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Under expansion of Pembangun Sumber Manusia Berhad (PSMB) Act 2001, all sectors are required to register with Human Resource Development Corporation (HRD Corp) as registered employer. Previously, those in services, manufacturing and mining & quarrying are mandatory to register. With the expansion of PSMB Act 2001, agriculture, construction and financial services have to register too.
HRD Corp, previously known as HRD Fund (HRDF) is a Malaysia government body under Ministry of Human Resources (MOHR). HRD Corp is responsible to driven Malaysia’s talent development aspirations through the collection of the levy from employers and the funding of training and development programs for the Malaysian employees.

This is only applicable for the employers with 10 or more Malaysian employees. Employers with 5-9 Malaysian employees are fall under optional category. Employer registered under HRD Corp is responsible to pay a monthly HRD levy of 1% from the employer’s monthly wages. This is only applicable to Malaysian employees.

The levy paid can be used to retrain and improve or upgrade the employee’s skills by sending them to training programs through the levy/grant system. To utilised the levy, training need to be conducted by HRD Corp registered training provider. For your info, Kosumy registered with HRD Corp as training provider.