Private educational institutions to get 1-year training levy waiver from 2026
The Human Resource Development Corporation (HRD Corp) is currently collecting the levy for training and skills development.
KUALA LUMPUR : For the first time, the government has announced a one-year exemption from training levy payments for all private educational institutions, effective Jan 1, 2026.
Prime Minister Anwar Ibrahim said the exemption covers all institutions, including preschools, primary and secondary schools, vocational education centres, institutions of higher learning, and general training institutes.
'After receiving numerous views from private education and training institutions, the government has sought the best solution to train our young people. This (exemption) is intended to allow them to focus on improving quality,' he said.
He said this when officiating at the National Training Week (NTW) 2025 at the Bukit Jalil National Stadium grounds here today. Also present was human resources minister Steven Sim.
At the same time, the prime minister directed the secretaries-general of the education ministry and the human resources ministry to monitor and ensure that these training institutions offer quality training following the granting of the levy waiver.
'Also monitor private companies with high profits to ensure they give something back to their workers,' he added.
Under the Pembangunan Sumber Manusia Berhad Act 2001 (Act 612), employers are required to pay a levy to the Human Resource Development Corporation (HRD Corp), an agency under the human resources ministry, for training and skills development.
Anwar also stressed the need to train the younger generation in new fields using current methods, and not remain stuck in outdated training approaches.
He said these include areas such as digital transformation, artificial intelligence (AI), semiconductors and chip manufacturing.
'Malaysia's semiconductor industry is not small – the country is regarded as a hub and base for the Asean region. Nearly all of the world's largest semiconductor and AI companies are based in Malaysia,' he said.
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