Using Your HRD Corp Levy for AI Training: A Practical Guide
How Malaysian employers use the HRD Corp levy to fund AI training — who pays the levy, when to apply, which documents you need, and how to pick a course that sticks.
Many Malaysian employers pay the HRD Corp levy every month and never use it. Meanwhile, their teams are expected to "use AI" with no training at all. If that describes your company, the budget to fix it may already be sitting in your levy account.
This guide explains how the process works in practice. It is written from the training provider's side — HRD Corp sets the rules, and they change from time to time, so always confirm current requirements on the official HRD Corp website or with your HRD Corp officer.
Who pays the levy
Under the Pembangunan Sumber Manusia Berhad Act, employers in covered sectors with ten or more Malaysian employees must register with HRD Corp and pay a levy, generally 1% of monthly wages. Smaller employers with five to nine Malaysian employees may register voluntarily at a lower rate. The levy accumulates as a balance your company can use for approved training.
If you are unsure whether you are registered, ask your HR or payroll team — they will see the monthly contribution.
How a training claim works
From our side of the table, a typical claim for an in-house AI course runs in five steps:
- Check the balance. HR checks how much levy is available in the employer portal.
- Choose the course and dates. The training provider sends the course outline, schedule, trainer details and a quotation.
- Apply before training starts. HR submits the grant application online. Approval must be in place before day one — this is the step companies most often leave too late.
- Deliver the training. Attendance is recorded for every session.
- Submit the claim. After the course, the provider issues the invoice, attendance records and certificates, and HR submits the claim.
The paperwork is not difficult, but it has to be complete and consistent. A course outline that does not match the invoice, or attendance sheets that are missing a session, are the usual reasons a claim stalls. Ask your provider for a documentation pack before you apply. Ours is described on our HRD Corp page.
Choosing an AI course worth the levy
The levy removes the budget objection. It does not guarantee the training works. Three questions separate courses that change behaviour from courses that produce certificates:
- Is it built on your team's real work? Generic demos are forgotten within a week. Participants should bring a task from their own job and leave with it rebuilt.
- Does it cover safe use? Any AI course for Malaysian staff should cover what data must never go into a public model, and how that relates to PDPA.
- What happens after the classroom? Skills fade without follow-up. Look for post-course materials, a way to ask questions, and ideally adoption coaching for the teams that matter most.
Match the course to the role
One "AI for everyone" day is a reasonable start, but the return comes from role-specific training:
- All staff: writing, documents, data and safe use — our Generative AI at Work course.
- Operations and admin: automation that removes copy-paste between systems — AI Automation & Agents.
- Leadership: where AI fits the P&L and a 90-day plan — AI Strategy for Leaders.
- Marketing: content systems and brand-safe AI visuals — AI for Marketing & Content.
- Clinical educators: AI in teaching, simulation and assessment — AI in Medical Education.
Plan the calendar backwards
Because approval must come before training, plan backwards from the course date: agree dates with the provider, give HR time to prepare and submit the application, and only then confirm participants. For in-house courses we usually recommend starting the conversation four to six weeks ahead.
Beyond HRD Corp
HRD Corp funds training. It does not fund software. If the training reveals a process worth automating properly, other Malaysian programmes — including MDEC initiatives for digital and AI adoption — may apply to eligible companies. Terms change; check with the funding body or ask us during an AI Opportunity Audit.
If you would like us to check how a course fits your levy balance, book a 30-minute call.