Following investigations by the Regulatory and Enforcement Department of the Ministry of Human Resources and the Human Resources Development Fund (“HRDF”), more than 7,000 Malaysian employers are in the process of being compounded for failing to register with the Fund as required under the Pembangunan Sumber Manusia Berhad (“PSMB) Act 2001.

Earlier this year, the Minister of Human Resources YB M Kula Segaran requested all liable employers to register with HRDF. “According to the law, they have already committed the offence. But going to court will be our last resort. So, employers who might have overlooked registering with the HRDF are advised to do so.”

For the past few months, the HRDF has started taking action against liable employers who have avoided registering with the Fund. These employers can face a maximum fine of RM10, 000 or a maximum one-year jail term or both. As of 2 November 2018, the Fund has identified close to 17,000 employers who are potentially liable to register with it.

“In this instance, the HRDF urges all employers to view the Fund as a means to achieve a shared prosperity for employers and employees in the pursuit of a developed Malaysia. The Fund hopes that every Malaysian employee is aware that continuous learning is the key to keeping or re-gaining a good job.

“Learning and development could bring considerable benefits both to the employee and the business in which they are employed,” continued the Fund.

Employers from 63 subsectors from manufacturing, services and mining & quarrying sectors are required to pay a Human Resources Development levy to promote the training and development of their Malaysian employees, apprentices and trainees.

To find out if you are a liable employer, you can check your eligibility on the HRDF’s website - www.hrdf.com.my by filling out Form 1A under the tab “Registration of Potential Liable Employer”.