for an additional training budget that employers can use to promote, develop and upgrade the skills of local workers, apprentices and trainees via training grants.

After completion of the training,  employers can claim the costs via grant disbursements from the Human Resource Development (HRD) levy.

The registration of HRDF employers under the new industries takes effect from 1 March 2021.

Employers of the new sectors outlined below will be given an exemption of HRD levy for 3 months under the PSMB Act 2001, from 1 March to 31 May 2021.

The list of industries covered:

Employers who previously were not eligible to register with HRDF or had their HRDF application rejected because it was not subject to the Act prior 1 Mar 2021  may be subject to the Act now and liable to pay the HRDF levy. Employers who received a letter from HRDF identifying them as liable to register with HRDF must respond by filling in Form 1 through the HRDF online application and submitting it within 30 days from the date of the letter. Failure to comply within such period is an offense under the Act.

Click here for a

  • Checklist for Registration of Employers under PSMB Act 2001
  • Step-by-Step guide on registration of employers
  • Frequently asked questions (FAQs)
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