Potential Liable Employer Information

For your information, employers who received the letter had been identified as potentially liable to register with HRDF. Thus, the aforementioned employers need to respond by filling in Form 1 through our online application and submit it within 30 days from the date of the letter. Failure to comply within such period is an offence under PSMB Act 2001.

About PSMB

PSMB is a dynamic organisation under the Ministry of Human Resources (MOHR), Malaysia that was established in 1993. Governed by the Pembangunan Sumber Manusia Berhad Act 2001 (Act 612), PSMB has been mandated by the Government of Malaysia to catalyse the development of a competent local workforce who will contribute towards Malaysia’s vision of becoming a developed and high-income economy.

PSMB continues to be steadfast in its efforts towards encouraging employers covered under the PSMB Act 2001 to retrain and upgrade the skills of their local employees, apprentices and trainees in keeping up with the fast evolving global business landscape while meeting their individual company’s aspiration through the provision of financial assistance via grant disbursements from Human Resources Development Fund (HRDF).

PSMB ACT 2001 (ACT 612)

Section 13(1) of the PSMB Act stipulates that employers liable under the Act are obligated to register. The section states that “Every employer to whom this Act applies shall register with the Corporation within such time and in such manner as may be prescribed”. Action can be taken to employers under the Section 13(2) of the Act if employers contravene subsection (1) as above with a fine not exceeding ten thousand ringgit or imprisonment not exceeding 1 year or both.

Details activity in the industry covered under PSMB Act, 2001 are showed below:

Table 1.1

The sections above explain that any employers who are liable under the Schedule 1 of the Act need to register with PSMB. Below are employers that are covered under the Schedule 1:

Compulsory Category

Minimum Liable Employees
  • 10 or more Malaysian employees

Industry Covered
  • Manufacturing
  • Services
  • Mining & Quarrying

Table 1.2

Any employers with above requirements are compulsory to register with PSMB and employers can also opt to register if they have less than 10 Malaysian employees as per table below:

Optional Category

Minimum Liable Employees
  • 5 to 9 Malaysian employees

Industry Covered
  • Manufacturing
  • Services
  • Mining & Quarrying

Registration/Eligibility Check

Employers can fill in Form 1 through our online application in the HRDF Portal at www.hrdf.com.my. By submitting Form 1, employers’ eligibility will be reviewed through information declared and supporting documents attached. ONLY eligible employers under the Act will be APPROVED and if employers are not eligible, the form will be rejected as not liable.
Below are the steps to submit Form 1:-

Online Application

*Please scan supporting documents needed before filling in the form.

1. Visit HRDF website at www.hrdf.com.my
2. Go to “ Register Here" > "Employer"
3. Click “Liable (Form 1)
4. Fill in the required fields in the form and attach supporting documents
5. Click “Submit” on top of the form

Supporting Documents

*Please scan supporting documents needed before filling in the form.

1. Business license / Company registration documents. Example: Form 9, Section 17 or Section 14 (Superform)
2. Latest EPF statement
3. Company Profile or Audited Annual Report

Benefits as Registered Employers

PSMB through PSMB Act 2001 imposes the collection of Human Resources Development (HRD) levy by the way of legal authority on liable employers in Malaysia. Employers will get financial assistance through grant payment from PSMB for the cost of training conducted to their workers. In a way, a collection of levy is a structured training budget that is compulsory for registered employers for their workers’ training.
The training grant will be disbursed to registered employers through various schemes provided by PSMB. Employers can leverage from these schemes to upgrade their employees’ skills and knowledge.

Apart from utilising own levy collections, registered employers have a privilege to access for other funds from the government or get funded by PSMB itself. The Strategic Initiatives fund by PSMB or other government funding are available for registered employers especially Small and Medium Enterprise or SMEs.

PSMB is committed to raise the quality of training conducted to registered employers through HRDF Evaluation Framework and HRDF Certified Trainers’ Development Framework. This is to ensure that our registered employers can only access to a pool of high quality and competent trainers with high quality and relevant courses needed by the industry.

PSMB registered employers had recorded an increase productivity by 3% according to the Effectiveness Study of HRDF by World Bank in 2017. It is also recorded that registered employers conducted more trainings than non-registered employers.

PSMB also offers various levels of HR service and advisory for registered employers. It is a one-stop centre for employers to get advice on HR matters. The 3 levels of HR service are as per below:
  • a. 1st Level : offers various of useful tips and information on HR related matters through our NHRC portal. Employers also can download articles or standard formats used in HR (i.e. letter of appointment) for free
  • b. 2nd Level : quick solutions, advice and guidance pertaining HR-related topics can be addressed through NHRC call centre
  • c. 3rd Level : HR consultancy and advice through our registered HR Consultant with minimal fee for on-site or off-site intervention.

Frequently Asked Questions (FAQ)

What will happen if I ignore the letter of registration from PSMB assuming that I am not liable to the PSMB Act 2001?If PSMB doesn’t receive any response from employers within 30 days, employers can be compounded for RM2,000 (Max) under Sec.4A Regulations of the Act. Eligibility of employers under the Act can only be decided by PSMB and not by employers itself. Employers are advised to fill in Form 1 to receive an official confirmation from PSMB on the eligibility.
If I fill in and submit Form 1, will I be registered automatically?Only liable employers will be registered. If employers’ activity is not covered under the Act, the application of Form 1 will be rejected and employer will receive a letter of exemption. PSMB cannot register employers that are not liable under the Act.
Can I just call or email PSMB to confirm my eligibility?PSMB cannot confirm your eligibility through phone or email because we need to verify the supporting documents as well as the information filled in the form. Your eligibility can only be confirmed after the form has been processed by PSMB.
Why should I register with PSMB?Liable employers are compulsory to register as required by the Law under PSMB Act, 2001 or Act 612. This is to encourage training and skills upgrading by employers to their employees.
How can I get more information on PSMB and registration of employers? Employers can visit our portal at www.hrdf.com.my and click (Services>Employer>About Employer)