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©2016 Human Resources Development Fund (HRDF)

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“We aim to be the

human capital

development authority

in strengthening the

economic

development of

Malaysia”

-PSMB Vision

PEOPLE | PROWESS | PROGRESS

26 April 2016

P e o p l e | P r o w e s s | P r o g r e s s

THE NATIONAL AGENDA ON HUMAN CAPITAL

DEVELOPMENT 1

HRDF POOL FUND 4

ISSUES & CHALLENGES TO MEET THE NATIONAL

AGENDA ON HUMAN CAPITAL DEVELOPMENT 2

HRDF‟S SOURCE OF POWER 5

WHY THE NEED FOR DIFFERENT APPROACH? 3


THE NATIONAL AGENDA ON

HUMAN CAPITAL

DEVELOPMENT 11th MALAYSIA PLAN: ACCELERATING HUMAN

CAPITAL DEVELOPMENT FOR AN ADVANCED

NATION

BUDGET 2016

CREATION OF MORE HIGH-SKILLED JOBS BY 2020

1


THE NATIONAL AGENDA ON HUMAN

CAPITAL DEVELOPMENT

CHAPTER 5: ACCELERATING

HUMAN CAPITAL DEVELOPMENT

FOR AN ADVANCED NATION

The Malaysian Government aims to

achieve 35% of skilled workers by Year

2020.

Creation of over 1.5 million new jobs by the Year

2020.


a. Strengthening Economic Resilience

b. Increasing Productivity, Innovation and Green

Technology

c. EMPOWERING HUMAN CAPITAL

d. Advancing the Bumiputera Agenda

e. Easing the Cost of Living of the Rakyat

FIVE(5) PRIORITIES


CAPITAL DEVELOPMENT



CAPITAL DEVELOPMENT

The three major occupational groups are skilled workers, semi-skilled and low-skilled. Skilled workers comprise managers, professionals and

technicians and associate professionals. Semi-skilled workers comprise clerical support workers, service and sales workers, skilled agricultural,

forestry and fishery workers, craft and related trade workers, and plant and machine operators and assemblers. Low skilled workers comprise

elementary occupations.

Source: Eleventh Malaysia Plan (2016 – 2020), Economic Planning Unit

• Skilled workers are projected to comprise 35% of the workforce by 2020.

• Existing industries will be encouraged to move up the value chain by investing in

high value added activities that require skilled workers

Creation of more high-skilled jobs


ISSUES & CHALLENGES TO

MEET THE NATIONAL

AGENDA ON HUMAN

CAPITAL DEVELOPMENT THE TENDENCY FOR EMPLOYERS TO OPT FOR NON-

TECHNICAL TRAINING

INCLINATION FOR EMPLOYERS TO SEND

EMPLOYEES FOR TRAINING IN THE FORM OF

CERTIFICATES OF ATTENDANCE

ACHIEVING NATIONAL AGENDA TO PRODUCE 35% OF

SKILLED WORKERS BY THE YEAR 2020

2


THE TENDENCY FOR EMPLOYERS TO OPT FOR NON-TECHNICAL TRAINING

THREE (3) SKILL AREAS CATEGORY WITH THE HIGHEST NUMBER OF APPROVED

FINANCIAL ASSISTANCE

THREE (3) SKILL AREAS CATEGORY WITH THE HIGHEST NUMBER OF APPROVED

TRAINING PLACES

SAFETY & HEALTH QUALITY &

PRODUCTIVITY

MOTIVATION &

TEAMBUILDING

110,111 92,951 77,443

MOTIVATION &

TEAMBUILDING

RM52.69 mill

SAFETY & HEALTH QUALITY &

PRODUCTIVITY

RM46.45 mill RM37.22 mill


AGENDA ON HUMAN CAPITAL DEVELOPMENT


INCLINATION FOR EMPLOYERS TO SEND EMPLOYEES FOR TRAINING IN THE

FORM OF CERTIFICATES OF ATTENDANCE

99%

1%

Level of Certification

Certificate of Attendance Professional Certificate






1,392 (10%)

1,013 (7%)

8,531 (52%)

8,927 (58%)

3,859 (28%)

5,352 (35%)

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2015 2016 2017 2018 2019 2020

