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COMMITTED
TO STRONG GOVERNANCE
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
1
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
COVER RATIONALE:
Committed to Strong Governance
A lot has happened to the Human Resources Development
Fund (HRDF) since the 14
th
General Election. When the
Fund was going through challenging times, we were
steadfast in a singular belief that “a bend in the road is
not the end of the road unless we fail to make the turn”.
We faced our shortcomings and xed them, and renewed
and strengthened our commitment to good corporate
governance. While the work is not complete, the Fund
is resolute in making sure all our policies, processes
and organisational and individual interactions with our
stakeholders are effectively implemented.
Amidst all these, we also learnt that our strength lies with
our people. For an agency of our size, with our span of
oversight and complexity of functions, the people of HRDF
have made much progress on many fronts which the Fund
considers truly remarkable.
The progress of the Malaysian people continues to remain
relevant to the Fund’s future. HRDF truly believes that the
economic strength of Malaysia resides in its people and
we will endeavour to encourage every Malaysian employer
and employee to invest more in learning and development
to realise their full potential.
It is time to get our eyes on the work ahead of us.
ABOUT
THIS
REPORT
ABOUT THIS REPORT | PEMBANGUNAN SUMBER MANUSIA BERHAD
AT A GLANCE
Financial Highlights 2
Awards & Recognition 3
OUR ORGANISATION
About Us 6
Vision, Mission, Objective, Values &
Brand Promise 8
Organisational Structure 10
LEADERSHIP MESSAGES
Minister of Human Resources 14
HRDF’s Board Chairman 16
HRDF’s Chief Executive 18
STRATEGIC & PERFORMANCE REVIEW
Overview and Strategic Pillars 22
2018 Key Performance Indicators 24
Performance Review 27
CREATING VALUE
Stakeholder Engagements 58
FRAMEWORK OF TRUST
Board of Directors 62
Board of Directors’ Profile 64
Senior Management 68
Governance Overview Statement 70
Statement on Risk Management and
Internal Control 74
FINANCIAL STATEMENTS
Audited Financial Statements 80
ADDITIONAL INFORMATION
Branch Offices 138
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
2
TOTAL INCOME
RM238.65
million
2017: RM291.48 million
TOTAL EQUITY
RM297.12
million
2017: RM339.75 million
TOTAL EXPENSES
RM278.54
million
2017: RM283.27 million
HRD FUND
RM1.05
billion
2017: RM972.39 million
TOTAL ASSETS
RM1.78
billion
2017: RM1.65 billion
TOTAL LIABILITIES
RM1.48
billion
2017: RM1.31 billion
LEVY COLLECTION FOR FIVE CONSECUTIVE
YEARS (2014-2018)
GRANT DISBURSEMENT FOR FIVE CONSECUTIVE
YEARS (2014-2018)
Financial Highlights 2018
AWARDS & RECOGNITION
at a glance
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
2018
2018
2017
2017
2016
2016
2015
2015
2014
2014
RM805,720,320
RM659,090,691
RM726,611,181
RM684,678,918
RM665,046,465
RM576,849,046
RM590,320,101
RM448,393,260
RM520,563,533
RM383,305,837
Asia Recruitment Awards 2018
Best Employer Branding Category
(Bronze Award)
SIRIM ISO Surveillance Audit
Zero Non-Conformance Report
MIHRM Malaysia HR Awards 2018
Employer of Choice (Silver Award)
Malaysia Productivity Lean
Recognition (Gold Award)
1 2
3 4
1
3
2
4
7.88%1.67%18.12%
12.55% 7.98% 12.98%
10.89%
3.74%
9.26%
18.69%
12.66%
28.65%
13.40%
16.98%
8.75%
5.97%
3
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
4 5
PEMBANGUNAN SUMBER MANUSIA BERHAD HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
Success Story –
Wong Kok Ling
Company: LH Plus Sdn Bhd
Position: Senior Operations Manager
Participation in HRDF’s Training Programme: Wong started his
career as a production engineer in 2002 in the plastic manufacturing
eld and he is currently a Senior Operations Manager at LH Plus
Sdn Bhd. During his two year tenure with LH Plus, he was given the
opportunity to attend four courses under HRDF INBASE (Industrial
Based Certication Programme), namely, Scientic Moulding,
Smart Maintenance, Lean and Robot based Automation, and First
Step to Smart Manufacturing.
In his own words: “After attending the courses under INBASE,
I have learnt how to scientically collect data, enabling better
precision and accuracy in my work.
In short, these courses taught me to work independently (when
the need arises) and with the most accurate outcomes as possible,
in the plastic manufacturing industry. In fact, 50 per cent of the
employees from LH Plus’s production department have attended a
minimum of one course under INBASE, which has proven to be of
immense benet to them and to the company.
I will continue to encourage other employees of LH Plus to attend
relevant HRDF training programmes, courses and initiatives for
their personal development and professional growth with LH
Plus.”
HRDF Creating Opportunities Episode 1
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
ABOUT
US
ABOUT
US
7
THE PRESENT
The theme for HRDF’s 2018 Annual Report is “Committed
to Strong Governance”. This year, for the Fund, we did
not have to dig deep to come up with this theme.
To do this, we must start with May 9, 2018. The 14
th
General Election - a momentous day that marked
one of the most signicant turning points in the
country’s history - saw not only the installation of a
new Government but also the start of more seismic
reforms in the country - across government, society
and economy.
At the Fund, the road ahead seems to have just begun.
While we might have come a long way since 1993 when
we were rst set up as Majlis Pembangunan Sumber
Manusia, we were squarely in the middle of a “crisis of
trust” beginning June 2018. We were the driving story
in the media in the second half of 2018 on the issue of
corporate governance.
So, what did we do about this? How did the Fund,
as the custodian and dynamic force of Malaysia’s
human capital development, respond to this crisis and
strengthen our corporate governance?
The most important step we took was to rebuild the
trust of our stakeholders, particularly our registered
employers and their local employees. We understand
now, more than ever, that trust is the engine that drives
our will to push and promote the learning, relearning
and up-skilling of all Malaysians. We understand now,
more than ever, that with trust, our stakeholders are
very willing to work hand-in-hand with us to create
an effective and efcient Malaysian workforce that
will not only move our country up the rank of the
Global Competitive Index but also propel us towards
becoming a high-income nation by the target year of
2024.
The Fund is also working at rebuilding trust among
our employees – the people of HRDF. This means
rewarding employees who act with exemplary integrity
and who take the ethical stance at all times. This also
means taking necessary actions against those who
fail to act with honesty at all levels throughout the
organisation without exception. HRDF will become a
better organisation because of our employees.
REFLECTIONS
HRDF has grown remarkably from our establishment
in 1993. Starting life as an institution that collected
levy and disbursed training grants, we have gone
from strength-to-strength to contribute signicantly
in providing training and up-skilling interventions to
key industries in Malaysia, including the Small and
Medium Enterprises’ (SMEs) sector.
For perspective, the objective of HRDF under the
Pembangunan Sumber Manusia Berhad Act 2001
(PSMB Act 2001) is the imposition and collection
of a human resources development (HRD) levy
from employers under 63 sub-sectors within three
key economic sectors – Manufacturing, Services,
and Mining and Quarrying – with ten or more
employees. These employers contribute one per
cent of their monthly payroll to the Fund which we
treat as a HRD “levy”.
The purposes of the HRD levy are:
• Promote, develop and upgrade the skills of local
employees, apprentices and trainees who are
working with the Fund’s registered employers;
• Provide nancial assistance to the Fund’s
registered employers by way of grant or loan
to support their human resource development
needs;
• Carry out activities or projects to train or retrain
retrenched employees or employees who are in
the pipeline to be retrenched;
• Pay any expenses lawfully incurred by the
Corporation;
• Provide nancial assistance by way of loan
or grant to training providers or employer
associations; and
• Pay any expenses for carrying into effect
the provisions of the PSMB Act 2001 and in
connection with the administration of the Fund.
In 2016, 30 per cent of the HRD levy was segregated
to a consolidated fund which was used to nance
strategic human capital initiatives. However, this
was a point of contention for the Fund’s registered
employers who claimed a lack of transparency on the
utilisation of the consolidated fund. After a series of
engagements with employers, HRDF discontinued
the segregation of the 30 per cent of the HRD levy
towards the consolidated fund in November 2018.
OUR ORGANISATION | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
6
Nevertheless, the Fund’s new administration is
resolute to continue carrying out several strategic
human capital initiatives with enhanced mechanisms
aimed to improve the quality and employability
of our unemployed graduates, secondary school
leavers, in-service workers, and owners and Chief
Executive Ofcers of SMEs. Economies of scale
allows, the Fund manage the cost of the strategic
initiatives enabling the consolidated fund to benet
more of the mentioned target groups for the next
ve years.
THE FUTURE
The vision forward for HRDF is to up-skill and
re-skill Malaysia. Safeguarding the future also means
assuming a greater responsibility to reach out to the
corporates and educating and motivating them to
reap the benets of our learning and development
schemes, initiatives and programmes.
The Fund is also making concerted efforts to
intensify its enforcement which will help ensure
training programmes conducted by employers are
effective, and training providers are genuine and
have the skills to impart knowledge and training
to the Fund’s registered employees. Towards this,
HRDF is working closely with the Ministry of Human
Resources in conducting spot checks and ensuring
that the selection of training providers are done in a
professional manner.
Moving forward, the Fund’s stakeholders can also
expect increased transparency from HRDF with the
potentiality of the detailed usage of the Fund being
made public by 2020 as an effort to improve the
public perceptions of HRDF.
1993
Establishment of the Human Resource
Development Council (HRDC).
1995
Employers with 10 – 49 employees and
paid-up capital ≥ RM2.5mil (manufacturing).
Along with 9 Service sub-sectors.
2001
PSMB Act 2001 came into force on
16 May 2001. PSMB is the Manager of Human
Resources Development Fund (HRDF).
2005
Employers with 10 employees in service
sector, and employers with 50 employees in
hypermarket.
2007
Commercial Land Transport and Railway
Transport Services.
2014
PSMB expanded the PSMB Act by adding
Mining & Quarrying sector and 19 new sub-
sectors to the Services and Manufacturing
Sector (total of 63 subsectors).
2016
Implementation of HRDF Consolidated Fund.
2017
The PSMB Act is expanded to cover all
employers with 10 or more employees in the
63 sub-sectors.
HRDF Milestones (1993-2018)
2018
Discontinuation of the segregation of the 30
per cent of registered employers’ Human
Resources Development (HRD) levy into the
HRDF consolidated fund, effective November
2018.
www.hrdf.com.my
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
8 9
OUR ORGANISATION | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
To encourage employers covered by the Pembangunan Sumber Manusia Berhad Act 2001 to retrain
and upgrade the skills of their local employees, apprentices and trainees in line with their business
needs and the development strategy of the country.
8 9
OUR ORGANISATION | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
vision
objective
our values
brand promise
Every Malaysian employee trained
mission
Spearhead the learning and development
of the Malaysian workforce
People
Everything that we do is to
support the people of the
organisation and the country, in
terms of identifying, nurturing
and growing their skills and
capabilities, empowering and
enriching their lives.
Prowess
Our efforts are focused on
tapping the potential and
increasing the prowess of our
human capital in every way
possible.
Progress
We endeavour to play our role
as a responsible and visionary
organisation, making progress
inclusive and meaningful,
especially for the people –
who are both the means and
beneciaries of any development.
Integrity
Customer
Focus
Continuous
Improvement
Accountability
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
10 11
OUR ORGANISATION | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
Employer
Grant
Strategic
Initiatives
Claims
Research
Incubation
Evaluation
Industrial
Skills
Framework
Vendor
Management
Trainer
Development
Training
Courses
Operations
Training
Training
Market
Research &
Development
ORGANISATIONAL
STRUCTURE
Core Business Processes Steering & Enabling Processes
Governance
Company Secretary
Audit
Risk Management
Governance & Compliance
Corporate
Communication
Public Relations
Publications
People
Operation
HR Policies
& Business
Partner
HR Operations
& Administration
Finance
Procurement
Treasury
Levy
Accounting
ORGANISATIONAL
STRUCTURE
Board
Chief Executive
IT Operation &
Management
Application
Development
&
Management
IT Security
User Support
& Services
Business
Intelligence
Administration
Facilities
Logistics
Quality &
Innovation
Legal
Enforcement
Inspectorate
Digitisation
Compliance &
Enforcement
Facilities &
Administration
Services
Acquisition
Registration
Onboarding
HR Practices
Products &
Services
Consultancy
Accounts
Management
Engagement
Customer
Service
Customer Outreach
Advisory
Customer
Engagement
Customer
Acquisition
Strategic
Management
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
12 13
PEMBANGUNAN SUMBER MANUSIA BERHAD HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
Success Story –
Jason Kok
Company: Plasform Sdn Bhd
Position: Factory Manager
Participation in HRDF’s Training Programme: One of Plasform’s
pioneer staff, Jason has been working for the company for
28 years and have participated in four courses under HRDF
INBASE (Industrial Based Certication Programme), namely the
Scientic Moulding; Smart Maintenance; Lean and Robot based
Automation; and First step to Smart Manufacturing.
In his own words: “These courses under INBASE have given me the
necessary exposure on scientic injection moulding and provided
me with opportunities to apply the knowledge I’ve gained at work.
In addition, I had the chance to engage with employees and
employers from the manufacturing industry while attending these
courses and we exchanged ideas related to our areas of work.
These four courses under INBASE are interrelated and relevant for
me in obtaining better understanding of the Industrial Revolution
4.0.
It is my belief that employers who are registered with HRDF should
take advantage of HRDF’s programmes, courses and initiatives as
this is an integral step towards enhancing their knowledge and
productivity in the manufacturing industry.”
HRDF Creating Opportunities Episode 2
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
14 15
LEADERSHIP MESSAGES | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
uman capital
development plays
a pivotal role in
moving Malaysia
towards becoming a
high-income economy. It catalyses
the growth of the nation through
competencies such as knowledge,
skills, attitudes, and values and
enhances the quality of people’s
lives.
The Ministry of Human Resources is
determined to develop competent,
productive, responsive, and resilient
local human capital to increase our
national productivity. Our objective
is to expand people’s capabilities
and enhance their opportunities
for economic, social and political
empowerment. We hope to achieve
our objective through a holistic
approach by looking at all aspects
of an individual’s work and life such
as safety and security, retirement
plan (Employees’ Provident
Fund), and constant up-skilling
and re-skilling through platforms
such as the Human Resources
Development Fund (HRDF). We
aspire to increase the percentage
of skilled Malaysian workers to 30
per cent by 2020 from the current
28 per cent. To achieve this, our plan
is to mitigate economic and social
marginalisation by collaborating
with other government bodies
and together, create initiatives and
programmes designed to assist
target groups.
COMMITTED TO STRONG
GOVERNANCE
In order for an organisation to thrive,
especially for one that serves the
people, it needs to earn the trust of
H
YANG BERHORMAT
M. KULA SEGARAN
Minister of Human Resources
the people it serves and one of the
key factors is to be as transparent as
possible.
Among the rst few initiatives I
rolled out, after being appointed as
the Minister of Human Resources,
was to restructure HRDF and set
up a ve-member independent
Governance Oversight Committee
(GOC) to investigate the allegations
on the fund’s misappropriation.
These were necessary steps because
HRDF is one of the most important
organisations in the country and
acts as a key driver of the nation’s
growth through the skills’ upgrading
of Malaysian employees. Hence,
it is vital to restore the condence
of stakeholders, employers and
employees towards HRDF.
CHALLENGES AHEAD
HRDF has faced a multitude of
challenges but has been moving
forward by striving to restore
stakeholders’ condence and
strengthen its governance.
One of its main challenges remains
to be the under-utilisation of the
Human Resources Development
levy by the Fund’s registered
employers. Encouraging employers
to use their levy to send their
employees for training for career
and personal growth is among
HRDF’s chief priorities. Small and
Medium Enterprises (“SMEs”) do
not usually have access to training
due to factors such as insufcient
levy, time and shortage of workers.
This is where HRDF comes in
to support their aspirations for
growth and enhanced productivity
through a-learned and skilled local
workforce.
Besides educating SMEs on the
efcacy of training for both employers
and employees, HRDF must also work
on solving mismatching issues that
exist between the training needs of its
registered employers and the types of
training solutions offered by training
providers who are registered with the
Fund.
To overcome these challenges, HRDF
must continue to increase awareness
on the signicance of re-skilling and
up-skilling by maintaining close
collaboration with the industry,
employers and the professional
training community. I am proud
to say that HRDF, working closely
with the Ministry, has implemented
strict periodic audits and verication
processes to ensure training sessions
are valid, conducted by professionals
and will add signicant value to
employers and employees.
MOVING FORWARD
The Ministry will strive to ensure
that a comprehensive, dynamic and
progressive social safety net is built
through increasing the employability
and employment rate of the local
workforce to meet the demands of the
local job market. We aspire to achieve
our mission of fostering harmonious
and conducive industrial relations,
prioritising the occupational safety
and health of employees as well as
ensuring the smooth operation of the
nation’s labour market.
With our continuous and concentrated
efforts and commitment to strong
governance, I believe HRDF will
achieve its goals and targets in 2019.
MINISTER’S
MESSAGE
MINISTER’S
MESSAGE
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
16 17
LEADERSHIP MESSAGES | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
A MESSAGE FROM
HRDF’S BOARD CHAIRMAN
hat we regard as a revolutionary point
of history in a country that has not seen
a change in the federal government
for over 60 years, was truly a call for
accountability. The people demanded
a cleaner and more honest narrative from the people
whose purpose is to serve them, and May 9, 2018 saw
just the rst wave of that.
What followed was a series of much-needed clean-up within
the bureaucracy and the Human Resources Development
Fund (HRDF), which has seen major changes in its
leadership and Board of Directors since June 2018. This
is just a piece of the larger picture of the new Malaysia.
HRDF has faced heavy public scrutiny following reports
of alleged wrongdoings that took place under the
previous administration. I, along with the Ministry of
Human Resources, the Board of Directors, the new
management, and HRDF’s employees are determined
to rebuild the image of the Fund with new strategies
and stronger corporate governance.
The Fund, operated by Pembangunan Sumber Manusia
Berhad, sees its main purpose as ensuring the whole
Malaysian workforce is adequately and continually be
trained.
Under the new leadership in HRDF, we are equally
committed to prioritising strong and effective
governance.
Since June 2018, HRDF has strengthened its governance
framework by appointing 10-new board members and
restructuring the organisation. This has been part of the
initiative to evaluate and assess the competencies of
the Fund’s employees and to streamline the functions
across HRDF for a more effective and lean structure.
To drive transparency in the governance of HRDF,
which is under the purview of the Ministry of Human
Resources, the Minister of Human Resources, Yang
Berhormat M. Kula Segaran set up an independent
Governance Oversight Committee (GOC) in July 2018
to review all aspects of HRDF’s governance framework.
W
A MESSAGE FROM
HRDF’S BOARD CHAIRMAN
In the rst report presented by the GOC to its
stakeholders, the committee proposed several
recommendations for HRDF to implement and the Fund
has incorporated most of them.
As a catalyst for national productivity, we at HRDF
aspire to increase the proportion of skilled Malaysian
employees and strengthen the Fund through
implementing the following action plans:
- bringing wrongdoers to book
- strengthening our enforcement measures
- approve 1.2 million Training Places by the end of 2019
- creating job-ready graduates
- raising the quality of training professionals
- becoming an employer of choice
We recognise the importance of HRDF’s role in
encouraging employers to be more inclined to retrain
and upgrade the knowledge and skills of their employees
which in the long term will promote greater economic
growth. We aspire to work closely with the Government
and relevant stakeholders to implement initiatives to
promote Technical-Vocational Education and Training,
particularly those that focus on the Bottom 40 per cent
of income earners, retirees and people with disabilities.
I look forward to ensuring the revitalised HRDF operates
with stronger governance and fulls the mandate given
by the Malaysian Government, which is to cater to the
development of a competent local workforce, in line
with our aspiration to become a high-income nation.
DATO’ NOOR FARIDA
MOHD ARIFFIN
Chairman, HRDF
www.hrdf.com.my
HRDF Moving Forward
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
18 19
LEADERSHIP MESSAGES | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
he Human Resources
Development Fund (HRDF)
plays a key part in creating a
stronger and fairer economy
in Malaysia by equipping
thousands of our registered employers and
millions of Malaysians they employ from
all ages and backgrounds with the skills
that help address their business needs and
at the same time full the potential of the
Malaysian workforce from up-skilling and
re-skilling initiatives.
While 2018 has been particularly challenging
for the Fund, recognising and overcoming
the pitfalls of the past have been essential
for our continued growth. In this instance,
I am no less proud to present our 2018
Annual Report in which you will read on the
commitment of the Fund’s new leadership
towards a stronger governance. Further,
you have our word that we will continually
engage our stakeholders for more effective
and efcient communication in delivering
our mandate of developing and training
as many Malaysians as we can so that
our registered employers and their local
workforce see the tangible value of their
human resources development (HRD) levy
contribution to us.
Allow me to place our 2019 goal up-front -
HRDF targets to approve 1.2 million Training
Places in 2019 from 880,380 in 2018. Towards
this, we are resolute in our commitment to
inuence as many Malaysian employees as
possible to take charge of their own career
and skills development. At the same time,
we continue to encourage all organisations
and particularly our registered employers
to drive the performance and productivity
of their business through their employees.
T
CHIEF EXECUTIVE’S
REVIEW
CHIEF EXECUTIVE’S
REVIEW
Employment
Pre-Employment
Post-Employment
Learning Ecosystem &
Landscape
We are set to launch the enhanced Strategic Initiatives
in 2019 focusing on four pillars:
The Fund’s direction remains, which is to reduce
Malaysia’s dependency on foreign workers in semi-
skilled and skilled areas of work as well as to reduce the
nation’s unemployment rate.
We look forward to working closely with the Ministry
and all our stakeholders to ensure efciency and further
improvement in delivering human resource solutions
that will meet the needs of the industry, our registered
employers and individual Malaysian employees.
Now, with a clear understanding of where we were
(and the pitfalls to avoid), the goals to accomplish in
2019 and beyond, and with a clear plan in sight to get
us to our destination, my team and I are determined to
support the Government’s agenda of new possibilities
of progress through the nation’s most valued asset – its
people.
The time is now for the workplace environment in
Malaysia to begin reecting on the need for constant
retraining. Additionally, organisations must think
differently about the leadership capabilities needed
and the culture required to drive the right learning
environment so that employees move up the value
chain, along with their families and employers becoming
greater and globally competitive in the process.
The challenge for HRDF today is getting the agenda
right to support learning, retraining and reskilling of
all Malaysians. This is due in part to the limitation in
the coverage of the Pembangunan Sumber Manusia
Berhad Act 2001 (PSMB Act 2001). As a result, we plan
to expand the Act in 2019 to cover more employers from
various sectors. This will be a key step for the Fund
to become a more effective enabler of a society that
we know is ready to become more engaged towards
greater career progression and social mobility.
TO MAP MALAYSIA’S FUTURE SKILLS’ NEED, HERE’S A
REFLECTION OF 2018:
In 2018, we had a total of 26,281 employers registered
with the Fund with a total of 2,290,647 employees
covered. A majority of the employers registered with
HRDF were Small and Medium Enterprises (SMEs)
which made up 85.89 per cent of the Fund’s total
registered employers.
HRDF collected a total of RM805.72 million in levies in
2018, an increase of 10.89 per cent from 2017. During
the year under review, the Fund approved a total of
RM642.72 million in nancial assistance with RM236.02
million dedicated to SMEs. We exceeded the target
growth for the number of skilled workers with 43,490
workers trained, an achievement of an additional 8,490
Malaysian workers from the 2018 target of 35,000.
In November 2018, HRDF’s Strategic Human Capital
Initiatives under the consolidated fund mechanism
were included for a review and improvement process,
announced by the Minister of Human Resources, Yang
Berhormat M. Kula Segaran.
ELANJELIAN VENUGOPAL
Chief Executive, HRDF
www.hrdf.com.my
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
20 21
PEMBANGUNAN SUMBER MANUSIA BERHAD HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
Success Story –
Noor Ridzuani
Kamaruddin
Company: LH Plus Sdn Bhd
Position: Product Engineer
Participation in HRDF’s Training Programme: Ridzuani has been
with LH Plus for ve years and her promotion from Junior
Executive to Product Engineer is meteoric. She participated in
HRDF’s Industry Based Certication Programme (INBASE) which
increased her scientic knowledge in her eld of work in the
manufacturing industry.
In her own words: “One of the most valuable knowledge I obtained
was from the INBASE course - 7 Steps Injection Moulding Process
which assisted me towards identifying the imperfections in my
area of work within the manufacturing industry.
I encourage employers and employees who are registered with
HRDF to attend courses, programmes and initiatives which are
relevant to their areas of work as these provide practical knowledge
for on-the-job applications.
Fresh graduates too should check out the Fund’s many initiatives
on learning, relearning and reskilling as these provide a strong
foundation to your existing diploma and/or degree.”
HRDF Creating Opportunities Episode 3
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
22 23
STRATEGIC & PERFORMANCE REVIEW | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
OVERVIEW AND
STRATEGIC PILLARS
OVERVIEW AND STRATEGIC PILLARS
The 2018 business strategy of the Human Resources Development Fund (HRDF) is to enlist more companies – from
large to medium and small - to be registered with the Fund. With the registration of liable employers, the Fund is
able to support these employers to increase the efciency and productivity of their local employees in completing
their daily work tasks through learning and development initiatives. Additionally, trained employees are able to
drive these companies to achieve greater consistency in process adherence, making it easier to project outcomes
and meet company goals and targets.
HRDF’s 2018 strategies are aligned towards ve material pillars which are:
1. A SKILLED WORKFORCE FOR SUSTAINABLE AND BALANCED GROWTH OF THE NATION
Equipping the Malaysian workforce with the skills required for the jobs of today and those of
tomorrow is a strategic concern in the national growth and economic outlook of the country. With
the rise of knowledge content of production processes and services, the availability of a ready pool
of relevantly skilled local employees is necessary to support the transition of the country’s key
economic sectors towards knowledge-intensive activities which will drive labour productivity gains
and attract foreign direct investments into Malaysia.
Henceforth, HRDF continues its effort towards up-skilling and re-skilling the Malaysian workforce,
ensuring the creation and growth of quality human capital through efcient certication programmes
and initiatives.
The Fund’s end goal is to ensure that 30 per cent of the Malaysian workforce is skilled in tandem
with the Government’s workforce policy and market demand forecast projections.
