INVESTMENT in skills development remained a national priority throughout 2025, with the Human Resource Development Corporation approving RM2.62 billion in financial assistance for training and skills development activities, marking a 32 per cent increase compared with 2024.
Over the same period, more than 2.8 million training places were approved, representing a three per cent rise year on year and signalling continued momentum in Malaysia’s human capital development agenda.
The manufacturing sector accounted for the highest number of approved training places, exceeding 795,000 in 2025. The sector continues to be the country’s second-largest contributor to gross domestic product, contributing between 23 and 25 per cent.
As of November 2025, manufacturing employed 2.4 million workers across segments including electrical and electronic products, food and beverages, and petroleum and chemical products. Average salaries and wages in the sector rose by 1.1 per cent year on year.
At the same time, the information and communications technology sector continued to play a central role in driving Malaysia’s digital economy. In 2024, the digital economy contributed 23.4 per cent to GDP and is projected to rise to 25 per cent in 2025.
To support this growth, RM130 million in financial assistance was approved under the Fourth Industrial Revolution initiative, covering more than 103,000 training places across the digital economy and ICT sectors.
These trends reflect the growing importance of skills development in strengthening workforce resilience and enhancing business competitiveness, particularly as industries face rapid technological change, intensifying competition for skilled talent and increasingly complex job requirements.
Against this backdrop, HRD Corp has focused on delivering practical outcomes for employers, ensuring accessibility for communities and aligning training initiatives with the future direction of workforce development in Malaysia and the wider ASEAN region.
Inclusive access to skills development also remained a key priority. Throughout 2025, a total of 18,137 Malaysians benefited from various skills initiatives funded through a combination of government grants and internal resources.
Among these was the Malaysian Indian Community Skills Initiative, which focuses on expanding access to training and improving employability within the Indian community. Last year, 1,108 participants received training under the programme, with a further 442 participants expected to be trained.
In the transport and logistics sector, the Professional Advancement in Trucking and Haulage initiative was implemented through collaboration between HRD Corp, the Ministry of Human Resources and the Ministry of Transport. Aimed at strengthening the heavy vehicle and haulage workforce, the programme targets 1,000 participants nationwide.
The initiative emphasises upskilling existing workers and developing new talent through structured training that includes Class E driving certification and Goods Driving Licence qualifications, covering both rigid and articulated vehicles, as well as defensive driving skills.
In 2025, 156 participants successfully completed the programme, supporting improved employability and income prospects in the logistics and transprt sector.
Strategic collaboration was also undertaken with the Sarawak Centre of Excellence for Technology to provide competency-based training and certification aligned with labour market needs. A total of 427 participants completed training under the initiative, with employer support facilitating job placements.
To strengthen diversity and inclusion within the national training ecosystem, HRD Corp implemented the Training Market Transformation initiative. During 2025, eight Train-the-Trainer sessions were conducted, benefiting 134 persons with disabilities.
Community-level skills development was further enhanced through a technical and vocational education and training-based approach. In 2025, 9,929 participants received training through Skills Development Training Centres, while 4,210 individuals benefited from public awareness programmes and advisory services.
These centres collaborated with 39 strategic partners, demonstrating the effectiveness of community-based delivery models in expanding access to skills development beyond major urban areas.
In conjunction with Malaysia’s ASEAN chairmanship in 2025, HRD Corp, with the support of the Ministry of Human Resources, took a leading regional role in human capital development through the ASEAN Year of Skills 2025.
The initiative comprised seven key platforms developed collaboratively with the International Labour Organization and culminated in the Global Skills Forum 2025 and the ASEAN Forum of Manpower Ministers for Human Capital Development.
One of HRD Corp’s flagship programmes, the National Training Week, introduced in 2022, entered its third edition in 2025 with expanded reach and participation.
Organised in conjunction with the ASEAN Year of Skills, the 2025 edition was opened for the first time to participants beyond Malaysia’s borders, strengthening regional cooperation and widening access to learning opportunities.
From a financial governance perspective, HRD Corp continued to apply a disciplined, risk-based investment approach to safeguard levy contributors’ funds while ensuring sustainable long-term returns.
Guided by strong governance, prudent asset allocation and active risk management, its investment strategy balanced fund preservation with sustainable growth amid challenging market conditions.
This approach contributed to a three per cent increase in assets under management to RM4.16 billion, with the investment portfolio generating returns of RM215 million, equivalent to a return on investment of 5.35 per cent.
The performance reinforced HRD Corp’s commitment to integrity and prudence in financial management.
Building on the momentum of its 2025 achievements, HRD Corp is set to further strengthen skills development initiatives in 2026, with a particular focus on increasing the participation of small and medium enterprises and empowering the Malaysian workforce towards higher skill levels. - January 16, 2026
