Kesuma and HRD Corp's latest enhancements to the Allowable Cost Matrix empower employers and their employees with greater flexibility in training costs and claims, fostering skills development across Malaysia's workforce.
KUALA LUMPUR: Human Resources Minister Steven Sim Chee Keong announced the latest key enhancements to the Allowable Cost Matrix (ACM), guiding HRD Corp-registered employers and training providers in navigating claimable costs, maximum claims and eligibility for various training programmes through the human resource development levy.
Aimed at strengthening Malaysia’s skills development efforts, the enhancements included the adjustment to training course fees to be claimable based on hourly rates instead of the previous half-day or daily rates.
Sim also revealed an increase in the ceiling for course fees, up to RM1,500 per hour or RM10,500 per day, compared to the previous RM6,000 per day, marking an increase of more than 50% from the earlier rate.
Industry players and training providers have lauded the move by the Human Resources Ministry (Kesuma) and HRD Corp, as many believe it will provide employers and their employees with greater flexibility while supporting the growth of the training industry.
'The new fee structure allows employers more flexibility to conduct training programmes including professional development courses and more flexible modular courses,' said Syed Hussain.
Employers and industry associations
Malaysia Employers Federation (MEF) president Datuk Dr Syed Hussain Syed Husman said, “MEF welcomes and supports initiatives by Sim on enhancements to HRD Corp’s allowable cost matrix.
“The new fee structure allows employers more flexibility to conduct training programmes including professional development courses and more flexible modular courses.
“We also believe that the increase to the ceiling of HRD Corp training fees would enable employers to conduct more high-quality and high-value training programmes that meet employers’ requirements.”
SME Association of Malaysia national president Chin Chee Seong applauds Kesuma and HRD Corp for these forward-looking initiatives that will support the continuous development of the Malaysian SME workforce.
Chin said, “The introduction of hourly-based claims for training programmes is particularly beneficial for SMEs, as it ensures that training can be done without disrupting daily operations, resulting in more cost-effective and targeted upskilling efforts.
“The increase in the ceiling for claimable course fees allows employers to access higher-quality and premium courses that would previously have been inaccessible, fostering greater competitiveness in local and global markets.”
Azman Shah believes the initiative aligns with the evolving needs of the modern workforce.
Training and coaching community
Malaysian Bumiputera Training Provider Association (MBTA) president Azman Shah Aziz believes the initiative aligns with the evolving needs of the modern workforce and highlights the ministry’s commitment to fostering a flexible and high-quality learning ecosystem in Malaysia.
Azman Shah shares, “This flexibility is critical in today’s fast-paced, skills-driven market where short, targeted training programmes are becoming increasingly valuable while the increase in daily claimable rate ensures that employers can access a wider selection of top-tier training programmes while also supporting training providers in delivering premium services.
“As an association representing a wide spectrum of training providers across Malaysia, MBTA is excited to collaborate with HRD Corp in implementing these updates.
“We believe these changes will reinforce the quality and variety of training offerings available to Malaysia’s workforce, ultimately contributing to the nation’s overall competitiveness in the global market.”
'The IAC believes that these new enhancements will pave the way for the successful implementation of the new course structure for certified coaches in the near future,' said Bavani.
International Association of Coaching (IAC) Malaysia’s chapter leader Bavani Periasamy highlights that it is good news for the coaching fraternity and welcomes the recent amendments to the ACM.
Bavani adds, “IAC is thankful to HRD Corp and Sim for listening to us and the unique needs of the coaching fraternity.
“The IAC believes that these new enhancements will pave the way for the successful implementation of the new course structure for certified coaches in the near future.
“Such developments will undoubtedly benefit both coaches and clients by promoting higher standards of coaching practices and enabling organisations to invest in quality coaching for their teams.”
'We believe that this is a solid positive step by Kesuma and HRD Corp that will support Malaysia’s human capital development aspirations in the long term,' said Prof Abdul Kabur.
Malaysian Association of Training Providers (MATPRO) president Prof Dr Abdul Kabur Ibrahim believes that the enhancements to the ACM will galvanise the training community as they look forward to providing more high value training programmes for the Malaysian workforce.
Prof Abdul Kabur explains, “At MATPRO we are committed to continuously upping the ante in our training quality and delivery.
“The enhancements to the ACM are great news for the training community as they provide us with greater ease and flexibility in claiming and encourage our members to diversify their service offerings with more local and international training programmes.
“We believe that this is a solid positive step by Kesuma and HRD Corp that will support Malaysia’s human capital development aspirations in the long term.”
Malaysian Association of Professional Speakers (MAPS) president-elect Sumathi Krishnan extends MAPS sincere gratitude to Sim and HRD Corp for actively listening to the voices on the ground and addressing the concerns of the industry.
She points out, “The recent enhancement in cost structures takes into account the rising cost of doing business, including factors such as Sales and Service Tax (SST), administrative fees, materials and staff costs.
“This enhancement is undoubtedly a welcome boost for training providers (TPs), ensuring we can continue to deliver high-quality training programmes in a sustainable manner.”
She adds, “We encourage TPs to consider these factors when remunerating their trainers, ensuring fair compensation that reflects the increased cost of delivering effective training. This positive development is an opportunity for both TPs and trainers to elevate their services and continue to meet the evolving needs of the market.”
