Employers can use RM2bil HRD levy to hire Malaysian graduates from September

PETALING JAYA: Human Resources Minister Steven Sim Chee Keong has announced that employers can utilise up to RM2 billion from the human resources development (HRD) levy fund to hire Malaysian graduates beginning Sept 1.

“As a Merdeka gift, I am unlocking up to RM2 billion in the HRD levy fund for you to hire Malaysian graduates beginning Sept 1, 2025.

“You will now be able to use your levy money to pay the salary of your workers if they are university graduates or TVET graduates,” he said in his speech at the Federation of Malaysian Manufacturers (FMM) Annual Dinner 2025 here last night.

Also present were Digital Minister Gobind Singh Deo, FMM president Tan Sri Soh Thian Lai and FMM deputy president Lee Chor Kok.

Sim highlighted that the initiative would not only help employers improve cashflow, but also place a greater premium on human capital, create more higher-paying jobs and provide on-the-job training for graduates.

He also reminded industry players not to overlook human capital while chasing technology-driven productivity, especially with artificial intelligence (AI) increasingly reshaping industries.

“This confirmed our instinctive suspicion for the past few years.

“AI replaces conventional academic-trained personnel… this will dent the signalling value of an academic degree in the future,” he said.

Sim said Malaysia had already spent up to RM77.2 billion on digitalisation until the end of last year, while global tech players such as Google, Microsoft, Bytedance and Amazon have committed to invest over RM60 billion in the country.

“Through the National Semiconductor Strategy, Malaysia has also received RM46.5 billion in investments in high-tech, high-growth, high-value sectors such as wafer fabrication, AI chips and integrated circuit production,” he said.

The dinner also marked the 57th anniversary of FMM.– Bernama

Aminuddin, I. (2025, August 19). RM2 billion HRD levy to support graduate jobs. RinggitPlus. Retrieved from https://ringgitplus.com/en/blog/personal-finance-news/rm2-billion-hrd-levy-to-support-graduate-jobs.html

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