HRDF Field Notes — 2026-05-16

This Thursday Field Notes edition covers three developments Malaysian HR Managers and L&D Heads should factor into their H2 2026 training plans: a new HRD Corp chairman whose background centres on digitalisation reform, a record levy utilisation figure that tells you more employers are claiming than ever, and the practical gap left now that the MDEC-backed AI Skills Training programme has concluded.

What's new

• New HRD Corp Chairman confirmed. As reported by Business Today and The Star, Datuk Rusli Jaafar — former CEO of Malaysia's Cooperative Commission (SKM) — was appointed HRD Corp Chairman effective 1 April 2026. He joins four other national figures added to the board in February (announced via HRD Corp press release). His 32-year public sector record includes leading digitalisation strategy and organisational restructuring at SKM, and developing Malaysia's Cooperative Policy 2030. Whether that background translates into faster approval turnarounds or expanded claimable-course categories for AI remains to be seen, but the governance reform signal is deliberate.
• HRD Corp approved RM2.62 billion in financial assistance for 2025. The New Straits Times reported this figure in January 2026, a 32 per cent increase over 2024. More employers claiming is good for the ecosystem — it normalises the habit of using levy rather than leaving it idle. It also means HRD Corp's approval scrutiny is under real operational pressure, which is one likely driver of the tighter pre-approval requirements L&D teams have been encountering when submitting SBL-Khas applications for newer AI course codes.
• MDEC AI Skills Training programme has concluded. The MDEC-facilitated programme — which ran as a fully SBL-claimable cohort series from August 2025 through April 2026 — is no longer accepting enrolments. Tracks included AI for Office Management and AI-Driven Sales and Customer Engagement. For employers who relied on that pipeline to satisfy AI upskilling commitments, the replacement gap is real. Private HRDF-registered providers remain the operational path forward, but course codes, trainer registration and grant applications must be managed end-to-end without MDEC facilitating the coordination.
• AI transformation training SBL-Khas rates remain generous. Per updated guidance collated by multiple Malaysia corporate training registries, the current claim ceiling for AI transformation training sits at RM10,500 per day per trainer under SBL-Khas — one of the highest per-day caps in the scheme. SMEs with fewer than 200 staff can access 100% subsidy. The most frequently approved AI course format in 2026 remains a two-day Applied AI for Business Users programme priced at RM2,500–4,000 per participant, with HRDF covering up to 70 per cent. Online-only AI programmes are claimable at up to RM300 per participant per programme, provided the provider is HRDF-registered, usage is tracked, and a certificate is issued.

Why it matters for your training claims

The MDEC programme's conclusion removes a convenient shortcut. When a government agency co-ordinates and co-brands a training cohort, the implicit credibility makes SBL-Khas approval smoother for individual employers enrolling staff. Without that wrapper, your L&D team carries more of the administrative burden: checking trainer registration status, confirming course code eligibility, submitting the grant before training starts, and managing attendance documentation. None of this is prohibitive, but it does require more lead time than teams who were used to MDEC-managed cohorts typically plan for.

The record RM2.62B utilisation figure has a second-order implication: it suggests the average Malaysian employer's levy account is working harder. If your company has been consistently claiming at or near balance, you may find less headroom for large multi-cohort AI programmes in H2 without supplementing with budget allocation alongside the levy claim. This is worth surfacing now — not after you have received training proposals.

The new chairman's governance background is worth watching over the next two quarters. Boards with digitalisation experience tend to push for faster cycle times on approvals and broader scheme coverage for technology topics. If HRD Corp accelerates course-code registration for agentic AI, LLM integration, and AI risk and governance subjects — categories currently under-represented in the register — that would materially widen what is claimable for Malaysian employers in the second half of 2026.

What to do next

1. If your team was enrolled in or considering the MDEC AI Skills Training programme, identify a HRDF-registered private provider now and initiate the SBL-Khas grant application before your target training dates. HRD Corp requires the grant to be approved before training begins — retroactive claims are not accepted.
2. Review your levy account balance against your H2 training plan. Where account balance is tight, separate the must-do regulatory and compliance training from the AI upskilling cohorts and sequence accordingly.
3. Brief your training provider on the new HRD Corp board composition and ask them to flag any scheme-level changes — new course codes, revised subsidy bands, updated trainer registration requirements — as they are announced over the coming months. The leadership change is recent enough that policy signals may still be forming.

Based in Penang — delivering nationwide. Contact [email protected] to scope your next HRDF-claimable cohort.