PSMB was incorporated on 16 May 2001 under the Pembangunan Sumber Manusia Berhad Act, 2001.
Section 13(1) of the PSMB Act 2001 stipulates that every employer who is covered under the Act is required to register with PSMB within such time and manner as may be prescribed.
Regulation 4(1) of the PSMB Act 2001 states that an employer to whom the Act applies shall submit the Registration of Employer Form (Form 1) to PSMB within thirty (30) days after this regulation comes into effect.
Any employer who is convicted for not registering with PSMB may be fined up to an amount not exceeding RM10,000 or an imprisonment for a period not exceeding one year or both (Section 13 (2).
According to the First Schedule of PSMB Act 2001, definitions of industries covered are as follows:
Class of Employers
1. Employers with fifty or more employees
Manufacturing, that is, the making or processing of an article by labor or machine or both, including the transformation of parts or components into another article of a different nature or character or character by way of altering, blending, ornamenting, finishing or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal, including the building of a ship or the assembly of parts of a ship.
Required to register
2. Employers with ten or more but less than fifty employees and with a paid-up capital of two million five hundred thousand ringgit
(RM2,500,000) and above
3. Employers with ten or more but less than fifty employees and with a paid-up capital of less than two million five hundred thousand ringgit
May opt to be registered
1. Employers with ten or more employees
(i) Hotel, that is, the provision on a fee basis, of lodging, in hotels, inns, boarding houses, rent houses, chalets, resorts or other similar places, whether open to the general public or restricted to members of a particular organizations;
Required to register
(ii) Air transport, that is, the provision of transportation by air, on a fee or contract basis, of passengers or freight whether by regular services or by private charter, including the overhaul, repair, maintenance and cleaning of aircraft;
(iii) Tour operating business, that is, any business of organizing or conducting for sale or commission of inbound tours only or travel agency business;
(iv) Telecommunication, that is, the provision of a system for the conveyance, through the agency of electric, magnetic, electro-magnetic, electro-chemical or electro-mechanical energy of –
Speech, music and other sounds;
Signals serving for the impartation (whether as between persons and persons, things and things or persons and things) of any matter otherwise than in the form of sound or visual images; or
Signals serving for the actuation or control of machinery or apparatus;
(v) Freight forwarding, that is any arrangement of freight by air, sea or land from the port of loading/origin to the port of discharge/destination, or the provision of total logistic activities, and includes the business of a forwarding agent, that is a business involving activities for the obtaining of customs clearance for freight, but does not include delivery transportation by business units for their own use;
(vi) Shipping, that is, the operation of vessels for the transport of freight or passengers overseas or coastwise, including towing services on the high seas or within harbours, the operation of vessels for transport by rivers, canals and other inland waterways including ferries operated across rivers, domestic lakes or within harbours, water taxies, sight-seeing boats, towing or tugboats services on inland waterways, and includes the overhaul, repair, maintenance and cleaning of ships;
(vii) Postal or courier, that is, the delivery of postal articles such as letters, postcards, newspapers, books, documents, pamphlets, patterns or sample packets, parcels, packages or other articles or things transmissible by post or courier services;
(viii) Advertising, that is, the provision of advertising services by advertising agencies to or for clients on a fee or contract basis in various types of media or the conducting of market research work;
(ix) Computer services, that is, software development or improvement, the maintenance of software or database, systems integration or networking, contract staffing, facilities management, computer installation or maintenance service, or the provision of advisory service or consultancy;
(x) Energy, that is, the supply and provision of electrical energy or electricity when generated, transmitted, distributed or utilized for any purpose except the transmission of any communication or signal;
(xi) Training, that is, the business of providing general or specialized training or skills by any body corporate or body of persons but does not include training by Government of the Government of any State training providers;
Class of Employers
Service Sector (Continued)
1. Employers with ten or more employees
(xii) Higher education, that is, the providing of instruction or training on or teaching of a course of study leading to the award of a certificate, diploma or degree upon the successful completion thereof or the providing of distance education, but does not include higher education or distance education provided or educational institutions established and managed directly by the Government or the Government of any State or provided by any University or University College established under the Universities and University Colleges Act 1971 [Act 30] or the Universiti Teknologi MARA Act 1976 [Act 173] or the Politeknik Ungku Omar established under the Politeknik Ungku Omar Act 1974 [Act 145]
Required to register
(xiia) Commercial land transport, that is, the provision of commercial vehicles including but not limited to public service vehicles and goods vehicles for carrying passengers or goods as defined under the Commercial Vehicles Licensing Board Act 1987, as follows:
airport taxi cab
limousine taxi cab
(xiib) Railway transport services, that is, the provision of any railway transportation for the public carriage of passenger or goods or both including trains, commuters, monorails, light rail transit system links and any related railway transportation on a wage, fee or contract basis;
(xiii) Direct selling, that is, a door-to-door sale or a mail order sale within the meaning of Direct Sales Act 1993 [Act 500];
(xiv) Port services, that is, the undertaking of all or any work of every description in connection with the management or operation of the port by any private port, inland port or, any company, firm or person authorized by way of license to undertake such work;
(xv) Engineering support and maintenance services, that is, the operation, testing or maintenance of electrical, electronic, software engineering and mechanical systems and equipment, including but not limited to the testing and the commissioning of any new equipment which services are provided to any companies, businesses, factories or public authorities;
(xvi) Research and development, that is the conducting of research and development activities includes-
Pure research such as experimental or theoretical work undertaken primarily to acquire new scientific or technical knowledge;
Applied research such as original or critical research undertaken in order to acquire a new scientific or technical knowledge, or directed towards a specific practical objective; and
The use of scientific or technical knowledge in order to produce new or substantially improved materials, devices, products or services to install new processes or systems prior to the commencement of commercial production or applications, or improving substantially those already produced or installed;
(xvii) Warehousing services, that is, the provision of a bonded warehouse or any other place licensed for the warehousing of dutiable goods which includes all goods subject to the payment of customs duty and on which duty has not yet been paid;
(xviii) Security services, that is, the provision of private security services that includes providing guard and patrol, security consultancy, armoured car or providing advice relating to the security of property, premises, personnel, plant and equipment;
(xix) Private hospital services, that is, the provision of treatment or wards to a patient in any premises other than a Government hospital or institution and includes any private maternity home but does not include private nursing home within the meaning of the Private Healthcare Facilities and Services Act 1998 [Act 586]; and
2. Employers with fifty or more employees
(xxi) Hypermarket, supermarket and departmental store services, that is, the sale of items such as groceries, daily necessities, garden produce, meat, confectionary, beverages, domestic hardware and toilet requisites, menswear, womenswear, children’s wear and any other types of apparels, electrical goods, furniture or any other goods for sale
Imposition of Levy
Section 14(1) of PSMB Act 2001 stipulates that there shall be paid by every employer to whom the PSMB Act 2001 applies, a HRD levy in respect of each of his employees at the rate of one per centum of the monthly wages of the employee.
Any employer who fail to pay any levy due within such period as may be prescribed commits an offence and shall on conviction be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding two years or to both.
Imposition of Levy On Employer Who Opts To Be Registered
Section 15(2) of PSMB Act 2001 stipulates that there shall be paid by employer a HRD levy in respect of each of his employees at the rate of 0.5 per centum of the monthly wages of the employee.
HRDF Expansion Act
Download for more info of the new Expansion Act. (BM Version Only)