2. A STRATEGIC FRAMEWORK FOR THE TRAINING AND DEVELOPMENT LANDSCAPE
The cornerstone towards developing a suitably skilled workforce, in Malaysia and across the world,
is the availability of good-quality training and development landscape which closely matches the
skills supply to the needs of companies and the labour markets.
The accelerated change in today’s training and development landscape has its roots in digitisation,
social platforms and search engines – all of which are cumulatively transforming every aspect of
our everyday lives. Today, more than ever, there is a pressing need for a dynamic training and
development landscape which enables Malaysian employees and companies to seamlessly adjust
to changes in technology and markets while anticipating and preparing for the skills’ needs of the
future.
With regards to this, HRDF continues to nurture a virtuous circle in which a continuously evolving
learning and development landscape fuels innovation, investment, economic diversication, and
competitiveness, as well as social and occupational mobility – thus creating more productive and
more rewarding jobs. Towards this, the Fund expects to leverage on the HRDF Industrial Skills
Framework alongside the industry.
3. ROBUST DEVELOPMENT OF MALAYSIA’S SMALL AND MEDIUM ENTERPRISES
Small and Medium Enterprises (SMEs) are critical for the growth of Malaysia as they drive the
country’s Gross Domestic Product (GDP) by contributing as much as 37 per cent. Additionally,
Malaysia’s SMEs accounted for 66 per cent of total employment in 2017. The vast majority of these
SMEs are in the services and manufacturing sector – both of which are covered by the PSMB Act
20 01.
OUR
STRATEGY
OVERVIEW AND
STRATEGIC PILLARS
Nevertheless, the adoption of learning and development, particularly on digital adoption, has been
very low among local SMEs. This is worrying as there is a lot at stake for Malaysia as it needs to
stay competitive with other countries in the region. The truth of the matter is that Malaysia’s SMEs
are facing competition not just at home but from abroad too. While it certainly is not due to the lack
of connectivity as SMEs show high usage of PCs, smartphones and Internet connections, the SME
sector needs to devote more to learning and development of its employees as well as on digital
technologies to increase their productivity and propel Malaysia towards becoming a high income
nation by 2024.
HRDF is steadfast in continuing to improve the human resource standards of the SME sector which
in return is expected to increase the sector’s business efciencies and create new revenue streams.
4. EFFECTIVE AND EFFICIENT ENABLERS
To be acknowledged as the leader in Malaysia’s human capital development, there is plenty of scope
for HRDF to continue and deepen its enablers towards exchanges of knowledge and experience
among its stakeholders on training and skills development policies and systems. It is particularly
valuable for HRDF and its stakeholders to share their experiences in dealing with the more difcult
challenges of maintaining the relevance of learning and development in the world of work, and in
moving from policy principles to application.
In this instance, HRDF needs to ensure its enablers - which are in reference to its internal processes
- are rm and balanced by sustained corporate governance in identifying high and signicant risks
that may affect the Fund’s robust training efforts and performance.
Towards this, HRDF continues to benet greatly from viewpoints given by the Ministry of Human
Resources, the Industry as well as consultations with employers, employees and the professional
training market of national and international experts.
5. STRATEGIC SUSTAINABILITY OF THE ORGANISATION
In making sure the organisation is sustainable, HRDF periodically reviews the PSMB Act 2001,
making sure that the right training interventions are given at the right time to current and future
employers.
Adaptive foresight is a strategic competency which HRDF continues to apply that involves
observing trends and measures that might shape the future of learning. Observing these trends,
HRDF applies scenario planning to anticipate changes early and adapt its plans for the benet of the
Fund’s stakeholders. Additionally, these trends drive the Fund’s daily operations and internal talent
sustainability, aside from assisting external stakeholders.
In summary, HRDF remains consistent in supporting its internal staff to enrol in various relevant
training programmes to ensure a competent and sustainable talent pipeline.
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
24 25
STRATEGIC & PERFORMANCE REVIEW | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
95
%
OVERALL
ACHIEVEMENT
15 KEY PERFORMANCE INDICATORS
2018 KEY
PERFORMANCE INDICATORS
Overall Achievement of Enterprise Scorecard as of September 2018
A Skilled Workforce
for Sustainable and
Balanced Growth of
the Nation
A Strategic Framework
for the Training
and Development
Landscape
Robust Development
of Malaysia’s SMEs
Effective and
Efcient Enablers
Strategic Sustainability
of the Organisation
Target Achievement
NOTE: The organisational KPIs have been changed in October 2018 and the progress was tracked until December 2018.
15
23
32
42
50
60
65
71
79
87
94
100
16
23
33
43
51
57
64
70
75
100
90
80
70
60
50
40
30
20
10
0
JAN FEB MAR APR MAY JUN
JUL
AUG SEP OCT NOV DEC
Percentage of Skilled Workers
Trained under HRDF
Training Providers Rated
(STAR Rating)
Percentage of Key Programmes
Completed for SMEs
Completion and Analysis
of HRDF’s Yearly Customer
Satisfaction Survey (Customer
Satisfaction Index - CSI)
Amendments of the 1
st
schedule
of the PSMB Act 2001 to cover
all employers (Gazette
Publication)
Growth in Approved Training
Places
Implementation of Sectorial
Training Committee (STC)
Initiatives
Completion of Big Data
Analytics’ Implementation
Growth in Registered Employers
Growth in Levy Collection
Growth in Disbursed Training
Grant
HR Capability Building
Programmes Completed for
SMEs
Implementation of Risk
Mitigations within Specied
Timeframe (High and Signicant
Risks)
Number of Employees Covered
under HRDF
Percentage of Project Completion
on Human Capital Blueprint
(Phase 2)
KPI 1:
KPI 4:
KPI 7:
KPI 10:
KPI 13:
KPI 2:
KPI 5:
KPI 8:
KPI 11:
KPI 14:
KPI 3:
KPI 6:
KPI 9:
KPI 12:
KPI 15:
25
STRATEGIC & PERFORMANCE REVIEW | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
HRDF ORGANISATIONAL KPI PERFORMANCE FOR QUARTER 1 - QUARTER 3 2018
We reviewed the Fund’s KPIs as part of our reform initiatives, which resulted in us restructuring the organisation
and making it more customer focused.
2018 KEY
PERFORMANCE INDICATORS
Strategic Pillars
ProcessStakeholder Financial People
Perspectives
24 25
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
26 27
HRDF CORPORATE KPI PERFORMANCE FOR QUARTER 4 2018
Perspectives Strategic Pillars No. Key Performance Indicator Target Achievement
Financial Organisation Sustainability 1. Return on Equity (ROE) 1% -0.56%
Stakeholder
A Skilled Workforce for
Sustainable and Balanced
Growth of the Nation
2. Productivity Growth Rate 4% 5.82%
3. Registered Employees 2,300,000 2,290,647
4. Levy Efciency 15 months 15.2 months
Robust Development of
Malaysia’s SMEs
5. Skilled Workers Trained 35,000 43,490
6. Unique Employees’ Trained 500,000 507,039
A Strategic Framework
for the Training and
Development Landscape
7. Approved Training Places 970,000 880,380
8.
Development of the
Industrial Skills Framework
10% 10.7%
Internal
Process
Effective and Efcient
Enablers
9. Clients Engaged 18,000 16,989
10. Customer Satisfaction Index 94% 93.13%
11. Levy Collected RM 800 mil RM 805.72 mil
12. System Availability 90% 99.99%
13.
Training Programmes
Inspected
350 552
14.
Training Programmes
Registered
5,196 5,288
15. Inactive Employers 30% 27%
Knowledge
Strategic Sustainability of
the Organisation
16. HRDF Staff Training Hours Start in 2019
A Strategic Framework
for the Training and
Development Landscape
1 7.
Industry Intelligence Reports
Created
Start in 2019
Effective and Efcient
Enablers
18.
Rate of Change Request
Handled Internally
Start in 2019
STRATEGIC & PERFORMANCE REVIEW | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
PERFORMANCE
REVIEW 2018
2018 KEY
PERFORMANCE INDICATORS
Number of Employers and Employees Registered from 1993 to 31 December 2018
Manufacturing Services
Mining &
Quarrying
Total
Number of Employers Registered 11,145 14,927 209 26,281
Number of Employees Registered 1,071,508 1,198,170 20,969 2,290,647
Registered Employers - By Category from 1993 to 31 December 2018
Manufacturing Services
Mining &
Quarrying
Total No. of
Employers
%
Large Employers 982 2,709 18 3,709 14.11
SME Employers 10,163 12,218 191 22,572 85.89
Total 11,145 14,927 209 26,281 100.0
In 2018, HRDF continued to engage with its diverse stakeholders and reached out to as many employers
as possible to meet its Key Performance Indicator (KPI) target of 4,895 new registered employers.
During the year, HRDF registered 4,901 new employers compared to 4,605 employers in 2017. The 2018 registrations
comprised 2,015 employers from the Manufacturing sector; 64 from Mining and Quarrying; and 2,822 from the
Services sector.
Consequently the total employers registered increased to 26,281 (from 21,928 in 2017) of which 11,145 were from
the Manufacturing sector; 209 from the Mining and Quarrying sector; and 14,927 employers from the Services
sector. The increase in total number of registered employers for 2018 has resulted in the growth of employees
covered by the Fund by 7.2 per cent to 2,290,647 in comparison to 2,136,763 in 2017.
REGISTRATION
OF EMPLOYERS
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
28 29
STRATEGIC & PERFORMANCE REVIEW | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
The positive increase in registration in 2018 was due to the diligent disbursement of notices to liable employers.
A total of 23,902 registration notices were sent between September and November 2018, supported by engagement
activities with several employer associations such as:
• Food Industry Employee Union (FIEU)
• Association of Malaysian Hauliers, Malaysian Association of Convention and Exhibition Organisers and
Suppliers (MACEOS)
• Malaysia Retailers Association (MRA)
• Association of Bumiputra Women in Business and Profession (PENIAGAWATI)
• SME Corporation
• Malaysia Association of Cleaning Contractors (MACC).
SME employers continued to make up a signicant proportion of the Fund’s total number of registered employers
at 86 per cent. In 2018, a total of 22,572 SME employers were registered with the Fund in comparison to 18,398 in
2017.
A total of 4,715 new SMEs were registered with HRDF in 2018, an increase of 7 per cent from 4,401 in 2017.
Table 1
Registered Employers - By State from 1993 to 31 December 2018
State Manufacturing Services
Mining &
Quarrying
Total
Registration
%
Selangor 3,138 4,591 22 7,751 29.49
Johor 2,450 1,511 18 3,979 15.14
Kuala Lumpur 437 2,976 34 3,447 13.12
Pulau Pinang 1,363 1,029 8 2,400 9.13
Perak 910 684 27 1,621 6.17
Sarawak 493 1,010 29 1,532 5.83
Kedah 672 524 6 1,202 4.57
Sabah 346 782 13 1,141 4.34
Melaka 443 381 6 830 3.16
Negeri Sembilan 407 375 8 790 3.01
Pahang 251 417 25 693 2.64
Terengganu 114 306 5 425 1.62
Kelantan 95 207 8 310 1.18
Perlis 17 51 0 68 0.26
Labuan 9 44 0 53 0.20
Putrajaya 0 39 0 39 0.15
Total 11,145 14,927 209 26,281 100.0
PERFORMANCE
REVIEW 2018
Table 2
Registered Employers - By Sub-Sector for the Manufacturing Sector from 1993 to 31 December 2018
Code Industry
No. of
Employers
%
10101 Food Manufacturing and Beverage Industries 1,634 14.66
2 5 111 Non-Ferrous Metal Basis Industries and Fabricated Metal 1,279 11.48
27101
Manufacturer of Electrical Machinery, Apparatus Appliances
and Supplies
1,140 10.23
22201 Manufacturer of Plastic Products 1,106 9.92
2 0111
Manufacturer of Industrial Chemicals and Other Chemical
Products
748 6.71
16100
Manufacturer of Wood and Wood Products and Cork, Except
Furniture
604 5.42
24101 Iron and Steel Basic Industries 553 4.96
31001
Manufacture of Furniture and Fixtures Except Primarily of
Metal
548 4.92
23990 Manufacturer of Non-Metallic Mineral Products 527 4.73
28110 Manufacturer of Machinery Except Electrical 474 4.25
2 2 111 Manufacturer of Rubber Products 439 3.94
29101 Manufacturer of Transport Equipment 423 3.80
1 8 110 Printing, Publishing and Allied Industries 398 3.57
17010 Manufacturer of Paper and Paper Products 393 3.53
1 3 110
Manufacturer of Textiles and Wearing Apparel, Except
Footwear
375 3.36
26101
Manufacturer of Professional and Scientic and Measuring
and Controlling Equipment N.E.C. and of Photographic and
Optical Goods and Other Manufacturing Industry
229 2.05
23101 Manufacturer of Glass and Glass Products 94 0.84
19202 Petroleum Reneries 62 0.56
19100
Manufacturer of Miscellaneous Products of Petroleum and
Coal
30 0.27
15203
Manufacturer of Footwear, Except Vulcanised or Moulded
Rubber or Plastic Footwear
27 0.24
23930 Manufacturer of Pottery, China and Earthenware 27 0.24
1 5 110
Manufacturer of Leather and Products of Leather, Leather
Substitutes and Fur, Except Footwear and Wearing Apparel
24 0.22
12000 Tobacco Manufacturers 11 0.10
Total 11,145 100.0
PERFORMANCE
REVIEW 2018
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
30 31
STRATEGIC & PERFORMANCE REVIEW | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
Table 3
Registered Employers - By Sub-Sector for the Services Sector from 1993 to 31 December 2018
Code Industry
No. of
Employers
%
55101 Hotel Industry 1,605 10.75
62010 Computer Industry 1,390 9.31
45101 Sale and Repair of Motor Vehicles 1,385 9.28
71109 Engineering Support and Maintenance 1,286 8.62
49110 Land Transport 1,243 8.33
56101 Food and Beverage Services 1,056 7.07
52299 Freight Forwarder 963 6.45
80100 Security Firms 769 5.15
4 7 111 Hypermarket/ Supermarket/ Departmental Store 597 4.00
85499 Training Provider 528 3.54
85302 Private Institution of Higher Learning 374 2.51
85102 Early Childhood Education 352 2.36
73100 Advertising 280 1.88
5 0111 Shipping 273 1.83
47991 Direct Selling 247 1.65
79120 Travel Agency - Outbound 243 1.63
8 110 0 Building and Landscape Services 237 1.59
61101 Telecommunication 212 1.42
86101 Private Hospital 210 1.41
6 3 111 Information Services 191 1.28
86901 Health Support Services 157 1.05
77400 Franchise 147 0.98
3 8 111 Waste Management and Material Recovery Services 142 0.95
72101 Research and Development 131 0.88
85492 Driving School 116 0.78
79110 Travel Agency - Inbound 102 0.68
82301 Event Management Services 98 0.66
53100 Postal 86 0.58
35202 Gas, Steam and Air-Conditioning Supply 85 0.57
59110
Production of Motion Picture, Video and Television
Programme, Sound Recording and Music Publishing
81 0.54
51101 Air Transport 80 0.54
35101 Power (Energy) 78 0.52
52100 Bonded Warehouse 49 0.33
36001 Water Treatment and Supply 47 0.31
52221 Port Services 42 0.28
60100 Private Broadcasting Services 26 0.17
37000 Sewerage 11 0.07
75000 Veterinary Services 8 0.05
Total 14,927 100.0
PERFORMANCE
REVIEW 2018
The total number of deregistered employers in 2018 was 569, an increase of 344 compared to 225 in 2017. Ceasing
operations was the main reason for the increase in the de-registration of employers. It made up about 69 per cent
or 395 cases in 2018. Other reasons for deregistration of employers, were that the company was no longer liable
under the PSMB Act, the company had less than 10 employees or the company had merged with another company.
PERFORMANCE
REVIEW 2018
Chart 1
Registered Employers - By Sub-Sector for the Mining and Quarrying Sector from 1 June 2014 to 30 November 2018
Mineral & Stone Quarry
Code 08101
Petroleum & Gas Extraction
Code 06101
30 (14.35%)
179 (85.65%)
Table 4
Deregistered Employers - By Type of Deregistration from 1 Jan 2018 to 31 December 2018
Type of Deregistration Manufacturing Services
Mining &
Quarrying
Total %
Cessation of being an
employer (Form 4)
198 197 0 395 69.42
No longer liable under the
Act
10 6 0 16 2.81
Number of employee <10 33 71 3 107 18.10
Company merged with
other company (Form 4)
19 31 1 51 8.96
Total 260 305 4 569 100.0
Table 5
Number of Deregistration of Employers for Five Consecutive Years (2014 - 2018)
Year Employers Deregistered %
2014 167 (29.54)
2015 213 27.54
2016 342 60.56
2017 225 (34.21)
2018 569 152.89
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
32 33
STRATEGIC & PERFORMANCE REVIEW | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
HRDF encourages its registered employers to retrain and upgrade the skills of their local employees, apprentices
and trainees to drive their respective business and operational growth. Over the years, HRDF has introduced
various initiatives to full this aim.
HRDF TRAINING SCHEMES
The HRDF Training Schemes were introduced with the aim of promoting and allowing registered employers to
implement training programmes based on identication of their own training needs to retrain and upgrade their
employees’ skills in line with their operational and business requirements. In 2018, a total of 10 schemes were
implemented, as provided below.
PERFORMANCE
REVIEW 2018
UP-SKILLING AND
RE-SKILLING INITIATIVES
Report on Approved Financial Assistance and Training Places for HRDF Training Schemes for the Year 2018
Chart 2
Approved Financial Assistance - By Scheme for the Year 2018
Figures in Chart 2 are the Financial Assistance approved for 10 schemes offered by HRDF. The total Financial
Assistance for 2018 was RM572 million and the chart illustrates that the SBL scheme continues to be the highest
scheme compared to other schemes with a total Financial Assistance of RM487 million.
Chart 3
Approved Training Places - By Scheme for the Year 2018
SBL
783,946
SBL-Khas
58,147
SLB
31,155
ITS
3,484
OJT
1,115
RPL
612
FWT
107
PERFORMANCE
REVIEW 2018
In line with the approved Financial Assistance shown in Chart 2, the number of approved Training Places shown
in Chart 3 also indicates the SBL scheme is the highest contributor towards the 783,946 approved Training Places.
FWT
1,492,289
SBL
486,805,695
SBL-Khas
57,106,306
SLB
13,350,006
ALAT
2,984,049
IT
593,088
ITS
5,440,677
OJT
403,680
RPL
202,500
CBT
3,025,565
Financial Assistance (RM)
Training Places
For the setup of
internal training facilities
Training Facilities and
Renovation (ALAT)
Information Technology
For future
workers’ training
Industrial Training (ITS)
Future Workers’ Training (FWT)
For the up-skilling and
re-skilling of employees
Training Assistance
Scheme (SBL)
Special Training
Assistance Scheme
(SBL-Khas)
Joint Training (SLB)
On-The-Job (OTJ)
Training
Recognition of
Prior Learning (RPL)
Note: Excluding OTEP (incentive), FWT (incentive) and Strategic Initiatives
Note: Excluding OTEP (incentive), FWT (incentive) and Strategic Initiatives
Computer BasedTraining Scheme
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
34 35
STRATEGIC & PERFORMANCE REVIEW | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
Chart 4
Approved Training Places - By Sector and Size of Employer for the Year 2018
Based on the data reported for the year 2018 in Table 6, the Manufacturing sector had the highest number of
approved Training Places with 448,747 training places.
Table 6
Approved Training Places and Total Number of Registered Employers - By Industry for the Year 2018
Sector Training Places* %
No. of Registered
Employers
Average Training
Places Per
Employer
Manufacturing 448,747 51.4 11,145 40
Services 417,245 47.8 14,927 28
Mining & Quarrying 7,363 0.8 209 35
Grand Total 873,355 100.0 26,281 103
*Note: FWT, SBL, SBL-Khas & SLB schemes only
Mining & Quarrying
Service
Manufacturing
2,670
49,574
154,041
1,713
58,126
109,464
11,313
311,976
179,689
Small Medium Large
PERFORMANCE
REVIEW 2018
Table 7
Approved Training Places - By Skill Areas for the Year 2018
Skills
Total
Training Places %
Safety and Health 164,209 18.80
Quality and Productivity 91,683 10.50
Team Building or Motivation 90,334 10.34
Management or Strategic Management 76,616 8.77
Computer or Information and Technology 48,965 5.61
Education or Training 33,775 3.87
Audit or Tax 32,608 3.73
Engineering 29,186 3.34
Process and Operation 26,436 3.03
Human Resources 25,767 2.95
Supervisory 23,490 2.69
Public Relations or Customer Services 22,628 2.60
Maintenance or System and Control 20,147 2.31
Food and Beverages 20,112 2.30
Marketing and Sales 18,676 2.14
Journalist/Publishing/Communication/Media 18,466 2.11
Manufacturing or Production 18,203 2.08
Medical or Healthcare 17,602 2.02
Accounting or Finance 16,386 1.88
Legal and Law 14,377 1.65
Retail or Merchandising 12,248 1.40
Security or Armed Forces 9,067 1.04
Language 7,407 0.85
Creativity and Innovation 6,546 0.75
Administration or Clerical 6,466 0.74
Purchasing/Logistics/Supply Chain 5,425 0.62
Hotel or Tourism 4,254 0.49
Research and Development 2,295 0.26
Actuarial or Statistics 2,197 0.25
Aviation 1,977 0.23
Ship or Maritime Handling 1,794 0.20
New or High Technology 1,315 0.15
Creative Design 1,244 0.14
Biotechnology or Chemistry 1,064 0.12
Port Management 390 0.04
Grand Total 873,355 100.0
Note: According to Skill Areas for FWT, SBL, SBL-Khas & SLB
PERFORMANCE
REVIEW 2018
Note: Excluding OTEP (incentive), FWT (incentive) and Strategic Initiatives
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
36 37
STRATEGIC & PERFORMANCE REVIEW | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
From the approved Training Places by skill areas for the Year 2018, Safety and Health was the most preferred with
164,209 approved Training Places or 18.80 per cent of 873,355 approved Training Places. The second highest was
Quality and Productivity, which recorded 91,683 or 10.50 per cent; followed by Team Building or Motivation, which
saw 90,334 approved Training Places or 10.34 per cent. Detailed information is shown in Table 7.
Table 8
Approved Training Places - By 63 Sub-Sectors for the Year 2018
Sub-Sectors
Training
Places
%
Manufacturer of Electrical Machinery, Apparatus Appliances and Supplies 144,054 16.50
Food Manufacturing and Beverage Industries 49,547 5.67
Hotel Industry 40,775 4.67
Private Institution of Higher Learning 39,577 4.53
Manufacturer of Industrial Chemicals and Other Chemical Products 35,273 4.04
Hypermarket/ Supermarket/ Departmental Store 33,754 3.86
Non-Ferrous Metal Basis Industries and Fabricated Metal 33,497 3.84
Private Hospital 32,999 3.78
Telecommunication 32,593 3.73
Computer Industry 31,543 3.61
Manufacturer of Plastics Products 29,904 3.42
Manufacturer of Transport Equipment 29,762 3.41
Engineering Support and Maintenance 26,582 3.04
Manufacturer of Rubber Products 19,822 2.27
Land Transport 18,691 2.14
Postal 16,845 1.93
Manufacturer of Non-Metallic Mineral Products 16,357 1.87
Manufacturer of Machinery Except Electrical 16,352 1.87
Freight Forwarder 15,972 1.83
Food and Beverage Services 15,090 1.73
Iron and Steel Basic Industries 14,056 1.61
Sale and Repair of Motor Vehicles 12,798 1.47
Power (Energy) 12,583 1.44
Printing, Publishing and Allied Industries 10,746 1.23
Air Transport 10,174 1.16
Security Firms 9,175 1.05
Manufacturer of Paper and Paper Products 8,853 1. 01
Manufacturer of Textiles and Wearing Apparel, Except Footwear 8,342 0.96
Petroleum Reneries 8,314 0.95
Manufacturer of Professional and Scientic and Measuring and Controlling
Equipment N.E.C. and of Photographic and Optical Goods and Other
Manufacturing Industry
7,223 0.83
Water Treatment and Supply 7,222 0.83
Training Provider 6,717 0.77
PERFORMANCE
REVIEW 2018
PERFORMANCE
REVIEW 2018
Table 8
Approved Training Places - By 63 Sub-Sectors for the Year 2018 (continued)
Sub-Sectors
Training
Places
%
Manufacturer of Wood and Wood Products and Cork, Except Furniture 6,041 0.69
Franchise 5,701 0.65
Building and Landscape Services 5,018 0.57
Port Services 4,796 0.55
Petroleum and Gas Extraction 4,734 0.54
Manufacturer of Furniture and Fixtures Except Primarily of Metal 4,378 0.50
Shipping 4,306 0.50
Waste Management and Material Recovery Services 4,300 0.49
Advertising 3,945 0.45
Direct Selling 3,872 0.44
Information Services 3,203 0.37
Research and Development 3,019 0.35
Manufacturer of Glass and Glass Products 2,926 0.34
Private Broadcasting Services 2,777 0.32
Mineral and Stone Quarry 2,629 0.30
Early Childhood Education 2,330 0.27
Production of Motion Picture, Video and Television Programme, Sound
Recording and Music Publishing
2,278 0.26
Travel Agency - Outbound 2,146 0.25
Manufacturer of Leather and Products of Leather, Leather Substitutes and Fur,
Except Footwear and Wearing Apparel
1,481 0.17
Gas, Steam and Air-Conditioning Supply 1,334 0.15
Health Support Services 1,325 0.15
Sewerage 1,051 0.12
Event Management Services 902 0.10
Bonded Warehouse 867 0.10
Tobacco Manufacturers 671 0.08
Manufacturer of Miscellaneous Products of Petroleum and Coal 623 0.07
Travel Agency - Inbound 496 0.06
Driving School 477 0.05
Manufacturer of Pottery, China and Earthenware 310 0.04
Manufacturer of Footwear, Except Vulcanised or Moulded Rubber or Plastics
Footwear
215 0.02
Veterinary Services 12 0.001
Grand Total 873,355 100.0
Note: FWT, SBL, SBL-Khas & SLB Schemes for Training Places
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
38 39
STRATEGIC & PERFORMANCE REVIEW | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
PERFORMANCE
REVIEW 2018
PERFORMANCE
REVIEW 2018
In 2018, the Manufacturer of Electrical Machinery, Apparatus Appliances and Supplies sub-sector was the most
active sub-sector to retrain and upgrade workers’ skills. A total of 144,054 Training Places were approved for
industries in the sub-sector. The Food Manufacturing and Beverage Industries sub-sector was the second most
active with 49,547 Training Places. The third most active sub-sector was the Hotel Industry, where the total number
of approved Training Places was 40,775. Detailed information is shown in Table 8.
