Human Resources Development Fund Ministry of Human Resources, Malaysia

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1 PEOPLE, PROWESS, PROGRESS Human Resources Development Fund Ministry of Human Resources, Malaysia 2018 Human Resources Development Fund (HRDF) All right reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without the permission of the copyright owner.

2 MILESTONES Amendments and Expansion of PSMB Act 2001 HRDF streamlined its eligibility criteria to Malaysian employers across all subsectors with the Manufacturing, Services, Mining and Quarrying sectors Establishment of Human Resource Development Council (HRDC) - Aim of developing quality human capital and world-class workforce Establishment of NHRC To enhance the competencies; capabilities; and productivity of SMEs HRDF was incorporated on 17 April 2001 to promote greater operational flexibility to enable better responsiveness Establishment Year Human Resources Development Act 1992, now known as the Pembangunan Sumber Manusia Act 2001 Expansion of PSMB Act June 2014, HRDF expanded the PSMB Act 2001 adding Mining & Quarrying sector and 19 new sub-sectors PEOPLE I PROWESS I PROGRESS Page 2

3 VISION To be the human capital development authority in strengthening the economic development of Malaysia MISSION Spearheading the human capital learning and development through strategic interventions that fulfil the current and future needs of the industry VALUES Integrity Customer Focus Continuous Improvement Accountability PEOPLE I PROWESS I PROGRESS Page 3

4 COVERAGE OF PSMB ACT 2001 MANUFACTURING SERVICE MINING AND QUARRY PEOPLE I PROWESS I PROGRESS Page 4

5 COVERAGE OF PSMB ACT 2001 Services Manufacturing Mining & Quarrying 38 SUB-SECTORS 23 SUB-SECTORS 2 SUB-SECTORS 63 SUB-SECTORS 8,208 REGISTERED EMPLOYERS 11,173 REGISTERED EMPLOYERS 106 REGISTERED EMPLOYERS 23,952 REGISTERED EMPLOYERS 967,151 EMPLOYEES COVERED 1,064,771 EMPLOYEES COVERED 18,340 EMPLOYEES COVERED 2,224,753 EMPLOYEES COVERED As At 31 August 2018 PEOPLE I PROWESS I PROGRESS 5

6 LIST OF SUB-SECTORS COVERED UNDER THE PSMB ACT 2001 Manufacturing Sector 1. Electrical and Electronic 2. Metal Product 3. Mineral Product 4. Food and Beverages 5. Transport Equipment 6. Plastic 7. Wood & Wood based and Cork 8. Machinery 9. Industrial Chemicals 10. Paper and Pulp 11. Iron and Steel 12. Rubber Product 14. Furniture and Fixtures 15. Printing and Publishing 16. Textile and Apparel 17. Petroleum and Coal 18. Optical and Photography 19. Glass and Glass Product 20. Petroleum Refinery 21. Footwear 22. Ceramic 23. Tobacco 24. Leather Mining and Quarrying Sector 1. Petroleum and gas extraction 2. Mineral and stone quarrying PEOPLE I PROWESS I PROGRESS 6

7 LIST OF SUB-SECTORS COVERED UNDER THE PSMB ACT 2001 Service Sector 1. Energy 2. Hypermarket/Supermarket/Departmental Store 3. Direct Selling 4. Commercial Land Transport and Railway Transport Services 5. Warehousing Services 6. Port Services 7. Hotel Industry 8. Freight Forwarding 9. Shipping 10. Air Transport 11. Tour Operating Business (In-bound only) 12. Postal or Courier 13. Telecommunication 14. Research & Development 15. Engineering Support & Maintenance Services 16. Security Services 17. Computer Services 18. Advertising 19. Private Hospital Services 20. Higher Education 21. Training 22. Gas, steam and air-conditioning supply 23. Water treatment and supply 24. Sewerage 25. Waste management and material recovery services 26. Food and beverage services 27. Production of motion picture, video and television programme, sound recording and music publishing 28. Information service 29. Tourism enterprise 30. Building and landscape services 31. Event management services 32. Early childhood education 33. Health support services 34. Franchise 35. Sale and repair of motor vehicles 36. Private broadcasting services 37. Driving school 38. Veterinary services PEOPLE I PROWESS I PROGRESS 7

