FMM PRESS STATEMENT: Industry Supports HRD Corp's Allowable Cost Matrix Enhancements to Promote Flexible and High-Value Training

Head Office, KL

Kuala Lumpur, October 9, 2024 – The Federation of Malaysian Manufacturers (FMM) welcomes the enhancements to HRD Corp's Allowable Cost Matrix (ACM) announced by Minister of Human Resources YB Tuan Steven Sim Chee Keong. The shift towards hourly rates for course fee claims and the increase in the ceiling for course fees represent positive steps towards fostering a more flexible and responsive lifelong learning environment. These changes will enable employers to better leverage shorter-duration and more specialised and high-end training programmes to upskill their employees, aligning with evolving workforce needs for continuous skills development and digital transformation.

The shift towards hourly rates for course fee claims represents a significant advancement in training delivery flexibility, allowing employers to adopt shorter, more focused training sessions. This is particularly crucial in today’s fast-paced and technology-driven environment, where the need for upskilling and reskilling can arise swiftly, and employees may not have the time or ability to commit to full-day training sessions. By enabling claims on an hourly basis, businesses can better manage time and resources, ensuring that their workforce receives the necessary training without interrupting operational continuity. Allowing hourly rates would also allow employers to select specific topics or skills their workforce needs, creating a more targeted and relevant learning experience. This flexibility ensures that training directly addresses skills gaps without unnecessary content.

Moreover, the increase in the ceiling for course fees, up to RM1,500 per hour or RM10,500 per day, reflects the rising costs of high-quality training programmes and acknowledges the need for more specialised, high-value courses. As industries become more complex and globalised, employees require access to cutting-edge training that equips them with advanced skills and knowledge. This adjustment will enable employers to invest in top-tier professional development opportunities, such as micro-credential programmes, that enhance their workforce’s capabilities.

FMM believes that these changes will contribute significantly to the overall competitiveness and productivity of Malaysian industries. By making it easier for businesses to adopt continuous skills development programmes, companies in the manufacturing sector can ensure that their workforce remains agile and adaptive to industry changes, ultimately leading to higher efficiency, better product quality, and increased global competitiveness.

As FMM continues to support Malaysian manufacturers in meeting the challenges of an evolving industrial landscape including the move towards more, we look forward to collaborating further with HRD Corp to maximise the benefits of these enhancements, ensuring that employers across all sectors are well-positioned to take advantage of more flexible training models, higher-quality programmes, and ultimately, a more skilled and resilient workforce.

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Tan Sri Dato’ Soh Thian Lai

President, Federation of Malaysian Manufacturers

FMM Advocates Transparency, Integrity, Accountability and No Corruption

About FMM

The Federation of Malaysian Manufacturers (FMM) has been the voice of the Malaysian manufacturing sector since 1968. Representing over 12,700 member companies (4,000 direct and 8,700 indirect) from the manufacturing supply chain, FMM is actively engaged with government and its key agencies at Federal, State and local levels. FMM is also well-linked with international organisations, Malaysian businesses and civil society. Apart from benefitting from FMM’s advocacy, FMM members enjoy value-add services, including training, business networking and trade opportunities as well as regular information updates.

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