Table 9
Approved Financial Assistance and Levy Collected - By Size of Employer for the Year 2018
Industry/Employers
Financial Assistance
(RM Million)
%
Levy Collection
(RM Million)
Difference
(Levy Collection
- Financial
Assistance)
Large 336.85 58.0 429.85 93.00
Small & Medium 236.02 41.1 375.87 139.85
Grand Total 572.87 100.0 805.72 232.85
Note: Excluding Strategic Initiatives
During the year, a total levy amount of RM429.85 million was collected from large employers while RM375.87
million was from SME employers. In relation to this, large employers received Financial Assistance of RM336.85
million, close to 18 per cent more than SMEs which received RM236.02 million. The Financial Assistance shown
above does not include Consolidated Fund.
Table 10
Approved Financial Assistance - By Skill Areas for the Year 2018
Skills Financial Assistance (RM) %
Safety and Health 77,755,903 13.92
Management or Strategic Management 57,766,923 10.34
Team Building or Motivation 49,966,462 8.94
Computer or Information and Technology 44,093,286 7.89
Quality and Productivity 41,379,934 7.41
Engineering 40,114,424 7. 1 8
Audit or Tax 19,883,711 3.56
Maintenance or System and Control 19,785,934 3.54
Process and Operation 18,882,156 3.38
Human Resources 18,693,734 3.35
Education or Training 17,357,582 3.11
Marketing and Sales 17,156,859 3.07
Supervisory 13,982,157 2.50
Manufacturing or Production 13,623,883 2.44
Accounting or Finance 12,980,231 2.32
Medical or Healthcare 12,530,033 2.24
Journalism or Publishing or Communication or Media 11,158,546 2.00
Public Relations or Customer Services 9,999,707 1.79
Security or Armed Forces 8,655,898 1.55
Legal and Law 7,458,341 1.33
Purchasing or Logistics or Supply Chain 5,839,048 1.05
Creativity and Innovation 5,263,979 0.94
Food and Beverages 4,924,650 0.88
Language 4,359,935 0.78
Retail or Merchandisingn 4,199,821 0.75
Administration or Clerical 4,038,440 0.72
Ship or Maritime Handling 3,376,628 0.60
New or High Technology 2,556,493 0.46
Research and Development 2,147,506 0.38
Hotel or Tourism 1,980,599 0.35
Actuarial or Statistics 1,976,265 0.35
Creative Design 1,592,512 0.29
Biotechnology or Chemistry 1,415,158 0.25
Aviation 1,368,324 0.24
Port Management 487,034 0.001
Grand Total 558,754,296 100.0
Note: According to Skill Areas for FWT, SBL, SBL-Khas & SLB
In the data shown for approved Financial Assistance, Safety and Health also emerged as the most preferred skill
area among employers for Year 2018. A total of RM77,755,903 of Financial Assistance was approved or 13.92
per cent; while Management or Strategic Management recorded RM57,766,923 or 10.34 per cent, the second highest
approved Financial Assistance.
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
40 41
STRATEGIC & PERFORMANCE REVIEW | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
Table 11
Approved Financial Assistance - By 63 Sub-Sectors for the Year 2018
Financial
Assistance (RM)
%
Manufacturer of Electrical Machinery, Apparatus Appliances and Supplies 82,686,059 14.80
Computer Industry 38,631,149 6.92
Telecommunication 32,281,764 5.78
Food Manufacturing and Beverage Industries 26,866,332 4.81
Manufacturer of Industrial Chemicals and Other Chemical Products 21,673,983 3.88
Engineering Support and Maintenance 20,896,271 3.74
Power (Energy) 20,146,667 3.61
Private Institution of Higher Learning 19,927,699 3.57
Private Hospital 18,976,088 3.40
Hotel Industry 18,818,692 3.37
Non-Ferrous Metal Basis Industries and Fabricated Metal 18,492,492 3.31
Manufacturer of Transport Equipment 15,764,020 2.82
Manufacturer of Plastics Products 14,767,074 2.64
Hypermarket/ Supermarket/ Departmental Store 13,026,885 2.33
Petroleum Reneries 11,169,866 2.00
Manufacturer of Rubber Products 11,022,107 1.97
Petroleum and Gas Extraction 10,535,677 1.89
Freight Forwarder 10,270,980 1.84
Manufacturer of Non-Metallic Mineral Products 10,079,901 1.80
Manufacturer of Machinery Except Electrical 8,965,171 1.60
Sale and Repair of Motor Vehicles 8,931,603 1.60
Land Transport 8,265,809 1.48
Iron and Steel Basic Industries 8,116,431 1.45
Security Firms 7,004,765 1.25
Food and Beverage Services 6,850,954 1.23
Air Transport 6,680,497 1.20
Printing, Publishing and Allied Industries 6,056,823 1.08
Shipping 5,804,195 1.04
Postal 5,605,895 1. 0 0
Training Provider 5,547,007 0.99
Manufacturer of Paper and Paper Products 4,440,414 0.79
Manufacturer of Textiles and Wearing Apparel, Except Footwear 4,177,445 0.75
Manufacturer of Wood and Wood Products and Cork, Except Furniture 4,105,043 0.73
Manufacturer of Professional and Scientic and Measuring and Controlling
Equipment N.E.C. and of Photographic and Optical Goods and Other
Manufacturing Industry
3,977,567 0.71
Water Treatment and Supply 3,755,561 0.67
Port Services 3,719,952 0.67
Mineral and Stone Quarry 3,626,913 0.65
PERFORMANCE
REVIEW 2018
Table 11
Approved Financial Assistance - By 63 Sub-Sectors for the Year 2018 (continued)
Financial
Assistance (RM)
%
Direct Selling 3,192,968 0.57
Building and Landscape Services 3,160,965 0.57
Advertising 3,029,291 0.54
Information Services 3,005,190 0.54
Manufacturer of Furniture and Fixtures Except Primarily of Metal 2,800,438 0.50
Franchise 2,560,024 0.46
Waste Management and Material Recovery Services 2,324,492 0.42
Research and Development 2,255,043 0.40
Private Broadcasting Services 2,162,209 0.39
Travel Agency - Outbound 1,731,026 0.31
Manufacturer of Glass and Glass Products 1,561,570 0.28
Production of Motion Picture, Video and Television Programme, Sound
Recording and Music Publishing
1,341,141 0.24
Early Childhood Education 1,315,224 0.24
Sewerage 950,082 0.17
Gas, Steam and Air-Conditioning Supply 807,351 0.14
Health Support Services 805,435 0.14
Manufacturer of Miscellaneous Products of Petroleum and Coal 782,998 0.14
Manufacturer of Leather and Products of Leather, Leather Substitutes and
Fur, except Footwear and Wearing Apparel
604,114 0.11
Event Management Services 596,849 0.11
Bonded Warehouse 581,487 0.10
Travel Agency - Inbound 365,751 0.07
Manufacturer of Pottery, China and Earthenware 318,915 0.06
Driving School 298,830 0.05
Tobacco Manufacturers 285,295 0.05
Manufacturer of Footwear, except Vulcanised or Moulded Rubber or Plastics
Footwear
107,213 0.02
Veterinary Services 16,794 0.003
Grand Total 558,626,446 100.0
In 2018, the industry with the highest approved Financial Assistance was the Manufacturer of Electrical Machinery,
Apparatus Appliances and Supplies, with RM82.69 million approved Financial Assistance, representing 14.8
per cent of the total Financial Assistance granted in 2018. This was followed by the Computer Industry with RM38.63
million (6.92 per cent) and the Telecommunication Industry at RM32.28 million (5.78 per cent). Detailed information
is shown in Table 11.
PERFORMANCE
REVIEW 2018
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
42 43
STRATEGIC & PERFORMANCE REVIEW | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
HUMAN CAPITAL STRATEGIC INITIATIVES
The Human Capital Strategic Initiatives introduced by HRDF is aimed at contributing towards the national human
capital agenda of creating a skilled Malaysian workforce. These initiatives were:
1) Industry Based Certication (INBASE)
2) HRDF Outplacement Centre (HOC)
3) Train and Replace (T&R)
4) Graduates Enhancement Programme for Employability (GENERATE)
5) Rural Accelerated Industry Skills for Employability (RAISE)
6) Recognition of Prior Experiential Learning (RPEL)
1) INDUSTRY BASED CERTIFICATION PROGRAMME (INBASE)
The Industry Based Certication (INBASE) Programme was introduced to cater to the critical training needs of
HRDF-registered employers (addressed through employer associations) to elevate employees in the industry
value chain. All courses offered are certication or industry-based courses as required by the respective
industries.
Under INBASE, HRDF championed several key initiatives that propelled the Malaysian workforce to be globally
competitive. INBASE’s initiatives were based on three clusters - Industry Facilitation; Industry Development;
and Supporting Economic Corridors. The approved initiatives were:
a. Industry Revolution 4.0 (IR4.0)
As we move towards adopting IR4.0, HRDF collaborated with key industry players to promote specic
training initiatives to equip the Malaysian workforce with relevant technological skills and knowledge.
b. National Big Data & Analytics Talent Development Programme
The 28
th
MSC Malaysia Implementation Council Meeting (ICM) allocated 30 per cent of HRDF’s
consolidated fund to support the Data Science and Data Professional Training programmes from 2017 to
2020. The four-year plan was expected to bolster the government’s aspiration of producing 20,000 data
professionals and 2,000 data scientists by 2020.
c. Internet Protocol Version 6 (IPv6)
HRDF implemented its own strategic initiative known as HRDF’s Internet Protocol Version 6 (IPv6). This
initiative benetted HRDF-registered employers and supported the nation’s transition from IPv4 to IPv6
to meet the rapid rising demand of broadband network and Internet users.
d. Electrical & Electronics (E&E) Strategic Initiatives
HRDF acknowledged that the E&E industry in Malaysia focuses on deepening and strengthening three
major ecosystems – semiconductors; solar; and LED technologies. As such, HRDF allocated nancial
assistance to certify Malaysian employees through relevant E&E courses, enabling these employees to
move up the value chain in design and development.
e. Enhanced Capability Programmes for Logistics Service Providers (supported by the Ministry of
Transport)
HRDF recognised the logistic industry’s vital role in global supply chains and its signicance in stimulating
trade, facilitating business efciency as well as spurring economic growth. In its effort to strengthen
technology and human capital in the industry, HRDF allocated nancial assistance through the National
Logistics Task Force that was established by the Ministry of Transport to drive the implementation of the
Logistics and Trade Facilitation Master Plan.
PERFORMANCE
REVIEW 2018
f. Supporting the National Development Corridor
HRDF continued to play its part in catalysing the nation’s income growth through supporting the various
initiatives by the government, namely the National Development Corridor. We collaborated with various
employer associations to offer certication courses to our registered employees of the ve regional
economic corridors - Iskandar Malaysia; Northern Corridor Economic Region; East Coast Economic
Region; Sarawak Corridor of Renewable Energy; and Sabah Development Corridor. Our collaborations
ensured the development of local human capital in these regional corridor developments to propel
national economic growth.
In 2018, a total of 174 courses were approved under INBASE in collaboration with 67 employer associations.
Financial assistance of RM41,047,405 for a total of 3,129 trainees was approved as shown in Table 12 below.
Table 12
Details of Allocation, Financial Assistance and Trainees based on Initiatives
Items Total(RM)
Training Courses Approved 174
Employer Associations 67
Trainees Approved 3,129
Financial Assistance Approved 41,047,405
The trainees were divided into two: in-service workers and future workers. Out of 3,129 trainees, 2,648 trainees
were employees of HRDF-registered employers with RM33,397,347 of total nancial assistance approved, while 83
were employees of industries covered under HRDF with total nancial assistance approved of RM389,400 and 398
were future workers with RM7,260,657 nancial assistant approved. The details are as follows:
Table 13
Details of Trainees of HRDF and Industry Covered
Type of Trainees
Trainees
of HRDF &
Industry
Covered
Trainees %
Total Financial
Assistance
Approved (RM)
%
In-Service
Employees
Employees
of HRDF
Registered
Employers
2,648 84.6 33,397,347 81.4
Employees
of industry
covered under
HRDF
83 2.7 389,400 0.9
Future Workers Future Workers 398 12.7 7,260,657 1 7. 7
Total 3,129 100.0 41,047,404 100.0
PERFORMANCE
REVIEW 2018
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
44 45
STRATEGIC & PERFORMANCE REVIEW | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
There were a total of 2,731 in-service employees from the Services, Manufacturing as well as Mining and Quarrying
industries. A total of 56.2 per cent of the trainees were from the Services industry while 43.6 per cent were from the
Manufacturing industry and 0.2 per cent was from the Mining and Quarrying industry as shown in Chart 5 below.
Chart 5
Details of In-service Employees - By Type of Industry
The number of trainees approved based on employer location are shown in Table 14. The highest percentage of
trainees worked in Selangor, with 38.7 per cent, followed by Kuala Lumpur with 20.4 per cent.
Table 14
Details of Trainees Approved Based on Employer Location
Location Number of Trainees %
Selangor 1,058 38.7
Kuala Lumpur 555 20.4
Pulau Pinang 480 1 7. 6
Sarawak 205 7. 5
Perak 85 3.1
Negeri Sembilan 82 3.0
Sabah 72 2.6
Johor 65 2.4
Kedah 56 2.1
Melaka 55 2.0
Terengganu 7 0.3
Pahang 6 0.2
Kelantan 4 0.1
Perlis 1 0.0
Total 2,731 100.0
1,535 (56.2%)
1,192 (43.6%)
4 (0.2%)
Services
Manufacturing
Mining and Quarrying
PERFORMANCE
REVIEW 2018
In terms of gender distribution, majority of the trainees who participated under the programme were male
(68.5 per cent) while 31.5 per cent were female. The breakdown of gender distribution is shown in Chart 6 below.
In terms of ethnic distribution, Malays made up the most trainees, comprising 56.7 per cent or 1,773 trainees,
followed by Chinese, who made up 863 (27.6 per cent) trainees while 421 Indians (13.5 per cent) participated in the
programme. The remaining 2.2 per cent or 72 trainees were Bumiputera from Sarawak and Sabah. The breakdown
of ethnic distribution is shown in Chart 7 below.
Male
Female
986 (31.5%)
2,143 (68.5%)
Malay
Chinese
Bumiputera
(Sarawak &
Sabah)
Indian
PERFORMANCE
REVIEW 2018
72 (2.2%)
421 (13.5%)
863 (27.6%)
1,773 (56.7%)
Chart 6
Details of Trainees Participated - By Gender
Chart 7
Details of Trainees Participated - By Ethnic
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
46 47
STRATEGIC & PERFORMANCE REVIEW | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
2) HRDF OUTPLACEMENT CENTRE (HOC)
The HRDF Outplacement Centre (HOC) was a government initiative to enhance the employability of retrenched
Malaysian workers. This is in line with one of the measures of the 11
th
Malaysia Plan, which was to empower
human capital through a quality workforce and improved its employability.
Besides being a one-stop centre for retrenched Malaysian workers to gain employment, HOC also assisted
these workers through up-skilling, re-skilling and multi-skilling as well as counselling, planning and preparing
them for job placement.
The following services were offered by the HOC:
a. Job Portal and Mobile Applications - An informative portal developed to help the target demographics
(retrenched Malaysian employees from both HRDF-registered and non-HRDF-registered employers)
to gain updated information on retrenchment issues and to act as a platform for employment
opportunities. HOC also introduced its mobile application for users to receive updates on retrenchment
and employment to help them with their re-employment planning.
b. Counselling – HOC’s counsellors offered systematic and professional counselling services to help
retrenched workers overcome trauma, conduct self-assessment, dene career goals and identify skill
gaps for new employment opportunities. Its counsellors also ensured suitable job placements for
retrenched workers.
c. Job Placement – HOC’s Job Portal is the main job placement platform accessible by retrenched Malaysian
workers for job placement, where employers can advertise job vacancies to the market. HOC’s Job
Placement Team guided and assisted applicants to acquire job opportunities through collaboration with
employers, public and private employment agencies as well as through job advertisements in local print
and electronic media.
d. Training - This service was extended only to retrenched workers of HRDF-registered employers. Types
of courses offered under HOC focused on up-skilling and re-skilling; meeting the needs of the industry
and matching the skills required for specic jobs available in the market. Training or courses enhanced
the employability of these affected workers and skills’ gap assessments were performed on the target
demographic to determine the relevancy of training courses with available potential jobs.
PERFORMANCE
REVIEW 2018
Top 5 Skill Areas Number of Trainees %
Computer or Information and Technology 828 26.5
Engineering 665 21.3
Purchasing/Logistic/Supply Chain 556 1 7. 8
Others 542 1 7. 2
Actuarial or Statistics 315 10.1
Safety and Health 223 7. 1
Total 3,129 100.0
Table 15
Details of Trainees Approved based on Top 5 Skill Areas
Based on the Top Five skill areas, Computer or Information and Technology recorded the highest participation with
828 trainees (26.5 per cent); followed by Engineering, (665 trainees or 21.3 per cent); and Purchasing or Logistic
or Supply Chain (556 trainees or 17.8 per cent). The details of trainees approved based on Top 5 skill areas are as
follows:
PERFORMANCE
REVIEW 2018
In 2018, the HOC team conducted two seminars and several other outreach activities, which garnered the registration
of 1,041 retrenched workers on the HOC portal. Additionally, 1,444 vacancies were posted by 111 employers on
HOC’s portal. A total of 1,131 vacancies from 157 employers were identied through HOC’s engagement and
visitations with employers.
From the 1,041 workers, HOC conducted counselling sessions for 446 retrenched workers either through email,
phone call or face-to-face meetings. Chart 9 below shows the number of counselling sessions conducted according
to the various industries.
Chart 9
Number of Counselled Retrenched Workers - By Industry
Based on Chart 9 above, the highest number of counselling sessions conducted was for the Services industry
(300 retrenched workers or 67.3 per cent); followed by the Manufacturing industry (138 retrenched workers or 30.9
per cent); and the Mining and Quarrying industry (8 retrenched workers or 1.8 per cent).
HRDF allocated RM65 million from its consolidated fund to support training initiatives for retrenched workers from
HRDF-registered employers or industries covered under the PSMB Act 2001. With various counselling sessions,
HRDF was able to identify skill gaps, conduct specic training courses and assisted with job placements for
employees affected by retrenchment with HRDF-registered employers or employers from industries covered by
the Act.
240 retrenched workers from three HRDF-registered companies who underwent retrenchment exercises benetted
from HOC in 2018. Of the total, the highest number of retrenched workers was from the Manufacturing sector with
150 workers or 62.5 per cent; followed by the Services industry (90 workers or 37.5 per cent). Details are as per
Chart 8 below.
Services
Manufacturing
150 (62.5%)
90 (37.5%)
Chart 8
Retrenched Workers - By Industry
Services
Manufacturing
Mining and Quarrying
138 (30.9%)
300 (67.3%)
8 (1.8%)
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
48 49
STRATEGIC & PERFORMANCE REVIEW | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
Since 2016, HRDF approved a total of 3,965 trainees for HOC’s initiatives. In 2018, HRDF continued with these
initiatives by approving the participation of 321 retrenched workers for 21 courses with nancial assistance
amounting to RM4,444,640.
In terms of gender distribution, 93.8 per cent or 301 trainees were male, a huge contrast against the number of
female trainees, which saw only 20 participants or 6.2 per cent. The breakdown of gender distribution is as per
Chart 10 below.
Chart 10
Total Trainees Approved - By Gender
The government successfully placed all 321 trainees in gainful employment through HRDF’s HOC.
The details of job placements according to industries are shown in Chart 11 below.
Chart 11
Total Job Placement Based on Industries
PERFORMANCE
REVIEW 2018
3) TRAIN AND REPLACE (T&R)
The Train and Replace (T&R) Programme was implemented in 2016 to up-skill the future Malaysian workforce
to replace existing foreign workers in the country. The programme enabled HRDF-registered employers, who
planned to replace their existing foreign workers with Malaysian workers, to apply for nancial assistance
from the Fund to train future local workers for specic positions or skill-sets.
These employers collaborated with HRDF-registered training providers or engaged their internal trainers to
offer the relevant courses for which the maximum duration of training was 12 months.
A total of RM25 million was allocated from HRDF’s consolidated fund from 2016 to 2018 with a total of 1,908
trainees benetting from this programme. In 2018, a total of 409 trainees were approved with a total nancial
assistance of RM4.4 million.
For year 2018, the majority of trainees who participated in this programme were male (242 trainees) while 167
of these trainees were female. The breakdown is as per Chart 12 below.
Chart 12
Total Trainees Approved - By Gender
All the 409 trainees were meant to replace foreign workers in the Services and Manufacturing industries. A total of
322 trainees were placed in the Services industry and 87 trainees placed in the Manufacturing industry. The details
are shown in Chart 13 below.
Chart 13
Total Trainees Approved - By Industries
Male
Female
242 (59.2%)
167 (40.8%)
Services
Manufacturing
PERFORMANCE
REVIEW 2018
322 (78.7%)
87 (21.3%)
Male
Female
20 (6.2%) 301 (93.8%)
Services
Manufacturing
Mining and Quarrying
240 (72.95%)
33 (7.90%)
63 (19.15%)
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
50 51
STRATEGIC & PERFORMANCE REVIEW | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
The number of trainees approved based on the location of employers are shown in Table 16. Overall, 72.6 per cent
of the trainees were from Selangor; followed by Perak (21.3 per cent); and Kuala Lumpur (6.1 per cent).
Table 16
Total Trainees Approved - By Training Location
Location Number of Trainees %
Selangor 297 72.6
Kuala Lumpur 25 6.1
Perak 87 21.3
Total 409 100.0
4) GRADUATES ENHANCEMENT PROGRAMME FOR EMPLOYABILITY (GENERATE)
In our effort to increase the rate of employability among graduates, HRDF implemented the Graduates
Enhancement Programme for Employability (GENERATE). GENERATE’s objectives were to equip, develop
and assist unemployed graduates with:
• high-end skills and competencies that are required by industries;
• relevant working experience;
• exploring new career paths; and
• job placements.
GENERATE enabled HRDF-registered employers or employer associations to apply for nancial assistance
from the Fund to train unemployed graduates for high-value jobs that offered a starting salary from RM2,000
and above (diploma holders) to RM3,000 or more (degree holders).
The programme - which was allocated RM55 million from HRDF’s consolidated fund and RM25 million
from the Government - offered courses which were required by employees to be gainfully employed in the
country’s key economic development corridors.
PERFORMANCE
REVIEW 2018
A total of 4,030 trainees benetted from this programme between 2016 and December 2018. In 2018 alone, a
total nancial assistance of RM12 million was approved to benet 584 unemployed graduates. The total nancial
assistance approved, which consists of course fee and allowance, (RM12.1 million for course fee; RM782,900 for
trainees’ allowances) is shown in the Chart 14 below.
Chart 14
Total Financial Assistance Approved (RM) Million
Of the 584 trainees, 396 or 67.8% obtained placement in the Services and Mining and Quarrying industries. A total
of 350 trainees were placed in the Services industry while the remaining 46 trainees were offered jobs in the Mining
and Quarrying industry as shown in Chart 15 below.
Chart 15
Total Trainees Approved and Job Placement by Industry
PERFORMANCE
REVIEW 2018
12.1 (95%)
0.8 (5%)
Training Fee
Allowance
Services
Mining and Quarrying
350 (88.4%)
46 (11.6%)
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
52 53
STRATEGIC & PERFORMANCE REVIEW | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
Figure 1
Total Trainees Approved - By Training Location
Figure 1 above shows the total trainees approved based on location. From the total trainees approved, Selangor had
the highest percentage of trainees (188 trainees or 26.2 per cent); followed by Kelantan (175 trainees or 17.76 per cent).
Chart 16
Total Trainees - By Type of Certication
GENERATE successfully placed 67.8 per cent of its trainees in employment within six months of completion of
their respective courses within the programme.
Table 17
Total Trainees Approved and Job Placement for the Year 2018
Total Trainees Approved 584
Total Job Placement (Less than 6 months) 396
PERFORMANCE
REVIEW 2018
5) RURAL ACCELERATED INDUSTRY SKILLS FOR EMPLOYABILITY (RAISE)
The Rural Accelerated Industry Skills for Employability (RAISE) focused on short-term intensive trainings to
full the acute shortage of workers in the Manufacturing and Services industries.
As one of the sub-programmes of the Future Workers Training scheme, RAISE was designed to equip rural
youth aged between 16 and 25 years with the relevant skill-sets required for specic positions offered by
HRDF-registered employers. Such positions offered a minimum monthly salary of RM1,000.
RAISE strived to:
i. Increase the supply of skilled workforce to industries through strategic partnerships with HRDF-
registered employers and industries covered under the PSMB Act 2001 to support the manpower
requirements of the Regional Economic Corridors.
ii. Reduce the unemployment rate, especially among rural youth, to help achieve the Government’s
aspiration of attaining 35 per cent skilled workforce by 2020.
A total of RM15 million was allocated from the HRDF 30 per cent Consolidated Fund for the implementation
of RAISE programme. In 2018, a total of 807 rural youth were approved, involving RM4.5 million of nancial
assistance.
The breakdown of nancial assistance approved is as follows.
Chart 17
Total Financial Assistance Approved (RM) Million
The total breakdown of trainees approved based on gender is as the chart below.
Chart 18
Total Trainees Approved - By Gender
PERFORMANCE
REVIEW 2018
KELANTAN
17.76%
TERENGGANU
6.39%
PAHANG
4.41%
MELAKA
2.54%
KEDAH
4.26%
P.PINANG
3%
PERAK
7.33%
N.SEMBILAN
3.5%
JOHOR
19.2%
K.LUMPUR
8.4%
PERLIS
0.5%
SELANGOR
26.2
SARAWAK
5.2%
SABAH
1.38%
Certication courses
Non-Certication courses
548 (93.8%)
36 (6.2%)
3,926,200 (86%)
195,775 (4%)
450,000 (10%)
Training Fee
Transportation Cost
Allowance
Male
Female
461 (57.1%)
346 (42.9%)
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
54 55
STRATEGIC & PERFORMANCE REVIEW | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
Based on total trainees approved, 57.6 per cent were trained for placements in the Services industry and 42.4 per
cent were trained for placements in the Manufacturing industry. Details are shown in Chart 19 below.
Chart 19
Total Trainees Approved - By Type of Industry
Details of approved training based on location are indicated below.