Jo

bs t

o b

e c

rea

ted

(„0

00

)

JOBS BY SKILLED CATEGORY (2015 – 2020)

Low-skilled Semi-skilled Skilled

ACHIEVING NATIONAL AGENDA TO PRODUCE 35% OF SKILLED WORKERS BY

THE YEAR 2020


WHY NEED FOR DIFFERENT

APPROACH? EMPLOYER CENTRIC vs NATIONAL AGENDA

THE NEED FOR DIFFERENT APPROACH

HRDF‟S ROLE TO SUPPORT THE NATIONAL


3


EMPLOYER CENTRIC vs NATIONAL

AGENDA

Focusing on Business Plan / Activities

Company Performance Related

Business Sustainability

Business Productivity and Profitability EMPLOYERS

Employer

Centric

(Business

Perspective)

Advanced economy status by the year 2020

Transition of all economic sectors towards knowledge-intensive activities

Creation of more High-Skilled Jobs to Produce 35% of Skilled Workers

Promoting Investment to Spearhead Economic Growth

Inclusiveness Growth for Sustaining of Economic Development

National Agenda

(Macro

Level)

vs


THE NEED FOR DIFFERENT APPROACH

EMPLOYERS

LEVY PAYMENT Fulfilling

Business Needs

SUPPORT

NATIONAL

AGENDA

POOL FUND

COMPANY INDIVIDUAL ACCOUNT

MACRO LEVEL

BUSINESS PERSPECTIVE

BENEFITS TO THE INDUSTRY

MA

CR

O LEV

EL IN

TERN

VEN

TION


Support the National aspiration of having 35% skilled Malaysian workers by the year 2020.

Encourage existing employers to train their employees through certification programmes recognized by professional bodies.

Shifting Industry from Labour-Intensive to Knowledge-and-Innovation-Based Economic Activities

Assist industries in identifying training that suit their needs.

HRDF‟S ROLE TO SUPPORT THE NATIONAL AGENDA ON HUMAN CAPITAL DEVELOPMENT


HRDF POOL FUND CONCEPT

IMPLEMENTATION


MECHANISM

GOVERNANCE

4


HRDF POOL FUND - CONCEPT

SINGAPORE

MAURITIUS

The Singapore Workforce Development Agency (WDA) was established in

September 2003.

The objective of WDA is to lead, drive and champion workforce development,

enhancing the employability and competitiveness of Singapore’s workforce.

The Human Resource Development Council (HRDC), operating under the

aegis of the Ministry of Education and Human Resources, was set up as a

corporate body in November 2003.

HRDC has been vested with the responsibility to look after and promote the

development of the labour force in Mauritius in line with the requirements of a fast

growing economy.

• The HRDF Pool Fund is sourced from the employers’ individual HRD fund accounts and to

be used especially to implement certification or development programmes or activities that

correspond with the Government strategic directions / agenda and the advancement of

technology, system and processes within the industries in order to enhance the employers’

level of competitiveness

• Among the countries that have implemented the concept of Training Pool Fund are:


HRDF POOL FUND - IMPLEMENTATION

100%

HRD Fund

30%

70%

Con

so

lida

te

Ind

ivid

ua

l E

mp

loye

rs

1. Outplacement Centre

(Retrenched Workers)

2. Train and Replace

(Replacement of Foreign

Workers)

3. SMEs Up-skilling & Re-Skilling

Programmes

4. Programmes for Future

Workers

5. 1Malaysia Globally

Recognised Industry &

Professional Certification

(1MalaysiaGRIP) Programme

6. Certification / Value Added

Programmes Identified by the

Sectorial Training Committees

(STCs) / Special Fund for

Industrial Association

Programmes

Identification

and

Development

of New

Programmes

Up-skilling

training

Employees’ training by

Employers



Increase labour supply in strategic and high impact areas that have been identified to reduce the country‟s dependency on external expertise and support the Government‟s aspiration to achieve developed nation status by the year 2020 through a 35% skilled local workforce

Equip the Malaysian workforce with more certification-base courses that will enhance the quality of their work; positively impacting the performance of their organisation.

