How will the new RM300 HRDC fee impact SME training budgets?

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New RM300 HRDC Fee to Reduce SME Training Capacity

The introduction of a RM300 per employee fee for microcredential training grants by the Human Resource Development Corporation (HRDC) is expected to diminish the financial resources available for upskilling initiatives within Small and Medium Enterprises (SMEs). This new charge will directly reduce the quantum of funds SMEs can allocate towards training programs from their mandatory contributions, with smaller businesses facing a disproportionate impact on their training budgets.
Reduced Training Allocation for SMEs

SMEs contributing to HRDC will see a portion of their mandatory payments diverted to cover the new microcredential fee, thereby decreasing the amount available for actual training. For instance, an SME with 10 employees, contributing RM2,400 annually to HRDC, would have RM600 of that sum earmarked for the RM300 per employee microcredential charge. This allocation means that for a customer service course costing RM800 per person, the SME might only be able to train two employees instead of three, directly curtailing the reach of its training efforts.
Disproportionate Impact on Smaller Businesses

The RM300 per employee fee is likely to affect smaller enterprises more significantly than larger ones. These businesses often operate with tighter margins and more limited training budgets. The imposition of an additional per-employee charge directly eats into funds that could otherwise be used for essential skills development, potentially hindering their ability to adapt and grow in a competitive market.
Stakeholder Consultation Concerns

The Small and Medium Enterprises Association of Malaysia (SAMENTA) has expressed disappointment regarding the HRDC's decision to implement this fee without prior consultation with key stakeholders. SAMENTA Central chairman Datuk William Ng highlighted that this lack of engagement means the industry's concerns and the potential ramifications for SMEs were not adequately considered before the policy was established.
Call for Review of the Fee Structure

In light of these concerns, SAMENTA has urged the Minister of Human Resources, Datuk Seri M. Saravanan, to place a hold on the implementation of the RM300 fee. The association seeks further explanation from the HRDC Board regarding the rationale and financial necessity behind this new charge, advocating for a review to ensure it aligns with the overarching goal of enhancing Malaysian workforce skills.

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How will the new RM300 HRDC fee impact SME training budgets?

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