Table 18
Total Trainees Approved - By Location
Trainees Approved By Location Number of Trainees %
Selangor 208 25.8
Pulau Pinang 151 18.7
Kuala Lumpur 107 13.3
Perak 98 12.1
Terengganu 88 10.9
Sabah 50 6.2
Sarawak 38 4.7
Melaka 25 3.1
Johor 18 2.2
Kedah 13 1.6
Negeri Sembilan 11 1. 4
Total 807 100.0
PERFORMANCE
REVIEW 2018
6) RECOGNITION OF PRIOR EXPERIENTIAL LEARNING (RPEL)
The Recognition of Prior Experiential Learning (RPEL) programme is aimed to give recognition and
certication for technical and management skills and knowledge and experience gained through formal and
informal learning. RPEL enabled trainees to get job promotions and salary increments which increased their
motivation and productivity at work.
The programme targeted Malaysian workers in the Bottom 40 per cent group, who earned less than RM3,900
monthly and were in the non-skilled category or had qualications lower than a diploma or Malaysian Skills
Certicate (SKM) Level 4 or their equivalent.
Although RPEL did not require its candidates to attend training or classes, they were given training of not
more than ve days if they had to prepare for a competency gap assessment.
Courses offered under RPEL were delivered through recognition of skills, knowledge and experience of
workers. After assessment by the respective certifying bodies, candidates earned a paper qualication which
was equal to the Malaysian Skills Certicate (SKM) Level 3, Level 4 or the Malaysian Skills Diploma (DKM)
issued by the Department of Skills Development (JPK).
HRDF maintained its collaborations with the Federation of JPK Accredited Centres Malaysia (FeMAC);
Silver Boundaries, the Perbadanan Hal Ehwal Bekas Angkatan Tentera (PERHEBAT), Malaysia Retail
Chain Association (MRCA); and Skills Johor to implement the RPEL programme. In 2018, RPEL received
RM21 million from the Government and RM14 million from HRDF’s consolidated fund. A total of 7,581 trainees
participated in the programme with these ve appointed vendors.
In terms of gender distribution, the majority of RPEL trainees were female (4,394 trainees or 57.4 per cent);
while male trainees made up 42.6 per cent or 3,232 participants.
Chart 20
Total RPEL Trainees - By Gender
PERFORMANCE
REVIEW 2018
Services
Manufacturing
342 (42.4%)
465 (57.6%)
4,349 (57.4%)
3,232 (42.6%)
Male
Female
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
56 57
STRATEGIC & PERFORMANCE REVIEW | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
In terms of ethnic-based participation, 6,142 trainees or 81 per cent of the participants were Malays; followed by
Indians (429 trainees or 5.7 per cent); and Chinese (4.9 per cent or 325 trainees). Chart 21 below illustrates the
number of trainees according to ethnic groups.
Chart 21
Total RPEL Trainees - By Race
Training providers are one of HRDF’s main stakeholders as they deliver quality training programmes to
HRDF-registered employers to meet their human capital development needs. With a total of 26,281 registered
employers as of December 2018, HRDF required all its training providers to be registered so it can monitor and
maintain the delivery of quality training to registered employers.
The training must produce knowledgeable and skilled workers to meet the demand of today’s competitive
environment. Only registered training providers are allowed to offer in-house and public programmes to employers.
Table 1 shows the total number of active training providers as of 31 December 2018 which was 3,576. Between
January and December 2018, a total of 1,211 training providers registered or renewed their licenses with HRDF. Of
the total, 28 training providers were rejected as they failed to meet the new application criteria. Details on changes
in training premises and branch applications are shown in Table 2.
REGISTERED
TRAINING PROVIDERS
PERFORMANCE
REVIEW 2018
Number of
Active Training
Providers
3,576 116
Change of
Training Premise
Branch
Application
1
TRAIN-THE-TRAINER PROGRAMME
The HRDF Train-the-Trainer (TTT) programme is aimed to train managers, executives, trainers, instructors, team
leaders, or individuals who aspire to deliver structured and effective training. Aside from the training delivery, TTT
also encompasses a module on how best to assess the participants or TTT trainees from pre to post training.
This programme is designed to be conducted through short lectures, group discussions, presentations, role-plays,
and real-life applications – all of which cater to the scope of holistic adult learning.
Table 19
Statistics on TTT Programmes Conducted in 2018
TTT Programmes / Category No. of Training Pax
Organised by Training Provider 149 1,357
In-House for Registered Employer 67 1003
In-House for Non-Registered Employer 30 470
Organised by HRDF 27 483
For Government Agencies (NSDC) 4 80
Total 277 3,393
STAR RATING SYSTEM FOR HRDF-REGISTERED TRAINING PROVIDERS
The HRDF Star Rating system was introduced in 2016 with the aim of ensuring continuous service improvement
from the Fund’s registered Training Providers.
On 6 July 2018, the Star Rating system was placed under review following feedback from Trainers and Training
Providers during a Town Hall session with HRDF’s Registered Training Providers in Kuala Lumpur on 7 June 2018.
The review process was conducted through an online assessment survey as well as engagement sessions with
Trainers and Training Providers.
Based on the results of the assessment and feedback, the Star Rating system was discontinued in February 2019.
Nevertheless, HRDF continued to supervise the quality of its registered trainers and training courses.
As of 30 June 2018, a total of 1,597 training providers were rated by the Fund with the result as follows:
Number of
Training
Providers
5 Star
52
4 Star
204
3 Star
577
2 Star
563
1 Star
90
Nil rating
111
Star Rating
PERFORMANCE
REVIEW 2018
Malay
Indian
Chinese
Bumiputera
(Sarawak & Sabah)
6,142 (81%)
685 (9%)
325 (4.3%)
429 (5.7%)
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
58 59
CREATING VALUE | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
2018 STAKEHOLDER
ENGAGEMENTS
2018 STAKEHOLDER
ENGAGEMENTS
HRDF continued to engage with its stakeholders in
its effort to improve the development of relevant and
effective initiatives while meeting the needs of employers
and employees. Ultimately, it is HRDF’s goal to empower
individuals and organisations to realise their full potential
through learning and development.
EMPLOYER VISITATION AND ENGAGEMENT ACTIVITIES
During the year, HRDF held over 800 engagement
sessions with industry stakeholders to ensure continuous
effectiveness and success of our initiatives.
Total
837
Engagement with
SME Employers
708
Engagement with
Large Employers
129
Figure 2
Employer Visitation and Engagement Activities - By States
HRDF DIALOGUES WITH REGISTERED EMPLOYERS
In 2018, HRDF held two dialogue sessions with approximately 220 registered employers in Melaka and Pahang to ensure
continual engagement with employers outside of the Klang Valley.
The objectives of these dialogues were to inform the employers on HRDF’s latest developments and to obtain feedback
and suggestions to ensure continuous improvement in HRDF training programmes and initiatives.
Date Venue Attendees / Participants
16 March 2018 Zenith Hotel, Kuantan, Pahang Approximately 100
10 April 2018 DoubleTree by Hilton Melaka Approximately 120
15
11
145
Total
160
Sarawak
Johor
Sabah and Labuan
89
Total
100
17 91
Total
108
Perak
11 29
Total
40
East Coast
18 56
Total
74
Melaka and
Negeri Sembilan
8 61
Total
69
Northern
6 101
Total
107
Central
43 136
Total
179
Total Visits (Large Employers)
Total Visits (SME Employers)
The engagement sessions enabled HRDF to obtain
feedback from the stakeholders and to update registered
employers on the Fund’s recent developments. The
engagement sessions were also held to establish trust
between HRDF and its stakeholders, which included large
and SME employers.
CUSTOMER DAY
In 2018, HRDF organised three sessions of Customer Day
in conjunction with various festive celebrations which
were Chinese New Year, Hari Raya and Deepavali in Kuala
Lumpur.
During the sessions, we had service counters to answer
inquiries from employers, training providers, trainers as
well as members of the public who were interested to
know about HRDF.
We also shared information with potential employers on
registering with HRDF and the levy claims process when
they send their employees for training.
Through these sessions, HRDF was able to create
awareness about its role as a catalyst in nation building
through the development of human capital. The Customer
Day also allowed HRDF to continue to create and maintain
a positive relationship with its stakeholders, especially
registered employers.
PSMB ACT 2001 BRIEFING SESSION
HRDF held several brieng sessions in 2018 to inform
employers’ associations in Kuala Lumpur, Pulau Pinang,
Sabah and Sarawak on HRDF’s plan to expand the PSMB
Act 2001 to cover more employers and employees under
the Act.
TOWN HALLS
HRDF organised two town halls in 2018 for stakeholders
to engage with the newly-appointed Human Resources
Minister M. Kula Segaran. About 800 training providers,
employer association representatives and registered
employers attended the town halls held in Klang Valley.
Close to 600 training providers attended the rst town hall
in Bangsar South on 7 June 2018. The forum was held to
inform training providers on the government’s and HRDF’s
+ =
Date Venue Total Attendees / Guest
27 February 2018
Customer Day in conjunction with Chinese New Year
Celebration at Wisma HRDF, Kuala Lumpur.
Approximately 250
10 July 2018
Customer Day in conjunction with Hari Raya Celebration at
Wisma HRDF, Kuala Lumpur.
Approximately 250
22 November 2018
Customer Day in conjunction with Deepavali Celebration at
Wisma HRDF, Kuala Lumpur.
Approximately 300
Date Venue
3 April 2018 The Waterfront Hotel, Kuching, Sarawak
5 April 2018 The Pacic Sutera Hotel, Kota Kinabalu, Sabah
9 April 2018 The Light Hotel, Seberang Jaya, Pulau Pinang
11 April 2018 Sunway Putra Hotel, Kuala Lumpur
Date Town Hall Attendees / Participants
7 June 2018
HRDF Town Hall with Registered Training Providers held at
the Connexion Conference & Event Centre at Bangsar South,
Kuala Lumpur
Approximately 600
10 November 2018
HRDF Town Hall with Employer Associations and Registered
Employers held at the HGH Convention Centre in Sentul,
Kuala Lumpur
Approximately 200
future direction as well as to obtain feedback from the
participants on HRDF’s performance across the years.
The second town hall was held at Sentul on 10 November
2018 to disclose the ndings of HRDF’s Governance
Oversight Committee (GOC), which highlighted various
issues related to the Fund’s governance and mitigation
efforts. About 200 representatives from employers’
associations and training providers’ associations as well
as HRDF-registered employers were present.
The brieng sessions were also a sharing platform to
obtain feedback and suggestions from the industry on
pertinent details with regards to the expansion of the Act.
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
60 61
PEMBANGUNAN SUMBER MANUSIA BERHAD HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
Success Story –
Chandra
Kunasegaran
Company: Plasform Sdn Bhd
Position: QA Supervisor
Participation in HRDF’s Training Programme: Chandra has
been with Plasform for ten years and faced challenges with
lack of effective communication due to changes in her areas of
responsibility from the Quality Department to Manufacturing and
Product Management. She attended the Smart Manufacturing
Programme to help mitigate some of these challenges.
In her own words: “After attending the programme, not only did
I gain knowledge on my new roles and responsibilities, I also
obtained the skills to effectively solve problem and communicate.
The programme I attended offered excellent theoretical and
practical knowledge which served to increase my condence and
self-esteem at work, enabling me to serve Plasform better.
I urge all employers and employees, particularly those who are
registered with HRDF, to participate in the Fund’s skills’ certication
training programmes which will prove to be invaluable for their
personal and professional growth.
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
62 63
FRAMEWORK OF TRUST | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
BOARD OF
DIRECTORS
1. Davies Danavaindram
Arputhasamy
Employer Representative
2. Sia Tze Yong
Employer Representative
3. Lim Eng Hock
Ministry of Human Resources
Representative
4. Datuk Kang Hua Keong
Employer Representative
5. Dato’ Raiha Azni Abd Rahman
Employer Representative
6. Azah Hanim Ahmad
Ministry of Finance
Representative
7. Dato’ Noor Farida Mohd Arifn
Employer Representative
Chairman of the Board
1 2 3 4 5 6 7
Age
39 - 49
50 - 59
60 - 69
70 - 79
20%
20%
40%
20%
Gender
Male
Female
80%
20%
BOARD OF
DIRECTORS
8. Dato’ Quah Thain Khan
Employer Representative
Deputy Chairman of the Board
9. Dato’ Mohd Razali Hussain
Malaysian Productivity
Corporation Representative
10. Datuk Hj. Abdul Kadir
M.E. Sikkandar
Independent Director
11. Ras Manikkam
Employer Representative
12. Govindasamy Annamalai
Independent Director
13. Dato’ Jeffery Tan
Employer Representative
14. Lim Yoke Cheong
Employer Representative
15. Elanjelian Venugopal
Chief Executive, Human Resources
Development Fund
10 138 11 149 12 15
Former Board of Directors
1. Datuk Givananadam Kalinan
2. Dato’ Dr Mohd Gazali Abas
3. Rayan Anak Narong
4. Dato’ Mohamed Elias Abu Bakar
5. Ganesh Kumar Bangah
6. Datuk Dr. Rose Lena Lazemi
7. Lewis Menggu @ Gabriel Kajeh
Menggu
8. Sarojini Ruth Rajahser Aarons
9. Dato’ CM Vignaesvaran Jeyandran
10. Lim Kah Cheng
11. Tan Sri (Dr) Ketheeswaran
M. Kanagaratnam
12. Rizal Faris bin Mohideen Abdul
Kader
13. Betty Hasan
14. Haji Hanafee Yusoff
15. Haji Abdul Wahab Abu Bakar
16. Dr. Hii Sui Cheng
17. Nidzam Kamarulzaman
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
64 65
FRAMEWORK OF TRUST | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
BOARD OF
DIRECTORS’ PROFILE
Nationality / Age
• Malaysian / 73
Nationality / Age
• Malaysian / 61
Dato’ Noor Farida Mohd Ariffin received her Barrister-
at-Law (Gray’s Inn) from the United Kingdom.
She currently sits on the Board of Aerospace
Technology Systems Corp Sdn Bhd; leads the Law
Reform Committee, National Council of Women’s
Organisations; acts as a trustee for the Women’s Aid
Organisation; and is a founder member of the Group
25 (G25). Dato’ Farida’s long and distinguished career
in public service included being the Ambassador
of Malaysia to the Netherlands and the Malaysian
Permanent Representative to the Organisation for
the Prohibition of Chemical Weapons. She also held
the position of Director-General of Research, Treaties
and International Law at the Foreign Ministry.
Dato’ Quah Thain Khan holds a Bachelor of
Engineering (Honours) from Monash University,
Australia and a Master in Business Administration
from Cranfield School of Management, United
Kingdom. He is currently the Chairman of Bikers
Rental Sdn Bhd. Previously, Dato’ Quah was the
Group Managing Director of Hume Industries Bhd;
a Board Member of Hong Leong Industries Bhd;
and a Managing Director in Hong Leong Group.
Additionally, he was on the Board of Lafarge
Malaysia Bhd as the President and Chief Executive
Officer. Dato’ Quah also served on the Industry
Advisory Council of Monash University Malaysia as
well as on the committees of several industry and
trade associations.
DATO’ NOOR FARIDA MOHD ARIFFIN
Employer Representative
Chairman of the Board
DATO’ QUAH THAIN KHAN
Employer Representative
Deputy Chairman of the Board
Nationality / Age
• Malaysian / 60
Lim Eng Hock is the Deputy-Secretary General
(Operations), Ministry of Human Resources. He
holds a Master in Business Administration (Finance)
from University of Wisconsin-Madison and a Master
of Science and Bachelor of Science in Biology from
Universiti Sains Malaysia. Previously, Lim was
the Senior Deputy Director of the Remuneration
Division, Public Service Department. He also held
the positions of Principal Assistant Director of the
Human Resource Management Information System
Project Office, Public Service Department; Assistant
Director of the Industrial Promotion Division,
Ministry of International Trade and Industry; and
Assistant Secretary of the Small Enterprise Division,
Ministry of Rural and Regional Development.
LIM ENG HOCK
Ministry of Human Resources Representative
BOARD OF
DIRECTORS’ PROFILE
Nationality / Age
• Malaysian / 62
Ras Manikkam is a Fellow Member of the Chartered
Institute of Management Accountants (CIMA),
United Kingdom and holds a Master in Business
Administration (Finance and Marketing) from Massey
University, New Zealand. Currently, he is the Director
of Agile Formers Sdn Bhd. Previously, Rasamy was
the Regional Managing Director of Felda IFFCO
Sdn Bhd; the Chief Executive Officer of IFFCO PTY
LTD (Egypt); and the Finance Director of Fonterra
Brands (Dubai, United Arab Emirates). He was also
the General Manager at Australasian Foods Export
Ltd (New Zealand) and New Zealand Milk Products
(Pacific) Ltd (New Zealand).
RAS MANIKKAM
Employer Representative
Nationality / Age
• Malaysian / 73
Nationality / Age
• Malaysian / 45
DAVIES DANAVAINDRAM ARPUTHASAMY
Employer Representative
DATO’ JEFFERY TAN
Employer Representative
Davies Danavaindram Arputhasamy holds a Bachelor
of Arts Degree from University of Malaya and a
certificate in Human Resource Management from the
Malaysian Institute of Human Resource Management.
He is currently the Director of Radosh Engineering
and Industrial Sdn Bhd and a member of the Human
Resources’ Management Committee of the Federation
of Malaysian Manufacturers. Previously, Davies
was the Director of Human Resources at Gapsoft
Non Woven Sdn Bhd and Aluminium Company of
Malaysia Berhad. Additionally, he was the Assistant
Director of Labour, Ministry of Human Resources.
Dato’ Jeffery Tan holds a Bachelor of Science in
Business Management and International Business
from Indiana University, Bloomington Indiana,
United States of America. He is currently the Deputy
Chairman of the Human Resource Committee and is a
National Council Member of the Associated Chinese
Chambers of Commerce and Industry of Malaysia.
Previously, Dato’ Jeffery was the Vice President
cum Chairman of the Small Medium Enterprises
and HR Committee of the Klang Chinese Chamber
of Commerce and Industry and the Chief Executive
Officer of Innostately Group of Companies and SMD
Group of Companies.
Nationality / Age
• Malaysian / 59
Nationality / Age
• Malaysian / 70
DATUK KANG HUA KEONG LIM YOKE CHEONG
Lim Yoke Cheong holds a Master in Business
Administration from the University of Bath, United
Kingdom and a Higher Diploma in Mechanical and
Production Engineering from the United Kingdom.
He is currently the President of the Malaysian
Automotive Component Parts Manufacturers; Vice
Chairman of Automotive Federation Malaysia; and a
Council Member of the ASEAN Automotive Federation
for ASEAN countries. Previously, Lim held the
position of Executive Director in seven automotive
manufacturing plants which are subsidiaries of a
public listed company.
Datuk Kang Hua Keong holds a Bachelor of Science
in Marine Engineering from the National Taiwan
Ocean University. He is currently the National
President of SME Association of Malaysia and is the
Board Director of SME Corp. Malaysia. Previously,
Datuk Kang was a Council Member of the Employees
Insurance Scheme; a sub-committee member on
FX, Bank Negara Malaysia and a member of the
Incubator Programme Steering Committee, Ministry
of Science, Technology and Innovation. Additionally,
he was the Managing Director for KYE System and
Vintage and the Export Manager for Micro System.
Employer Representative
Employer Representative
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
66 67
FRAMEWORK OF TRUST | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
BOARD OF
DIRECTORS’ PROFILE
DATO’ MOHD RAZALI HUSSAIN
Malaysia Productivity Corporation Representative
AZAH HANIM AHMAD
Ministry of Finance Representative
Nationality / Age
• Malaysian / 60
Nationality / Age
• Malaysian / 50
Dato’ Mohd Razali Hussain holds a Bachelor of
Science in Physics from University of Manchester,
United Kingdom and a Master Degree in Industrial
and Systems Engineering from Ohio University,
United States of America. He is currently the Director
of Malaysia Productivity Corporation; an Alternate
Country Director of Asian Productivity Organisation;
and serves as member of the Malaysian Services
Development Council; the Construction Industry
Transformation Plan Working Group on Productivity,
Construction Industry Development Board; the Global
Excellence Model Council; and SME Corporation’s
Business Advisory Council. Previously, Dato’ Mohd
Razali was a member of the PEMUDAH Working
Group of Efficiency Issues.
Azah Hanim Ahmad holds a Bachelor Degree
in Business Administration from Michigan
State University; a Master Degree in Business
Administration from Nanyang Technological
University; and a Diploma in Public Administration
from the National Institute of Public Administration,
Malaysia. She is currently the Under Secretary
of International Division, Ministry of Finance.
Previously, Azah Hanim served in various positions
in the same Ministry which included Deputy Under
Secretary, Regional and Multilateral and Research
and Negotiation; Deputy Under Secretary Policy
and Consultancy; Section Head, Procurement Policy
Development Section; and Principal Assistant
Secretary, International Procurement Policy Unit.
She also served as Assistant Secretary Budget Unit,
Finance Division in the Ministry of Education.
BOARD OF
DIRECTORS’ PROFILE
DATUK HJ. ABDUL KADIR M.E. SIKKANDAR
Independent Director
Nationality / Age
• Malaysian / 61
Datuk Hj Abdul Kadir M.E Sikkandar holds a Business
Management Certificate from Kinabalu Commercial
College, Sabah. He is currently the Chief Executive
Officer of Kumpulan BTC Berhad and an Advisor to
Politeknik Kota Kinabalu, Sabah. Additionally, Datuk
Hj. Abdul Kadir is the Assistant Treasurer General
of Majlis Datuk-Datuk Negeri Sabah; Treasurer
of Dewan Perniagaan Melayu Malaysia; and a
Member of Dewan Perniagaan Bumiputera Sabah.
Datuk Hj. Abdul Kadir also serves as a member of
the Federation Sabah Industri and the Malaysian
Employers’ Federation.
DATO’ RAIHA AZNI ABD RAHMAN
Employer Representative
Nationality / Age
• Malaysian / 58
Dato’ Raiha Azni Abd Rahman holds a Bachelor
Degree in Marketing from Syracuse University,
United States of America and was part of the INSEAD
Senior Management Development Programme. She
is currently the Senior Vice President, Group HR
Management, PETRONAS; a Council Member of the
Malaysian Employers’ Federation; and Chairman
for Institut Teknologi Petroleum PETRONAS Sdn
Bhd (University of Technology PETRONAS) and
PETRONAS Technical Training Sdn Bhd. Additionally,
she is a Board of Director for PETRONAS Management
Training Sdn Bhd and PETRONAS Lubricants
International; and a Member of the Board of Studies
for the Master of HR Development Programme,
Universiti Putra Malaysia.
GOVINDASAMY ANNAMALAI
Independent Director
SIA TZE YONG
Employer Representative
Nationality / Age
• Malaysian / 67
Nationality / Age
• Malaysian / 39
Sia Tze Yong holds a Bachelor of Commerce from
Curtin University of Technology, Australia. A leading
retailer with fourteen years of vast experience
specialising in premium grocery markets, he is
currently the Executive Chairman of Everrise
Departmental Store Sdn Bhd and the Group Executive
Director of Everrise Group. He is also a member of the
Malaysia Shopping Malls Association. Previously,
he was an academic researcher specialising in the
Australian Initial Public Offering market.
Govindasamy Annamalai holds a Bachelor of
Pharmacy (Honours) from Universiti Sains Malaysia.
He is currently the Director and Owner of Farmasi
Srisai Sdn Bhd; Chairman of Lembaga Pengelolah
Sekolah of Sekolah Jenis Kebangsaan Tamil
Tan Sri Dato’ Manickavasagam, Tanjong Malim;
and a Professional Member of the Malaysian
Pharmaceutical Society. Additionally, Govindasamy
is the Deputy President of the Educational Welfare
and Research Foundation, Malaysia; and was a
member of the Rotary Club of Jakarta, Indonesia; and
the Treasurer of Malaysia Club Jakarta, Indonesia.
ELANJELIAN VENUGOPAL
Chief Executive, Human Resources Development
Fund
Nationality / Age
• Malaysian / 48
Elanjelian Venugopal holds a Master of International
Affairs in International Economic Policy from
Columbia University; a Bachelor of Engineering
in Mechanical and Marine Engineering from
Liverpool John Moores University; and a Diploma
in Marine Engineering from Singapore Polytechnic.
He was previously the Managing Partner of Rajula
Consultancy Plt; Vice-President in the Managing
Director’s Office, Khazanah Nasional Berhad;
Head of Projects of the Malaysian Community &
Education Foundation, Usaha Tegas Sdn Bhd; and
Communication Manager of Westports Malaysia.
Previously, he was the Executive Secretary of
the Malaysian Tamil Education and Research and
Development Foundation.
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
68 69
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HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
68
SENIOR
MANAGEMENT
FRAMEWORK OF TRUST | PEMBANGUNAN SUMBER MANUSIA BERHAD
M Za’ba Mohamad Zaham
Head of Facilities &
Administration
Lim Kah Cheng
Chief Operating Ofcer
Sashikala Devi Gopallan
Head of Corporate
Communication
Ahmad Kamal Hasan Basri
Head of Application
Development & IT Security
Elanjelian Venugopal
Chief Executive
Wan Yon Shahima Wan Othman
Chief Customer Ofcer
SENIOR
MANAGEMENT
69
Rony Ambrose Gobilee
Head of Research &
Development
Md Sharizal Che Deris
Head of Customer Acquisition
Morni Bujang
Head of Customer Engagement
Dhamodaran Munusamy
Chief Financial Ofcer
Tan Eng Teik
Chief Digital Ofcer
Sofan Mohammed Amin
Head of Training Market
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
70 71
FRAMEWORK OF TRUST | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
GOVERNANCE
OVERVIEW STATEMENT
The Human Resources Development Fund (HRDF) remains committed to maintaining the highest standards of corporate
governance. We strongly believe that good governance is at the heart of, and is fundamental to, the effective management
of the Fund, its long term sustainability and continued success.
During the second half of 2018, HRDF came under the review of an independent ve-member Governance Oversight
Committee (GOC) which was commissioned by the Minister of Human Resources, Yang Berhormat M. Kula Segaran.
The rst of its kind for a Government agency, HRDF’s GOC was tasked with reviewing all aspects of the Fund’s Board
governance framework ndings. The GOC report was presented to the Fund’s stakeholders during a Town Hall with
Employers’ Associations and Registered Employers on 10 November 2019.
The ndings of the GOC — including its enquiries, responses and recommendations — is published in its entirety on the
HRDF website at www.hrdf.com.my.
An overview of key recommendations by HRDF’s GOC which have been put in place are:
TOWARDS AN ETHICAL
CORPORATE GOVERNANCE
• There was lack of board oversight on the
overall operations and governance across the
organisation and the Fund, where the Board
does not appear to provide adequate challenge
to decisions reported by the Management. In
this instance, new policies along with a board
charter have been adopted to strengthen
HRDF’s Board so it directs and guides the
organisation and the Fund to effectively
serve its mandate. Effective 1 January 2019,
HRDF appointed a new Chairman, Dato’ Noor
Farida Mohd Arifn, who is also an employer
representative.
