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This step is expected to benefit more Malaysians including the youth, women, and informal sector workers to get recognised skills training and relevant to the needs of the labour market.
Just last week, Malaysia's Dewan Rakyat saw the first reading of the Employment Insurance System (Amendment) Bill 2025. This week, it saw the amendments of two key Acts introduced under the Ministry of Human Resources (KESUMA) – namely the National Skills Development Bill (Amendment) 2025 [Act 652] and the Skills Development Fund (Amendment) 2025 [Act 640].
KESUMA dubbed the amendments to both Acts as an important step in strengthening the country's skills development system and ensuring that the Malaysian workforce is prepared to face the challenges of the future skills-based and technologically advanced economy.
Here is a breakdown of the amendments to Act 652 and Act 640 respectively:
The National Skills Development Bill (Amendment) 2025 [Act 652] was tabled to streamline skills certification in Malaysia and strengthen the country’s skilled workforce. The key objectives of this amendment include:
- Increasing the membership of the National Skills Development Council by involving strategic ministries and professional bodies to make TVET policies more inclusive.
- Recognising skills training programmes outside the National Occupational Skills Standard (NOSS) for funding under the Skills Development Fund Corporation (PTPK).
- Extending the accreditation period for skills training providers from three to six years, and introducing clearer, transparent, and accountable suspension and revocation procedures.
- Introducing the Malaysian Modular Skills Certificate (MMSC) as a flexible learning pathway aligned with the concept of lifelong learning.
- Recognising the expertise of the local workforce through new categories: skills specialist, senior skills specialist, and skills consultant.
The Skills Development Fund (Amendment) 2025 [Act 640] aims to expand the scope of PTPK financing. The key objectives of this amendment include:
- The expansion of the scope of Skills Training Loans and Financial Assistance to other training programmes recognised by JPK.
- Strengthening governance through more transparent approval, management and control processes for financial assistance.
- Strengthening enforcement and investigative powers, including a 12-year statute of limitations on legal action and travel restrictions on defaulting borrowers.
According to KESUMA, this move will enable PTPK to provide loans and financial assistance to more Malaysians, including those who are following non-SKM training programmes but are in high demand by the industry.
In a separate Facebook post, Steven Sim, Minister of Human Resources Malaysia, said the amendments is a strategic step to strengthen the country's skills system in order to be more responsive to the needs of industry and future technology.
This step is expected to benefit more Malaysians including the youth, women, and informal sector workers to get recognised skills training and relevant to the needs of the labour market.
"This amendment not only ensures that Malaysia's skills development remains inclusive and competitive, but also becomes a major driver for high skills-based economic growth," Minister Sim stated.
KESUMA stated that these amendments will make Malaysia’s skills development system more inclusive, flexible, and impactful, aligning with the MADANI agenda that prioritises skills, welfare, and outcomes for the people.
The second and third readings of the amendments to the acts will be tabled by the Minister and debated in Parliament this December.
Infographics / KESUMA Facebook
Lead image / KESUMA Facebook
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