HRD Corp Sets New Record in Levy Collection
Record High Levy Collection in 2024
The Human Resource Development Corporation (HRD Corp) collected a record RM2.3 billion in levies last year, said Human Resources Minister Steven Sim Chee Keong. This marks a significant increase from the RM2.1 billion collected in 2023. The minister explained that the corporation is not only responsible for collecting levies but also ensuring their utilization.
Efficient Utilization of Levy Funds
Sim emphasized that HRD Corp is committed to ensuring that the levies are used for their intended purpose, which is to upskill and reskill the workforce. He noted that RM2.27 billion of the total levy collected last year was approved for use, reflecting a nearly 30% increase from RM1.7 billion in 2023. This indicates that HRD Corp has been successful in disbursing levy claims efficiently, with 85% of claims being paid out last year, a 30% increase compared to 2023.
Streamlining Services
The minister also shared the corporation’s goal to streamline its services by expediting levy grant approval times to one hour this year and cutting levy payment processing time from seven days to three days. This is a significant improvement from last year’s expedited approval process, which was reduced from seven days to just 24 hours.
Ongoing Probe into HRD Corp
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. The investigation was launched in July 2024 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. Additionally, the Public Accounts Committee revealed that HRD Corp had diverted RM3.77 billion in levy funds, originally intended for training programmes, towards investment activities.
Conclusion
In conclusion, HRD Corp has set a new record in levy collection, indicating a significant increase in the corporation’s efforts to upskill and reskill the workforce. The corporation’s goal to streamline its services will likely improve the efficiency of its operations and ensure that levy funds are utilized effectively.
Frequently Asked Questions
Q: What is HRD Corp’s role in levy collection?
A: HRD Corp is the trustee of the levy collected from employers, responsible for ensuring the levies are used for their intended purpose.
Q: What is the goal of HRD Corp’s streamlined services?
A: The goal is to expedite levy grant approval times and reduce levy payment processing time, ensuring that funds are utilized efficiently.
Q: What is the outcome of the ongoing probe into HRD Corp by the Malaysian Anti-Corruption Commission (MACC)?
A: The ministry is still awaiting the investigation report, but the probe is expected to address concerns regarding the corporation’s operations and utilization of levy funds.