Effective Board
Leadership
Leadership for
the Future
Highest standards
of Process
• The Fund underwent a major delivery
improvement to become more outward
looking, including right-sizing our internal
teams with three key divisions, which are
Customer Outreach, Operations and Services.
Striving to understand our customers’
businesses and helping them to achieve
their goals through the development of their
local employees, the Fund applied dedicated
diversity, fair treatment, mutual respect and
trust to help us achieve our target to train 1.2
million Malaysian employees in 2019.
• In carrying out their duties, HRDF’s Board,
Senior Leadership Team and employees are
vigilant in looking beyond any short-sighted
and short-lived interests to set processes and
make decisions that are in the best interest of
the Fund and its stakeholders over a longer
time horizon. As a result, several measures
for more effective control of our processes
have been put in place which includes the
establishment of several board committees
and board charters, power limit, code of
ethics and business ethics among others.
Commitment to
Governance and Transparency
• The Fund established a “Compliance and
Governance Unit” in December 2018.
Additionally, with a strong partnership
between HRDF’s Board, its Senior Leadership
Team and the Fund’s employees, we demand
of each other and ourselves the highest
standards of individual and corporate
integrity with our customers, professional
training community, suppliers, vendors,
and stakeholders. The organisation and the
Fund are committed towards vigorously
protecting the company’s assets and the
Human Resources Development levy of its
registered employers and comply with all of
the organisation and Fund’s policies and laws.
GOVERNANCE OVERVIEW
STATEMENT
CREATING THE RIGHT
CULTURE THROUGH OUR
GOVERNANCE FRAMEWORK
Our culture is dened through our Code of Conduct. This sets out what the organisation and the Fund stands for,
what we expect from our employees and how we expect our business to deliver our strategy.
Recognising that strong governance underpins a healthy culture, HRDF’s Board leads by example, setting the
tone from the top and championing behaviours it expects to see from the Fund’s Senior Leadership Team and its
employees.
HRDF BOARD
The Fund’s Board of Directors are collectively responsible for the long-term success of its stakeholders.
This responsibility includes matters of strategy, performance, resources, standards of conduct and
accountability. The Board also has the ultimate responsibility for corporate governance, which it discharges
directly or through its Committees.
HRDF CHAIRMAN
HRDF’s Chairman is responsible for the
leadership and overall effectiveness of the
Board. In particular, her role is to:
• Demonstrate ethical leadership and promote
the highest standards of integrity throughout
the business.
• Ensure effective operation of the Board, and
its Committees.
• Set the agenda, style and tone of Board
discussions in order to promote constructive
debate and effective decision-making.
• Foster effective working relationships
between the Non-Executive Directors,
support HRDF’s Chief Executive in his
development of strategy and, more broadly,
support and advise the Chief Executive.
• Ensure effective communication with the
Fund’s stakeholders and make the Board
aware of their views.
NON-EXECUTIVE DIRECTORS
The Non-Executive Directors bring external
perspectives and insight to the deliberations
of HRDF’s Board and its Committees, providing
a range of knowledge and business or
other experience from different sectors and
undertakings (see their biographies on page
64 - 67).
They play an important role in the formulation
and progression of the Fund’s agreed strategy,
and review and monitor the performance of the
HRDF’s Chief Executive, Senior Leadership Team
and its employees in the implementation of this
strategy.
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
72 73
FRAMEWORK OF TRUST | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
GOVERNANCE OVERVIEW
STATEMENT
1. EXECUTIVE COMMITTEE
The Executive Committee (EXCO) comprises three
Independent Non-Executive Directors who have been
constituted by HRDF’s Board with the delegated authority
to act on its behalf to ensure that the decision of the
Board, strategic matters, business plans, budgets, and
daily business and operational issues are carried out,
implemented and/or monitored by the Fund’s Management,
and that the requirements of good corporate governance
practices are being observed by the Management and
employees of the Fund.
The primary role of the EXCO is to oversee the
implementation and monitoring of the Fund’s Board
decisions; to make decisions in carrying out its roles; and
to provide strategic guidance for HRDF as delegated by the
Fund’s Board in the EXCO’s terms of reference.
2. INVESTMENT PANEL
The Investment Panel (IP) comprises six members
who include Independent Non-Executive Directors,
representative of the Ministry of Finance and two
Independent Members with business and nancial
experience appointed by the Minister of Human Resources
for a period of two years. The Chairman of the Board will
be the Chairman of IP as prescribed in the Pembangunan
Sumber Manusia Berhad Act 2001.
The primary responsibilities of the IP are to review HRDF
Investment Guidelines, ensure that the Fund effectively
and efciently generate maximum returns from its
investments and evaluate the performance of the Fund’s
investment.
The IP shall report to HRDF’s Board on the status of the
Fund’s investments upon request.
5. BOARD INFORMATION TECHNOLOGY
STEERING COMMITTEE
The Board Information Technology
Steering Committee (BITSC) comprises
four Independent Non-Executive Directors
who are responsible to review and endorse
HRDF’s IT policies; and accountable for
strategic IT decision making and control
– across aspects of implementation,
operation and maintenance.
The BITSC also ensures adequate
controls, risk mitigations and monitors
the progress of the Fund’s IT projects
to warrant that they are implemented
successfully and timely to meet the Fund’s
business objectives.
The BITSC is expected to meet six (6)
times a year or more to help steer the
Fund’s IT initiatives.
6. BOARD NOMINATION AND
REMUNERATION COMMITTEE
The Board Nomination and Remuneration
Committee (BNRC) comprises three
members of the Board, with one of them
being the Chairman.
The BNRC is empowered to decide on all
personnel remuneration policies of HRDF.
These include providing an independent
and unbiased review, assessment, and
determination of HRDF’s remuneration
structure and policy; reviewing the Fund’s
Scheme of Salary (as and when required) and
make recommendation on the revisions to
the Scheme of Salary to HRDF’s Board. BNRC
also evaluates and makes recommendations
to the Board on the Fund’s annual salary
increments, bonus payments and reviews
the appointments, conrmations and
promotions of the Fund’s employees.
The BNRC will meet as and when required.
7. FINANCE STEERING
COMMITTEE
The Finance Steering
Committee comprises
three Independent
Non-Executive Directors.
This committee oversees
the preparation of
HRDF’s annual budget
and the performance
of the Fund towards
achieving its accounted
revenues, expenses and
other nancial matters.
HRDF BOARD COMMITTEES
Each Committee has a set of clearly dened terms of reference. Responsibility for the implementation of HRDF’s
strategies and day-to-day businesses are delegated to the Fund’s Chief Executive and Senior Leadership Team.
GOVERNANCE OVERVIEW
STATEMENT
3. BOARD AUDIT & RISK MANAGEMENT COMMITTEE
The Board Audit & Risk Management Committee (BARMC) comprises
four Independent Non-Executive Directors with a collective wealth of
knowledge, expertise and experience from different industries and
backgrounds.
The BARMC evaluates the adequacy and effectiveness of HRDF’s
internal control systems and deliberates on issues identied by
HRDF’s internal and external auditors, and Management.
Throughout the year, the BARMC is briefed on the Fund’s corporate
governance practices, updates of the Malaysian Financial Reporting
Standards, as well as legal and regulatory requirements in addition to
key matters affecting the nances of HRDF.
The BARMC also reviews and reports to HRDF’s Board on the
engagement and independence of the Fund’s external auditors and
their audit plan which includes the nature, approach, scope, and
other examinations of external audit. BARMC also assesses the
effectiveness of the Fund’s internal audit function which is further
described in the section on Internal Audit.
The BARMC will meet regularly with full and unimpeded access to the
Fund’s Internal and External Auditors and employees.
4. BOARD PROGRAMME COMMITTEE
The Board Programme Committee (BPC)
comprises ve Independent Non-Executive
Directors.
The roles and responsibilities of the BPC are to
set the policy direction of schemes/programmes/
courses (herein referred to as “initiative”) under
HRDF such as type of initiatives, implementation
methods and budget allocation.
Additionally, the BPC reviews and approves
proposed guidelines/terms of reference of these
initiatives that include parameters of evaluation,
maximum course fee(s) and others. Additionally,
the BPC evaluates the effectiveness of initiatives
that have been conducted for either continuation
or discontinuation.
BPC meetings are expected to be held a minimum
of four times per year with additional meetings
conducted as and when required.
8. TENDER
COMMITTEE
The Tender Committee comprises
three Independent Non-Executive
Directors and is segregated into
two - Tender Board ‘A’ and Tender
Board ‘B’.
The Tender Board ‘A’ is empowered
to decide on tenders more than
RM20 million while Tender Board
‘B’ is authorised to decide on all
tenders below RM20 million and
on signicant matters related
to the procurement of supplies
and services above the value of
RM500,000.
Additionally, there are sanctions in
line with HRDF’s prevailing Interim
Authority Limit and Procurement
Procedure which apply to the Fund’s
Management.
9. DISCIPLINARY
COMMITTEE
The Disciplinary Committee (DC)
comprises three members with one of
them being appointed as Chairman.
Each DC members is charged with the
responsibility to manage and overlook
the disciplinary matters of persons
with varying degree of positions
within HRDF.
The primary function of the DC is
to review the disciplinary report
submitted by the Domestic Inquiry
committee, and to mete out the
appropriate penalty on any of the
Fund’s employee who had been found
guilty on the charge(s) levelled against
him/her based on HRDF’s Terms and
Conditions, Section 9.9(j).
The DC will meet as and when
required.
10. DISCIPLINARY APPEAL
COMMITTEE
The Disciplinary Appeal Committee
(DAC) consists three members with
one of them being appointed as
Chairman.
The role of the DAC is to review and
decide appeals from decisions of the
Discipline Committee and to hear
and decide appeals with respect to
disciplinary action taken by authorised
persons, in accordance with the terms
of reference and any other rules,
regulations and procedures of HRDF.
The DAC will meet as and when
required.
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
74 75
FRAMEWORK OF TRUST | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
STATEMENT ON RISK MANAGEMENT AND
INTERNAL CONTROL
INTRODUCTION
The Board afrms its overall responsibility for HRDF’s system of internal control and risk management and for
reviewing the adequacy and effectiveness of the system.
The Board is pleased to share the main features of the Fund’s risk management and internal control system together
with key achievements in respect of the nancial year ended 31 December 2018.
In discharging its stewardship responsibilities, the Fund has established a sound risk management framework and
procedures of internal control. These procedures, processes and structures of HRDF are subject to regular review
by the Board, provide an on-going process for identifying, evaluating and managing the signicant risks faced by
HRDF that may affect the achievement of its business objectives and strategies.
RESPONSIBILITY AND ACCOUNTABILITY
The HRDF Board acknowledges the principal risks of all aspects of the business and recognises business decisions
involve the taking of appropriate risks.
For areas pertaining to risk management, the Board is responsible for the following:
i. To ensure a sound system of risk oversight and management of internal controls are properly managed
and functions effectively;
ii. To assess reports/judgments on the effectiveness of implementation of the risk management and
internal control system received from the Board Audit Risk Management Committee (BARMC).
iii. Ultimately responsible for all elements of HRDF’s risk management.
RISK MANAGEMENT
The Board regards risk management as an integral part of HRDF’s business operations and has oversight on this
critical area through the BARMC, which is tasked with the following:
i. To formulate and review the risk strategy of HRDF and dene the risk management objectives across
risk categories and divisions.
ii. To oversee the establishment of HRDF’s Enterprise Risk Management (ERM) Framework and Policy.
iii. To recommend HRDF’s ERM Framework and Policy for the Board’s approval.
iv. To oversee the annual review and periodic testing of HRDF’s ERM Framework and Policy to evaluate its
effectiveness;
v. To oversee the Management’s actions in identifying, managing and reporting of material risk; and
vi. To provide recommendations on risk matters to the Board for approval.
HRDF’s ERM structure spans the entire organisation – from the Board of Directors to the operational level and is
designed based on three dened levels of defence.
These lines of defence, in their respective roles, are designed to reinforce each other in the implementation and
strengthening of HRDF’s ERM Framework. The matrix for oversight, assurance, risk management and internal
control is clearly set up in HRDF as illustrated in Figure 3.
HRDF adopts MS ISO 31000:2018 – Risk Management Principles & Guidelines as a reference for identifying,
analysing, integrating, evaluating, and treating and monitoring risks in order to align its risk management process
with industry best practices. Figure 2 below illustrates the risk management framework as implemented in HRDF.
STATEMENT ON RISK MANAGEMENT
AND INTERNAL CONTROL
ESTABLISH THE CONTEXT
RECORDING AND REPORTING
COMMUNICATE
AND
CONSULT
RISK TREATMENT
RISK ASSESSMENT
RISK EVALUATION
RISK ANALYSIS
RISK IDENTIFICATION
Figure 2
MONITOR
AND
REVIEW
Figure 3
BOARD OF DIRECTORS
BOARD AUDIT RISK MANAGEMENT COMMITTEE
FUNCTIONAL AREA
WORKING TEAM
FIRST LINE OF DEFENCE SECOND LINE OF DEFENCE THIRD LINE OF DEFENCE
Risk Management &
Corporate Governance
Department (RMCGD)
Internal Audit (IA)Divisions
Departments
Business Units
REGULATORS
EXTERNAL AUDIT
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
76 77
FRAMEWORK OF TRUST | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
CONTROL ENVIRONMENT AND STRUCTURE
The HRDF Board and Management have established numerous processes to identify, evaluate and manage
signicant risks faced by the Fund. These include periodic testing of the effectiveness and efciency of the internal
control procedures and updating the system of internal control when there are changes to the business environment
or regulatory guidelines.
The key elements of HRDF’s control environment include the following:
1. ORGANISATION STRUCTURE
Establishment of the ten (10) Board Committees to support the Fund’s objectives.
i. Executive Committee;
ii. Investment Panel;
iii. Board Audit & Risk Management Committee;
iv. Board Programme Committee;
v. Board Information Technology Steering Committee;
vi. Board Nomination and Remuneration Committee;
vii. Finance Committee;
viii. Tender Committee;
ix. Disciplinary Committee; and
x. Disciplinary Appeal Committee
2. BOARD AUDIT & RISK MANAGEMENT COMMITTEE
The Board Audit & Risk Management Committee (BARMC) evaluates the adequacy and effectiveness of
the Fund’s internal control systems and reviews internal control issues as identied by HRDF’s internal and
external auditors, and the Management.
The BARMC also reviews and reports to HRDF’s Board on the engagement and independence of the external
auditors and their audit plan, nature, approach, scope, and other examinations of the external audit matters.
It also reviews the effectiveness of the internal audit function which is further described in the following
section on Internal Audit.
3. INTERNAL AUDIT
The Internal Audit Department (IAD) continues to independently review key processes, monitor compliance
with policies and procedures, evaluate the adequacy and effectiveness of internal control and risk management
systems and highlight signicant ndings, enhancements and corrective measures in respect of any
non-compliance on a timely basis. Its work practices are governed by the Internal Audit Charter, which is
subject to revision on an annual basis.
The annual audit plan, established primarily on a risk-based approach, is reviewed and approved by the
BARMC annually before the commencement of the following nancial year and an update is given to the
BARMC during each of its meetings. The BARMC oversees IAD’s function, its independence, the scope of
work, and resources. The head of IAD presents to the BARMC, audit results and signicant matters raised in
the audit reports on the audits undertaken in the respective area of operations. Follow-up audits were also
carried out to determine the status of implementation of agreed corrective actions based on the previous
audit issues reported.
STATEMENT ON RISK MANAGEMENT
AND INTERNAL CONTROL
During the year, some areas for improvement in the internal control system were reported by the IAD to the
BARMC. HRDF’s Management has been responsive to the issues raised and has taken appropriate measures
to address the areas for improvement that have been highlighted. The effectiveness of the system of internal
control is constantly reviewed and enhanced in response to changes in the operating environment.
4. POLICIES AND PROCEDURES
There is extensive documentation of the Fund’s policies and procedures in manuals including those relating
to Financial, Legal, Enforcement, Treasury, Procurement, Training, Customer Service, Human Resources, and
Information Systems. These policies and procedures are continuously enhanced.
5. FINANCIAL AND OPERATIONAL INFORMATION
A detailed budgeting and reporting process has been established by the Fund. Comprehensive budgets are
prepared by the operating units and presented to HRDF’s Board. Upon approval of the budget, the Fund’s
performance is then tracked and measured against the approved budget on a monthly basis. Reporting
systems which highlight signicant variances against the plan are in place to track and monitor performance.
These variances in nancial as well as operational performance indices are incorporated in detail in the
monthly management reports. On a quarterly basis, the results are reviewed by the Board to enable them to
measure the Fund’s overall performance compared to the approved budgets and prior periods.
6. LEGAL
The Legal department plays a pivotal role in ensuring that the interests of HRDF are preserved and safeguarded
from a lawful perspective. It ensures that the Fund’s operations and transactions with third parties are in
compliance with all laws. It also plays a key role in advising HRDF’s Board and Management on legal and
strategic matters. The Board is also briefed on material litigation and any changes in law that would affect
HRDF’s operations through reports to the BARMC.
STATEMENT ON RISK MANAGEMENT
AND INTERNAL CONTROL
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
78
FRAMEWORK OF TRUST | PEMBANGUNAN SUMBER MANUSIA BERHAD
MONITORING AND REVIEW
The processes adopted by HRDF to monitor and review the effectiveness of the Fund’s internal control system
include:
1. Management representation to the Board by the Fund’s Chief Executive on the control environment of HRDF,
based on representations made to him by Management on the control environment in their respective areas.
2.
Committee’s meetings.
review. The Board and Management of HRDF will continue to monitor the Fund’s effectiveness and take measures
to strengthen the risk management and internal control environment of the Fund.
ACHIEVEMENTS AND TARGETS
During the period under review, HRDF achieved the following initiatives through its Risk Management, Compliance
and Governance Department (RMCGD):
i.
ii.
iii. Developed the Code of Conduct and Business Ethics for External Parties and the Whistleblowing Policy.
iv. All departments in HRDF have developed their respective SOPs.
Moving forward, the following initiatives are in the pipeline for execution, towards ensuring effective risk
management within the Fund:
i. Anti-Money Laundering and Counter Financing of Terrorism Policy;
ii. Anti-Bribery and Corruption Policy;
iii.
iv. Risk management training to embed the risk awareness culture in HRDF; and
v. On-going assessment of the BCM Programme in line with any changes to HRDF’s business together with
refresher sessions with key personnel.
Phase 1: Phase 2:
Phase 3: Phase 4: Phase 5:
Programme Initiation, Management and Risk Assessment Business Impact Analysis
Strategy Development & Selection Plan Development Plan Testing & Maintenance
STATEMENT ON RISK MANAGEMENT
AND INTERNAL CONTROL
79
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
79
Directors’ Report 80
Statement by Directors 86
Statutory Declaration 86
Independent Auditors’ Report 87
Statement of Financial Position 90
Statement of Comprehensive Income 91
Statement of Changes In Equity 92
Statement of Cash Flows 93
Notes to the Financial Statements 94
FINANCIAL
STATEMENTS
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
80 81
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
DIRECTORS’ REPORT
For the year ended 31 December 2018
DIRECTORS
The Directors who have held ofce during the nancial year and up to the date of this report are as follows:
Dato’ Noor Farida Mohd Arifn (Chairman) (Appointed on 15 October 2018)
Dato’ Quah Thain Khan (Deputy Chairman) (Appointed on 26 June 2018)
Elanjelian Venugopal (Chief Executive) (Appointed as Director on 21 June 2018)
(Appointed as Chief Executive on 11 July 2018)
Dato’ Jeffery Tan
Gan Boon Khim
(Alternate to Dato’ Jeffery Tan)
Davies Danavaindram Arputhasamy
Dato’ Mizanur Rahman S.M. Abdul Ghani
(Alternate to Davies Danavaindram Arputhasamy)
Datuk Kang Hua Keong
Ong Chee Tat
(Alternate to Datuk Kang Hua Keong)
Lim Yoke Cheong
Lim Kheng Chye
(Alternate to Lim Yoke Cheong)
Dato’ Mohd Razali Hussain
Ab Rahim Yusoff
(Alternate to Dato’ Mohd Razali Hussain)
Azah Hanim Ahmad (Appointed on 29 March 2018)
Mastura Marsam
(Alternate to Azah Hanim Ahmad)
(Appointed on 29 March 2018)
Ras Manikkam (Appointed on 26 June 2018)
Nidzam Kamarulzaman (Appointed on 1 October 2018)
(Retired on 11 March 2019)
Lim Eng Hock (Appointed on 1 October 2018)
Dato’ Raiha Azni Abd Rahman (Appointed on 5 December 2018)
Sia Tze Yong (Appointed on 5 December 2018)
Datuk Haji Abdul Kadir M.E. Sikkandar (Appointed on 5 December 2018)
Govindasamy Annamalai (Appointed on 6 December 2018)
Datuk Muhd Khair Razman Mohamed Annuar (Appointed on 24 April 2019)
Dato’ Dr. Mohd Gazali Abas (Cessation as Director on 28 March 2018)
Dato’ Dr. Syed Omar Sharifuddin Syed Ikhsan
(Alternate to Dato’ Dr Mohd Gazali Abas)
(Cessation as Alternate on 28 March 2018)
Datuk Givananadam Kalinan (Cessation as Director on 28 March 2018)
Suhara Husni
(Alternate to Datuk Givananadam Kalinan)
(Cessation as Alternate on 28 March 2018)
Datuk Dr. Rose Lena Lazemi (Appointed on 29 March 2018)
(Cessation as Director on 12 June 2018)
Ganesh Kumar Bangah (Appointed on 29 March 2018)
(Cessation as Director on 12 June 2018)
DIRECTORS’ REPORT
For the year ended 31 December 2018
DIRECTORS’ REPORT
The Directors have pleasure in submitting their report and the audited nancial statements of the Company for the
nancial year ended 31 December 2018.
PRINCIPAL ACTIVITIES
As set out in the Pembangunan Sumber Manusia Berhad Act 2001, the main objective of the Company is the
imposition and collection of human resources development levy for the purpose of promoting the training and
development of employees, apprentices and trainees and the establishment and administration of the human
resources development fund.
The functions of the Company are:
(a) to assess and determine the types and extent of employees’, apprentices’ and trainees’ training and retraining
in keeping with the human resources needs of industries;
(b) to promote and stimulate manpower training; and
(c) to determine the terms and conditions under which any nancial assistance or other benets are to be given.
There have been no signicant changes in the nature of these activities during the nancial year.
RESULTS
RM
Net decit for the nancial year
(42,921,056)
RESERVES AND PROVISIONS
All material transfers to or from reserves or provisions during the nancial year are disclosed in the nancial
statements.
DIVIDEND
No dividend has been paid, declared or proposed by the Company since the end of the previous nancial year. The
Directors do not recommend the payment of any dividend in respect of the nancial year ended 31 December 2018.
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
82 83
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
DIRECTORS’ BENEFITS
During and at the end of the nancial year, no arrangements subsisted to which the Company is a party, being
arrangements with the object or objects of enabling Directors of the Company to acquire benets by means of the
acquisition of shares in or debentures of the Company or any other body corporate.
Since the end of the previous nancial year, no Director has received or become entitled to receive a benet (other
than benets included in the aggregate amount of emoluments received or due and receivable by the Directors
or the xed salary of a full time employee of the Company as disclosed in Note 23 to the nancial statements) by
reason of a contract made by the Company or a related corporation with the Director or with a rm of which the
Director is a member, or with a company in which the Director has a substantial nancial interest.
DIRECTORS’ REMUNERATION
The details of Directors’ remuneration are disclosed in Note 23 to the nancial statements.
INDEMNITY AND INSURANCE FOR DIRECTORS, OFFICERS AND AUDITORS
During the nancial year, the insurance affected for Directors and Ofcers amounted to RM33,000.
There were no indemnity given to or insurance effected for the auditors of the Company during the nancial year.
OTHER STATUTORY INFORMATION REGARDING THE COMPANY
(I) AS AT THE END OF THE FINANCIAL YEAR
(a) Before the nancial statements of the Company were prepared, the Directors took reasonable steps:
(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the
making of provision for doubtful debts and have satised themselves that all known bad debts and
that adequate provision had been made for doubtful debts; and
(ii) to ensure that any current assets other than debts, which were unlikely to realise their book values
in the ordinary course of business had been written down to their estimated realisable values.
DIRECTORS’ REPORT
For the year ended 31 December 2018
DIRECTORS (continued)
The Directors who have held ofce during the nancial year and up to the date of this report are as follows:
(continued)
Chin Chee Seong
(Alternate to Ganesh Kumar Bangah) (Appointed on 29 March 2018)
(Cessation as Alternate on 12 June 2018)
Rayan Anak Narong (Cessation as Alternate on 5 April 2018)
Lewis Menggu @ Gabriel Kajeh Menggu (Appointed on 5 April 2018)
(Cessation as Director on 12 June 2018)
Dato’ Mohamed Elias Abu Bakar (Deputy Chairman) (Cessation as Director on 21 May 2018)
Thiagarajan S. Rengasamy (Cessation as Director on 12 June 2018)
Sarojini Ruth Rajahser Aarons (Cessation as Director on 12 June 2018)
K. Anusuya A.Krishnan (Cessation as Alternate on 12 June 2018)
(Alternate to Sarojini Ruth Rajahser Aarons)
Dato’ CM Vignaesvaran Jeyandran (Chief Executive) (Cessation as Chief Executive on 21 June 2018)
Lim Kah Cheng (Acting Chief Executive) (Appointed as Director and Acting Chief Executive on
21 June 2018)
(Cessation as Director and Acting Chief Executive on
10 July 2018)
Betty Binti Hasan (Appointed on 27 June 2018)
(Cessation as Director on 28 September 2018)
Tan Sri (Dr.) Ketheeswaran M. Kanagaratnam (Cessation as Director on 8 August 2018)
Datuk Gobalakrishnan Narayanasamy (Cessation as Alternate on 8 August 2018)
(Alternate to Tan Sri Dr Ketheeswaran M.Kanagaratnam)
Rizal Faris Mohideen Abdul Kader (Cessation as Director on 17 August 2018)
Norsyahrin Hamidon (Cessation as Alternate on 17 August 2018)
(Alternate to Rizal Faris Mohideen Abdul Kader)
Haji Abdul Wahab Abu Bakar (Cessation as Director on 5 December 2018)
Christopher Sakayaraj (Cessation as Alternate on 5 December 2018)
(Alternate to Haji Abdul Wahab Abu Bakar)
Dr Hii Sui Cheng (Cessation as Director on 5 December 2018)
As specied in Section 7 of the Pembangunan Sumber Manusia Berhad Act, 2001, members of the Board of
Directors (including the positions of Chairman and Deputy Chairman) shall be appointed by the Minister charged
with the responsibility for human resources, which currently is the Minister of Human Resources.
