The document provides an overview of the Human Resources Development Fund (HRDF) in Malaysia and discusses its enforcement of the PSMB Act 2001. It covers the following key points: - An introduction to HRDF, its vision, mission and objectives in encouraging workforce training. - The current sectors covered under the Act and HRDF's plan to expand to 19 new sub-sectors. - The liabilities, offenses and penalties outlined in the Act for non-compliance by employers including failure to register or pay levies. - HRDF's enforcement plan which includes premises visits, collaboration with other agencies, and an "Ops Sayang" visit program that issued compounds to non-compliant employers.

1. BRIEFING ON THE HUMAN RESOURCES
DEVELOPMENT FUND (HRDF)
“THE ENFORCEMENT OF THE PSMB ACT, 2001
AND THE ORGANISATION’S FUTURE PLAN”

2. TOPICS TO BE COVERED
•BRIEF INTORDUCTION ON HRDF
•THE LIABILITIES AND OFFENCES PROVIDED UNDER THE
ACT
•THE ENFORCEMENT PLAN
•EXPANSION OF COVERAGE TO 19 NEW SUB-SECTORS
•THE FUTURE PLAN
 THE PSMB ACT, 2001 FUTURE AMENDMENT PLAN
AND ITS RATIONALE
•REGISTRATION PROCEDURES AND SUPPORTING
DOCUMENTS REQUIRED

3. • ESTABLISHED IN 1993 – HUMAN
RESOURCES DEVELOPMENT COUNCIL
(HRDC)
• CORPORATISED IN 2001 –
PEMBANGUNAN SUMBER MANUSIA
BERHAD (545143-D)
• GOVERNED BY THE PSMB ACT, 2001
• PUBLIC LIMITED BY GUARANTEE
• MANAGER OF THE HRDF
BRIEF INTRODUCTION ON PSMB

4. VISION
To be the driving force in training and
development of the workforce
MISSION
To enhance the knowledge and skills of
the workforce through effective
management of the Human Resources
Development Fund (HRDF)

5. OBJECTIVE
To encourage employers covered
under the Pembangunan Sumber
Manusia Berhad Act, 2001 to retrain
and upgrade the skills of their
employees, apprentices and
trainees in line with their business’
needs and the development strategy
of the country

6. PHILOSOPHY OF HRDF
o Human Resources Development (HRD) Levy Is a
Form of Tax
o It Is a Payment Made to the Consolidated Fund and
Not a Contribution As Perceived by Many Employers
o Employers Are Eligible to Receive Financial
Assistance Equivalent to the Amount of HRD Levy
Paid to the HRDF (Individual Accounts Are Created
to Facilitate Collection of Levy and Disbursement of
Training Grants by Individual Employer)

7. CURRENT COVERAGE - A SNAPSHOT
• Employers in the manufacturing sector with 10 – 49 employees
and a paid-up capital of less than RM2.5 million are given option
to register.
1 Jan. 1993• Employers with 50 employees and above in the manufacturing
sector.
1 Jan. 1995
• Employers with 10-49 employees and a paid-up capital of
RM2.5 million and above in the manufacturing sector
• Employers with 10 employees and above in the private higher
education, training and energy sector.
• Employers with 10 employees and above in services sector,
namely the hotel industry, tour operating business (in-bound tour
only), shipping, air transport, telecommunication, computer
services, advertising, postal & courier and freight forwarding.
17 Feb. 2000
2 Aug. 1996
1 Jan. 1995

8. • Employers with 10 employees and above in services sector, namely
the private higher direct selling, port services, engineering support
and maintenance services, research & development, warehousing
services, security services, private hospital services
• Employers with 50 employees and above in hypermarket,
supermarkets and department stores
1 Jan.
2007
• Commercial land transport and railway transport services
industry with 10 employees an above
1 Jan.
2005
1 June
2014
• Employers with 50 employees and above in mining and quarrying
sector and employers with 10 to 49 employees added with RM2.5
million and above paid-up capital are compulsory to register
• Employers with 10 to 49 employees and consist of less than
RM2.5 million paid-up capital are classified as optional
registration

9. • Employers with 10 employees and above in services sector, namely
the gas, steam and air-conditioning, water treatment and supply,
sewerage, waste management and material recovery services,
production of motion picture, video and television programme,
sound recording and music publishing, information services
activities, tourism enterprise, building and landscapping, event
management, early childhood education, health support services,
franchise, sale and repair motor vehicle, private broadcasting,
driving school and veterinary services
• Employers with 30 employees and above in food and beverage
services
1 June
2014

10. THE LIABILITIES AND OFFENCES
PROVIDED UNDER THE ACT
THE ENFORCEMENT OF THE PSMB ACT, 2001
AND THE ORGANISATION ‘S FUTURE PLAN”

