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Responses to HRDF Townhall Session – Pool Fund

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HR: Human Resources

Responses to HRDF Townhall Session – Pool Fund

In this response, HRDF explains why it has decided to temporarily suspend the implementation of various Strategic Initiatives which uses the 30 per cent Consolidated Fund, as of 12 June 2018.

 

As shared last week, on 7 June 2018, close to 600 HRDF registered Training Providers gathered for a Townhall with the Minister of Human Resources, YB M. Kula Segaran.

In continuing to present the compiled answers to questions raised, this week we focus on responses to questions raised regarding the Pool Fund (HRDF 30 per cent Consolidated Fund). However, if you’d prefer to to review the answers all at once, you can visit their site here – what is listed below is exactly as posted on their website.

 

 

ABOUT THE POOL FUND: 

  • The HRDF 30 per cent Consolidated Fund was established in Year 2015 for HRDF to implement various strategic initiatives in line with the nation’s human capital agenda as well as industry specific requirements for Malaysian talent to move up the value chain. 
  • However, as at 12 June 2018, HRDF has decided to temporarily suspend the implementation of various Strategic Initiatives which use this Consolidated Fund.
  • The temporary suspension is to enable HRDF to review the policies, procedures and implementation mechanism of the Consolidated Fund as part of improving effectiveness and transparency which will benefit all stakeholders.
  • Once the exercise is completed, the decision on whether to reactivate this Consolidated Fund and initiatives will be announced on our HRDF website / portal for reference.

 

SELECTION OF PROGRAMMES:

  • Under Industrial Based Certification Programme (INBASE) or Future Workers Training Programme, Employers and Employer Associations are to select programmes and submit those proposals to HRDF.
  • HRDF then will evaluate each proposal which includes the content and relevancy of the training programmes, appointed TPs and verify the validity of the certification (as specified in each proposal).
  • For training programmes under Request for Proposals (RFP), TPs will propose programmes and a Technical Evaluation Committee will then evaluate the content of the  programmes which includes verification of the certification proposed.
  • Training programmes recommended by the Technical Evaluation Committee will be tabled to the Selection Committee for consideration and approval.

 

INDUSTRIAL BASED CERTIFICATION PROGRAMME (INBASE):

  • The approval given to any Association is not based on the year of establishment of the Association. It is based on its relevancy and  required outcomes by industry.
  • However, HRDF has decided to temporarily suspend the implementation of various Strategic Initiatives which uses the 30 per cent Consolidated Fund, as of 12 June 2018.
  • The temporary suspension is to enable HRDF to review the policies, procedures and implementation mechanism of the Consolidated Fund as part of improving effectiveness and transparency which will benefit all stakeholders.
  • Once the exercise has been completed, the decision on whether to reactivate this Consolidated Fund and initiatives will be announced on our HRDF website / portal for reference.

REQUEST FOR PROPOSAL (RFP):

  • There is administrative cost in preparing any RFP.
  • HRDF has reduced the RFP processing cost from RM500 to RM300 for each submission.
  • The selection of courses under any Request for Proposal (RFP) will go through the Tender Opening Committee (TOC), Technical Evaluation Committee (TEC); Selection Committee (SEC); and Price Evaluation Committee (PEC) prior to approval and implementation.
  • The Technical Evaluation Committee has established more than 20 parameters which include:
    • Company Background
      • track record of the TP
      • capacity and capability of the Company
    • Technical Proposal
      • course content
      • trainer profile
    • Significance of Proposed Certification Course
      • content
      • target group
      • certification
  • All parameters will be evaluated based on marks received and the total score will be used as a base for recommendation of approval.
  • As part of continuous improvement, HRDF will publish the Evaluation Criteria sheet on the HRDF website / portal for TPs and trainers’ reference.
  • The Letter of Rejection will also be revised to include reason(s) for the rejection.
  • Additionally, a system will be installed to automate the RFP process.
  • RFP briefings are held to explain / clarify what is required in the official RFP dossier. The information shared using presentation decks are to elaborate on the requirements listed in the dossier.
  • HRDF does not allow any photos and/or videos to be taken during these briefings. This is because the content presented is only for the TPs and trainers who have purchased the RFP.

 

FUTURE WORKERS TRAINING PROGRAMME & OTHER ALLOCATIONS:

  • Allocation was made based on availability of funds under the 30 per cent Consolidated Fund.
  • However, HRDF has decided to temporarily suspend the implementation of various Strategic Initiatives which uses the 30 per cent Consolidated Fund, as of 12 June 2018.
  • As above, this is to review the programme before a decision is made.

 

SUB-CONTRACTOR(S):

  • All HRDF registered TPs are eligible to participate in any HRDF’s programmes or strategic initiatives – as long as they have been appointed by HRDF registered employers or Employer Associations.
  • They are not required to participate through any TP (main contractor) as a sub-contractor.

 

SELECTION PROCESS / APPROVAL PROCESS:

  • Training programmes meant to assist the Employers to train future workers are based on specific skills required.
  • If intervention via training is not required, Employers may recruit directly.
  • There is a stringent process for approval of financial assistance to Employers under Strategic Initiatives (financed by the 30 per cent Consolidated Fund).
  • The process includes verification visits to Employer premises, consideration by a Selection Committee as well as price evaluation and negotiation prior to the approval of any financial assistance.
  • This is to ensure that the training programmes applied for will directly assist the Employers and train future workers based on specific skills required.

DEFINITION OF RURAL UNDER ‘RAISE’: 

  • HRDF defines ‘rural’ according to Jabatan Perancangan Bandar dan Desa.
  • The RAISE (RURAL ACCELERATED INDUSTRY SKILLS FOR EMPLOYMENT) Programme Guideline under paragraph 4.1 mentions that rural status of trainees will be determined based on justification of location and the socio economic status of the community.
  • Employers also are required to justify – in Appendix D in the RAISE Proposal Format – the reasoning behind the selection of youths from specific rural areas targeted to be trained – for HRDF’s understanding and consideration.

OUTCOME ASSESSMENT: 

  • Different programmes have different intended outcomes.
  • For the Future Worker Programme, the intended outcome focuses on employability.
  • We have to date achieved 85 per cent – 90 per cent of job placement for our participants.
  • For programmes proposed by Associations, they are required to specify intended outcomes for their members.
  • HRDF places emphasis on the outcome achievement portion when any funding is requested.
  • Based on HRDF Effectiveness Study conducted by the World Bank recently, HRDF-registered companies who sent their employees for trainings registered a 3 per cent higher productivity increase compared to companies who were non-HRDF registered.

 

SME Assist believes that the decision to temporarily suspend the implementation of various Strategic Initiatives which use this Consolidated Fund is a timely one, taking into account the controversies surrounding the Fund ever since its inception.

An in depth study is most certainly needed, and in more equitable terms for all stakeholders concerned.

 

is an Author, Trainer and Consultant in the areas of Entrepreneurship, Communication, Organizational Development and Project Management. Some of his past successes include restructuring a private University to enable an increase in student numbers, and serving the Malaysian government as a Communications Consultant as part of its profile building efforts. He is now focused on success building of individuals and organizations.

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