Penjana HRDF Employer Guide to Training Programmes

As Malaysia pushes towards a more digital and knowledge-driven economy, employers need a skilled and adaptable workforce. PENJANA HRDF, launched by the Ministry of Human Resources through HRD Corp, directly supported this goal.

Offering opportunities for employees to have training and development across industries can help companies retain staff, prepare for recovery, and align with national priorities for human resource development.

What is PENJANA HRDF?

PENJANA HRDF, also known as the PENJANA HRDF Training Incentive Programme, was introduced in 2020 as part of Malaysia’s economic recovery plan. Managed by the Human Resources Development Fund (HRDF), now known as HRD Corp under the Pembangunan Sumber Manusia Berhad Act 2001, the programme was designed to support employers and employees during a time of unprecedented disruption.

The initiative highlights the importance of human resource development, particularly in job retention, reskilling, and upskilling. It was aimed at helping businesses overcome setbacks caused by the pandemic while ensuring that Malaysian workers remain employable and productive.

At its core, PENJANA HRDF aligns with the Ministry of Human Resources’ mission to enhance the country’s talent pool, strengthen competitiveness, and ensure compliance with both the Employment Act and Section 13(1) of the PSMB Act 2001.

Who Can Apply for PENJANA HRDF?

The initiative was open to a wide range of employers and employees, but there are clear eligibility conditions:

Eligible Employers

Employers registered with HRDF and making monthly levy payments were prioritised. However, selected programmes also welcomed non-registered employers to widen participation.

Employees Covered

Both existing employees and new hires could benefit from the training opportunities. Special attention was given to retrenched workers, fresh graduates, and school leavers.

Sectors Targeted

Industries hit hardest by the pandemic, including services, manufacturing, and SMEs, were given priority. Programmes were structured to align with the economic needs of Malaysia’s fast-growing industries such as IT, e-commerce, and digital services.

By encouraging more companies to register with HRDF, the initiative expanded the pool of registered employers eligible for financial incentives and grants for registered employers, creating more opportunities for employee training and development.

Types of Programs Under PENJANA HRDF

PENJANA HRDF was not a single scheme, but a collection of training programmes designed to meet different needs:

Place & Train Program

This initiative focused on matching job seekers with employers. Participants were given training tailored to industry requirements, ensuring that upon completion, they could transition directly into employment.

Reskilling and Upskilling Initiatives

Employers could send employees for high-value training programs aimed at skills development in fast-growing sectors. The gap between outdated skills and modern job requirements will be reduced, supporting long-term competitiveness.

Apprenticeship and Graduate Employment Programs

Graduates and apprentices were offered structured training followed by employment opportunities. These schemes directly supported career development and enhanced employability, ensuring young workers could gain meaningful experience.

Special funds for targeted groups

Specific programmes were allocated for B40 households, SMEs, and even freelancers under the Gig Economy, addressing broader employment challenges.

How to Apply for PENJANA HRDF Funding

Employers interested in PENJANA HRDF had to follow a structured process:

Step 1: Confirm Employer Eligibility

Ensure that your company is a registered employer with HRDF under the Pembangunan Sumber Manusia Berhad Act 2001 and that levy payments are up to date.

Step 2: Identify Training Needs

Employers were encouraged to assess which training programs matched their workforce requirements, whether reskilling, upskilling, or placement.

Step 3: Collaborate with HRDF Training Providers

Proposals were usually submitted through HRDF-approved providers. Employers could also partner with providers to design custom programmes aligned with industry needs.

Step 4: Prepare Documents

Required documentation included company registration details, employee information (with basic salaries fixed and monthly wages clearly stated), and a proposed training plan.

Step 5: Submit Applications

Applications were made online via the PENJANA HRDF portal. Employers and training providers were required to adhere strictly to HRD Corp guidelines.

Step 6: Implement Training and Report Progress

Once approved, employers had to carry out the training as agreed and submit reports to HRD Corp.

Benefits of PENJANA HRDF for Employers

Employers participating in PENJANA HRDF enjoyed several advantages:

Reduced Training Costs

Funding offset much of the cost of training, lowering the financial burden for employers.

Access to a Skilled Workforce

By tapping into HRDF’s training ecosystem, companies gained workers with relevant, updated skills.

Business Continuity

Upskilled employees meant less disruption to business operations and a stronger recovery.

Talent Pipeline

Graduate and apprenticeship programmes created long-term talent pipelines, supporting growth.

Financial Support

Employers who were already making levy payments received priority access to financial incentives and grants for registered employers, turning contributions into tangible returns.

Compliance and Employer Responsibilities

To benefit from the scheme, employers had to meet strict compliance standards under HRD Corp:

Proper Training Implementation

Approved training programs had to be conducted fully, with attendance and performance records maintained.

Reporting and Documentation

Employers were required to submit regular reports on training outcomes to HRD Corp, ensuring transparency.

Avoiding Misuse of Funds

HRD Corp closely monitored the utilisation of special funds to prevent abuse. Misuse could lead to penalties under the Pembangunan Sumber Manusia Berhad Act 2001.

Complying with the government compliance was not only a legal responsibility but also a demonstration of good human resources management practices.

Challenges and Limitations of PENJANA HRDF

While the programme was beneficial, employers often faced challenges:

Complex Applications

Some found the proposal process lengthy, especially for smaller businesses without dedicated HR teams.

Approval Delays

High volumes of applications caused waiting times, which delayed training start dates.

Limited Awareness

Many SMEs were unaware that they needed to register with HRDF or that levy payments made them eligible for funding.

One-time Funding Nature

Since PENJANA HRDF was tied to the pandemic recovery, some employers hoped for continuity beyond the initial allocation.

How to Overcome These Issues?

Employers can work closely with HRDF training providers, ensure complete documentation, and build internal HR capacity to manage applications effectively. SMEs need to do early registration with HRDF to ensure smoother access to future schemes.

PENJANA HRDF showcases how human resource development and opportunities for employee training and development can protect businesses in uncertain times. Employers who actively engaged with HRD Corp gained not only financial incentives but also a more resilient workforce.

By investing in training under initiatives like PENJANA HRDF, Malaysian companies strengthen their compliance with the Employment Act, improve productivity, and create sustainable career pathways for employees. Having PENJANA HRDF can build long-term competitiveness through skills development, career growth, and enhanced employability.

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