11. OBLIGATION OF EMPLOYER
SECTION EMPLOYER’S OBLIGATION SECTION DISOBEDIENCE
CONSEQUENCES
SEC. 13 (1)
RULE 4
 All of employer must register with PSMB
if they have fulfilled the requirements:
i. The nature of business is covered under
the First Schedule of PSMB Act;
ii. The minimum number of employees:
i. Manufacturing: 50 employees
ii. Manufacturing: 10-49 employees
and 2.5 million and above paid
up capital
iii. Service: 10 employees
 All of employers must submit the
Registration Forms after receiving the
forms from PSMB within 30 days.
SEC. 13 (2)
RULE 4A
(2)
Any offence will be convicted with:
•a fine not exceeding than
RM10,000, or
•Imprisonment not more than 1
year, or
•Both
Any offence will be convicted with:
•a fine not exceeding than RM
2,000

12. OBLIGATION OF EMPLOYER
SECTION EMPLOYER’S OBLIGATION SECTION DISOBEDIENCE
CONSEQUENCES
SEC. 14 (1)  Every employer registered with PSMB
must pay levy of each of his employees
at the rate of 1% of the monthly wages.
SEC. 14 (3)
SEC. 24
SEC. 18 (1)
Any offence will be convicted with:
•a fine not exceeding than RM
20,000, or
•Imprisonment not more than 2
years, or
•both
Any levy payable or loan granted
together with any interest thereon,
shall be a debt due to and
recoverable by the Corporation
Late payment and failure of levy
payment will lead to the imposition
of interest at the rate of 10% per
annum in respect of each day of
default or delay in payment

13. OBLIGATION OF EMPLOYER
SECTION PSMB ACT, 2001 PROVISION SECTION DISOBEDIENCE
CONSEQUENCES
 Termination of registration under
PSMB (stop to pay the levy)
SEC. 13 (3)
SEC 16 (2)
Where any person ceases to be
an employer under this Act, he
shall within 30 days of such
cessation notify the Corporation.
The number of employees
decreases to below 10 for 3
consecutive months.

14. OBLIGATION OF EMPLOYER
SECTION PSMB ACT, 2001 PROVISION SECTION DISOBEDIENCE
CONSEQUENCES
SEC. 40 (1)
SEC. 40 (2)
 To provide a correct declaration
 To produce any declaration or
document required under the
PSMB Act
SEC. 40 (1)
SEC. 40 (2)
40(1) Any failure to the
obligation of providing a correct
declaration will be convicted
with:
•a fine not exceeding than RM
20,000, or
•Imprisonment not more than 2
years, or
•Both
40(2) The Court shall order the
person who fails to furnish the
return to produce the
declaration required.

15. OBLIGATION OF EMPLOYER
SECTION PSMB ACT, 2001 PROVISION SECTION DISOBEDIENCE
CONSEQUENCES
SEC 41
(a) & (b)
SEC. 45
 It is forbidden to obtain or attempt
to obtain any financial assistance
or other benefit provided by means
of false or misleading statement or
document
 A director is liable to pay any
unpaid levy or arrears or interest
imposed on the employer
SEC 41
SEC. 45
A person who commits the
offence shall on conviction be
liable to a fine not exceeding
RM20,000.00 or to
imprisonment for a term not
exceeding 2 years or both.
The director will be jointly liable
and severally for the levy which
should be paid to the
Corporation

16. Pembangunan Sumber
Manusia Berhad
v
Pen-Jor Trading and
Transport Sdn Bhd & 3 lagi
Pembangunan Sumber
Manusia Berhad
v
Kian Yaap Transport Sdn
Bhd & 3 lagi
Pembangunan Sumber
Manusia Berhad
v
Antekad Sdn Bhd & 3 lagi
CIVIL OFFENCE
The principle of the case:
•Section 14(4) : The impostion of punishment for failure of levy payment under Sec.
14(3) shall not affect the right of the PSMB to recover the amount of any levy due
under the Act from the employer through the civil suit as above mentioned.

17. THE ENFORCEMENT PLAN
THE ENFORCEMENT OF THE PSMB ACT, 2001
AND THE ORGANISATION ‘S FUTURE PLAN”

18. The Enforcement Action Plan
1. PREMISE VISIT :
Purposely designed for obtaining any
documents required by the Corporation
and ensure the employer’s operation
consistent with the Act.