Tactical driven skills certifications will allow the Malaysian workforce to gain a competitive advantage over their foreign counterparts working in Malaysia. In addition, employers with skilled workforce will be able to explore new and bigger business opportunities as they become more competitive in the global marketplace.

Assist employers of SMEs with insufficient levy balance to continuously train and upgrade the skills of their employees through the use of the pool fund.

More funding could be generated to the industries that have identified their specific training needs



EQUIP MALAYSIAN WORKFORCE WITH MORE CERTIFICATION-BASE COURSES / PROGRAMMES

• Provide avenue for employers and the industry to capitalise the improved quality of their workers that have gone through the up-skilling process, to enhance their level of competitiveness.

• Increase the supply of quality workers to support the business expansion needs of the industry.

TACTICAL DRIVEN SKILLS CERTIFICATIONS WILL ALLOW MALAYSIAN WORKFORCE TO GAIN A COMPETITIVE ADVANTAGE OVER THEIR FOREIGN COUNTERPARTS WORKING IN MALAYSIA

• Equip Malaysian workers with specific skills needed by the industries.

• Reduce the employers’ and the country’s dependency on foreign workers especially on the skilled job categories.



ASSIST SME EMPLOYERS WITH INSUFFICIENT LEVY BALANCE TO CONTINUOUSLY TRAIN AND UPGRADE THE SKILLS OF THEIR EMPLOYEES

• Continuously assist SMEs to develop their human resources capability and capacity by acquiring the latest knowledge, expertise and technology through continuous up-skilling process of their workforce.

MORE FUNDING COULD BE GENERATED TO THE INDUSTRIES THAT HAVE IDENTIFIED THEIR SPECIFIC TRAINING NEEDS

• More funding could be provided to the industry, through employers’ associations, to implement high end technical courses / programmes that have been identified.


MECHANISM

INDUSTRY STAKEHOLDER

PSMB

BOARD OF

DIRECTORS

Engagement with

industry members to

identify specific

programmes for their

industry

Discussion with

PSMB on the

proposed

programme(s)

Submission to the

Board for approval

Discussion & Identifying

Programmes

Representative from

Government Agencies:

3 persons

Independent Members:

2 Persons

Composition of

Board of Directors

Representative from

Employers:

10 persons

Representative from

MOHR:

1 person

Representative from MOF:

1 person


GOVERNANCE

Proposal of the

Programme(s)

Submission to

PSMB

Evaluation by

Evaluation

Committee

Endorsement by

the Board

The proposed programme must be based

on industry(ies) needs.

The Evaluation Committee

comprise of:

• Government Agencies

• Chairman of each STC

• Industry Associations

• SME Association

• Selected Board Members

ROLES OF THE COMMITTEE

1. Evaluate suggested programmes

2. Weigh the financial aspect of programmes

3. Selection of programmes based on the needs

of industry

4. Assess potential impact of the programmes

towards National Agenda


HRDF‟S SOURCE OF POWER SECTION 3: MAIN OBJECTIVE OF THE

CORPORATION

SECTION 4: FUNCTION OF THE CORPORATION

SECTION 5: POWER OF THE CORPORATION

5


HRDF‟S SOURCE OF POWER

SECTION 3: MAIN OBJECTIVE OF THE CORPORATION

The main objective of the Corporation incorporated under the Companies Act 1965

[Act 125] under the name "Pembangunan Sumber Manusia Berhad" shall be the

imposition and collection of a human resources development

The functions of the Corporation are –

c)To determine the terms and conditions under

which any financial assistance or other benefits

are to be given

SECTION 4: FUNCTION OF THE CORPORATION

levy for the purpose of promoting the training and

development of employees, apprentices and trainees and

the establishment and administration of the Fund.


HRDF‟S SOURCE OF POWER

SECTION 5: POWER OF THE CORPORATION

Without prejudice to its powers as prescribed in its Memorandum and Articles of

Association, the Corporation shall have power to do all things expedient or necessary

for, or incidental to, the carrying out of its functions, and in particular, but without

prejudice to the generality of the foregoing provisions-

m) To prescribe procedures to be followed in matters relating to finance and

accounts of the Fund; and

n) To do such other thing as may be expedient or necessary for the efficient

management and administration of the Corporation and the Fund.

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