THERE have been numerous letters published in local printed and online press over the last few weeks on the microcredential (MC) scheme that the Human Resource Development Corporation (HRD Corp) intends to introduce, effective August 15, 2022.

Under the MC scheme, employers are required to pay a further RM300 per trainee for each training session to which they send employees. This new payment is in addition to the mandated levy that all employers cough up every month to HRD Corp, as well as training fees imposed by HRD Corp-appointed training providers.

Consequently, employers and employer representatives including the Federation of Malaysian Manufacturers (FMM) and affected stakeholders have called for proper consultation on the imposition of the MC scheme. They have, across the board, expressed disbelief that the HRD Corp is proceeding without the industry’s input, on top of seemingly transforming itself from a regulator to a profit centre, not to mention the obvious – that the MC scheme will unreasonably amplify the cost of doing business domestically.

They have also repeatedly lamented that HRD Corp should not be teaching employers how to conduct their businesses as well as oversee the methods employers deploy to conduct employees’ training and development. After all, employers know best based on their own specialised requirements and technical needs, technological development and digitising industries, evolving customer demands and growth markets that they serve.

Section 7 of the Human Resources Development Fund (HRDF) Act 2001 clearly states that “the board of HRD Corp should include, among others, 10 persons representing the employers”.

The current board is represented by seven employers representing FMM, Malaysian Employers Federation, Malaysian Associated Indian Chambers of Commerce and Industry, Small Medium Enterprise Association of Malaysia, Petronas, Nouvelle Beauty Centre, and BTC Group. 

What happened to the remaining three slots? No Malay or Chinese chambers? 

Furthermore, Malaysia is aggressively courting foreign direct investment (FDI) and yet surprisingly, there is not even a single representative from foreign chambers of commerce on the board nor were they included for consultation on the MC scheme e.g. the American Chamber of Commerce in Malaysia, European Chamber of Commerce in Malaysia, and Japan Chamber of Commerce and Trade in Malaysia. 

Is this a deliberate and convenient attempt at shutting them out? 

The International Trade and Industry Ministry and Malaysian Industrial Development Authority must take serious note of this embarrassing oversight. They should act promptly and commit the needful urgently before this shameful episode escalates, turning Malaysia a laughing stock in the eyes of our neighbours and investors. 

It goes without saying that when the board is not adequately represented by employers as laid out by the HRDF Act 2001, and is knowingly violated, then the HRD Corp management has absolute authority to bulldoze and run the corporation with impunity. 

And board members who have their own/proxy training outfits will not raise a fuss since they would likely be indebted after obtaining significant training grants from HRD Corp. 

To further widen existing context – let us delve sparingly into some of HRD Corp’s less than savoury history. 

Back in 2014, the then CEO of HRD Corp Ali Badaruddin Abdul Kadir lost his job because he disagreed with the award of a lucrative contract to Bena College, which had no track record in running the Recognition of Prior Learning Programme. Sources back then said that this internal matter involved a high-level personnel shake-up.

Fast forward to 2018, the then CEO had to step down due to a large sum of funds that was reportedly misused, including to sponsor some members of the Malaysian Press Club on a three-week Germany junket study tour, in addition to paying exorbitant bonuses, salaries and allowances to HRD Corp’s management. As a supposedly neutral federal agency, HRD Corp was also disclosed to have sponsored concerts and events for the benefit of certain political parties. 

Now in 2022, HRD Corp is trying its luck yet again. Will it ever learn? – July 12, 2022.

* Roslan Sharif reads The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.