Malaysia

Private educational institutions to get one-year training levy waiver from 2026

Private education and training institutions are to monitor and ensure the extent of education quality following the granting of the levy waiver

Updated 11 months ago · Published on 14 Jun 2025 10:44AM

Private educational institutions to get one-year training levy waiver from 2026
The MADANI government stresses that young people need to be trained - June 14, 2025

Prime Minister Datuk Seri Anwar Ibrahim said the exemption covers 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,” Bernama cited him saying.

He said this when officiating at the highlight of the National Training Weeks (NTW) 2025 at the Bukit Jalil National Stadium grounds here today. Also present was Human Resources Minister Steven Sim.

At the same time, the Prime Minister directed the secretaries-general of the Ministry of Education (MOE) and the Ministry of Human Resources (KESUMA) 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 added.

Under the Pembangunan Sumber Manusia Berhad Act 2001 (Act 612), employers are required to pay a levy to the Human Resource Development Corporation (HRD Corp), an agency under the Ministry of Human Resources (KESUMA), for training and skills development.

Anwar also stressed the need to train the younger generation in new fields using current methods, in line with the MADANI Economic Framework, and not remain stuck in outdated training approaches.

He said 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. - June 14, 2025

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