19. 2. Cawangan Kawal Selia (CKSP), KSM:
To serve compound on any qualified employer
who fails to produce registration form (Form 1)
and employer information form (Form 1A).
The Enforcement Action Plan

20. 3. Collaboration between HRDF, SOCSO,
Jabatan Tenaga Kerja:
It is an enforcement action after the expiration of
the grace period on 30 November 2014. The
cooperation between all of the government
agencies functionally to ensure the industry follow
the law under the Ministry of Human Resources.
The Enforcement Action Plan

21. OPS SAYANG VISIT IMPACT STATISTIC
NO. TOPIC TOTAL NUMBERS
1. OPS SAYANG VISIT 5 SESSIONS
2. VISITED EMPLOYER 35 EMPLOYERS
3. FAILURE OF REGISTRATION 16 EMPLOYERS
4. AMOUNT OF COMPOUND RM 30,000.00
5. REGISTRATION AFTER THE OPS SAYANG VISIT 16 EMPLOYERS

22. COLLABORATION BETWEEN CKSP OF HUMAN RESOURCES MINISTRY,
HRDF, SOCSO DAN JABATAN TENAGA KERJA

23. NEWSPAPER
ARTICLE ON THE
INTEGRATED
OPERATION (OPS
SAYANG) IN
ENFORCING THE
PSMB ACT, 2001,
EMPLOYMENT ACT,
1955, NATIONAL
WAGES
CONSULTATIVE
COUNCIL ACT,2011
AND SOCIAL
SECURITY ACT, 1969
PUBLISHED BY
BERNAMA

24. OPS SAYANG
CONDUCTED
IN PAHANG
REPORTED BY
SINAR
HARIAN

25. THE FUTURE PLAN
THE ENFORCEMENT OF THE PSMB ACT, 2001
AND THE ORGANISATION ‘S FUTURE PLAN”

26. SKILLED WORKERS PERCENTAGE 2014
WAWASAN 2020 TARGET
SKILLED WORKERS -
PSMB will assist the government to
achieve the target by amending the law
to
suit the current necessity
MINISTRY OF
HUMAN RESOURCE
TARGET

27. 2. Introducing the
voluntary registration
3. Permission of
the additional
contribution which
is more than 1%
1. Introducing a new
requirement for the
minimum number of
employees which will
be from 10 to 5
4. The foreign worker
head count will be
included for the
purpose registration
6. The team building
program is still
remain permissible
to be conducted
THE PSMB’S
FUTURE PLAN
IN 5 YEARS PERIOD
5. To cover other
sub-sector not
limited to the sub-
sector under the
first schedule

28. REGISTRATION PROCEDURES AND
UPPORTING DOCUMENTS REQUIRED
THE ENFORCEMENT OF THE PSMB ACT, 2001
AND THE ORGANISATION FUTURE PLAN”

29. RegistrationRegistration
LIABLE EMPLOYERS ARE
COMPULSORY TO REGISTER
WITHIN 30 DAYS FROM THE
LIABLE DATE TO REGISTER
PEMBANGUNAN SUMBER MANUSIA
BERHAD (REGISTRATION OF
EMPLOYERS AND PAYMENT OF
LEVY) REGULATIONS 2001

30. EFFECTS OF LATE
REGISTERING :
PAYMENT OF ARREARS FROM
LIABILITY
* UP TO REGISTRATION DATE
PAYMENT OF INTEREST ON LEVY
* ARREARS (10% PER ANNUM DAILY REST)
RegistrationRegistration

31. Employer Information Statement
FORM 1A
A requirement stipulated under
[Pembangunan Sumber Manusia
Berhad (Registration of Employers and
Payment of Levy) Regulation 2001] in
gathering employers' information
before determining the liability of the
employers

32. FORM
1A
EMPLOYER
INFORMATION
STATEMENT

33. EMPLOYER REGISTRATION
FORM 1
Supporting Documents
 REGISTRATION CERTIFICATE WITH THE COMPANIES
COMMISSION OF MALAYSIA
(FORM 9 /FORM 13 OF COMPANIES ACT, 1965)
 STATEMENT OF PAID- UP CAPITAL
(FORM 24 OF COMPANIES ACT , 1965 )
 STATEMENT OF SHAREHOLDERS
(FORM 49 OF COMPANIES ACT , 1965 )
 EPF STATEMENT
 COMPANY ANNUAL RETURN / COMPANY PROFILE /
FINANCIAL STATEMENT
(to verify principal activity of a company)

34. FO
RM
1

35. PAYMENT FORMS
FORM 2A - CURRENT LEVY PAYMENT
FORM 2B - PAYMENT OF ARREARS
FORM 2C - PAYMENT OF INTEREST
Payment for current month can be made until the last
day of the following month
PANEL BANKS
ANY RHB & PUBLIC BANK BRANCHES NATIONWIDE
PAYMENT OF THE HRD LEVY

36. PSMB Contact Centre:
1800 88 4800

38. Thank You…