Why is FMM calling for firmer actions regarding HRD Corp?

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FMM Calls for Stronger Governance at HRD Corp Following Audit Findings

The Federation of Malaysian Manufacturers (FMM) is urging for more decisive actions concerning the Human Resource Development Corporation (HRD Corp) in light of critical findings from the Auditor-General’s (AG) Report 2/2024 and the Public Accounts Committee (PAC). These reports have brought to light significant issues related to fund mismanagement and unsatisfactory governance practices within the organisation, prompting FMM's call for enhanced accountability and structural reforms.
Audit and PAC Reports Highlight Governance Deficiencies

The AG’s Report 2/2024 and subsequent PAC findings have detailed specific instances of mismanagement and governance weaknesses at HRD Corp. These reports underscore the necessity for greater accountability in how the human resources development fund, contributed solely by employers, is managed. The findings point to a clear need for robust board oversight to ensure strict adherence to the Pembangunan Sumber Malaysia Berhad (PSMB) Act 2001 and established procedural guidelines.
Calls for Structural Changes and Act Review

FMM, through its president Tan Sri Soh Thian Lai, has articulated that the governance concerns identified necessitate profound structural changes within HRD Corp. The objective is to significantly improve the organisation’s transparency and operational efficiency. Furthermore, FMM has proposed a comprehensive review of the PSMB Act 2001, suggesting potential amendments such as the removal of the investment portfolio and granting the board greater authority in the appointment of the chief executive officer.
Acknowledgment of Recent Remedial Actions

While advocating for stronger measures, FMM has also acknowledged the proactive steps taken by the Human Resources Minister, Steven Sim. His swift engagement with the Malaysian Anti-Corruption Commission (MACC), as recommended by the AG's report, demonstrates a serious commitment to addressing the findings. Additionally, FMM noted that HRD Corp has initiated efforts since December to overhaul its financial management, including the crucial separation of accounts to ensure that levies collected are exclusively allocated for training purposes.

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Why is FMM calling for firmer actions regarding HRD Corp?

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