DIRECTORS’ REPORT
For the year ended 31 December 2018
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
84 85
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
OTHER STATUTORY INFORMATION REGARDING THE COMPANY (continued)
AUDITORS
The auditors, BDO PLT (LLP0018825-LCA & AF 0206), have expressed their willingness to continue in ofce.
The details of auditors’ remuneration of the Company for the nancial year ended 31 December 2018 are disclosed
in Note 20 (a) to the nancial statements.
BDO PLT (LLP0018825-LCA & AF 0206) was registered on 2 January 2019 and with effect from that date, BDO (AF
0206), a conventional partnership was converted to a limited liability partnership.
Signed on behalf of the Board in accordance with a resolution of the Directors.
DATO’ NOOR FARIDA MOHD ARIFFIN ELANJELIAN VENUGOPAL
Chairman Director
Kuala Lumpur
25 April 2019
DIRECTORS’ REPORT
For the year ended 31 December 2018
OTHER STATUTORY INFORMATION REGARDING THE COMPANY (continued)
(I) AS AT THE END OF THE FINANCIAL YEAR (continued)
(b) In the opinion of the Directors, the results of the operation of the Company during the nancial year
have not been substantially affected by any item, transaction or event of a material and unusual nature
except for:
(i) the effects arising from non-allowable GST input tax resulting in an increase in the Company’s loss
for the nancial year by RM15,305,420 as disclosed in Note 20 (b) to the nancial statements;
(ii) the effects arising from fair value loss on investment resulting in an increase in the Company’s loss
for the nancial year by RM18,636,997 as disclosed in Note 20 (b) to the nancial statements; and
(iii) the effects arising from the change in accounting policy as disclosed in Note 27 to the nancial
statements.
(II) FROM THE END OF THE FINANCIAL YEAR TO THE DATE OF THIS REPORT
(c) The Directors are not aware of any circumstances:
(i) which would necessitate the writing off of bad debts or render the amount of the provision for
doubtful debts in the nancial statements of the Company inadequate to any material extent;
(ii) which would render the values attributed to current assets in the nancial statements of the
Company misleading; and
(iii) which have arisen which would render adherence to the existing method of valuation of assets or
liabilities of the Company misleading or inappropriate.
(d) In the opinion of the Directors:
(i) there has not arisen any item, transaction or event of a material and unusual nature likely to affect
substantially the results of the operations of the Company for the nancial year in which this report
is made; and
(ii) no contingent or other liability has become enforceable, or is likely to become enforceable, within
the period of twelve (12) months after the end of the nancial year which will or may affect the
ability of the Company to meet its obligations as and when they fall due.
(III) AS AT THE DATE OF THIS REPORT
(e) There are no charges on the assets of the Company which have arisen since the end of the nancial year
to secure the liabilities of any other person.
(f) There are no contingent liabilities of the Company which have arisen since the end of the nancial year.
(g) The Directors are not aware of any circumstances not otherwise dealt with in this report or the nancial
statements which would render any amount stated in the nancial statements of the Company
misleading.
DIRECTORS’ REPORT
For the year ended 31 December 2018
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
86 87
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinion
We have audited the nancial statements of Pembangunan Sumber Manusia Berhad, which comprise the
statement of nancial position as at 31 December 2018 of the Company, and the statement of comprehensive
income, statement of changes in equity and statement of cash ows of the Company for the nancial year then
ended, and notes to the nancial statements, including a summary of signicant accounting policies, as set out on
pages 90 to 137.
In our opinion, the accompanying nancial statements give a true and fair view of the nancial position of the
Company as at 31 December 2018, and of its nancial performance and its cash ows for the nancial year then
ended in accordance with Malaysian Financial Reporting Standards (“MFRSs”), International Financial Reporting
Standards (“IFRSs”) and the requirements of the Companies Act 2016 in Malaysia.
Basis for Opinion
We conducted our audit in accordance with approved standards on auditing in Malaysia and International
Standards on Auditing (‘ISAs’). Our responsibilities under those standards are further described in the Auditors’
Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit evidence
we have obtained is sufcient and appropriate to provide a basis for our audit opinion.
Independence and Other Ethical Responsibilities
We are independent of the Company in accordance with the By-Laws (on Professional Ethics, Conduct and Practice)
of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board for Accountants’
Code of Ethics for Professional Accountants (“IESBA Code”), and we have fullled our other ethical responsibilities
in accordance with the By-Laws and the IESBA Code.
Information Other than the Financial Statements and Auditors’ Report Thereon
The Directors of the Company are responsible for the other information. The other information comprises the
Directors’ Report, but does not include the nancial statements of the Company and our auditors’ report thereon.
Our opinion on the nancial statements of the Company does not cover the other information and we do not
express any form of assurance or conclusion thereon.
In connection with our audit of the nancial statements of the Company, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the nancial
statements of the Company or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.
INDEPENDENT AUDITORS’ REPORT
To the members of Pembangunan Sumber Manusia Berhad
(A Company Limited by Guarantee) (Incorporated in Malaysia)
In the opinion of the Directors, the nancial statements set out on pages 90 to 137 have been drawn up in accordance
with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the provisions of
the Companies Act 2016 in Malaysia so as to give a true and fair view of the nancial position of the Company as
at 31 December 2018 and of the nancial performance and cash ows of the Company for the nancial year then
ended.
Signed on behalf of the Board in accordance with a resolution of the Directors.
DATO’ NOOR FARIDA MOHD ARIFFIN ELANJELIAN VENUGOPAL
Chairman Director
Kuala Lumpur
25 April 2019
STATUTORY
DECLARATION
I, DHAMODARAN MUNUSAMY, being the ofcer primarily responsible for the nancial management of
Pembangunan Sumber Manusia Berhad, do solemnly and sincerely declare that the nancial statements set
out on pages 90 to 137 are, to the best of my knowledge and belief, correct and I make this solemn declaration
conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act,
1960.
Subscribed and solemnly )
declared by the abovenamed at )
Kuala Lumpur this )
25 April 2019 ) DHAMODARAN MUNUSAMY
Before me:
STATEMENT
BY DIRECTORS
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
88 89
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (continued)
Auditors’ Responsibilities for the Audit of the Financial Statements (continued)
(d) Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast signicant doubt on the ability of the Company to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures
in the nancial statements of the Company or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future
events or conditions may cause the Company to cease to continue as a going concern.
(e) Evaluate the overall presentation, structure and content of the nancial statements of the Company, including
the disclosures, and whether the nancial statements of the Company represent the underlying transactions
and events in a manner that achieves fair presentation.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit
and signicant audit ndings, including any signicant deciencies in internal control that we identify during our
audit.
OTHER MATTERS
The nancial statements of the Company for the nancial year ended 31 December 2017 were audited by another
rm of Chartered Accountants whose report dated 24 May 2018 expressed an unqualied opinion on those
statements.
This report is made solely to the members of the Company, as a body, in accordance with Section 266 of the
Companies Act 2016 in Malaysia and for no other purpose. We do not assume responsibility to any other person
for the content of this report.
BDO PLT LEE WEE HOONG
LLP0018825-LCA & AF 0206 03316/07/2019 J
Chartered Accountants Chartered Accountant
25 April 2019
Kuala Lumpur
INDEPENDENT AUDITORS’ REPORT
To the members of Pembangunan Sumber Manusia Berhad
(A Company Limited by Guarantee) (Incorporated in Malaysia)
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (continued)
Responsibilities of the Directors for the Financial Statements
The Directors of the Company are responsible for the preparation of nancial statements of the Company that
give a true and fair view in accordance with MFRSs, IFRSs, and the requirements of the Companies Act 2016 in
Malaysia. The Directors are also responsible for such internal control as the Directors determine is necessary to
enable the preparation of nancial statements of the Company that are free from material misstatement, whether
due to fraud or error.
In preparing the nancial statements of the Company, the Directors are responsible for assessing the ability of the
Company to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease
operations, or have no realistic alternative but to do so.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the nancial statements of the Company as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with approved standards on auditing in Malaysia and ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to inuence the economic decisions of users taken on the
basis of these nancial statements.
As part of an audit in accordance with approved standards on auditing in Malaysia and ISAs, we exercise
professional judgement and maintain professional scepticism throughout the audit. We also:
(a) Identify and assess the risks of material misstatement of the nancial statements of the Company, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufcient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(b) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
internal control of the Company.
(c) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the Directors.
INDEPENDENT AUDITORS’ REPORT
To the members of Pembangunan Sumber Manusia Berhad
(A Company Limited by Guarantee) (Incorporated in Malaysia)
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
90 91
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
STATEMENT OF
COMPREHENSIVE INCOME
For the nancial year ended 31 December 2018
The accompanying notes form an integral part of the nancial statements
2018 2017
(Restated)
Note RM RM
Income
Operating income 19 (a) 74,962,751 87,955,921
Non-operating Income 19 (b) - 7,334,918
Development activities income 19 (c) 9,500,134 19,354,398
Strategic Fund Income 19 (d) 154,190,723 176,833,496
Total income 238,653,608 291,478,733
Expenses
Operating expenses 20 (a) (63,594,133) (64,059,161)
Non-operating expenses 20 (b) (47,201,458) (12,487,780)
Development activities expenses 20 (c) (13,558,350) (29,891,994)
Programmes expenses under Strategic Fund 13 (154,190,723) (176,833,496)
Total expenses (278,544,664) (283,272,431)
(Decit)/Surplus before taxation (39,891,056) 8,206,302
Taxation 21 (3,030,000) -
Net (decit)/surplus for the nancial year (42,921,056) 8,206,302
Other comprehensive income/(loss), net of tax
Items that will not be reclassied subsequently to prot or loss:
Remeasurement of dened benet liability 11 (659,899) -
Items that may be reclassied subsequently to prot or loss:
Debt investments measured at fair value through other comprehensive
income 953,148 -
Other comprehensive loss for the nancial year 293,249 -
Total comprehensive (loss)/income for the nancial year (42,627,807) 8,206,302
STATEMENT OF
FINANCIAL POSITION
As at 31 December 2018
The accompanying notes form an integral part of the nancial statements
31.12.2018 31.12.2017 1.1.2017
(Restated) (Restated)
Note RM RM RM
ASSETS
Property, plant and equipment 5 30,449,169 34,352,175 186,401,096
Investment property 6 142,206,876 143,841,438 -
Staff loans 7 5,198,188 5,606,924 5,530,277
Investments 8 231,874,631 136,704,155 157,750,072
Accrued interest receivables, deposits,
prepayments and other receivables 9 28,659,510 33,855,055 32,682,625
Tax recoverable 856 856 13,138
Cash and bank balances
10
1,339,704,228 1,295,555,726 1,249,999,091
TOTAL ASSETS 1,778,093,458 1,649,916,329 1,632,376,299
EQUITY AND LIABILITIES
LIABILITIES
Retirement benets 11 23,937,205 22,642,359 20,039,500
Human Resources Development Fund 12 1,050,080,456 972,387,534 953,461,709
Strategic Fund 13 263,181,718 208,951,977 192,441,763
Unutilised Levy 14 44,527,597 35,415,736 38,527,502
General Reserves II 15 2,800,495 2,370,884 1,731,882
Government grants 16 29,502,244 34,920,931 54,053,035
Payables and accruals
17
66,939,759 33,475,117 40,575,419
TOTAL LIABILITIES 1,480,969,474 1,310,164,538 1,300,830,810
Retained earnings 304,491,988 347,413,044 339,206,742
Reserves 18 (7,368,004) (7,661,253) (7,661,253)
TOTAL EQUITY 297,123,984 339,751,791 331,545,489
TOTAL EQUITY AND LIABILITIES 1,778,093,458 1,649,916,329 1,632,376,299
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
92 93
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
2018 2017
(Restated)
RM RM
Cash ows from operating activities
Cash generated from operations:
Cash receipts from training providers and others
56,928,256 8,010,734
Cash payment to vendors
(73,282,570) (49,628,339)
Retirement benets paid (2,537,067) (316,264)
Cash ow changes from operating activities
(18,891,381) (41,933,869)
Cash from Human Resources Development Fund:
Receipts from registered employers
803,665,520 723,983,601
Payments to registered employers (495,251,809) (486,362,788)
Cash ow changes after Human Resources Development Fund 289,522,330 195,686,944
Cash from Trust Funds and Government grants:
Payment to employers
(24,308,304) (1,483,606)
Payment to registered training providers
(174,985,787) (248,157,800)
Payment to trainees
(1,539,911) (3,482,523)
Payment for Employee Educational Sponsorship
(8,338) (10,252)
Payment for vendor
(7,032,674) (14,306,393)
Receipts from government allocation
24,850,200 20,000,000
Receipts from registered employers 6,389,440 12,469,678
Cash ow changes after Trust Funds and government grants 112,886,956 (39,283,952)
Net cash from/(used in) operating activities
112,886,956 (39,283,952)
Cash ows from investing activities
Acquisition of plant and equipment
(4,442,610) (1,392,831)
Acquisition of property
- (81,674)
Dividends received
1,038,945 6,626,572
Net Repayment from employees/ (Net loans to employees)
408,736 (76,647)
(Acquisition)/Proceeds from disposal of investments
(110,004,051) 21,685,511
Proceeds from disposal of plant and equipment
365,150 207,213
Interest received
43,895,376 51,177,119
Withdrawal of deposits with banks (89,824,465) 22,763,389
Net cash (used in)/from investing activities (158,562,919) 100,908,652
Net (decrease)/increase in cash and cash equivalents
(45,675,963) 61,624,700
Cash and cash equivalents at the beginning of nancial year 265,009,796 203,385,096
Cash and cash equivalents at the end of nancial year 219,333,833 265,009,796
STATEMENT OF
CASH FLOWS
For the nancial year ended 31 December 2018
Retirement
Retained Fair value benets
earnings reserves reserves Total
RM RM RM RM
At 1 January 2017, as previously reported
587,380,248 (17,204,241) (7,661,253) 562,514,754
Change in accounting policy
- MFRS 15 (Note 27)
(230,969,265) - - (230,969,265)
- MFRS 9 (Note 27) (17,204,241) 17,204,241 - -
At 1 January 2017, as restated 339,206,742 - (7,661,253) 331,545,489
Net surplus for the nancial year
8,206,302 - - 8,206,302
Other comprehensive income
- - - -
Total comprehensive income 8,206,302 - - 8,206,302
At 31 December 2017, as restated 347,413,044 - (7,661,253) 339,751,791
At 1 January 2018
347,413,044 - (7,661,253) 339,751,791
Net decit for the nancial year
(42,921,056) - - (42,921,056)
Other comprehensive income/(loss)
- 953,148 (659,899) 293,249
Total comprehensive income/(loss) (42,921,056) 953,148 (659,899) (42,627,807)
At 31 December 2018 304,491,988 953,148 (8,321,152) 297,123,984
STATEMENT OF
CHANGES IN EQUITY
For the nancial year ended 31 December 2018
The accompanying notes form an integral part of the nancial statements
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
95
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
94
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
3. BASIS OF PREPARATION (continued)
Key sources of estimation uncertainty
The following are key assumptions concerning the future and other key sources of estimation uncertainty at
the end of each reporting period that have a signicant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next nancial year.
(a) Depreciation of property, plant and equipment
The cost of property, plant and equipment is depreciated on a straight-line basis over the assets’ useful
lives. Management estimates that the useful lives of these property, plant and equipment to be within
ve (5) to twenty (20) years. Changes in the expected level of usage and technological developments
could impact the economic useful lives and the residual values of these assets, and therefore future
depreciation charges could be revised. A ve percent (5%) difference in the average useful lives of these
assets from the management’s estimates would result in approximately four percent (4%) variance in
prot for the nancial year.
(b) Retirement benets obligations
The costs, assets and liabilities of the retirement benets obligations operated by the Company
are determined using methods relying on actuarial estimates and assumptions. The details of the
key assumptions are set out in Note 11 to the nancial statements. The Company takes advice from
independent actuaries relating to the appropriateness of the assumptions. Changes in the assumptions
would have effects on the statement of nancial position and the statement of comprehensive income.
(c) Recoverability of nancial instruments
The determination of whether nancial instruments are recoverable involves signicant management
judgement in determining the probability of default investments, appropriate forward looking
information and signicant increase in credit risk.
1. CORPORATE INFORMATION
Pembangunan Sumber Manusia Berhad (“the Company”) is a company limited by guarantee, incorporated
and domiciled in Malaysia.
The registered ofce and principal place of the business of the Company is located at Level 7, Wisma HRDF,
Jalan Beringin, Damansara Heights, 50490 Kuala Lumpur.
The nancial statements are presented in Ringgit Malaysia (“RM”), which is also the functional currency of
the Company.
The nancial statements were authorised for issue in accordance with a resolution by the Board of Directors
on 25 April 2019.
2. PRINCIPAL ACTIVITIES
As set out in the Pembangunan Sumber Manusia Berhad Act, 2001, the main objective of the Company is the
imposition and collection of human resources development levy for the purpose of promoting the training
and development of employees, apprentices and trainees and the establishment and administration of the
human resources development fund.
The functions of the Company are:
(a) to assess and determine the types and extent of employees’, apprentices’ and trainees’ training and
retraining in keeping with the human resources needs of industries;
(b) to promote and stimulate manpower training; and
(c) to determine the terms and conditions under which any nancial assistance or other benets are to be
given.
There have been no signicant changes in the nature of these activities during the nancial year.
3. BASIS OF PREPARATION
The nancial statements of the Company have been prepared in accordance with Malaysian Financial
Reporting Standards (“MFRSs”), International Financial Reporting Standards (“IFRSs”) and the provisions of
the Companies Act 2016 in Malaysia.
The nancial statements of the Company have been prepared under the historical cost convention except as
otherwise stated in the nancial statements.
The preparation of nancial statements in conformity with MFRS requires the use of certain critical accounting
estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of
contingent assets and liabilities at the date of the nancial statements, and the reported amounts of the
revenue and expenses during the reported period. It also requires Directors to exercise their judgment in the
process of applying the Company’s accounting policies. Although these estimates and judgment are based
on the Directors’ best knowledge of current events and actions, actual results may differ.
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
96 97
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
3. BASIS OF PREPARATION (continued)
3.1 New MFRSs adopted during the nancial year (continued)
(a) MFRS 9 Financial Instruments (continued)
(i) Classication of nancial assets and nancial liabilities (continued)
The following summarises the key changes:
- The Available-For-Sale (‘AFS’), Held-To-Maturity (‘HTM’) and Loans and Receivables
(‘L&R’) nancial asset categories were removed.
- A new nancial asset category measured at Amortised Cost (‘AC’) was introduced. This
applies to nancial assets with contractual cash ow characteristics that are solely
payments of principal and interest and held in a business model whose objective is
achieved by collecting contractual cash ows.
- A new nancial asset category measured at Fair Value Through Other Comprehensive
Income (‘FVTOCI’) was introduced. This applies to debt instruments with contractual
cash ow characteristics that are solely payments of principal and interest and held in a
business model whose objective is achieved by both collecting contractual cash ows
and selling nancial assets.
- A new nancial asset category for non-traded equity investments measured at FVTOCI
was introduced.
The following table summarises the reclassication and measurement of the nancial assets
and nancial liabilities of the Company.
Classication
Existing under
MFRS 139
New under
MFRS 9
Financial assets
Investments - others
AFS FVTPL
Investment in SUKUK and BOND
AFS FVTOCI
Other receivables
L&R AC
Cash and bank balances
L&R AC
Financial liabilities
Human Resources Development Fund
OL AC
Strategic Fund
OL AC
General Reserves II
OL AC
Government Grants
OL AC
Payables and accruals
OL AC
3. BASIS OF PREPARATION (continued)
3.1 New MFRSs adopted during the nancial year
The Company adopted the following Standards of the MFRS Framework that were issued by the
Malaysian Accounting Standards Board (‘MASB’) during the nancial year:
Title Effective Date
Amendments to MFRS 1 Annual Improvements to MFRS Standards
2014 - 2016 Cycle 1 January 2018
MFRS 15 Revenue from Contracts with Customers 1 January 2018
Clarication to MFRS 15 1 January 2018
MFRS 9 Financial Instruments (IFRS as issued by IASB in July 2014) 1 January 2018
Amendments to MFRS 2 Classication and Measurement of Share-based
Payment Transactions 1 January 2018
Amendments to MFRS 128 Annual Improvements to MFRS Standards
2014 - 2016 Cycle 1 January 2018
IC Interpretation 22 Foreign Currency Transactions and Advance Consideration 1 January 2018
Amendments to MFRS 140 Transfers of Investment Property 1 January 2018
Amendments to MFRS 4 Applying MFRS 9 Financial Instruments with
MFRS 4 Insurance Contracts
See MFRS 4
Paragraphs 46 and 48
Adoption of the above Standards did not have any material effect on the nancial performance or
position of the Company except for the adoption of MFRS 15 and MFRS 9.
The Company has consistently applied MFRS 15 and MFRS 9 in its opening statements of nancial
position as at 1 January 2017 and throughout all nancial years presented, as if these policies had
always been in effect. Comparative information for the nancial year ended 31 December 2017 in these
nancial statements have been restated to give effect to these changes.
(a) MFRS 9 Financial Instruments
MFRS 9 replaces MFRS 139 Financial Instruments: Recognition and Measurement for annual
periods beginning on or after 1 January 2018, encompassing all three aspects of the accounting
for nancial instruments: classication and measurement; impairment; and hedge accounting.
(i) Classication of nancial assets and nancial liabilities
The Company classify its nancial assets into the following measurement categories
depending on the business model of the Company for managing the nancial assets and the
terms of contractual cash ows of the nancial assets:
- Those to be measured at amortised cost; and
- Those to be measured subsequently at fair value either through other comprehensive
income or through prot or loss.
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
98 99
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
3. BASIS OF PREPARATION (continued)
3.2 New MFRSs that have been issued, but only effective for annual periods beginning on or after 1 January 2019
The following are Standards of the MFRS Framework that have been issued by the MASB but have not
been early adopted by the Company:
Title Effective Date
MFRS 16 Leases 1 January 2019
IC Interpretation 23 Uncertainty over Income Tax Treatments 1 January 2019
Amendments to MFRS 128 Long-term Interests in Associates and Joint Ventures 1 January 2019
Amendments to MFRS 9 Prepayment Features with Negative Compensation 1 January 2019
Amendments to MFRS 3 Annual Improvements to MFRS Standards
2015 - 2017 Cycle 1 January 2019
Amendments to MFRS 11 Annual Improvements to MFRS Standards
2015 - 2017 Cycle 1 January 2019
Amendments to MFRS 112 Annual Improvements to MFRS Standards
2015 - 2017 Cycle 1 January 2019
Amendments to MFRS 123 Annual Improvements to MFRS Standards
2015 - 2017 Cycle 1 January 2019
Amendments to MFRS 119 Plan Amendment, Curtailment or Settlement 1 January 2019
Amendments to References to the Conceptual Framework in MFRS Standards 1 January 2020
Amendments to MFRS 3 Denition of a Business 1 January 2020
Amendments to MFRS 101 and MFRS 108 Denition of Material 1 January 2020
MFRS 17 Insurance Contracts 1 January 2021
Amendments to MFRS 10 and MFRS 128 Sale or Contribution of Assets between an
Investor and its Associate or Joint Venture Deferred
The Company is in the process of assessing the impact of implementing these standards, since the
effects would only be observable for future years.
3. BASIS OF PREPARATION (continued)
3.1 New MFRSs adopted during the nancial year (continued)
(a) MFRS 9 Financial Instruments (continued)
(ii) Impairment of nancial assets
The adoption of MFRS 9 has fundamentally changed the accounting for impairment losses
for nancial assets of the Company by replacing the incurred loss approach of MFRS 139 with
a forward-looking expected credit loss approach. MFRS 9 requires the Company to record an
allowance for expected credit losses for all debt nancial assets not held at fair value through
prot or loss.
Expected credit losses are based on the difference between the contractual cash ows due
in accordance with the contract and all the cash ows that the Company expects to receive.
The estimate of expected cash shortfall shall reect the cash ows expected from collateral
and other credit enhancements that are part of the contractual terms. The shortfall is then
discounted at an approximation to the asset’s original effective interest rate of the asset.
(b) MFRS 15 Revenue from Contracts with Customers
MFRS 15 establishes a comprehensive framework for revenue recognition and measurements. It
replaces MFRS 118 Revenue, MFRS 111 Constructions Contracts, and related Interpretations. Under
MFRS 15, revenue is recognized when a customer obtains control of the goods and services. As
such, MFRS 15 changes the timing of revenue recognition whereby income is recognised once
performance obligations have been satised by the Company.
The MFRS 15 adjustments are mainly due to changes to the timing of revenue recognition
for Strategic Fund and Unutilised Levy of which the Company has yet to full its performance
obligations.
The Unutilised Strategic Fund and Unutilised Levy will be recognised as a Contract Liability and
reversed as income once utilised.
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
100 101
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.2 Investment property
Investment property comprise completed property which is held either to earn rental income or for
capital appreciation or for both. Such property is measured initially at cost, including transaction costs.
Subsequent to initial recognition, completed investment property is stated at cost less accumulated
depreciation and any accumulated impairment losses.
Depreciation is calculated to write off the cost or valuation of the investment property to its residual
values on a straight line basis over their estimated useful lives. The principal depreciation period for the
investment property is eighty-nine (89) years.
Investment property is derecognised when they have been disposed of or when they are permanently
withdrawn from use and no future economic benet is expected. Any gains or losses on the retirement
or disposal of investment property is recognised in prot or loss in the year in which they arise.
4.3 Financial instruments
Regular way purchases and sales of nancial assets are recognised on trade date, the date on which the
Company commit to purchase or sell the asset.
Financial assets are derecognised when the rights to receive cash ows from the nancial assets have
expired or have been transferred and the Company have transferred substantially all the risks and
rewards of ownership.
(a) Financial assets
At initial recognition, the Company measures a nancial asset at its fair value plus, in the case of a
nancial asset not at FVTPL, transaction costs that are directly attributable to the acquisition of the
nancial asset. Transaction costs of nancial assets carried at FVTPL are expensed in prot or loss.
(i) Amortised cost
Assets that are held for collection of contractual cash ows where those cash ows represent
SPPI are measured at amortised cost. Interest income from these nancial assets is included
in nance income using the effective interest rate method. Any gain or loss arising on
derecognition is recognised directly in prot or loss and presented in other gains/(losses)
together with foreign exchange gains and losses. Impairment losses are presented as
separate line item in the statement of comprehensive income.
