Major Enhancements Announced to Boost Skills Development
Yang Berhormat Steven Sim Chee Keong, Minister of Human Resources, recently announced significant enhancements to the Allowable Cost Matrix (ACM), marking a pivotal step toward strengthening Malaysia’s skills development efforts. These changes, which apply to HRD Corp-registered employers and training providers, include a shift from half-day and daily rates to hourly rates for training course claims.
Additionally, the ceiling for course fees has been increased to RM1,500 per hour or RM10,500 per day, up from the previous RM6,000 daily limit—a more than 50% increase. This change aims to offer more flexibility to employers, enable higher-quality training, and support Malaysia’s aspiration to foster a competitive workforce.
Employers Celebrate Flexibility and Higher-Quality Training
The announcement has been warmly received by industry associations and employers. Datuk Dr Syed Hussain Syed Husman, President of the Malaysian Employers Federation (MEF), expressed strong support for the enhancements.
“The new fee structure gives employers greater flexibility to conduct a wider variety of programmes, including professional development and modular courses. The raised ceiling ensures more high-quality training that meets business needs,” said Datuk Dr Syed Hussain.
Similarly, Chin Chee Seong, National President of the SME Association of Malaysia, commended the initiative’s potential to benefit SMEs by ensuring training can be scheduled more efficiently, without disrupting daily operations.
“Hourly-based claims make targeted upskilling more cost-effective for SMEs. The higher claim ceiling will help businesses access premium training programmes, enhancing their competitiveness in local and global markets,” Chin added.
Training Community Welcomes a Future-Ready Approach
The Malaysian Bumiputera Training Provider Association (MBTA) sees the enhancements as an important step toward building a modern, adaptable workforce. Azman Shah Dato' Aziz, MBTA President, noted:
“This flexibility aligns with the demand for short, focused learning modules in today’s fast-paced work environment. The increase in the daily claimable rate also ensures employers and providers can tap into top-tier training programmes, benefiting both participants and the industry.”
The changes were also praised by Bavani Periasamy, Malaysia Chapter Leader of the International Association of Coaching (IAC), who highlighted the positive impact on the coaching industry.
“These enhancements meet the needs of the coaching community by ensuring better compensation for certified coaches and higher standards of practice, creating value for both clients and organisations.”
MATPRO and MAPS Support Sustainable Training Practices
The Malaysian Association of Training Providers (MATPRO) welcomed the ACM changes, with President Prof Dr Abdul Kabur Ibrahim emphasizing how the greater flexibility and increased claims ceiling will encourage providers to diversify their services
“These changes empower our members to expand their offerings with more international and high-value programmes, contributing to Malaysia’s long-term human capital development goals,” said Prof Dr Kabur.
Meanwhile, Sumathi Krishnan, President-Elect of the Malaysian Association of Professional Speakers (MAPS), praised the ACM enhancements for considering rising operational costs, including taxes, staff salaries, and administrative fees.
“This ensures sustainability for training providers and fair compensation for trainers, enabling us to continue delivering impactful programmes. It’s an opportunity for training providers to elevate their services and better meet market needs,” Sumathi remarked.
A Positive Step Toward National Workforce Development
The enhancements to HRD Corp’s ACM demonstrate Malaysia’s commitment to nurturing a skilled, adaptable workforce. The new structure offers greater flexibility for employers, supports the training industry’s growth, and ensures that premium courses become more accessible across sectors.
Industry players, including employers, SMEs, and training providers, agree that these changes are a strategic boost for both businesses and workers. With the ACM in place, Malaysia is better positioned to meet evolving workforce demands and remain competitive on the global stage.
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