HRD Corp Levy - Why Should Employers Send Their Workforce to Attend Training

What Is Employee Training and Why Does It Matter?

Training is the process of improving employees’ skills, knowledge, and capabilities to perform their job better. This can include:

• Technical training (e.g., Microsoft Excel, electrical maintenance)

• Soft skills development (e.g., communication, teamwork, leadership)

• Job-specific training (e.g., forklift operation, procurement, safety compliance)

In simpler terms:

Training = Learning how to do something better at work.

Just like a car needs regular fuel and maintenance to run smoothly, your employees need regular training to stay effective, efficient, and forward-thinking.

Top Reasons Employers Should Send Their Workforce for Training

Here’s why smart employers across Malaysia are sending their staff for training using the HRD Corp levy:

1. Improve Job Performance
   Trained employees work more confidently, make fewer errors, and increase productivity.

2. Adapt to Change
   With new technologies and regulations constantly emerging, training helps your team stay updated and prepared.

3. Ensure Regulatory Compliance
   Especially important in industries governed by laws such as Occupational Safety & Health, Labour Regulations, or E-Invoicing.

4. Boost Employee Motivation & Retention
   Staff who receive training feel more valued and are more likely to stay loyal to your company.

5. Gain a Competitive Edge
   Skilled teams are more innovative and give businesses a strong advantage over competitors.

Understanding the HRD Corp Levy – What’s in It for Employers?

Under the PSMB Act 2001, all eligible employers in Malaysia are required to contribute to the HRD Corp levy. In return, these employers gain access to:

✅ Fully claimable training programs for local employees
✅ Financial assistance to develop technical and soft skills
✅ Tax-deductible contributions under the Income Tax Act 1967

This government initiative encourages organizations to train, upskill, and retain local talent without incurring high out-of-pocket costs.

Invest in Your People, Reap Business Growth

Whether you’re managing a factory, an office, or a retail chain—your people are your greatest asset. When you empower them through training, they repay you with loyalty, productivity, and innovation.

Thanks to the HRD Corp claimable training programs, you now have the support you need to build a high-performing workforce without stretching your budget.