HRD Corp rolls out massive procedural overhaul [WATCH]

The Human Resource Development Corporation (HRD Corp) in Malaysia has implemented a major procedural overhaul aimed at improving governance and restoring stakeholder confidence. The reforms address weaknesses highlighted in the Auditor General's Report 2024, which revealed issues such as retrospective approvals and questionable applications.

Chief Executive Datuk Shamir Aziz announced stricter application requirements, increased physical and digital checks on training programs, and an overhaul of procurement procedures. The 14-day advance application policy, introduced since June, has already led to an increase in application submissions by nearly 12 percent compared to the same period last year. However, the approval rate has slightly decreased to 78.8 percent due to the more rigorous screening process.

HRD Corp has also intensified verification of training programs, with 19,322 sessions verified between June and September this year, a threefold increase from the previous year. This is being achieved through a combination of digital verification for over 15,000 sessions and physical inspections of 3,500 sessions. The agency aims to achieve 100 percent verification of training programs in the future.

Despite the tighter controls, HRD Corp continues to disburse funds to employers, paying RM1.4 billion across 335,877 approved claims since January. The reforms aim to ensure that funds are managed with discipline and integrity. HRD Corp is also addressing concerns over past investments made between 2020 and 2024, recovering RM447.2 million from high-risk investments while leaving a remaining exposure of RM396.3 million.

All investments going forward will require collateral equivalent to 110 percent of the investment amount, excluding shares.