4. SIGNIFICANT ACCOUNTING POLICIES
4.1 Property, plant and equipment and depreciation
All items of property, plant and equipment are initially measured at cost. Cost includes expenditure that
is directly attributable to the acquisition of the asset.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset,
as appropriate, only when the cost is incurred and it is probable that the future economic benets
associated with the subsequent costs would ow to the Company and the cost of the asset could be
measured reliably. The carrying amount of parts that are replaced is derecognised. The costs of the
day-to-day servicing of property, plant and equipment are recognised in prot or loss as incurred. Cost
also comprises the initial estimate of dismantling and removing the asset and restoring the site on
which it is located for which the Company is obligated to incur when the asset is acquired, if applicable.
Each part of an item of property, plant and equipment with a cost that is signicant in relation to the total
cost of the asset and which has a different useful life, is depreciated separately.
After initial recognition, property, plant and equipment are stated at cost less any accumulated
depreciation and any accumulated impairment losses.
Depreciation is calculated to write off the cost of the assets to their residual values on a straight-line
basis over their estimated useful lives. The principal depreciation rate is as follows:
%
Building 5
Renovation 10
Motor vehicles 20
Furniture and ofce ttings 20
Ofce equipment 20
Electric and electronic equipment 20
Information and Communication Technologies (“ICT”) System 20
At the end of each reporting period, the carrying amount of an item of property, plant and equipment
is assessed for impairment when events or changes in circumstances indicate that its carrying amount
may not be recoverable. A write down is made if the carrying amount exceeds the recoverable amount
(see Note 4.12 to the nancial statements on impairment of non-nancial assets).
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
102 103
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.3 Financial instruments (continued)
(b) Financial liabilities
Human Resources Development Fund, Strategic Fund, General Reserve II, Government grants,
other payables and accrued expenditure are classied as other nancial liabilities.
Other payables and accrued expenditures represent liabilities for goods and services provided to
the Company prior to the end of nancial year which are unpaid. The amounts are unsecured and
are usually paid within 30 days of recognition. They are recognised initially at their fair value and
subsequently measured at amortised cost using the effective interest method.
(c) Equity
The Company subsequently measures all equity investments at fair value. Where the Company’s
management have elected to present fair value gains and losses on equity investments in other
comprehensive income, there is no subsequent reclassication of fair value gains and losses to
prot or loss following the derecognition of the investment.
Changes in the fair value of nancial assets at FVOCI are recognised in the statement of
comprehensive income as applicable.
No gain or loss is recognised in prot or loss on the purchase, sale, issue or cancellation of the own
equity instruments of the Company. If such shares are issued by resale, any difference between the
sales consideration and the carrying amount is shown as a movement in equity.
4.4 Impairment of nancial assets
The Company recognises loss allowances for expected credit losses on nancial assets measured at
amortised cost and debt instruments measured at fair value through other comprehensive income. The
Company measures loss allowances at 12-month expected credit loss.
When determining whether the credit risk of a nancial asset has increased signicantly since
initial recognition and when estimating expected credit loss, the Company consider reasonable and
supportable information that is relevant and available without undue cost or effort. This includes both
quantitative and qualitative information and analysis, based on the Company’s historical experience
and informed credit assessment and including forward-looking information, where available.
An impairment loss in respect of nancial assets measured at amortised cost is recognised in prot or
loss and the carrying amount of the asset is reduced through the use of an allowance account.
An impairment loss in respect of debt investments measured at fair value through other comprehensive
income is recognised in prot or loss and the allowance account is recognised in other comprehensive
income.
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.3 Financial instruments (continued)
(a) Financial assets (continued)
(ii) Fair value through other comprehensive income
Debt investments
Fair value through other comprehensive income category comprises debt investment where
it is held within a business model whose objective is achieved by both collecting contractual
cash ows and selling the debt investment, and its contractual terms give rise on specied
dates to cash ows that are solely payments of principal and interest on principal amount
outstanding. The debt investment is not designated as fair value through prot or loss.
Interest income calculated using the effective method and impairment are recognised in
prot or loss. Other net gains and losses are recognised in other comprehensive income. On
derecognition, gains and losses accumulated in other comprehensive income are reclassied
to prot or loss.
Equity investments
This category comprises investment in equity that is not held for trading, and the Company
irrevocably elects to present subsequent changes in the investment’s fair value in other
comprehensive income. This election is made on an investment-by-investment basis.
Dividends are recognised as income in prot or loss unless the dividend clearly represents a
recovery of part of the cost of investment. Other net gains and losses are recognised in other
comprehensive income and are not reclassied to prot or loss.
(iii) Fair value through prot and loss (“FVTPL”)
Assets that do not meet the criteria for amortised cost or fair value through other comprehensive
income (“FVOCI”) are measured at FVTPL. The Company may also irrevocably designate
nancial assets at FVTPL if doing so signicantly reduces or eliminates a mismatch created
by assets and liabilities being measured on different basis. Fair value changes is recognised
in prot or loss in the period which it arises.
A nancial asset or part of it is derecognised when, and only when the contractual rights
to the cash ows from the nancial asset expires, or when it transfers the nancial asset
and substantially all the risks and rewards of ownership of the asset to another entity. On
derecognition of a nancial asset, the difference between the carrying amount and the sum of
the consideration received (including any new asset obtained less any new liability assumed)
and any cumulative gain or loss that had been recognised in equity, is recognised in prot or
loss.
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
104 105
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.6 Employee benets (continued)
(c) Dened benet plans (continued)
Actuarial gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognised in retained earnings in other comprehensive income in the period in
which they arise. The actuarial gains and losses are not subsequently reclassied to prot or loss
in subsequent period.
Past service costs are recognised immediately in prot or loss, unless the changes to the plan
are conditional on the employees remaining in service for a specied period of time (the vesting
period). In this case, the past service costs are amortised on a straight line basis over the vesting
period.
4.7 Human Resources Development Fund
Payments of human resources development levy by employers are credited into the Human Resources
Development Fund on a cash receipt basis. This fund will be disbursed to employers and training
providers for the approved training grants on claim basis.
For employers who have been deregistered due to cessation of business (relocation to other countries,
insolvency, winding-up, receivership, etc.) and for employers who do not conduct training for their
workers for a period of ve years, the employers’ levy received shall be retained by the Company under
its unutilised levy account.
4.8 General Reserves II
General Reserves II was established to remit the transfer of levy balances from the accounts of employers
who had been deregistered under Section 16(2) Pembangunan Sumber Manusia Berhad Act, 2001. These
funds will be transferred back to the Human Resources Development Fund account if the employer is re-
registered within a period of two years from the date of deregistration. The employer shall continue to
be eligible to receive any nancial assistance or other benets to which the employer was entitled prior
to deregistration.
4.9 Government grants
Government grants received are held in trust by the Company. The Company has an obligation to
distribute the government grants in accordance with the instructions of the Government. Government
grants allocation and the corresponding expenses are offset and shown as net in the statement of
nancial position. The purpose and usage of the government grants are as follows:
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.5 Income taxes
Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in
prot or loss except to the extent that it relates to a business combination or items recognised directly
in equity or other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year using
tax rates enacted or substantively enacted by the end of the reporting period, and any adjustment to tax
payable in respect of previous nancial years.
Deferred tax is recognised using the liability method, providing for temporary differences between the
carrying amounts of assets and liabilities in the statement of nancial position and their tax bases.
Deferred tax is not recognised for the following temporary differences: the initial recognition of goodwill,
the initial recognition of assets or liabilities in a transaction that is not a business combination and that
affects neither accounting nor taxable prot or loss. Deferred tax is measured at the tax rates that are
expected to be applied to the temporary differences when they reverse, based on the laws that have
been enacted or substantively enacted by the end of the reporting period.
4.6 Employee benets
(a) Short-term employee benets
Wages, salaries, paid annual leave, bonuses, and non-monetary benets are accrued in the
nancial year in which the services are rendered by employees of the Company.
(b) Dened contribution plans
The Company contributions to dened contribution plans are charged to statement of
comprehensive income in the nancial year to which they relate. Once the contributions have
been paid, the Company has no further payment obligations.
(c) Dened benet plans
The dened benet liability recognised in the statements of nancial position is the present value
of the dened benet obligation at the end of the reporting period, less the fair value of plan
assets, together with adjustments for actuarial gains/losses and unrecognised past service cost.
The Company determines the present value of the dened benet obligation and the fair value
of any plan assets with sufcient regularity such that the amounts recognised in the nancial
statements do not differ materially from the amounts that would be determined at the end of the
reporting period.
The dened benet obligation, calculated using the projected unit credit method, is determined by
independent actuaries, by discounting the estimated future cash outows using market yields at
the end of the reporting period on government bonds which have currency and terms to maturity
approximating the terms of the related liability.
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
106 107
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.9 Government grants (continued)
(vii) 1Malaysia GRIP (“1MGRIP”) Fund
1MGRIP scheme was created to provide opportunity to employees to increase their skills by
participating in specic elds to be experts that would enhance their career development and
earn higher income. The allocation was injected to company by government to accommodate the
course fees under the 1MGRIP programmes.
(viii) Entrepreneurship Enhancement Skills Programme for Indian Community (“Emphatic”) Fund
The Entrepreneurship Enhancement Skills Programme for Indian Community Fund amounting
to RM30 million was injected to PSMB in December 2016. The objective of this fund is to equip
trainees with skills and knowledge to enable them to venture into businesses that helps them
to increase their income. The programmes identied under this programme will help the Indian
community to improve their socio-economic status as well as support Government’s efforts to
improve human capital productivity.
(ix) RPEL (Non-HRDF) Fund
The objective of Recognition of Prior Experiental Learning (“RPEL”) Fund for Non-HRDF is to enable
workers who do not have formal qualication to be awarded Sijil Kemahiran Malaysia (“SKM”)
certication which is in line with the government’s effort to increase the number of skilled workers
in Malaysia.
(x) SME Incentive (Non-HRDF) Fund
The SME Training Incentive Fund for Non-HRDF is to encourage SME employers to continuously
and systematically train their employees to increase their level of competency. PSMB has engaged
Hay Group to implement the Diagnosis for SMEs to identify the competency gaps.
(xi) Outplacement Centre Programme Fund
The objective of 1Malaysia Outplacement Centre is to act as a one-stop centre for Malaysian
retrenched workers to assist them by up-skilling or reskilling with the required competencies to
enhance their employability and assisting them to secure employment either within the same or
different industries. PSMB was injected with the allocation of RM5 million in March 2016.
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.9 Government grants (continued)
(i) Apprenticeship Fund
The fund is the government allocation used to nance course fees charged by training providers
for conducting off-the-job training for apprentices who undergo apprenticeship training.
(ii) Small & Medium Enterprises (“SME”) Training Incentive Fund
The fund is the government allocation used to nance course fees charged by training providers
to conduct training programmes which will be credited to employers’ levy accounts.
(iii) Human Resource (“HR”) Certication Body Fund
The Company received an allocation from the Government to initiate the HR Certication
programmes. Establishment of the HR Certication is one of the strategic approaches identied to
enhance the quality of human resource management by human resource practitioners.
(iv) Housewives Enhancement and Reactivate Talent Scheme (“HEARTS”) Fund
The Company received an allocation from the Government to nance the courses conducted for
housewives. The objectives of HEARTS programmes are to equip housewives, who are considered
as latent workforces but possess tertiary education, with training in specialised skills that would
allow them to be self-employed from home.
(v) SME Skill Upgrading Fund
The programmes under SME Skill Upgrading Fund aim to enhance the knowledge and skills of
employees of SMEs in terms of technical and management to help to improve the performance of
local SMEs. Course fees will be paid out to appointed training providers throughout the country to
provide training to SMEs.
(vi) Minimum Wage Programme Fund
The training program under Minimum Wage Fund is a form of training grants provided to the
Employers’ Association and Chamber of Commerce to train workers of SME employers in the
association. Under the programme, the agency will identify technical courses that are critical in
the development of the industry in order to increase contribution of the SMEs’ Gross Domestic
Product (“GDP”) to 41% by 2020.
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
108 109
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.11 Fair value measurement
Fair value of an asset or a liability is determined as the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the measurement
date. The measurement assumes that the transaction to sell the asset or transfer the liability takes place
either in the principal market or in the absence of a principal market, in the most advantageous market.
For non-nancial assets, the fair value measurement takes into account a market participant’s ability
to generate economic benets by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.
When measuring the fair value of an asset or a liability, the Company uses observable market data as
far as possible. Fair value are categorised into different levels in a fair value hierarchy based on the input
used in the valuation technique as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the
Company can access at the measurement date.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset
or liability, either directly or indirectly.
Level 3: unobservable inputs for the asset or liability.
The Company recognises transfers between levels of the fair value hierarchy as of the date of the event
or change in circumstances that caused the transfers.
4.12 Impairment of non-nancial asset
Property, plant and equipment and investment property are reviewed for impairment losses whenever
events or changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the carrying amount of the asset exceeds its
recoverable amount. The recoverable amount is the higher of an asset’s fair value less cost to sell and
value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which
there are separately identiable cash ows (‘cash-generating units’). The impairment loss is charged to
the statement of comprehensive income.
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.9 Government grants (continued)
(xii) Graduates Enhancement Programme For Employability (“GENERATE”) Fund
The allocation was injected by government to PSMB to enhance the employability of Malaysian
graduates. The objectives were to equip, develop and assist unemployed graduates with high end
skills and competencies that are required by the industries, relevant working experience, exploring
new route path for their careers and job placement.
(xiii) Enrolment of Students in ILJTM and Other TVET Institution Fund
The objective of this fund is to create awareness among Indian students in secondary schools
about ILJTM and setup a support structure in targeted ILJTMs.
4.10 Income
(i) Dividend income
Dividend income is recognised in “statement of comprehensive income” on the date that the
Company’s right to receive payment is established.
(ii) Interest income
Interest income is recognised on an accrual basis, using the effective interest method in “statement
of comprehensive income”.
(iii) Income from fees, services, rental of exhibition booths, penalties on late payment of levy and
unutilised levy
Income from fees, services, rental of exhibition booths, penalties on late payment of levy, and
unutilised levy are recognised when the performance obligations are satised.
(iv) Strategic fund income (formerly known as Consolidated Fund)
Receipts from levy for Strategic Fund is recognised in “statement of comprehensive income”
when the performance obligations are satised.
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
110 111
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
5. PROPERTY, PLANT AND EQUIPMENT (continued)
(a) Property
Freehold Work in
land Building progress Total
RM RM RM RM
Cost:
At 1 January 2017 1,591,200 32,289,152 145,394,326 179,274,678
Additions - - 81,674 81,674
Transfer to investment property
(Note 6) - - (145,476,000) (145,476,00 0)
31 December 2017/1 January 2018 1,591,200 32,289,152 - 33,880,352
Additions - - - -
At 31 December 2018 1,591,200 32,289,152 - 33,880,352
Accumulated depreciation:
At 1 January 2017 - 15,630,967 - 15,630,967
Charge for the nancial year - 1,614,458 - 1,614,458
At 31 December 2017/1 January
2018 - 17,245,425 - 17,245,425
Charge for the nancial year - 1,614,458 - 1,614,458
At 31 December 2018 - 18,859,883 - 18,859,883
Carrying amounts:
At 31 December 2017 1,591,200 15,043,727 - 16,634,927
At 31 December 2018 1,591,200 13,429,269 - 15,020,469
5. PROPERTY, PLANT AND EQUIPMENT
2018 2017
Note RM RM
Cost:
Property (a) 33,880,352 33,880,352
Plant and equipment (b)
53,914,789 50,040,199
87,795,141 83,920,551
Accumulated depreciation:
Property (a) 18,859,883 17,245,425
Plant and equipment (b)
38,486,089 32,322,951
57,345,972 49,568,376
Carrying amounts:
Property (a) 15,020,469 16,634,927
Plant and equipment (b)
15,428,700 17,717,248
30,449,169 34,352,175
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
112 113
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
6. INVESTMENT PROPERTY
2018 2017
RM RM
Cost:
At 1 January 145,476,000 -
Transfer from Property (Note 5) - 145,476,000
At 31 December 145,476,000 145,476,000
Accumulated depreciation:
At 1 January 1,634,562 -
Depreciation charge for the nancial year 1,634,562 1,634,562
At 31 December 3,269,124 1,634,562
Carrying amount
At 31 December 142,206,876 143,841,438
Fair value
At 31 December 145,200,000 145,200,000
Rental income and operating expenses arising from the investment property during the nancial year are
as follows:
2018 2017
RM RM
Rental income 806,179 -
Operating expenses 1,408,225 -
Fair value of the investment property was estimated by the Directors based on a valuation performed by an
independent professional valuer, as well as by reference to the market values of comparable properties.
7. STAFF LOANS
2018 2017
RM RM
Motor vehicle loans 52,727 252,012
Computer loans 68,619 91,618
Housing loans 5,076,842 5,263,294
5,198,188 5,606,924
Staff loans (only motor vehicle loans and housing loans) are granted to eligible employees of the Company,
and bears interest of 4% per annum (2017: 4% per annum). Staff loans are repayable over the term stipulated
in the individual agreements with the eligible employees up to a maximum of 5 years, 8 years and 25 years
for computer loans, motor vehicle loans and housing loans, respectively.
5. PROPERTY, PLANT AND EQUIPMENT (continued)
(b) Plant and equipment
Motor
vehicles Renovation
Furniture
and ofce
ttings
Ofce
equipment
Electric and
electronic
equipment
ICT
System Total
RM RM RM RM RM RM RM
Cost:
At 1 January 2017 2,219,197 4,715,162 1,794,474 1,035,765 14,772,356 24,547,260 49,084,214
Additions 391,580 811,592 30,739 9,520 149,400 - 1,392,831
Disposal/Write off (351,606) - - - (2,798) (82,442) (436,846)
At 31 December 2017/
1 January 2018 2,259,171 5,526,754 1,825,213 1,045,285 14,918,958 24,464,818 50,040,199
Additions 116,545 2,151,517 - 51,947 107,301 2,015,300 4,442,610
Disposal/Write off (559,626) - - - (8,394) - (568,020)
At 31 December 2018 1,816,090 7,678,271 1,825,213 1,097,232 15,017,865 26,480,118 53,914,789
Accumulated
depreciation:
At 1 January 2017 875,354 1,719,578 1,530,096 855,068 13,693,676 7,653,057 26,326,829
Charge for the nancial
year 414,860 481,899 89,532 55,485 264,100 5,013,761 6,319,637
Disposal/Write off (320,717) - - - (2,798) - (323,515)
At 31 December 2017/
1 January 2018 969,497 2,201,477 1,619,628 910,553 13,954,978 12,666,818 32,322,951
Charge for the nancial
year 402,791 618,052 88,411 46,341 352,898 4,985,089 6,493,582
Disposal/Write off (322,053) - - - (8,391) - (330,444)
At 31 December 2018 1,050,235 2,819,529 1,708,039 956,894 14,299,485 17,651,907 38,486,089
Carrying amounts:
At 31 December 2017 1,289,674 3,325,277 205,585 134,732 963,980 11,798,000 17,717,248
At 31 December 2018 765,855 4,858,742 117,174 140,338 718,380 8,828,211 15,428,700
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
114 115
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
10. CASH AND BANK BALANCES
2018 2017
(Restated)
RM RM
Fixed deposits placed with licensed banks 941,026,246 685,907,529
Fixed deposits placed with other nancial institutions 267,185,074 477,837,674
1,208,211,320 1,163,745,203
Cash and bank balances 131,492,908 131,810,523
1,339,704,228 1,295,555,726
Less: Deposits with maturity of more than three months (1,120,370,395) (1,030,545,930)
Cash and cash equivalents 219,333,833 265,009,796
(a) Cash and bank balances are denominated in Ringgit Malaysia.
(b) The range of maturities of the deposits that are readily convertible to cash as at 31 December 2018 is
14 to 90 days (2017: 16 to 89 days).
(c) The range of interest rates of the term deposits as at 31 December 2018 is between 3.36% - 5.30%
(2017: 3.28% - 5.00%).
(d) Information on nancial risks of cash and bank balances is disclosed in Note 24 to the nancial
statements.
11. RETIREMENT BENEFITS
2018 2017
RM RM
Present value of unfunded obligations 23,937,205 22,642,359
Recognised liability for dened benet obligations 23,937,205 22,642,359
Liability for dened benet obligations
The Company recognised liability for dened benet obligations based on the actuarial valuation report
dated 27 February 2019. The Company operates a dened benet scheme that provides pension benets for
employees upon retirement. Under the scheme, eligible employees are entitled to retirement benets of
1.5 months of the last drawn salary for each completed year of service upon the retirement age of 60 if the
number of years of service is less than 10 years and 2.0 months if the number of years of service is more
than 10 years. For employees who are appointed after 1 April 2008, they are entitled to retirement benets of
0.75 month of the last drawn salary for each completed year of service upon the retirement age of 60 if the
number of years of service is less than 10 years and 1.0 month if the number of service is more than 10 years.
Employees are also given the option to retire at the age of 50 and 45 for males and females respectively.
7. STAFF LOANS (continued)
Staff loans are denominated in Ringgit Malaysia.
Information on nancial risks of staff loans is disclosed in Note 24 to the nancial statements.
8. INVESTMENTS
2018 2017
(Restated)
RM RM
Fair value through prot or loss:
Quoted unit trust in Malaysia 32,513,071 35,634,736
Quoted securities in Malaysia 63,700,260 101,069,419
96,213,331 136,704,155
Fair value through other comprehensive income:
Quoted securities-bond & sukuk in Malaysia 135,661,300 -
231,874,631 136,704,155
Information on nancial risks of investments is disclosed in Note 24 to the nancial statements.
9. ACCRUED INTEREST RECEIVABLES, DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES
2018 2017
RM RM
Accrued interest receivables 25,391,935 18,130,991
Deposits 331,233 341,624
Prepayments 31,101 31,101
Other receivables 2,905,241 15,351,339
28,659,510 33,855,055
Accrued interest receivables, deposits, prepayments and other receivables are denominated in Ringgit
Malaysia.
Information on nancial risks of accrued interest receivables, deposits, prepayments and other receivables
are disclosed in Note 24 to the nancial statements.
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
116 117
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
12. HUMAN RESOURCES DEVELOPMENT FUND (“HRDF”)
2018 2017
RM RM
At 1 January 972,387,534 953,461,709
Add: Levy collected 805,720,320 726,611,181
SME Training Incentive Grant - 341,337
Re-registration (Note 15) 62,621 -
1,778,170,475 1,680,414,227
Less: Training grant disbursed (495,251,809) (486,362,788)
Transferred to Strategic Fund (Note 13) (218,068,623) (214,826,344)
Transferred to General Reserves II-deregistration (Note 15) (1,006,565) (1,278,727)
Unutilised levy (Note 14) (11,708,222) (2,589,917)
Overpayment of levy refunded (2,054,800) (2,968,917)
At 31 December 1,050,080,456 972,387,534
13. STRATEGIC FUND
2018 2017
(Restated)
RM RM
At 1 January 208,951,977 192,441,763
Receipts from levy (Note 12) 218,068,623 214,826,344
427,020,600 407,268,107
Less: Income recognised for the year (Note 19) (154,190,723) (176,833,496)
Less: Administrative fees recognised for the year (9,648,159) (21,482,634)
At 31 December 263,181,718 208,951,977
The Strategic Fund (formerly known as Consolidated Fund) was created with the purpose of supporting the
national agenda of achieving 35% skilled Malaysian workforce by year 2020. The objective of the Strategic
Fund is to implement several strategic initiatives with the aim of empowering the quality and employability
of the Malaysian human capital through re-skilling and up-skilling programmes, for the benet of both
registered and non-registered employers of the sectors covered by PSMB.
11. RETIREMENT BENEFITS (continued)
Movements in the present value of dened benet obligations:
2018 2017
RM RM
At 1 January 22,642,359 20,039,500
Service costs (Current and Past) and interest 3,172,014 2,919,123
Benets paid by the plan (2,537,067) (316,264)
Remeasurement recognition in Other Comprehensive Income 659,899 -
23,937,205 22,642,359
Expenses recognised in statement of comprehensive income:
Current service cost 1,833,990 1,743,125
Interest on obligation 1,338,024 1,175,998
Net benet expenses 3,172,014 2,919,123
Actuarial assumptions:
Principal actuarial assumptions at the end of the reporting period (expressed as weighted average):
2018 2017
Discount rate 5.4% 5.75%
Average salary increase 6.0% 6.0%
Sensitivity analysis:
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, with other
assumptions being constant, would have affected the dened benet obligation by the amounts shown
below.
Dened Benet Obligation
2018 2017
Increase Decrease Increase Decrease
RM RM RM RM
Discount rate (1% movement) 3,169,429 (3,778,033) 3,617,956 (3,037,334)
Average salary (1% movement) 3,586,904 (3,081,879) 4,341,272 (3,626,369)
Although the analysis does not account for the full distribution of cash ows expected under the plan, it does
provide an approximation of the sensitivity of the assumptions shown.
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
118 119
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
16. GOVERNMENT GRANTS
2018 2017
Note RM RM
Apprenticeship Fund (a) 4,703,862 10,644,463
SME Training Incentive Fund (b) - 321,596
HR Certication Body Fund (c) 272,825 280,679
HEARTS Fund (d) 763,190 1,494,596
SME Skill Upgrading Fund (e) 484,097 993,770
Minimum Wage Programme Fund (f) - 668,859
1MGRIP Fund (g) - 4,915,734
Emphatic Fund (h) 156,260 3,042,831
RPEL (Non-HRDF) Fund (i) 8,320,139 3,731,976
SME Incentive (Non-HRDF) Fund (j) 872,535 1,048,664
Outplacement Centre Programme Fund (k) 3,012,238 3,492,480
GENERATE Fund (l) 6,417,098 4,285,283
ILJTM and Other TVET (m) 4,500,000 -
29,502,244 34,920,931
(a) Apprenticeship Fund
2018 2017
RM RM
At 1 January 10,644,463 17,968,772
Less: Expenses (5,940,601) (7,324,309)
At 31 December 4,703,862 10,644,463
(b) SME Training Incentive Fund
2018 2017
RM RM
At 1 January 321,596 457,759
Less: Expenses (321,596) (136,163)
At 31 December - 321,596
(c) HR Certication Body Fund
2018 2017
RM RM
At 1 January 280,679 430,336
Less: Expenses (7,854) (149,657)
At 31 December 272,825 280,679
13. STRATEGIC FUND (continued)
Five key strategic initiatives to be carried out under Strategic Fund are as follows:
(i) Training of Retrenched Workers under the 1Malaysia Outplacement Centre (“1MOC”)
(ii) Train and Replace (“T&R”) Programme
(iii) Small and Medium Enterprises (“SME”s) Up-skilling & Re-Skilling Programmes
(iv) Future Workers’ Training Programme
(v) Certication/Value Added Programmes Identied by Sectorial Training Committees (“STC”s)/Special
Fund for Industrial Association Programme
During the nancial year, PSMB had spent RM163.84 million (2017: RM198.3 million) on course fees, allowances
to employers, training providers, relevant participants for the above initiatives. Included in expenses are
administrative and management costs of RM9.6 million (2017: RM21.4 million) allocated to conduct programs
under the Strategic Fund.
