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 Datuk Seri Anwar Ibrahim stated that the exemption applies to all educational institutions, including preschools, primary and secondary schools, vocational education centres, institutions of higher learning, and general training institutes.

According to BERNAMA News Agency, the Prime Minister made this announcement at the National Training Weeks (NTW) 2025 event held at the Bukit Jalil National Stadium. Human Resources Minister Steven Sim was also present. Anwar emphasized that the exemption aims to help these institutions focus on enhancing the quality of education and training provided.

The Prime Minister instructed the secretaries-general of the Ministry of Education (MOE) and the Ministry of Human Resources (KESUMA) to ensure that the training institutions maintain high standards following the levy waiver. He also urged private companies with high profits to contribute to their workers’ development.

Under the Pembangunan Sumber Manusia Berhad Act 2001 (Act 612), employers are mandated to pay a levy to the Human Resource Development Corporation (HRD Corp), which is under KESUMA, for training and skills development purposes. Anwar highlighted the importance of training the younger generation in fields such as digital transformation, artificial intelligence (AI), and semiconductor manufacturing, aligning with the MADANI Economic Framework.

The Prime Minister noted that Malaysia is a significant hub for the semiconductor industry in the ASEAN region, hosting some of the world’s largest semiconductor and AI companies. Meanwhile, KESUMA stated that the levy exemption, valued at RM46 million, involves 1,668 educational institutions and will be effective from Jan 1 to Dec 31 next year.