What is HRDF Malaysia?
HRDF (Human Resource Development Fund) Malaysia is a government-managed training fund that allows Malaysian employers to claim back training expenses through levy contributions. Employers registered with HRDF contribute 1% of monthly payroll and can claim up to 90% of approved training costs, making it one of Southeast Asia's most generous corporate training subsidy programs for upskilling employees in AI, digital skills, and professional development.
HRDF Malaysia, managed by HRD Corp (Human Resource Development Corporation), is the primary mechanism through which Malaysian companies fund employee training and development. Established under the Pembangunan Sumber Manusia Berhad Act 2001, HRDF operates on a levy-grant system where employers contribute to a pooled fund and can then claim reimbursement for approved training programs.
How HRDF Works
Malaysian employers with 10 or more employees (5 or more for certain sectors) are required to register with HRDF and contribute 1% of their monthly employee wages. These contributions accumulate in the employer's training account, from which they can claim reimbursements for approved training programs. The claim rate varies by scheme but can reach up to 90% of training costs under programs like SBL-KHAS.
For AI and digital transformation training, HRDF has become increasingly important as companies navigate technology adoption. Training in areas like prompt engineering, ChatGPT for business, Microsoft Copilot, AI governance, and data analytics are all claimable, making enterprise AI training significantly more affordable.
AI Training Under HRDF
Pertama Partners and other training providers offer HRDF-claimable AI training programs covering executive AI workshops, team bootcamps, prompt engineering, ChatGPT training, and Microsoft Copilot enablement. Companies can recover 70-90% of training costs, effectively reducing a RM 50,000 training program to RM 5,000-15,000 out-of-pocket expense.
Application Process
Employers submit training claims through the HRDF e-TRiS portal before or after training delivery (depending on scheme). Required documentation includes training proposals, trainer credentials, participant attendance records, and invoices. Processing times typically range from 2-4 weeks, with funds disbursed directly to employer accounts.
HRDF fundamentally changes the economics of corporate training in Malaysia. Without HRDF, a comprehensive AI training program might cost RM 50,000-100,000, making it accessible only to large enterprises. With 70-90% reimbursement, the same program becomes affordable for mid-sized companies and even ambitious SMEs. This democratizes access to AI skills development across the Malaysian market. For training providers, HRDF-claimable programs are significantly easier to sell because the effective cost to buyers is reduced by an order of magnitude. Many companies have unutilized HRDF credits accumulating in their accounts, making this effectively "free money" for approved training.
- Employers must be registered with HRDF and have sufficient levy contributions in their account to claim reimbursements.
- Not all training is claimable — programs must be conducted by approved training providers and meet HRDF guidelines for quality and relevance.
- Different schemes (SBL, SBL-KHAS, PENJANA, etc.) have different claim rates, eligibility criteria, and application processes.
- Claims must be submitted within specified timeframes — retroactive claims for training conducted months ago may be rejected.
- Training must involve Malaysian employees — expatriate training may not be claimable under standard schemes.
- HRDF continuously updates approved training categories to reflect market needs, with AI and digital skills receiving priority treatment.
- Companies can check their HRDF balance and claim history through the e-TRiS portal to understand available funding.
- For maximum reimbursement, choose training providers who understand HRDF requirements and can assist with claim documentation.
Common Questions
How much of our AI training costs can we claim back through HRDF?
Claim rates vary by scheme. Under SBL (Skim Bantuan Latihan), you can typically claim 70% of training costs. SBL-KHAS offers up to 90% reimbursement for approved programs. PENJANA and other special schemes may have different rates. The actual amount you can claim also depends on your HRDF account balance — you cannot claim more than you've contributed in levy payments, though most established companies have substantial accumulated credits.
Can we claim HRDF for AI training with international providers or does it have to be Malaysian companies?
You can claim training from international providers as long as the training is delivered to Malaysian employees and the provider is registered with HRDF as an approved training provider. Pertama Partners, for example, is a Singapore-based company but is HRDF-registered and can deliver claimable training across Malaysia. The key requirements are that the provider has HRDF approval and the training meets quality standards, not that the provider is Malaysian-owned.
More Questions
Processing times typically range from 2-4 weeks after submission of complete documentation. However, this can extend to 6-8 weeks during peak periods or if additional documentation is requested. To expedite processing, ensure all required documents are submitted upfront: complete training proposal, proof of trainer qualifications, full participant attendance records, official invoices, and bank account details. Incomplete submissions are the primary cause of delays.
Companies with fewer than 10 employees are generally not required to register with HRDF and therefore cannot claim reimbursements through standard schemes. However, Malaysia offers alternative funding options for SMEs including the SME Digitalisation Grant, various MDEC programs, and skills development initiatives through PSMB (Pembangunan Sumber Manusia Berhad). For very mid-market companies, SkillsFuture-style individual training credits and self-funded training remain options, though Malaysia doesn't have as developed an individual training subsidy system as Singapore.
HRDF can typically be combined with other grants as long as you're not claiming the same expense twice. For example, you might use HRDF to fund AI training while using an Enterprise Development Grant or Digital Transformation Grant to fund AI implementation, consulting services, or technology acquisition. However, you cannot claim the same training invoice under both HRDF and another grant program. Always disclose existing or applied-for funding when submitting grant applications to ensure compliance.
References
- NIST Artificial Intelligence Risk Management Framework (AI RMF 1.0). National Institute of Standards and Technology (NIST) (2023). View source
- Stanford HAI AI Index Report 2025. Stanford Institute for Human-Centered AI (2025). View source
Prompt engineering is the practice of crafting effective instructions and inputs for AI models to produce accurate, relevant, and useful outputs. It is a critical skill for businesses seeking to maximize the value of generative AI tools without requiring deep technical expertise.
Digital Transformation is the process of integrating digital technologies across all areas of a business to fundamentally change how it operates, delivers value to customers, and competes in the market, often serving as the essential foundation for successful AI adoption.
AI Governance is the set of policies, frameworks, and organisational structures that guide how artificial intelligence is developed, deployed, and monitored within an organisation. It ensures AI systems operate responsibly, comply with regulations, and align with business values and societal expectations.
HRD Corp (Human Resource Development Corporation) is the Malaysian government agency that manages the HRDF (Human Resource Development Fund) and oversees employer-funded training programs. Formerly known as PSMB (Pembangunan Sumber Manusia Berhad), HRD Corp administers levy collection, training grants, and skills development initiatives to enhance Malaysian workforce capabilities in AI, digital transformation, and emerging technologies.
SBL-KHAS (Skim Bantuan Latihan Khas) is Malaysia's premium HRDF training scheme offering up to 90% reimbursement for approved training programs. Designed to support critical skills development in areas like AI, digital transformation, and Industry 4.0, SBL-KHAS provides higher claim rates than standard SBL schemes, making advanced technology training highly affordable for Malaysian employers.
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