Kuala Lumpur: 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.
According to BERNAMA News Agency, RM2.27 billion of the total levy collected last year was approved for use, reflecting a nearly 30 percent increase from RM1.7 billion in 2023. Sim noted that HRD Corp successfully disbursed 85 percent of levy claims last year, ensuring that funds were fully paid to employers and training providers for training programmes, marking a 30 percent increase compared to 2023.
HRD Corp is committed to utilizing the levies for their intended purpose, which is to upskill and reskill the workforce. Sim emphasized that HRD Corp acts as the trustee of the levy collected from employers, ensuring that these funds are used effectively for training initiatives.
Additionally, Sim announced the corporation's objective to streamline services by expediting levy grant approval times to one hour this year and reducing 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 stated that 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. Furthermore, the Public Accounts Committee disclosed that HRD Corp had diverted RM3.77 billion in levy funds, originally intended for training programmes, towards investment activities.