HRD Corp chairman Abu Huraira Abu Yazid acknowledged the company’s shortcomings and confirmed that employer levies should exclusively fund employee training.
PETALING JAYA: The Human Resource Development Corporation (HRD Corp) has undergone substantial reforms this year, guided by the human resources ministry to enhance corporate governance, chairman Abu Huraira Abu Yazid said.
These reforms include the creation of a separate strategic initiative account to improve transparency and efficiency in financial management.
In response to reports by the auditor-general (A-G) and the Public Accounts Committee (PAC), Huraira acknowledged HRD Corp’s shortcomings and confirmed that employer levies should exclusively fund employee training.
“The separation of the accounts further strengthens the process to ensure that levies collected from employers are used solely for training registered employees,” he said.
Abu Huraira Abu Yazid.
This new account, funded by HRD Corp’s accumulated profits, aims to support training programmes for SMEs, micro-SMEs, and underserved communities, he said.
Earlier today, the PAC revealed that HRD Corp had previously invested a significant portion of collected levies in high-risk ventures, which could result in substantial losses.
These investments involved transferring unutilised levies, unused by employers within two years, to an “unutilised” account.
The 2024 auditor-general’s report also stated that HRD Corp is owed a total of RM205 million in mandatory levies by more than 21,000 employers.
Huraira said internal processes for securing investment approvals have been tightened, involving an investment panel comprising experienced board members and an empowered treasury division conducting due diligence on all investment decisions.
He also said HRD Corp has simplified and encouraged more levy utilisation by employers, now allowing funds to be used for international training services from providers such as Google, LinkedIn, Microsoft and Udemy.
“Additionally, 50% of the levy balance can be used to upgrade in-house training facilities and pay internship allowances,” he said.
Huraira also said HRD Corp’s levy collection has seen significant growth, from RM475 million in 2020 to RM2.13 billion in 2023, with the utilisation rate increasing from 63% to 71% during the same period.
Source link