14. UNUTILISED LEVY
2018 2017
RM RM
At 1 January 35,415,736 38,527,502
Add: Transfer from HRDF (Note 12) 11,708,222 2,589,917
Add: Transfer from General Reserve II (Note 15) 514,333 639,725
47,638,291 41,757,144
Less: Expenses (3,110,694) (6,341,408)
At 31 December 44,527,597 35,415,736
This fund relates to employers’ levy for employers who have been deregistered due to cessation of business
and unutilised levy for a period of ve years.
15. GENERAL RESERVES II
2018 2017
RM RM
At 1 January 2,370,884 1,731,882
Add: Transfer from HRDF (Note 12) 1,006,565 1,278,727
3,377,449 3,010,609
Less: Unutilised levy (514,333) (639,725)
- failure to re-register within 2 years (Note 14) Re-Registration
(Note 12) (62,621) -
At 31 December 2,800,495 2,370,884
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
120 121
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
16. GOVERNMENT GRANTS (continued)
(h) Empathic Fund
2018 2017
RM RM
At 1 January 3,042,831 7,926,084
Less: Expenses (2,886,571) (4,883,253)
At 31 December 156,260 3,042,831
(i) RPEL (Non-HRDF) Fund
2018 2017
RM RM
At 1 January 3,731,976 3,381,450
Add: Government allocation 7,000,000 5,000,000
10,731,976 8,381,450
Less: Expenses (2,411,837) (4,649,474)
At 31 December 8,320,139 3,731,976
(j) SME Incentive (Non-HRDF) Fund
2018 2017
RM RM
At 1 January 1,048,664 4,624,553
Add: Government allocation 5,000,000 5,000,000
6,048,664 9,624,553
Less: Expenses (5,176,129) (8,575,889)
At 31 December 872,535 1,048,664
(k) Outplacement Centre Programme Fund
2018 2017
RM RM
At 1 January 3,492,480 3,710,812
Add: Government allocation 350,200 -
3,842,680 3,710,812
Less: Expenses (830,442) (218,332)
At 31 December 3,012,238 3,492,480
16. GOVERNMENT GRANTS (continued)
(d) HEARTS Fund
2018 2017
RM RM
At 1 January 1,494,596 1,689,496
Less: Expenses (731,406) (194,900)
At 31 December 763,190 1,494,596
(e) SME Skill Upgrading Fund
2018 2017
RM RM
At 1 January 993,770 1,662,395
Less: Expenses (509,673) (668,625)
At 31 December 484,097 993,770
(f) Minimum Wage Program Fund
2018 2017
RM RM
At 1 January 668,859 2,813,967
Less: Expenses (668,859) (2,145,108)
At 31 December - 668,859
(g) 1MGRIP Fund
2018 2017
RM RM
At 1 January 4,915,734 5,081,348
Less: Expenses (4,915,734) (165,614)
At 31 December - 4,915,734
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
122 12 3
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
19. INCOME
2018 2017
(Restated)
RM RM
(a) Operating income
Fee income from training providers 6,805,179 6,733,029
Gain on disposal of plant and equipment 127,575 93,882
Interest income from xed deposits and investment 51,198,560 56,457,811
Interest income from loan to staff 208,024 183,947
Interest income from bank balance 34,818 107,234
Other income 111,026 393,805
Rental Income 806,179 -
Penalty on late payment of levy 3,610,815 912,804
Administrative fees 12,060,575 23,073,409
74,962,751 87,955,921
(b) Non-operating income
Fair value changes of investments - 7,334,918
(c) Development activities income
Income from unutilised levy 3,110,694 6,341,408
Income received from National Human Resources Development
Conference Fund 2,755,221 3,671,481
Participants’ fees for Training and Consultancy Fund 3,634,219 8,798,197
Receipt from Tabung Amanah Latihan Khas (“TALK”) Accounts - 513,568
Receipt from SAY 1 Malaysia Fund - 17,988
Receipt from TUTELAR Fund - 11,756
9,500,134 19,354,398
(d) Strategic Fund Income (Note 13) 154,190,723 176,833,496
Total income 238,653,608 291,478,733
16. GOVERNMENT GRANTS (continued)
(l) GENERATE Fund
2018 2017
RM RM
At 1 January 4,285,283 4,214,149
Add: Government allocation 7,500,000 10,000,000
11,785,283 14,214,149
Less: Expenses (5,368,185) (9,928,866)
At 31 December 6,417,098 4,285,283
(m) Enrolment of Students in ILJTM and Other TVET Institutions Fund
2018 2017
RM RM
At 1 January - -
Add: Government allocation 5,000,000 -
5,000,000 -
Less: Expenses (500,000) -
At 31 December 4,500,000 -
17. PAYABLES AND ACCRUALS
Credit terms of payables are 30 to 45 days (2017: 30 to 45 days). All payables are denominated in Ringgit
Malaysia.
Information on nancial risks of payables is disclosed in Note 24 to the nancial statements.
18. RESERVES
2018 2017
(Restated)
RM RM
Fair value reserves 953,148 -
Retirement benet reserves (8,321,152) (7,661,253)
At 31 December (7,368,004) (7,661,253)
The fair value reserve comprise the cumulative net change in the fair value of debt securities designated at
fair value through other comprehensive income until the assets are derecognised or impaired.
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
124 125
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
20. EXPENSES
2018 2017
RM RM
(a) Operating expenses
Advertising and promotion 2,763,281 3,279,027
Auditor’s remuneration 108,000 145,350
Auditor’s remuneration – under provision in prior year 4,000 -
Staff costs 33,909,204 37,826,166
Consultancy Services 1,267,900 2,442,702
Directors’ fees and remuneration 2,922,606 2,036,592
Event management 1,892,241 1,936,203
Legal and professional fees 637,845 280,102
Other expenses 2,450,714 1,227,586
Ofce supplies 590,268 520,289
Stamps and postage 139,117 61,997
Printing expenses 131,896 282,229
Property management 2,266,706 980,591
Rental expenses 764,313 646,724
Repairs and maintenance 9,371,418 6,905,034
Travelling and accommodation 1,993,550 3,241,707
Utilities 1,959,030 1,997,602
Leasing 422,044 249,260
63,594,133 64,059,161
(b) Non-operating expenses
Fair value changes of investments 18,636,997 -
Expected credit loss impaired 344,425 -
Non allowable GST input tax 15,305,420 -
Depreciation for property, plant and equipment 8,108,040 7,934,095
Depreciation for investment property 1,634,562 1,634,562
Provision for retirement benets 3,172,014 2,919,123
47,201,458 12,487,780
19. INCOME (continued)
The Company has disaggregated income into various categories as follows which is intended to depict its
nature, amount and timing.
2018 2017
(Restated)
RM RM
Revenue from contracts with customers
Recognised at point in time: 28,866,009 43,732,232
Recognised over time: 157,301,417 183,174,904
Total revenue from contracts with customers 186,167,426 226,907,136
Other revenue
Gain on disposal of plant and equipment 127,575 93,882
Interest income from xed deposits and investment 51,198,560 56,457,811
Interest income from loan to staff 208,024 183,947
Interest income from bank balance 34,818 107,234
Other income 111,026 393,805
Rental Income 806,179 -
Fair value changes of investments - 7,334,918
52,486,182 64,571,597
Total income 238,653,608 291,478,733
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
126 127
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
21. TAXATION
2018 2017
RM RM
Current tax expense based on income for the nancial year 3,030,000 -
(a) Malaysian income tax is calculated at the statutory tax rate of twenty-four percent (24%) of the estimated
taxable income for the scal year.
(b) In prior years, there is no tax charged as the Company was exempted from the payment of income tax
in respect of statutory income in relation to all of its sources of income except dividend income for
10 years from the year of assessment 2008 until the year of assessment 2017.
(c) The numerical reconciliation between the tax expense and the product of accounting prot multiplied
by the applicable tax rate of the Company is as follows:
2018 2017
RM RM
Tax at Malaysian statutory tax rate of 24% (9,573,853) 1,969,512
Tax effect in respect of:
Non-allowable expenses 49,413,983 -
Income not subject to tax (37,448,603) (1,969,512)
Deferred tax assets not recognised 638,473 -
3,030,000 -
(d) Deferred tax assets have not been recognised for the following amount as at the date of nancial position
it is not probable that taxable income would be available against which the deductible temporary
differences or unabsorbed tax losses can be utilized in the foreseeable future.
2018 2017
RM RM
Deductible temporary differences 1,910,370 -
Unabsorbed tax losses 749,935 -
2,660,305 -
The unabsorbed tax losses up to the year of assessment 2018 shall be deductible until year of assessment
2025. The unabsorbed tax losses for the year of assessment 2019 onwards will expire in 7 years.
20. EXPENSES (continued)
2018 2017
RM RM
(c) Development activities expenses for:
Motor Vehicle Loan Subsidy
1,409 -
Educational sponsorship fund 6,929 10,252
Training and Consultancy 3,930,139 9,126,831
National HRD Conference 2,189,652 3,990,851
SPICE Fund 523,696 1,270,051
Outcome-Based Study on effectiveness Of Apprenticeship Scheme
under Tenth Malaysia Plan (10
th
MP) Fund - 252,000
Outcome-Based Study on effectiveness Of Training Incentive for
SMEs under Tenth Malaysia Plan (10
th
MP) Fund - 424,528
Corporate Social Responsibility (“CSR”) Fund 605,356 765,204
Effectiveness Study on HRDF by World Bank Group (“WBG”) Fund - 3,383,370
PSMB Big Data Analytics (BDA) Pre-Implementation Workshop and
Preparation of Request for Proposal Document Fund
- 906,305
Setting up PSMB Transformation Management Ofce (“TMO”) Fund - 288,000
Amendment and Expansion of the First Schedule of PSMB Act,
2001 Fund
314,984 702,068
National Employment Return (“NER”) 2016 Survey Fund 124,434 354,001
Chevron II of Human Capital Transformation Project (HCTP) Fund 79,000 334,220
Pre-Implementation Phase of Core and Finance System
(Phase 1A & 1B) Fund
- 691,170
Rebranding of RPEL Fund 523,584 69,797
Renewal of Advisor to ILMIA for Labour Market Study 252,114 240,000
Study on the Needs and Requirements for the Establishment of
Training Centre
- 50,000
Special Allocation to MoHR - 251,938
Accelerate Human Capital Development in Malaysia Fund 1,247,447 440,000
Source System Data Cleansing Activity & Development of High
Quality Transactional Report
573,614 -
HRDF Transformation Initiatives Fund 75,298 -
Training and Coordinating Fund 38,623 389,224
SME TNA Consultancy Fund 713,846 519,526
Future Workers Training Fund 1,539,911 3,482,523
World Skills Competition 2015 & 2017 Fund - 404,692
OTEP Fund 818,314 1,347,443
EASY Fund - 198,000
13,558,350 29,891,994
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
128 12 9
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
24. FINANCIAL INSTRUMENTS (continued)
(a) Categories of nancial instruments (continued)
2018 2017
RM RM
Financial liabilities
Amortised cost
Human Resources Development Fund 1,050,080,456 972,387,534
Strategic Fund 263,181,718 208,951,977
Unutilised Levy 44,527,597 35,415,736
General Reserve II 2,800,495 2,370,884
Government grants 29,502,244 34,920,931
Other payables 63,615,087 26,842,475
Accrued expenditure 3,324,672 6,632,642
1,457,032,269 1,287,522,179
(b) Financial risk management
The Company has exposure to the following risks from its use of nancial instruments:
(i) Credit risk
Credit risk is the risk of a nancial loss to the Company if the counterparty to a nancial instrument
fails to meet its contractual obligations.
As at the end of the reporting period, the maximum exposure to credit risk is represented by their
carrying amounts in the statements of nancial position.
Cash and bank balances
The cash and bank balances are held with banks and nancial institutions.
These banks and nancial institutions have low credit risks. Therefore, the Company is of the view
that the loss allowance is not material and hence, it is not provided for.
Other receivables, staff loans and deposits
As at the end of the reporting period, the Company did not recognised any allowance for impairment
losses as it is negligible.
22. EMPLOYEE BENEFITS
2018 2017
RM RM
Wages, salaries and bonuses 26,983,401 29,638,704
Contributions to dened contribution plans 3,213,068 3,977,126
Expenses related to dened benet plans 3,172,014 2,919,123
Social security contributions 280,186 231,496
Other benets 3,432,549 3,978,840
37,081,218 40,745,289
23. DIRECTORS’ FEES AND REMUNERATION
2018 2017
RM RM
Fees 1,345,529 870,667
Salaries, allowances and bonus 1,363,877 998,638
Dened contribution plan 213,200 167,287
2,922,606 2,036,592
24. FINANCIAL INSTRUMENTS
(a) Categories of nancial instruments
The table below provides an analysis of nancial instruments categorised as follows:
2018 2017
RM RM
Financial assets
Amortised cost
Accrued interest receivables, deposits other receivables
(excluding GST & prepayment) 28,628,038 18,678,344
Staff loans 5,198,188 5,606,924
Cash and bank balances 1,339,704,228 1,295,555,726
Fair value through other comprehensive income
Investments-bond & sukuk 135,661,300 -
Fair value through prot or loss
Investments-others 96,213,331 136,704,155
1,605,405,085 1,456,545,149
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
130 1 31
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
24. FINANCIAL INSTRUMENTS (continued)
(b) Financial risk management (continued)
(iii) Equity price risk
Equity price risk arises from the Company’s investments in equity securities.
Risk management objectives, policies and process for managing the risk
To manage its price risk arising from investments in equity securities, the Company diversies its
portfolio. Diversication of the portfolio is done in accordance with the limits set by the Company.
Management of the Company monitors the investments on an individual basis. All buy and sell
decisions are approved by the Management Investment Committee of the Company.
The majority of the Company’s equity investments are traded.
Equity price risk sensitivity analysis
This analysis assumes that all variables remain constant and the Company’s equity instruments
moved in correlation with the FTSE Bursa Malaysia KLCI (“FBMKLCI”).
A change of 100 points of the KLCI Index at the end of the reporting period would have increase or
decrease in the fair value of the equity investment by the amounts as shown below:
2018 2017
RM RM
Price
Loss before
tax (Increase)
/Decrease
Prot before
tax Increase
/(Decrease)
- Increased by 100 points 1,293,000 1,433,000
- Decreased by 100 points (1,293,000) (1,433,000)
24. FINANCIAL INSTRUMENTS (continued)
(b) Financial risk management (continued)
(i) Credit risk (continued)
Investment in debt securities
It is Company policy to assess the credit risk of investments before entering into contracts. The
Company’s review includes external ratings, when available, and in some cases bank references.
Investments limits are established and approval from the Management Investment Committee is
required.
The Company limits its exposure to credit risk by investing only in liquid debt securities and only
with counterparties that have a credit rating of a least AA3 from Rating Agency Malysia (‘RAM’)
and AA- from Malaysian Rating Corporation Berhad (‘MARC’).
The Company monitors changes in credit risk by tracking published external credit ratings.
12-month and lifetime probabilities of default are based on historical data supplied by Bloomberg
for each credit rating.
The movement in the impairment loss for debt securities at FVOCI during the year was as follows:
12-month ECL
2018 2017
RM RM
Balance at 1 January under MFRS 139 - -
New nancial assets acquired 344,425 -
Balance at 31 December under MFRS 9 344,425 -
There is no investment in debts securities during the nancial year 2017.
(ii) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its nancial obligation as they
fall due. The Company’s exposure to liquidity risk arises principally from its obligation to disburse
various training grants.
The Company maintains a level of cash and bank balances and bank facilities deemed adequate
by the management to ensure, as far as possible, that it will have sufcient liquidity to meet its
liabilities when they fall due.
Maturity analysis
The Company’s nancial liabilities as at 31 December 2018 have contractual maturity of less than
1 year.
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
132 133
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
24. FINANCIAL INSTRUMENTS (continued)
(b) Financial risk management (continued)
(iv) Interest rate risk (continued)
Fair value sensitivity analysis for xed rate instruments
The Company does not account for any xed rate nancial assets and liabilities at fair value
except for investment in debts securities which are carried at FVOCI. Therefore, a change of 100
basis points in interest rates for xed rate investment in debts securities would have increased or
decreased its fair value and subsequently the Company’s equity by RM1,343,000 (2017: Nil).
Cash ow sensitivity analysis
Sensitivity analysis for xed deposits and staff loans as at the end of the reporting period was not
presented as xed rate instruments are not affected by changes in interest rates.
(c) Fair value of nancial instruments
The carrying amounts of cash and cash in banks, short term deposits and receivables, short term
payables and accrued expenditure approximate their fair values and are equivalent to nominal values
due to the relatively short term nature of these nancial instruments.
The fair values of long-term receivables are estimated by discounting expected future cash ows at
market incremental lending rate for similar type of lending, borrowings or leasing arrangements at the
end of each reporting period.
Fair value of investments of the Company are categorised as Level 1 in the fair value hierarchy.
There is no transfer between levels in the hierarchy during the nancial year.
Fair value of long term receivables of the Company are categorised as Level 3 in the fair value hierarchy.
There is no transfer between levels in the hierarchy during the nancial year.
(d) Capital management
The Company’s objective when managing capital is to maintain a strong capital base, so as to sustain its
human resources development activities. There were no changes in the Company’s approach to capital
management during the nancial year.
24. FINANCIAL INSTRUMENTS (continued)
(b) Financial risk management (continued)
(iv) Interest rate risk
The Company’s investments in xed rate debt securities and loans to its staffs are exposed to a risk
of change in their fair value due to changes in interest rates. Investments in equity securities and
short term receivables and payables are not signicantly exposed to interest rate risk.
Exposure to interest rate risk
The interest rate prole of the Company’s signicant interest-bearing nancial instruments, based
on carrying amounts as at the end of the reporting period are as follows:
Effective Within More than
Interest 1 year 1 year Total
Rate RM RM RM
2018
Fixed rate instruments
Fixed deposits 3.36% - 5.30% 1,208,211,320 - 1,208,211,320
Staff loans 4% 360,154 4,838,034 5,198,188
Investment in debts securities 4.39% - 4.98% - 135,661,300 135,661,300
1,208,571,474 140,499,334 1,349,070,808
Effective Within More than
Interest 1 year 1 year Total
Rate RM RM RM
2017
Fixed rate instruments
Fixed deposits 3.28% - 5.00% 1,030,545,930 - 1,030,545,930
Staff loans 4% 300,803 5,306,121 5,606,924
1,030,846,733 5,306,121 1,036,152,854
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
134 135
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
26. RELATED PARTIES
Identity of related parties
For the purpose of these nancial statements, parties are considered to be related to the Company if the
Company has the ability, directly or indirectly, to control the party or exercise signicant inuence over the
party in making nancial and operating decisions, or vice versa, or where the Company and the party are
subject to common control or common signicant inuence. Related parties may be individuals or other
entities.
Key management personnel are dened as those persons having authority and responsibility for planning,
directing and controlling the activities of the Company either directly or indirectly. The key management
personnel include all the Directors of the Company.
The Company is a company limited by guarantee which is being administered by the Minister of Human
Resources which is controlled by Government of Malaysia. Entities that are directly controlled by the
Government of Malaysia are collectively referred to as government-related entities to the Company. The
Government of Malaysia and bodies controlled or jointly controlled by the Government of Malaysia are
related parties of the Company.
The Company enter into transactions with many of these bodies, which include but are not limited to
purchasing of goods, including use of public utilities and amenities, and the placing of bank deposits.
All the transactions entered into by the Company with the government-related entities are conducted in the
ordinary course of the Company’s businesses on negotiated terms or terms comparable to those with other
entities that are not government-related.
The Company is principally involved in the imposition and collection of human resources development levy
for the purpose of promoting the training and development of employees, apprentices and trainees and
the establishment and administration of the human resources development fund. These services have been
established on terms and conditions that are not materially different from those obtainable in transactions
with unrelated parties. The Company has collectively, but not individually signicant transactions with related
parties.
25. COMMITMENTS
(a) Operating lease commitments
(i) The Company as a lessee
The Company had entered into non-cancellable lease agreements for certain premises for terms
between one (1) to three (3) years and renewable at the end of the lease period subject to an
increase clause.
The Company has aggregate future minimum lease commitments as at the end of each reporting
period as follows:
2018 2017
RM RM
Not later than one (1) year 404,587 586,140
Later than one (1) year and not later than three (3) years 147,210 551,797
551,797 1,137,937
(ii) The Company as a lessor
The Company has entered into a non-cancellable lease agreement on a property for three (3) years
term and renewable at the end of the lease period subject to an increase clause.
The Company has aggregate future minimum lease receivable as at the end of each reporting
period as follows:
2018 2017
RM RM
Not later than one (1) year 1,382,022 -
Later than one (1) year and not later than three (3) years 1,612,359 -
2,994,381 -
(b) Capital commitments
2018 2017
RM RM
Capital expenditure in respect of purchase of plant and equipment:
Contracted but not provided 1,238,112 -
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
136 137
FINANCIAL STATEMENTS | PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND • ANNUAL REPORT 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
NOTES TO THE
FINANCIAL STATEMENTS
31 December 2018
27. CHANGE IN ACCOUNTING POLICY (continued)
As previously
Reported
MFRS 9
adjustments
MFRS 15
adjustments
As
restated
RM RM RM RM
31 December 2017
Statement of nancial position
Liabilities
Strategic Fund - - 208,951,977 208,951,977
Unutilised levy - - 35,415,736 35,415,736
Retained earnings
Allocated to specic usage under
Trust Funds 69,109,512 - (35,415,736) 33,693,776
Unallocated 323,588,591 (9,869,323) - 313,719,268
Strategic Fund 208,951,977 - (208,951,977) -
Reserve (17,530,576) 9,869,323 - (7,661,253)
Statement of comprehensive income
Receipts from levy under strategic
fund 214,826,344 - (37,992,848) 176,833,496
Unutilised levy 3,229,642 - 3,111,766 6,341,408
Statement of changes in equity
Retained earnings as at
31 December 2017 601,650,080 (9,869,323) (244,367,713) 347,413,044
27. CHANGE IN ACCOUNTING POLICY
During the nancial year, the Company adopted MFRS 15, Revenue from Contracts with Customers and
MFRS 9 Financial Instruments on their nancial statements. The change has been applied retrospectively in
these consolidated nancial statements and the effects of the change in accounting policy are as follows:
As previously
Reported
MFRS 9
adjustments
MFRS 15
adjustments
As
restated
RM RM RM RM
1 January 2017
Statement of nancial position
Liabilities
Strategic Fund - - 192,441,763 192,441,763
Unutilised levy - - 38,527,502 38,527,502
Retained earnings
Allocated to specic usage under
Trust Funds 77,175,220 - (38,527,502) 38,647,718
Unallocated 317,763,265 (17,204,241) - 300,559,024
Strategic Fund 192,441,763 - (192,441,763) -
Reserve (24,865,494) 17,204,241 - (7,661,253)
Statement of comprehensive income
Receipts from levy under strategic
fund 205,169,157 - (192,441,763) 12,727,394
Unutilised levy 5,461,466 - (467,747) 4,993,719
Statement of changes in equity
Retained earnings as at
1 January 2017 587,380,248 (17,204,241) (230,969,265) 339,206,742
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
JOHOR
No. 50 & 50-01, Jalan Setia 3/7,
Taman Setia Indah,
81100 Johor Bahru, Johor
support_johor@hrdf.com.my
(TEL) 07-353 8121 / 8131
(FAX) 07-353 8217
MELAKA
Lot 4-04, Wisma UTC,
Jalan Tan Chay Yan, Off Jalan Hang Tuah,
75300 Melaka
support_melaka@hrdf.com.my
(TEL) 06-282 1537
(FAX) 06-282 1536
PULAU PINANG
Tingkat 2, Wisma PERKESO Pulau Pinang,
Lebuh Tenggiri 2,
13700 Seberang Jaya, Pulau Pinang
support_penang@hrdf.com.my
(TEL) 04-397 0779 / 04-398 4697 / 04-398 0081
(FAX) 04-398 7350
PERAK
Level 19, Perak Techno Trade Centre,
Jalan Jelapang, Bandar Meru Raya,
30020 Ipoh, Perak
support_perak@hrdf.com.my
(TEL) 05-526 3357
(FAX) 05-526 3127
PAHANG
Level 1, Wisma PERKESO Pahang,
Jalan Mat Kilau,
25000 Kuantan, Pahang
support_pahang@hrdf.com.my
(TEL) 09-513 2079 / 0715
(FAX) 09-513 0362
SABAH
Lot B5, Tingkat 5, Bangunan KWSP,
88598 Kota Kinabalu, Sabah
support_sabah@hrdf.com.my
(TEL) 088-260 114 / 088-263 114
(FAX) 088-252 114
SARAWAK
Level 4, Lot 436, Section 54, Wisma PERKESO Sarawak,
No. 52, Travillion Commercial Centre Padungan
93100 Kuching, Sarawak
support_sarawak@hrdf.com.my
(TEL) 082 – 254 721 / 564
(FAX) 082 – 254 795
BRANCH OFFICES
HRDF’s footprint extends across the nation. Strong networking across our offices ensures synergy in the
implementation of HRDF initiatives in different states and districts.
Each branch office acts as a catalyst to further our agenda to champion the national human capital
development by providing more growth in financial assistance for employers, increasing the number of
Training Places; and raising awareness on HRDF’s programmes and initiatives with the Fund’s multiple
stakeholders.
BRANCH
OFFICES
138
ADDITIONAL INFORMATION | PEMBANGUNAN SUMBER MANUSIA BERHAD
AT
A GLANCE
OUR
ORGANISATION
LEADERSHIP
MESSAGES
STRATEGIC &
PERFORMANCE REVIEW
CREATING
VALUE
FRAMEWORK
OF TRUST
2019
Annual Report
FINANCIAL
STATEMENTS
ADDITIONAL
INFORMATION
PEMBANGUNAN SUMBER MANUSIA BERHAD
HUMAN RESOURCES DEVELOPMENT FUND
Wisma HRDF
Jalan Beringin, Damansara Heights
50490 Kuala Lumpur
HRDF CONTACT CENTRE
1800 88 4800
WEBSITE
hrdf.com.my
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