Required certification · Malaysia
HRD Corp
Training-levy registration for employers under the PSMB Act 2001
Market position
HRD Corp (Pembangunan Sumber Manusia Berhad) collects the human resources development levy under the Pembangunan Sumber Manusia Berhad Act 2001 and uses it to fund training for registered employers. The Act's coverage was extended to further industries from 1 March 2021. The minister said in August 2025 that over 100,000 employers and 4.8 million employees were registered, NST reported.
Malaysia-specific note
Employers with 10 or more employees in a covered industry must register with HRD Corp and pay the monthly levy, which registered employers can then draw on for training. Since the March 2021 expansion covered further industries, a growing contractor should check whether it has passed the threshold. In September 2026 the High Court dismissed a Malaysian Bar challenge to the levy, NST reported.
Pros
- + The levy can fund training for the employer's own staff
- + Registered employers can use 'HRD Corp claimable' training programmes
- + HRD Corp approved RM2.62 billion of financial assistance in 2025, NST reported
Cons
- − Registration is compulsory at 10 or more employees in covered industries
- − The levy is a monthly cost based on wages
- − Management changed in 2026 after PAC and MACC findings, news reports say
Typical Malaysia pricing
Levy rates are set under the PSMB Act 2001 and published by HRD Corp; its website could not be read in this check, so no rate is stated here.
Why this matters for Malaysia trades
Under Act 520, every local and foreign contractor must register with CIDB (the Construction Industry Development Board), which grades contractors G1 to G7 with works limits from RM200,000 (G1) to no limit (G7), issues the SPKK certificate for government works and registers construction workers, site supervisors and project managers through the Green Card; working unregistered risks a fine of RM10,000 to RM100,000. LHDN/IRBM runs income tax, employers’ monthly PCB/MTD deductions and the MyInvois e-invoicing system. SSM (the Companies Commission of Malaysia) registers businesses, companies and LLPs; under Act 138 only a Professional Engineer or engineering consultancy practice registered with the Board of Engineers Malaysia (BEM) may submit engineering plans to an authority; and employers must register with and pay monthly contributions to EPF/KWSP and to SOCSO/PERKESO (including EIS), with HRD Corp registration and levy required at 10 or more employees in covered industries.
Malaysian construction and trades software selection is shaped by MyInvois, the national e-invoicing system run by LHDN/IRBM (the Inland Revenue Board), rolled out in phases by turnover from August 2024. Businesses with turnover up to RM5 million entered on 1 January 2026, but under LHDN’s e-Invoice Guideline of 30 August 2026 those below RM3 million are exempt unless a shareholder company, holding company, related company or joint venture has turnover of RM3 million or more, and an interim relaxation for the up-to-RM5 million phase runs to 31 December 2027, allowing consolidated e-invoices for taxpayers who meet its conditions. AutoCount, SQL Account, Bukku and other local accounting and ERP vendors listed here say they submit e-invoices to MyInvois. Add the Ringgit (MYR), SST, CIDB contractor grading from G1 to G7, and monthly EPF, SOCSO, EIS and PCB payroll deductions, with LHDN publishing a list of payroll software whose PCB calculation meets its specification.
Frequently asked
Is HRD Corp a good fit for Malaysia trades?
HRD Corp (Pembangunan Sumber Manusia Berhad) collects the human resources development levy under the Pembangunan Sumber Manusia Berhad Act 2001 and uses it to fund training for registered employers. The Act's coverage was extended to further industries from 1 March 2021. The minister said in August 2025 that over 100,000 employers and 4.8 million employees were registered, NST reported. Employers with 10 or more employees in a covered industry must register with HRD Corp and pay the monthly levy, which registered employers can then draw on for training. Since the March 2021 expansion covered further industries, a growing contractor should check whether it has passed the threshold. In September 2026 the High Court dismissed a Malaysian Bar challenge to the levy, NST reported.
What does HRD Corp cost in Malaysia?
Levy rates are set under the PSMB Act 2001 and published by HRD Corp; its website could not be read in this check, so no rate is stated here. Pricing and availability can change by region; confirm current Malaysia pricing on the vendor's site before committing.