Malaysia vs Singapore: Training Funding Comparison

HRDF (Malaysia) and SkillsFuture (Singapore) are structurally different training subsidy systems that can be strategically combined by regional companies to dramatically increase funded training while reducing out-of-pocket costs.

HRDF is a levy-based scheme: Malaysian employers with 10+ employees contribute 1% of payroll into a ring-fenced training fund and can then claim back for approved training, typically via fixed per-day-per-trainer caps (e.g., RM10,000/day for group training, RM1,750/participant/day, RM300 cap for e-learning). It strongly rewards intensive, multi-day, large-group, and industry-priority programs, especially for SMEs via SBL-KHAS (up to 100% subsidy). However, it requires pre-approval before training, has a 30-day post-training claim window, and is limited to levy-paying Malaysian entities and HRDF-registered providers.

SkillsFuture is a government-funded, non-levy system: there is no employer contribution, and all Singapore citizens/PRs receive individual credits (e.g., $4,000 for those 40+), on top of enterprise-level subsidies of 70–90% of course fees, with especially generous support for mid-career workers (MCES 90%), part-time long-form training (from March 2026: $300/month allowance), and online learning (same rates as in-person). Claims are made after training, processing is generally faster (7–14 days), and there is no minimum company size; even sole proprietors can benefit, provided courses and providers are SSG-approved.

In practical cost terms, SkillsFuture usually delivers higher effective subsidy for:

• Mid-career and senior staff (40+) due to 90% MCES
• Individual and online courses (fully covered by personal credits, minimal company admin)
• Companies without large training budgets or with <10 employees (no levy, no minimum size)

HRDF tends to be more advantageous when:

• Running intensive, multi-day bootcamps or large-group training (20+ participants)
• Operating as a Malaysian SME eligible for SBL-KHAS 100% subsidy
• Working in priority sectors (manufacturing, Industry 4.0, healthcare, financial services) where enhanced rates apply
• You value predictable annual training budgets tied to a known 1% payroll levy

For cross-border companies with entities in both Malaysia and Singapore, the optimal strategy is to:

• Use HRDF in Malaysia for large, intensive, or industry-specific programs, maximizing the levy balance and SBL-KHAS where applicable.
• Use SkillsFuture in Singapore for leadership and mid-career training, individual upskilling, online learning, and long-form certifications, leveraging 90% MCES and individual credits.
• Split claims in mixed-country cohorts (Malaysians via HRDF, Singaporeans via SkillsFuture) when using providers registered with both HRDF and SSG.

This dual-program approach can more than double effective training capacity compared to relying on a single country’s scheme, while reducing administrative friction (especially by offloading individual learning in Singapore to SkillsFuture credits). The best program—or combination—depends on headcount by country, workforce age profile, training format (intensive vs. ongoing/online), and industry. For tailored optimization, companies can conduct a regional audit of employee locations, levy status, SkillsFuture eligibility, and training needs, then map each training type to the most favorable subsidy mechanism and coordinate delivery through a provider accredited in both jurisdictions, such as Pertama Partners (partners@pertamagroup.com, +60 11-1107 8568, pertama-partners.vercel.app/funding/malaysia-singapore-funding-comparison).