KUALA LUMPUR, June 14 — For the first time, the government has announced a one-year exemption from training levy payments for all private educational institutions, effective January 1, 2026.
Prime Minister Datuk Seri Anwar Ibrahim said the exemption applies to 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 Madani 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.
Anwar was speaking at the official opening of the highlight of the National Training Weeks (NTW) 2025 at the Bukit Jalil National Stadium grounds today. Also present was Human Resources Minister Steven Sim.
At the same time, the Prime Minister directed the secretaries-general of the Education Ministry (MOE) and the Human Resources Ministry (MOHR) 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 said.
Under the Human Resources Development Act 2001, employers are required to pay a levy to the Human Resource Development Corporation (HRD Corp), an agency under MOHR, for training and skills development.
Anwar emphasised the need to train the younger generation in new fields using current methods, in line with the Madani Economy framework, rather than remaining stuck in outdated training approaches.
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.
Meanwhile, in a statement, MOHR said the levy exemption amounts to RM46 million.
The exemption involves 1,668 educational institutions and is valid from January 1 to December 31 next year.
— Bernama
