HRDF pool fund initiatives suspended

> Programmes to be reviewed amid claims of discrepancies

PETALING JAYA: The embattled Human Resource Development Fund (HRDF) has suspended several strategic initiatives under its 30% consolidated fund to pave the way for a review, amid allegations of discrepancies.

Of the 1% levy HRDF collects from companies with more than 10 employees and 0.5% contributed by businesses with between five and nine employees, 70% is claimable for training purposes, while 30% is held under a consolidated fund for common use regardless of contribution, for specific programmes.

The levy covers 63 sub-sectors in the services, manufacturing as well as mining and quarrying.

One programme in particular under the consolidated fund allocation, known as the Industrial Based Certification Programme (Inbase), has drawn more flak than others from stakeholders.

A HRDF circular dated June 12, sighted by SunBiz, showed that programmes such as the Outplacement Centre, Train and Replace, Graduate Enhancement Programme for Employability(Generate), Rural Accelerated Industrial Skill for Employment (Raise), Small and Medium Enterprises (SMEs) UpSkilling and Re-Skilling Programme, Recognition of Prior Experiential Learning (RPEL) have been suspended.

The SBL-Khas Incentive to Support Large Employers with Insufficient Levy Balance is maintained for the time being.

“The reason for the suspension of the (programmes under) consolidated fund, is to enable HRDF to review the policies, procedures and the implementation mechanism of the Consolidated Fund for improved effectiveness and transparency; benefiting all our stakeholders,” HRDF said.

Allocations for the fund from the levy, however, continue.

In 2017, some RM712 million was collected in levies, of which RM480.46 million was disbursed. Total disbursements from the consolidated fund amounted to RM198.316 million last year.

Malaysian Training Providers Association (Matpro) president Dr Abdul Kabur Ibrahim told SunBiz that he suspects Inbase may have been allocated a larger portion from the consolidated fund, citing that funds for another popular programme, Raise, have dried up since March, whereas funds are still available for Inbase.

“HRDF should review the 30% pool fund allocations and ensure it is fairly allocated according to the needs of the industry and the contributors. The allocations under Inbase have to be reviewed and justified. Only those deserving associations should be given (the allocation). Allocations given to shady and newly registered association should be cancelled and distributed to other schemes such as Raise, digital skills and generate,” he said.

“Some schemes such as Harvard Managementor, SME@University and Myfuture, should be withdrawn. More concentration should be given to programmes that serve the national agenda and the needs of the contributors,” he added.

Abdul Kabur called on HRDF to be more transparent by making available on its website information on successful bidders for training programmes and allocations made.

Meanwhile, Malaysian Employers