8 REGISTRATION CRITERIA Sector: 1) MANUFACTURING 2) SERVICE 3) MINING & QUARRYING NO. NUMBER OF EMPLOYEES PAID-UP CAPITAL (RM million) MANDATORY / OPTIONAL and more Employees - Mandatory (1%) 2. 5 to 9 Employees - Optional (0.5%) PEOPLE I PROWESS I PROGRESS Page 8

9 Falsafah LEVY GRANT SYSTEM PEOPLE I PROWESS I PROGRESS 9

10 How it works? PSMB LEVY TRAINING GRANT EMPLOYER 0.5 / 1 % x employees monthly wages (Malaysian citizens) PEOPLE I PROWESS I PROGRESS 10

11 Definisi Bantuan Geran Latihan Definition of Training Grant Assistance GERAN LATIHAN ADALAH BANTUAN KEWANGAN UNTUK MENAMPUNG SEBAHAGIAN BESAR KOS LATIHAN TRAINING GRANT IS A FINANCIAL ASSISTANCE TO COVER A SUBSTANTIAL AMOUNT OF TRAINING COSTS FLOW CHART FOR FINANCIAL ASSISTANCE: Employer plans training programme for employees Employer apply TRAINING GRANT with PSMB Employer conducts training programme Employer submits claim to PSMB for reimbursement PEOPLE I PROWESS I PROGRESS 11

12 Bidang Latihan SKILLS AREA 200, ,000 2 nd highest training places approved according to skill areas 100,000 50,000 0 Training Places 2017 Training Places 2018 PEOPLE I PROWESS I PROGRESS 12

13 KEY FINDINGS FROM THE EFFECTIVENESS STUDY ON HRDF 24% % of firms that train T RTARIANIIN NIGN G HRDF-REGISTERED FIRMS TRAIN MORE & TRAIN A HIGHER SHARE OF WORKERS * BY SECTOR HRDF-Registered firms share of 19% Share of workers trained workers than Construction A firm s likelihood of providing training train higher Agriculture HRDF-Registered firms train more than Registered with HRDF Not covered Finance Construction Agriculture Source: Worldbank Group Firms not covered by HRDF train less share of workers, except for the Finance Sector I IMMPPA A CCTT HRDF S TRAINING CONTRIBUTES TO PRODUCTIVITY, UP-SKILLING & HIGHER WAGES 3% Increase in productivity HRDF trainings resulting promotions from unskilled to skilled job LARGER WAGE BILL, HIGHER WAGES FOR TRAINED WORKERS * Source: Worldbank Group 1 Page 13 PEOPLE I PROWESS I PROGRESS

14 Northern Branch Tingkat 2, Wisma PERKESO, Lebuh Tenggiri , Seberang Jaya, Pulau Pinang. Tel : (04) / Fax : (04) Perak Branch Level 19, Perak Techno Trade Centre, Jalan Jelapang, Bandar Meru Raya Ipoh Perak East Cost Branch Wisma PERKESO, Tingkat 1, Jalan Mat Kilau Kuantan Pahang Darul Makmur Tel : (09) / Fax : (09) HEADQUARTERS Pembangunan Sumber Manusia Berhad ( D) Wisma HRDF Jalan Beringin, Damansara Heights 50490, Kuala Lumpur. Toll Free Line General Line: (03) General Fax: (03) Website: I Tel: (06) Fax: (06) Melaka Branch Lot 4-04, Wisma UTC, Jalan Tan Chay Yan, Off Jalan Hang Tuah Melaka. Tel: (06) Fax: (06) Sabah Branch Lot B5, Tingkat 5, Bangunan KWSP, 88598, Kota Kinabalu Sabah. Johor Branch No. 50 & 50-01, Jalan Setia 3/7, Taman Setia Indah 81100, Johor Bahru Johor. Tel : (07) Fax : (07) Sarawak Branch Wisma PERKESO Level 4, Lot 436, Section 54, No. 52 Travilion Commercial Centre Padungan Kuching, Sarawak. Tel : (082) / Fax : (082) Tel : (088) / Fax : (088)

15 PEOPLE, PROWESS, PROGRESS THANK YOU