PUCHONG: Human Resource Development Corporation (HRD Corp) collected a record RM2.3 billion in levies last year, 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 told reporters after HRD Corp’s Chinese New Year open house at Sekolah Jenis Kebangsaan (C) Sin Ming today.
Sim added that RM2.27 billion of the total levy collected last year was approved for use, reflecting a nearly 30% increase from RM1.7 billion in 2023.
He noted that HRD Corp successfully disbursed 85% of levy claims last year, ensuring that funds were fully paid to employers and training providers for training programmes, a 30% increase compared to 2023.
“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,” said Sim.
He also shared the corporation’s goal to streamline its services by expediting levy grant approval times to one hour this year and cutting levy payment processing time from seven days to three days.
Last year, the approval process for levy use was expedited from seven days to just 24 hours.
Regarding the ongoing probe into HRD Corp by the Malaysian Anti-Corruption Commission (MACC), Sim said the ministry is still awaiting the investigation report.
In July 2024, MACC launched an investigation following findings in the 2024 Auditor-General’s Report, which revealed that some decisions made by HRD Corp allegedly 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 intended for training programmes, towards investment activities.
